The DCH Health Care Authority v. Purdue Pharma, L.P.

CourtDistrict Court, S.D. Alabama
DecidedDecember 3, 2019
Docket1:19-cv-00756
StatusUnknown

This text of The DCH Health Care Authority v. Purdue Pharma, L.P. (The DCH Health Care Authority v. Purdue Pharma, L.P.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The DCH Health Care Authority v. Purdue Pharma, L.P., (S.D. Ala. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

DCH HEALTH CARE AUTHORITY, ) et al., ) ) Plaintiffs, ) ) v. ) CIVIL ACTION 19-0756-WS-C ) PURDUE PHARMA L.P., et al., ) ) Defendants. )

ORDER This matter is before the Court on the plaintiffs’ motion to remand. (Doc. 6). The plaintiffs and two defendants (collectively, “Kroger”) have filed briefs in support of their respective positions, (Doc. 7, 11, 13), and the motion is ripe for resolution. Kroger has also filed a motion to stay consideration of the motion to remand pending transfer of this action to the pending multi-district litigation (“MDL”). (Doc. 10). The plaintiffs have filed a response and Kroger a reply, (Docs. 14, 39), and that motion as well is ripe for resolution. After careful consideration, the Court concludes the motion to stay is due to be denied and the motion to remand is due to be granted.

BACKGROUND The 18 plaintiffs operate hospitals in Alabama. The 46 entity defendants are producers, distributors and retailers (all pharmacies) of opioids, and the 20 individual defendants are associated with various of the entity defendants. Kroger is among the retail pharmacy defendants. The plaintiffs filed this lawsuit in the Circuit Court of Conecuh County. The complaint asserts six causes of action: (1) negligence; (2) public nuisance; (3) unjust enrichment; (4) fraud and deceit; (5) wantonness; and (6) civil conspiracy. (Doc. 1-1 at 299-324). Kroger timely removed, identifying the bases of subject matter jurisdiction as federal question and the Class Action Fairness Act (“CAFA”). The plaintiffs argue that Kroger has failed to demonstrate jurisdiction under either fount. They further argue that Kroger has not complied with the unanimous consent requirement for removal.

DISCUSSION “On a motion to remand, the removing party bears the burden of showing the existence of federal subject matter jurisdiction.” Connecticut State Dental Association v. Anthem Health Plans, Inc., 591 F.3d 1337, 1343 (11th Cir. 2009); accord City of Vestavia Hills v. General Fidelity Insurance Co., 676 F.3d 1310, 1313 n.1 (11th Cir. 2012). Kroger suggests the burden is actually on the plaintiff to show the absence of federal jurisdiction, (Doc. 1 at 5 n.2), but it misreads Breuer v. Jim’s Concrete, Inc., 538 U.S. 691 (2003). Section 1441(a) provides that “any civil action … of which the district courts of the United States have original jurisdiction” may be removed, “[e]xcept as otherwise expressly provided by Act of Congress.” Breuer holds only that, pursuant to this statutory language, “whenever the subject matter of an action qualifies it for removal, the burden is on a plaintiff to find an express exception.” 538 U.S. at 698. The burden on the plaintiff, then, is only a burden to find an exception to removal, and that burden arises only after subject matter jurisdiction has been demonstrated by the removing defendant.

I. Motion to Stay. Before addressing the motion to remand, the Court must resolve Kroger’s motion to stay consideration of the plaintiffs’ motion. Kroger cites a number of sister courts that have declined to consider motions to remand prior to transfer to an MDL court, but Kroger does not acknowledge this Court’s opinions setting forth a framework for deciding such a motion to stay. “A court should first give preliminary scrutiny to the merits of the motion to remand and, if this preliminary assessment suggests that removal was improper, the court should promptly complete its consideration and remand the case to state court.” Betts v. Eli Lilly and Co., 435 F. Supp. 2d 1180, 1182 (S.D. Ala. 2006) (internal quotes omitted); accord Moton v. Bayer Corp., 2005 WL 1653731 at *2 (S.D. Ala. 2005). The Court derived this standard from Meyers v. Bayer AG, 143 F. Supp. 2d 1044, 1049 (E.D. Wis. 2001). Dozens of sister courts have adopted or applied Meyers as well,1 and it has been described as the majority approach. Dunlap v. General Motors LLC, 2016 WL 7391049 at *2 (W.D. Mo. 2016). Kroger presents no reason the Court should abandon its carefully selected standard in this case, and its arguments in favor of a stay are fully addressed by the Court’s analysis in Betts. 435 F. Supp. 2d at 1182-87. As discussed in Parts I and II, federal subject matter jurisdiction is plainly lacking. This absence of jurisdiction was immediately obvious on the Court’s

1 E.g., Ellis v. Pneumo Abex Corp., 798 F. Supp. 2d 985, 988 (C.D. Ill. 2011); Ortiz v. Menu Foods, Inc., 525 F. Supp. 2d 1220, 1233 (D. Haw. 2007); Rutherford v. Merck & Co., 428 F. Supp. 2d 842, 845-46 (S.D. Ill. 2006); Alan v. Equifax, Inc., 2019 WL 5801891 at *2 (C.D. Cal. 2019); Meuchal v. Davol, Inc., 2019 WL 3887555 at *2 (D. Mont. 2019); City of Portland v. Purdue Pharma, LP, 2018 WL 6191127 at *4 (D. Me. 2018); Tucson Medical Center v. Purdue Pharma LP, 2018 WL 6629659 at *2 (D. Ariz. 2018); Gonzalez v. Ford Motor Co., 2017 WL 9614465 at *2-3 (N.D. Cal. 2017); Beshear v. Volkswagen Group of America, Inc., 2016 WL 3040492 at *2 (E.D. Ky. 2016); Dunlap v. General Motors LLC, 2016 WL 7391049 at *2 (W.D. Mo. 2016); Estate of Hoholek v. AbbVie, Inc., 2014 WL 7205586 at *2 (N.D. Ind. 2014); Curnow v. Stryker Corp., 2013 WL 5651439 at *3 (E.D. Mich. 2013); Bocock v. Medventure Technology Corp., 2013 WL 5328309 at *3 (S.D. Ind. 2013); Walker v. New England Compounding Pharmacy Inc., 2013 WL 1871343 at *2 (W.D. Va. 2013); Murphy- Pittman v. DePuy Orthopaedics, Inc., 2012 WL 6588697 at *2 (D.S.C. 2012); Halliburton Energy Services, Inc. v. BP Exploration & Production Inc., 2012 WL 149525 at *2 (S.D. Tex. 2012); Oregon ex rel. Kroger v. Johnson & Johnson, 2011 WL 1347069 at *3 (D. Ore. 2011); Mills v. TexAmerican Food Blending, Inc., 2008 WL 11383493 at *5 (N.D. Ala. 2008); Alegre v. Aguayo, 2007 WL 141891 at *3 (N.D. Ill. 2007); Baeza v. Tibbetts, 2006 WL 2863486 at *2 (D.N.M. 2006); Martin v. Merck & Co., 2005 WL 1984483 at *1 (E.D. Cal. 2005); Wisconsin v. Abbott Laboratories, 2004 WL 2055717 at *1 (W.D. Wis. 2004). preliminary assessment, and the Court therefore proceeds to resolve the motion to remand. Kroger’s motion to stay is therefore denied.

II. Federal Question. The complaint asserts six causes of action, all of them sounding in state law. That is not the end of the matter, because “federal jurisdiction over a state claim will lie if a federal issue is: (1) necessarily raised, (2) actually disputed, (3) substantial, and (4) capable of resolution in federal court without disrupting the federal-state balance approved by Congress.” Gunn v. Minton, 568 U.S. 251, 258 (2013); accord Grable & Sons Metal Products, Inc. v. Darue Engineering & Manufacturing, 545 U.S. 308, 314 (2005). Kroger argues that the complaint’s claims against the distributor and retail defendants “require Plaintiffs to establish that Defendants breached duties established exclusively under federal law.” (Doc. 1 at 11).

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