Weld v. Glaxo Wellcome Inc.

434 Mass. 81
CourtMassachusetts Supreme Judicial Court
DecidedMay 1, 2001
StatusPublished
Cited by52 cases

This text of 434 Mass. 81 (Weld v. Glaxo Wellcome Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weld v. Glaxo Wellcome Inc., 434 Mass. 81 (Mass. 2001).

Opinion

Spina, J.

This is an interlocutory appeal from an order of a Superior Court judge certifying a plaintiff class under Mass. R. Civ. P. 23, 365 Mass. 767 (1974). Three defendants, Glaxo Wellcome Inc. (Glaxo); Hoffmann-La Roche, Inc. (Roche); and Warner-Lambert Company (Warner-Lambert), sought review of the order, pursuant to G. L. c. 231, § 118, first par. A single justice of the Appeals Court denied the defendants’ petition, but granted them leave to appeal from his denial to the full court. We transferred the case here on our own motion. We affirm the class certification order.

1. Background. The plaintiffs, John Weld, Jr., and Jeffrey A. Kelley, filed a civil action against several defendants, including CVS Pharmacy, Inc. (CVS), Merck & Co., Inc. (Merck), and the three defendants that have appealed. The subject matter of the complaint was a “patient compliance program” (program) devised by CVS whereby letters would be mailed to selected sets of its pharmacy customers at the behest of selected pharmaceutical manufacturers.* *3 The plaintiffs brought the action on behalf of themselves and all similarly situated CVS pharmacy customers nationwide alleging that their confidential medical information4 was improperly disclosed and tortiously misappropriated for commercial gain by CVS and the other defendants, citing violations of their privacy under G. L. c. 214, [83]*83§ 1B, and violations of G. L. c. 93A, § 2.5 They also allege that the defendants were members of a conspiracy to violate the plaintiffs’ rights under the theory that the manufacturer defendants induced or otherwise provided “substantial assistance” to CVS in its tortious invasion of the privacy of its pharmacy customers. See Kurker v. Hill, 44 Mass. App. Ct. 184, 189 (1998).

The program worked as follows. Each manufacturer provided CVS with specific selection criteria for a mailing. The selection criteria were designed to identify customers with particular medical conditions based on their prescription histories, or to identify customers who had filled prescriptions for drugs manufactured by the participating pharmaceutical companies. The manufacturers also provided CVS with the content of the letter that was to be sent to those customers who satisfied the criteria. CVS collected and scanned its pharmacies’ databases according to the manufacturers’ criteria. The actual merging of the letters with customers’ names and addresses occurred at CVS corporate headquarters in Rhode Island and the offices of defendant Elensys, a database marketing company. The letters were printed on CVS letterhead and the name of the sponsoring manufacturer appeared at the bottom. Each letter recommended a different course of action including, for example, promoting the use of drugs manufactured by the sponsoring manufacturer (“switch letters”), reminding users of a specific drug to refill their prescriptions, or suggesting that recipients speak to their doctors about health risks associated with the medical condition for which they had purchased prescription drugs from CVS. CVS contracted independently with each manufacturer, who was each charged a fee based on the number of letters sent. These fees appear to have been the exclusive source of funding for the program.

The plaintiffs had had prescriptions filled at CVS pharmacies in Massachusetts. Sometime in 1997, Kelley, a diabetic, received [84]*84a letter sponsored by Merck warning against the dangers of high blood pressure and urging him to speak with his doctor about his health. Merck manufactures a drug to control high blood pressure, and as diabetics are at risk for developing high blood pressure, one of the selection criteria it furnished CVS was for CVS customers who had had prescriptions filled for diabetes medications. Weld did not receive a letter because his prescription profile did not match any of the manufacturers’ selection criteria.

All the defendants maintained that the program was simply a method CVS devised to send its customers beneficial health and medical information. However, in response to negative media attention the program received in February, 1998, the filing of the original complaint, and an investigation by the Board of Registration in Pharmacy, CVS suspended the program. During discovery, CVS represented that it had voluntarily terminated the program.

Because money damages are not incidental to the relief sought by the proposed class and because rule 23 does not provide a mechanism by which plaintiffs can “opt out” of the class, the motion judge denied the plaintiffs’ request for certification of a nationwide class of all CVS customers. See Phillips Petroleum Co. v. Shutts, 472 U.S. 797, 811 (1985). The judge also ruled that Weld lacked standing to raise a claim on behalf of the proposed class because he had not received any letter from CVS and therefore suffered no injury. See Doe v. The Governor, 381 Mass. 702, 705 (1980). Correspondingly, because Weld had no standing, his claim was deemed not typical of the class and he was precluded from serving as a plaintiff representative. Kelley, who did receive a letter, was determined to be a proper representative of a class of Massachusetts residents who actually received mailings. Members of that class make up approximately two per cent of CVS’s customers in the Commonwealth.6

2. Standard of review. The decision to grant or deny class [85]*85status under rule 23 is within the broad discretion of the motion judge. See Brophy v. School Comm. of Worcester, 6 Mass. App. Ct. 731, 735 (1978). We review the decision for any abuse of that discretion. Coggins v. New England Patriots Football Club, Inc., 397 Mass. 525, 537 (1986), S.C., 406 Mass. 666 (1990). An abuse of discretion occurs when a decision is arbitrary, unreasonable, or capricious, Bucchiere v. New England Tel. & Tel. Co., 396 Mass. 639, 641 (1986), such as when a judge grants class status on the basis of speculation or generalization regarding satisfaction of the requirements of rule 23, or denies class status by imposing, at the certification stage, the burden of proof that will be required of the plaintiffs at trial. See Blackie v. Barrack, 524 F.2d 891, 901 n.17 (9th Cir. 1975), cert. denied, 429 U.S. 816 (1976). See also Waste Mgt. Holdings, Inc. v. Mowbray, 208 F.3d 288, 297 (1st Cir. 2000). The standard defies mathematical precision, and our cases reflect that fact. See, e.g., Massachusetts Gen. Hosp. v. Rate Setting Comm’n, 371 Mass. 705, 713 (1977) (not necessarily abuse of discretion to rule on merits of claim without ruling on motion to certify class); Baldassari v. Public Fin. Trust, 369 Mass. 33, 39-40 (1975) (not abuse of discretion to postpone discovery and make early ruling on certification, taking plaintiff’s allegations as true).

The defendants suggest that the judge abused his discretion because he certified the class without holding an evidentiary hearing. Although it is within a judge’s discretion to hold an evidentiary hearing, there is no such requirement. See Fletcher v. Cape Cod Gas Co., 394 Mass. 595, 597 (1985) (no abuse of discretion where judge “conducted a hearing on the plaintiffs’ motion for class certification [and] considered] relevant factual materials submitted by the parties”).

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434 Mass. 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weld-v-glaxo-wellcome-inc-mass-2001.