South Broward Hospital District, d/b/a Memorial Healthcare System v. Office of the Attorney General, Department of Legal Affairs, State of Florida

CourtDistrict Court of Appeal of Florida
DecidedAugust 14, 2024
Docket2023-1481
StatusPublished

This text of South Broward Hospital District, d/b/a Memorial Healthcare System v. Office of the Attorney General, Department of Legal Affairs, State of Florida (South Broward Hospital District, d/b/a Memorial Healthcare System v. Office of the Attorney General, Department of Legal Affairs, State of Florida) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Broward Hospital District, d/b/a Memorial Healthcare System v. Office of the Attorney General, Department of Legal Affairs, State of Florida, (Fla. Ct. App. 2024).

Opinion

FIRST DISTRICT COURT OF APPEAL STATE OF FLORIDA _____________________________

No. 1D2023-1327 _____________________________

HALIFAX HOSPITAL MEDICAL CENTER, d/b/a Halifax Health,

Appellant,

v.

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.,

Appellees. _____________________________

No. 1D2023-1394 _____________________________

NORTH BROWARD HOSPITAL DISTRICT, d/b/a Broward Health,

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.

No. 1D2023-1481 _____________________________

SOUTH BROWARD HOSPITAL DISTRICT, d/b/a Memorial Healthcare System,

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.,

No. 1D2023-1484 _____________________________

SCHOOL BOARD OF MIAMI-DADE COUNTY and PUTNAM COUNTY SCHOOL BOARD,

Appellants,

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.,

Appellees.

2 ____________________________

No. 1D2023-1500 _____________________________

SARASOTA COUNTY PUBLIC HOSPITAL DISTRICT, d/b/a Sarasota Memorial Healthcare System, Inc.,

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.,

No. 1D2023-1529 _____________________________

PUTNAM COUNTY SCHOOL BOARD,

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.,

3 _____________________________

No. 1D2023-1570 _____________________________

LEE MEMORIAL HEALTH SYSTEM, d/b/a Lee Health,

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA, et al.,

On appeal from the Circuit Court for Leon County. John C. Cooper, Judge.

August 14, 2024

B.L. THOMAS, J.

The Attorney General filed suit on behalf of the State of Florida against certain opioid manufacturers, distributors, or prescribers (the “Opioid Defendants”) to combat the opioid- addiction epidemic. After the State filed suit, Appellants—school boards, legislatively created hospital districts, and Lee Hospital System, all “subdivisions” of the state under organic and general law—filed separate lawsuits against the Opioid Defendants, alleging similar claims but asserting unique and individualized damages.

4 The Attorney General ultimately settled the State’s suits against the Opioid Defendants, providing for compensation to many political subdivisions, but no compensation for Appellants, which the Attorney General disavowed representing in the suit. The releases in the settlement agreements required, however, that the Attorney General would seek to dismiss Appellants’ claims by intervening in their cases and filing a motion to dismiss, by commencing a declaratory judgment action, or by seeking legislation barring the subdivisions from prosecuting their claims. The settlement agreements also provided that no entity could ultimately receive any portion of the settlements’ remediation payment or litigation costs payment unless that entity accepted the terms of the settlement agreements. In other words, unless Appellants waived all their claims for damages inflicted by the Opioid Defendants and dismissed their suits for their individual damages claims, the Attorney General would take action against Appellants and seek to extinguish their damage claims. As Appellant North Broward Hospital District notes, however, “no public hospital has signed off on the Attorney General’s settlements, and for good reason: no portion of the settlement proceeds were allocated to public hospitals.”

In fact, the Attorney General denied any intention of quantifying or recovering these damages. Instead, as required by the settlement, the Attorney General filed suit against Appellants in circuit court seeking a declaratory judgment finding that despite this fact, she had the authority under common and general law to release the Appellants’ claims against the Opioid Defendants and that the settlement agreements accomplished that release.

The circuit court entered a declaratory judgment in favor of the Attorney General. That court ruled that the Legislature had granted the Attorney General the authority to enforce consumer protection laws, including the authority to bring an action on behalf of consumers or governmental entities. The court concluded that the Attorney General had the power to release claims, including the Appellants’ legal claims for actual and individual damages different than those generally inflicted on the state as a whole. The court further concluded that it was legally irrelevant that the Attorney General never notified the Appellants of her actions to reach a “Global Settlement” that purportedly eliminated

5 the Appellants’ legal claims. The circuit court ruled that the Attorney General acted as the state sovereign who controlled all legal rights and remedies of independent state bodies created by the constitution and general law. Thus, the Attorney General could waive and eliminate Appellants’ legitimate damage claims against the Opioid Defendants.

We reverse.

I.

The opioid-addiction epidemic in the United States has directly or indirectly killed approximately 645,000 Americans by overdose. This drug epidemic killed more Americans than those lost in World War II, Korea, and Vietnam, combined.

In May 2017, Governor Rick Scott declared opioid overdoses a public health emergency in Florida.

One year later, the Attorney General filed a complaint in the Sixth Judicial Circuit, against some opioid manufacturers and distributors who operated in Florida. The complaint alleged violations of Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA), Florida’s Racketeer Influenced and Corrupt Organizations (RICO) Act, public nuisance, and negligence. The Attorney General amended the complaint to add claims against two pharmacy chains that dispensed opioids in Florida.

Beginning in 2019, Appellants filed suits against the Opioid Defendants. They alleged that they had “incurred massive costs by providing uncompensated care as a result of opioid-related conditions.” Their claims included violations of Florida’s RICO Act, violation of FDUTPA, false and misleading advertising, negligence, nuisance, and unjust enrichment. The Attorney General neither sought to intervene in any of these suits nor notified Appellants of any assertion that she could unilaterally extinguish their legitimate legal claims.

The Attorney General, along with other states’ attorneys general and others negotiated with multiple Opioid Defendants. 6 The Attorney General finalized settlement agreements with seven groups of Opioid Defendants, and consent judgments were entered. Each of the opioid settlements included the requirement that the Attorney General seek to dismiss or otherwise extinguish Appellants’ claims:

[I]f any [legal] Action remains pending against one or more Releasees after the Effective Date of the Agreement or is filed by a Subdivision against any Releasee on or after the Execution Date, Plaintiff will seek to obtain dismissal of such Action as to such Releasees as soon as reasonably possible. Depending on facts and circumstances, Plaintiff may seek dismissal, among other ways, by intervening in such Action to move to dismiss or otherwise terminate the Subdivision’s Claims in the Action or by commencing a declaratory judgment or other action that establishes a Bar to the Subdivision’s Claims and Action. For avoidance of doubt, Plaintiff will seek dismissal of an Action under this paragraph regardless [of] whether the Subdivision in such Action is a Participating Subdivision.

In the event that the actions required of Plaintiff . . .

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Related

State Ex Rel. Shevin v. Yarborough
257 So. 2d 891 (Supreme Court of Florida, 1972)
Zoltan Barati v. State of Florida, Motorola, Inc.
198 So. 3d 69 (District Court of Appeal of Florida, 2016)
Watson v. Claughton
34 So. 2d 243 (Supreme Court of Florida, 1948)
Watson v. Caldwell
27 So. 2d 524 (Supreme Court of Florida, 1946)
Holland v. Watson
14 So. 2d 200 (Supreme Court of Florida, 1943)
Bondi v. Tucker
93 So. 3d 1106 (District Court of Appeal of Florida, 2012)

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South Broward Hospital District, d/b/a Memorial Healthcare System v. Office of the Attorney General, Department of Legal Affairs, State of Florida, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-broward-hospital-district-dba-memorial-healthcare-system-v-office-fladistctapp-2024.