Smithkline Beecham Corporation v. Abbott Laboratories
740 F.3d 471
9th Cir.2014Background
- GSK sued Abbott for antitrust, contract, and UTPA claims relating to a licensing and pricing dispute over HIV medications; Abbott allegedly licensed to GSK to market a drug with its own and then quadrupled the price to drive business to Abbott’s combo drug.
- During jury selection Abbott struck Juror B, the sole self-identified gay veniremember; GSK challenged the strike under Batson as based on sexual orientation.
- The district court denied the Batson challenge; GSK appealed, arguing the strike violated equal protection and Batson.
- The jury returned a mixed verdict: Abbott won antitrust and UTPA claims, GSK won the contract claim with damages.
- The appellate court held that excluding Juror B based on sexual orientation violated Batson, and remanded for a new trial; it applied Windsor to hold heightened scrutiny governs equal protection in this context.
- The court ultimately reversed and remanded, holding that heightened scrutiny applies to sexual orientation classifications and Batson protects against such strikes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether sexual orientation classifications receive heightened scrutiny in equal protection | GSK argues Windsor/Witt require heightened scrutiny | Abbott argues rational basis suffices | Heightened scrutiny applies |
| Whether Batson extends to strikes based on sexual orientation | Batson should cover orientation-based strikes | Batson does not cover orientation | Batson applies to sexual orientation-based strikes |
| Whether Abbott’s peremptory strike of Juror B violated Batson | Prima facie case of discrimination shown; pretext evident | Neutral reasons alleged; genuine justification presented | Directed a Batson violation; remand for new trial |
| Remedy for Batson violation and impact on contract claim | New trial required; damages may be affected | Harmless error cannot apply; must remand | Remand for new trial; contract claim not resolved on final merits |
Key Cases Cited
- Batson v. Kentucky, Batson v. Kentucky, 476 U.S. 79 (U.S. 1986) (prohibits race-based peremptory strikes in jury selection)
- J.E.B. v. Alabama ex rel. Flowers, J.E.B. v. Alabama, 511 U.S. 141 (U.S. 1994) (extended Batson to gender classifications; struck down sex-based strikes)
- Windsor v. United States, United States v. Windsor, 133 S. Ct. 2675 (U.S. 2013) (held heightened scrutiny governs equal protection for sexual orientation classifications)
- United States v. Collins, United States v. Collins, 551 F.3d 914 (9th Cir. 2009) (de novo review of Batson claim when district court applied wrong standard)
- Johnson v. California, Johnson v. California, 545 U.S. 162 (U.S. 2005) (prima facie Batson showing requires inference of discrimination; burden is production)
- Snyder v. Louisiana, Snyder v. Louisiana, 552 U.S. 472 (U.S. 2008) (verbatim concerns about circumstantial voir dire and credibility of nondiscriminatory reasons)