Staggers v. Medtronic, Inc.

CourtDistrict Court, District of Columbia
DecidedSeptember 6, 2022
DocketCivil Action No. 2015-0392
StatusPublished

This text of Staggers v. Medtronic, Inc. (Staggers v. Medtronic, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Staggers v. Medtronic, Inc., (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

UNITED STATES OF AMERICA ex rel. MELISSA STAGGERS and RHONDA KURDELMEYER,

Plaintiff-Relators,

v. Case No. 1:15-cv-392-TSC-RMM

MEDTRONIC, INC.,

Defendant.

MEMORANDUM OPINION

This is a qui tam action brought by Relators Melissa Staggers and Rhonda Kurdelmeyer

(collectively “Relators”) on behalf of the United States. Relators allege that Defendant

Medtronic, Inc. (“Medtronic”) violated the False Claims Act, 31 U.S.C. § 3729 et seq. (“FCA”),

by causing physicians to falsely certify to the United States that their surgical implantation of

Medtronic’s InterStim medical device in patients covered by Medicare met all criteria necessary

for obtaining payment for the procedure from the United States. Seven years into litigation,

Relators have requested an order requiring nonparty physicians across the United States who

implanted the InterStim device in patients on or after January 1, 2003, to preserve related

medical records. Medtronic opposes issuance of such an order. District Judge Tanya S. Chutkan

referred all discovery disputes in this matter to the undersigned. See May 3, 2019 Referral

Order. Having reviewed the pleadings and the parties’ briefs, 1 as well as the relevant law, the

Court will GRANT-IN-PART Relators’ Motion.

1 The relevant pleadings and briefs include: Relators’ First Amended Complaint, ECF No. 18 (“Compl.”); Relators’ Motion for an Order Requiring Preservation of Medical Records, ECF No. 100 (“Mot.”); the Memorandum of Points and Authorities in support, ECF No. 101 1 BACKGROUND

Medtronic is a medical device manufacturer that produces and sells InterStim, a sacral

neuro-stimulator that can be surgically implanted in individuals to help control symptoms of

incontinence. See Compl. ¶¶ 8–9, 25. Relators are former Medtronic employees who assisted

Medtronic in marketing, selling, and providing product support for InterStim in Louisiana,

Mississippi, and Tennessee. See id. ¶¶ 1, 23–24. They allege that Medtronic, motivated by its

desire to increase InterStim sales, successfully encouraged physicians to implant the device in

patients for whom it had not been shown to be medically necessary and to file related, falsely

certified claims for payment from the United States. See id. ¶¶ 45, 83–84, 86–89. Over a

challenge from Medtronic, Judge Chutkan held that Relators’ claim satisfies the pleading

standards of Federal Rules of Civil Procedure 12(b)(6) and 9(b). See Order at 3, ECF No. 36

(the “Dismissal Order”). 2

The parties have since disagreed vehemently about the appropriate scope and course of

discovery in this case. Their disagreements—which both parties have repeatedly looked to this

Court to resolve—have significantly delayed discovery as well as the resolution of Relators’

claims. See Relators’ Mem. at 1–2. Late last year, the parties agreed to a joint plan for

discovery, see ECF No. 94-1 (the “Joint Discovery Plan”), which the Court adopted with slight

modifications in December 2021. See Order, ECF No. 94 (the “Discovery Plan Order”). Under

the Plan, “Phase One” discovery is first permitted into Relators’ claims in a discreet, three-state

territory during an approximately seven-year period, from May 1, 2008 through March 18, 2015.

(“Mem.”); Defendant’s Memorandum in Opposition, ECF No. 103 (“Opp’n”); and Relators’ Reply, ECF No. 104 (“Reply”). 2 Judge Chutkan dismissed Relators’ alternative theory for FCA liability. See Dismissal Order at 4. 2 See Joint Discovery Plan at 2. Once Phase One discovery is complete the parties may jointly

propose a briefing schedule for dispositive motions. See Discovery Plan Order at 2. “What

further discovery, if any, will be permitted will depend on the Court’s disposition of the Parties’

motions.” Joint Discovery Plan at 4.

Since then, Relators have served at least twelve subpoenas on third-party physicians

consistent with the Joint Discovery Plan. See Mem. at 4. Of those twelve physicians, three

responded that all or a portion of their records for patients who received InterStim implants

between 2008 and 2015 were no longer available because the records were not preserved beyond

the time required by state law. See id. Relators then returned to this Court seeking an order

requiring other nonparty physicians who performed InterStim surgeries anywhere in the United

States “at any time from and after January 1, 2003,” to preserve all related medical records “until

further Order by the Court.” Mot. at 1. 3

DISCUSSION

Federal courts have the inherent power to issue orders preserving information relevant to

the claims and defenses brought before them. See Deggs v. Fives Bronx, Inc., No. 19-cv-406,

3 The Discovery Plan Order requires counsel for the parties to “confer in good faith” to resolve any discovery dispute and, if counsel are unable to resolve the dispute, to “JOINTLY submit, via email to Judge Meriweather’s chambers . . . a clear, concise description of the issues in dispute, each party’s position on the disputed issues, and the parties’ joint availability for an on-the-record telephone conference.” Discovery Plan Order at 1 (emphasis original). “Counsel shall not file any discovery-related motion without a prior telephone conference with the Court and opposing counsel.” Id. at 2 (emphasis original). Counsel for Relators did not comply with this command, as their Rule 7(m) Report makes clear. See ECF No. 102 (noting that counsel for Medtronic provided its position on Relators’ motion only on May 16—several days after Relators docketed the instant motion). The Court can and will waive both Local Rule 7(m) and its own procedural requirements for considering this motion. Neither party should anticipate further concessions, and both are reminded that a party who does not prevail on its discovery motion “may be ordered to pay the costs involved, including reasonable attorney’s fees.” Discovery Plan Order at 2. 3 2020 WL 3100023, at *2 (M.D. La. June 11, 2020); Gambino v. Hershberger, No. 16-cv-3806,

2017 WL 2493443, at *3 (D. Md. June 8, 2017). “Because of their very potency,” these inherent

powers “must be exercised with restraint and discretion.” Chambers v. NASCO, Inc., 501 U.S.

32, 44 (1991). Yet there is no binding authority instructing this Court how to weigh preservation

order requests. See O.K. v. Bush, No. 04-cv-1136, 2005 WL 8177541, at *1 (D.D.C. Oct. 27,

2005); El-Banna v. Bush, No. 04-cv-1144, 2005 WL 1903561, at *1 n.3 (D.D.C. July 18, 2005).

The critical question is accordingly “under what circumstances a preservation order should be

issued.” Treppel v. Biovail Corp., 233 F.R.D. 363, 370 (S.D.N.Y. 2006).

Courts facing this question have applied three principal tests. See id.; accord. Deggs,

2020 WL 3100023, at *2; O.K., 2005 WL 8177541, at *1. Relators urge the Court to use either a

two- or three-pronged balancing test derived from Pueblo of Laguna v. United States, 60 Fed. Cl.

133 (2004), or Capricorn Power Co. v. Siemens Westinghouse Power Co., 220 F.R.D. 429 (W.D.

Pa. 2004). See Mem. at 5–6; Reply at 6–7. Medtronic urges the Court to instead apply the

“same analytical framework as a motion for injunctive relief,” as other courts in this District

have done. Opp’n at 4 (quoting Competitive Enter. Inst. v. Off. of Sci. & Tech. Pol’y, No. 14-cv-

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Related

Chambers v. Nasco, Inc.
501 U.S. 32 (Supreme Court, 1991)
Sherley v. Sebelius
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Khatib v. Alliance Bankshares Corp.
846 F. Supp. 2d 18 (District of Columbia, 2012)
Pueblo of Laguna v. United States
60 Fed. Cl. 133 (Federal Claims, 2004)
Gucci America, Inc. v. Bank of China
768 F.3d 122 (Second Circuit, 2014)
Capricorn Power Co. v. Siemens Westinghouse Power Corp.
220 F.R.D. 429 (W.D. Pennsylvania, 2004)
Treppel v. Biovail Corp.
233 F.R.D. 363 (S.D. New York, 2006)

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