United States v. An Article or Device Consisting of Biotone Model 4

557 F. Supp. 141, 1982 U.S. Dist. LEXIS 17419
CourtDistrict Court, N.D. Georgia
DecidedDecember 21, 1982
DocketCiv. A. No. C81-75A
StatusPublished
Cited by1 cases

This text of 557 F. Supp. 141 (United States v. An Article or Device Consisting of Biotone Model 4) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. An Article or Device Consisting of Biotone Model 4, 557 F. Supp. 141, 1982 U.S. Dist. LEXIS 17419 (N.D. Ga. 1982).

Opinion

ORDER

SHOOB, District Judge.

This case is presently before the Court on (1) the United States’s motion for entry of default and destruction of the defendant muscle stimulators and (2) motions filed by claimants Vernon Brabham, Jr., and Medequip Investment Corporation for reconsideration of the Consent Decree entered October 26, 1981, and for leave to amend their answers to state a counterclaim for dam[142]*142ages. After briefly setting out the history of the proceeding, the Court will address the parties’ respective motions.

On January 13, 1981, the United States filed its complaint for forfeiture alleging that the defendant muscle stimulators are misbranded within 21 U.S.C. §§ 352(a), (f)(1), and (f)(2) because the labeling (1) makes false and misleading claims of efficacy, (2) does not contain adequate directions for use, and (3) fails to bear warnings of health hazards associated with the use of the machines by persons with certain diseases.

Pursuant to a warrant for arrest issued by this Court, the United States Marshal for this District seized the defendant stimulators on January 15, 1981. Vernon Brabham, Jr., owner/lessee, and Medequip Investment Corporation (Medequip), owner/lessor, then intervened and filed claims to the seized articles. Thereafter, the claimants entered into settlement negotiations with the United States, which resulted in entry of the Consent Decree filed on October 26, 1981.

The Consent Decree, signed by all the parties, acknowledged that the stimulators are misbranded as alleged in the complaint. Consent Decree at p. 3.1 Consistent with specified legal uses of the stimulators, the Decree enabled claimants to correct the misbranding within ninety (90) days of entry of the decree and to dispose of the machines if they so desired.2 Consent Decree, fs 1, 3, 4. The Decree also required FDA approval of the labeling modifications prior to disposition. Consent Decree, Ys 5, 7. Should the claimants fail to recondition the stimulators, the Decree required that the Marshal retain them for disposition in accordance with the Court’s direction. Consent Decree, ¶ 13.

Within the 90 days following entry of the Consent Decree neither claimant requested that the FDA inspect the stimulators to determine compliance with its terms. Sometime after the 90 day period expired, Medequip requested an inspection. FDA inspector Kenneth Van Dusen inspected the machines on August 12, 1982, only to discover that the labeling had not been altered in any way. Affidavit of Sam Atkins, ¶ 6.

On September 14,1982, the United States advised the claimants that the government would seek destruction of the equipment if compliance was not completed by September 20, 1982. See letter of Kathie G. McClure, Assistant United States Attorney. Three days later, claimants filed their motions for reconsideration and leave to amend.

1. Motion for Reconsideration

Relying on Fed.R.Civ.P. 60(b), claimants have moved the Court to vacate the consent order and to allow them to amend their original answers to state a counterclaim for damages purportedly flowing from seizure of the machines. Without specifying whom, claimant Brabham has charged that FDA officers have admitted the agency had no basis for condemning the devices and no competent evidence to support the allegations in the complaint. He also contends that the FDA has ignored other businesses using the same equipment. See Brabham affidavit executed September 15, 1982. Claimants allege this information did not come to their attention until ten months after entry of the Consent Decree.

Rule 60(b) states in pertinent part:

On motion and upon such terms as are just, the court may relieve a party or his legal representative from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, [143]*143surprise, or excusable neglect; (2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party; (4) the judgment is void; (5) the judgment has been satisfied, released, or discharged, or a prior judgment upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment should have prospective application; or (6) any other reason justifying relief from the operation of the judgment.

Under this rule the courts apply a strict standard for reopening a consent decree: “the relief is extraordinary and may be granted only upon a showing of exceptional circumstances.” Fox v. United States Department of Housing and Urban Development, 680 F.2d 315, 322 (3d Cir.1982). Thus, one court recently observed that “where, as here, the defendants made a free, calculated and deliberate choice to submit to an agreed upon decree rather than seek a more favorable litigated judgment their burden under Rule 60(b) is perhaps even more formidable than had they litigated and lost.” Philadelphia Welfare Rights Organization v. Shapp, 602 F.2d 1114, 1120 (3d Cir.1979).

In the instant case claimants contend that the affidavit of Vernon Brabham, Jr., sets forth grounds for relief under Rule 60(b)(1), (2) and (3). See Brief in Support of Motion for Reconsideration of Interlocutory Order and Motion for Leave to Amend Claim of Intervenor, filed October 25, 1982, at 4. The only statements made there that even arguably support claimants’ contentions are the following two paragraphs:

Some ten months later [following entry of the Consent Decree], information became available which was not available on October 26,1981, which indicated that the Food and Drug Administration had in fact ignored numerous other identical businesses using the same devices and manuals, with the Food and Drug Administration’s full knowledge and consent.
In addition, subsequent admissions by Food and Drug Administration officers indicated that the Food and Drug Administration had no concrete basis for condemning the articles on January 13,1981, and admitted that the devices and articles were not harmful, and that no competent evidence was available to illustrate that the articles and devices did not in fact accomplish what they were advertised to accomplish.

These vague and conclusory statements certainly do not suffice to meet claimants’ burden of showing a change in circumstances that works a grievous wrong, or newly discovered evidence that challenges the validity of the consent decree. See United States v. Swift & Co., 286 U.S. 106, 119, 52 S.Ct. 460, 464, 76 L.Ed. 999 (1932).

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557 F. Supp. 141, 1982 U.S. Dist. LEXIS 17419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-an-article-or-device-consisting-of-biotone-model-4-gand-1982.