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310 F.R.D. 166
E.D. Pa.
2015
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Background

  • Plaintiffs are Mexican chicken breeders suing Zoetis Inc. and Pfizer Inc. over a defective Marek-vaccine Poulvac that allegedly failed to prevent infection.
  • Defendants move to dismiss under Rule 12(b)(7) for failure to join indispensable parties under Rule 19, and under Rule 12(b)(6) for pleading defects.
  • Mexican entities (Zoetis Mexico, DAS, Algran) allegedly contracted with Plaintiffs for vaccine; these entities are not alleged to be subsidiaries of Defendants.
  • Court previously addressed forum non-conveniens in a related action and incorporated that decision.
  • Rule 19 analysis concludes Mexican entities are not necessary or indispensable; joinder not required; case proceeds among existing parties.
  • Under Rule 8/9, the court resolves multiple counts, dismissing some, denying others, and clarifying notices and warranty theories.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Are Mexican entities indispensable under Rule 19? Nonjoinder does not bar relief to existing parties. Mexican entities are necessary to provide complete relief and protect interests. Mexican entities are not necessary or indispensable; joinder not required.
Does Plaintiffs' express-warranty claim meet pleading and pre-suit notice requirements? Statements in marketing materials created an express warranty; notice to Zoetis suffices. Need specific statements, who made them, and proper pre-suit notice to both defendants. Express warranty alleged against Zoetis; notice lacking for Pfizer; claim dismissed as to Pfizer.
Is the implied warranty of fitness for a particular purpose viable against Zoetis/Pfizer? Defendants knew buyers relied on expertise; vaccine was defective; creates implied warranty. Need separate consideration per defendant and proper notice; some claims fail. Viable against Zoetis; dismissed against Pfizer.
Do economic-loss-based tort claims survive given the contract-like relationship? Economy of discovery may show no purely contractual basis; alleged torts exist. Economic loss doctrine bars tort claims where only economic loss from product. Counts One, Two, Nine, Ten dismissed; economic loss doctrine applied.
Is the fraud claim sufficiently pled under Rule 9(b)? Defendants knew product was defective and misrepresented quality. Fraud pleadings lack who, what, when, where, and how with specificity. Fraud claim dismissed with prejudice for lack of particularity.

Key Cases Cited

  • Gen. Refractories Co. v. First State Ins. Co., 500 F.3d 306 (3d Cir.2007) (two-step Rule 19 analysis; necessity and indispensability)
  • Huber v. Taylor, 532 F.3d 237 (3d Cir.2008) (speculative risk insufficient for Rule 19(a)(1)(B)(i))
  • Janney Montgomery Scott, Inc. v. Shepard Niles, Inc., 11 F.3d 399 (3d Cir.1993) (Rule 19 inquiry limited to current parties; absent party impact not material)
  • Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir.2002) (economic loss doctrine; tort damages barred where only economic loss)
  • East River S.S. Corp. v. Transamerica Delaval, 476 U.S. 858 (1986) (economic loss doctrine baseline; product malfunction damages)
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Case Details

Case Name: Incubadora Mexicana, SA de CV v. Zoetis, Inc.
Court Name: District Court, E.D. Pennsylvania
Date Published: Sep 16, 2015
Citations: 310 F.R.D. 166; 87 U.C.C. Rep. Serv. 2d (West) 844; 2015 U.S. Dist. LEXIS 123344; 2015 WL 5522075; CIVIL ACTION NO. 15-216
Docket Number: CIVIL ACTION NO. 15-216
Court Abbreviation: E.D. Pa.
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