Ortho-McNeil-Janssen Pharm. Inc.2
2014 Ark. 126
Ark.2014Background
- Ortho-McNeil-Janssen Pharmaceuticals, Inc. v. State involved a prevailing-party fee award to the State following underlying judgments in Pulaski County CV-2007-15345.
- The trial court awarded the State $180,851,370 in attorney’s fees and $298,799.86 in costs on January 31, 2013.
- Janssen appealed challenging the fee award on multiple grounds including prematurity, misapplication of statute/tax, and the contingency-fee basis.
- The State’s claims included reversal/dismissal in part of MFFCA and partial remand of ADTPA claims, affecting the fee posture.
- This opinion is a companion to Ortho-McNeil-Janssen v. State, 2014 Ark. 124, with this Court reversing and remanding the fee award.
- The Supreme Court held the fee award must be reversed and remanded consistent with the partially reversed/dismissed/ remanded underlying claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Prematurity of the fee request | Janssen argues fees premature until federal share resolved | State contends fee request appropriate as prevailing party | Reversed on prematurity issue. |
| Interpreting MFFCA/ADTPA and shifting contingency fees | Janssen contends statutes do not shift contingency fees | State argues statutory framework supports shifting | Reversed; MFFCA claim dismissed and ADTPA claim remanded. |
| Contingency-fee basis with BPB agreement | Janssen claims BPB contingency-fee offends Arkansas law | State relies on contingency-fee alignment | Reversed; fee basis not proper. |
| Application of Chrisco v. Sun Indus. factors | Janssen asserts factors misapplied | State maintains correct factor application | Reversed; factors require different consideration. |
| Constitutional concerns (Excessive Fines/Due Process) | Janssen asserts due process/limits on fines | State defends fee posture under law | Reversed; constitutional challenge preserved on remand. |
Key Cases Cited
- Brookside Vill. Mobile Homes v. Meyers, 301 Ark. 139, 782 S.W.2d 365 (Ark. 1990) (reversing an attorney’s-fee award where underlying judgment reversed)
- Crisco v. Sun Industries, Inc., 304 Ark. 227, 800 S.W.2d 717 (Ark. 1990) (attorney’s-fee-determination factors under Arkansas law)
- Ortho-McNeil-Janssen v. State, 2014 Ark. 124 (Ark. 2014) (companion direct appeal; fee-shifting issues central)