Disposing of the two sets of appeals together, 4 we conclude that only a few of plaintiffs' claims fail as a matter of law but that the district court's evidentiary errors and Lanier's deceptions furnish independent grounds for a new trial. Hence, we reverse in part, vacate the judgment and the order denying Rule 60(b)(3) relief, and remand.
I. Background
In 2011, the Judicial Panel on MDL ordered centralization of pretrial proceedings in the Northern District of Texas for cases involving the Pinnacle Acetabular Cup System hip implants. The parties agreed to a protocol for bellwether trials and, together, identified a pool of eight cases from which to select the candidates. The first bellwether trial lasted two months and ended in a jury verdict for J & J and DePuy (jointly "defendants"). The district court then jettisoned the seven remaining cases and ordered the parties to prepare ten new ones for trial. Five of those were consolidated, over defendants' objection, for the second bellwether trial, which lasted nine weeks and forms the basis of these appeals and cross-appeal.
At trial, plaintiffs claimed DePuy defectively designed and marketed its MoM implant and that J & J was liable, as a "nonmanufacturer seller," for aiding and abetting and for negligent undertaking. At the heart of the claims lay the contested science of modern hip prosthetics, and we begin with the narrow points of agreement. As outlined in both sides' briefs, prosthetic hips are designed to replicate the hip's ball-and-socket function and typically consist of four components: a stem inserted into the femur, a femoral head attached to the stem (the hip "ball"), a cup implanted into the hip socket (the acetabulum), and a metal liner that fits into the cup and against which the ball articulates.
The briefs and trial transcripts present competing histories on hip-implant technology. Both sides agree the story begins in the 1960s with "first-generation" MoMs, the earliest models to achieve widespread use. The parties further agree that these early MoMs carried certain health risks and were quickly displaced by Sir John Charnley's metal-on-plastic ("MoP") design, long described as the industry's "gold standard."
Here, we reach a fork. Defendants suggest that, in the 1990s, MoP was viewed as the industry's "weak link" because of its tendency to cause osteolysis, bone loss in the area surrounding the implant. When the metal ball articulates against the plastic liner, it generates debris from plastic wear that can cause dissolving of the surrounding bone, which, in turn, can require revision surgery. Defendants, along with several other manufacturers, promoted MoMs in the early 2000s to address this Achilles' heel and offer high-activity patients an alternative that would wear out more slowly than plastic.
Plaintiffs meanwhile tell a less rosy story. They claim defendants hastily reintroduced Ultamet to market, without conducting any clinical tests, for the sole purpose of increasing market share. Medical science had long discovered that plastic-wear debris, and the attendant risk of osteolysis, could be reduced considerably if the plastic liner was "cross-linked," that is, sterilized through radiation. Yet, the theory goes, defendants lured surgeons away from cross-linked plastic's proven success through an intricate misinformation campaign of false advertisements and DePuy-authored academic papers.
On the core issue of marketing and design, the parties waged a war of the experts. Plaintiffs elicited testimony from engineers and medical scientists that Ultamet's MoM design was a producing cause of their injuries and that cross-linked MoP was a safer alternative. They also offered evidence that defendants, before bringing the product to market, were made aware of the considerable, and arguably unjustifiable, risks of MoM. Defendants' experts countered that, although MoP might be better suited to older patients, the risk-benefit calculus for younger, more active patients might still favor MoM. Defendants further maintained they had always been forthcoming with treating physicians about this risk calculus. The district court admitted several pieces of inflammatory character evidence against defendants-including claims of race discrimination and bribes to Saddam Hussein's Iraqi "regime"-reasoning the defendants had "opened the door" by repeatedly presenting themselves as "wonderful people doing wonderful things."
The jury found for plaintiffs on the five above-mentioned causes of action and returned a $502 million verdict. It awarded just $500,000 in economic compensatory damages and $141.5 million in non-economic compensatory damages, and DePuy and J & J were assessed exemplary damages of $120 million and $240 million, respectively. The defendants made numerous post-trial motions-for JMOL on all claims, for dismissal on jurisdictional grounds, and for mistrial. All were denied, save the request that the court apply Texas's statutory exemplary-damages cap, which reduced the $360 million to $9.6 million. Defendants appeal the judgment,
In a companion appeal, defendants request relief from judgment under Federal Rule of Civil Procedure 60(b)(3), based on plaintiffs' counsel's failure to disclose payments to two purportedly "nonretained" experts-Dr. Bernard Morrey ("Morrey Sr.") and Dr. Matthew Morrey ("Morrey Jr."). In preparation for the third bellwether trial, defendants discovered that before the second trial, plaintiffs' counsel Mark Lanier had made a $10,000 donation to a charity of Morrey Sr.'s choosing, that Morrey Jr. had expected to be paid when testifying, and that the doctors had received post-trial payments totaling $65,000. Defendants moved for relief, the court denied the motion, and defendants again appeal.
II. Claims Against DePuy
JMOL is warranted only if "a reasonable jury would not have a legally sufficient evidentiary basis" to find for the nonmovant. FED. R. CIV. P. 50(a)-(1)(B). We review the denial of JMOL
de novo
, applying "the same standard ... the district court used in first passing on the motion."
Nobach v. Woodland Vill. Nursing Ctr.
,
A. Design Defect
To establish a design defect, plaintiffs had to prove that "(1) the product was defectively designed so as to render it unreasonably dangerous; (2) a safer alternative design existed; and (3) the defect was a producing cause of the injury for which the plaintiff seeks recovery."
Casey v. Toyota Motor Eng'g & Mfg. N.A.
,
Defendants seek JMOL on three accounts: (1) MoP is a different product, not an alternative MoM design, (2) plaintiffs' design-defect theory is preempted because it conflicts with the goals enshrined in relevant Food and Drug Administration ("FDA") regulations, and (3) medical-device liability is foreclosed by comment k to Restatement (Second) of Torts § 402A. Defendants fail on all three.
1.
Defendants' first contention-that MoP is a different product from MoM-implicates thorny questions of identity and definition, practically impossible to settle in the abstract.
8
In select instances, nonidentity will be obvious: For example, a proposal to add two additional wheels to a motorcycle or to "fully enclos[e] the cab" of a convertible.
Caterpillar
,
The alternative-design/different-product distinction emerges from two Texas cases, both distinguishable from the present. In Caterpillar , the Texas Supreme Court considered whether a front-end loader with a removable rollover-protection structure ("ROPS") was defectively designed. Id. at 383-85. The court rejected the plaintiff's proposed alternative-in which the ROPS was rendered non-removable-because the non-removable structure would thwart the ROPS's "intended" function of enabling access to "low clearance areas." Id. at 384-85. The court refused to "impose liability in such a way as to eliminate whole categories of useful products from the market." Id. at 385 (emphasis added).
In
Brockert
,
Texas's risk-utility test plainly contemplates that a proposed alternative design might reduce a product's utility-that is, its capacity to perform a function for which it was designed-without rendering the alternative an entirely different product. 10 If any distinction in degree rendered the proposed alternative a different product as a matter of law, that would effectively moot the substantive balancing test for liability. Where the distinction is one of degree only, the risk-utility framework provides the proper mode of analysis.
Defendants claim to have identified two relevant functional distinctions between MoM and MoP: (a) Metal is more durable than plastic and, therefore, more suitable to younger patients "who often seek not just pain relief but also the ability to resume an active lifestyle"; and (b) metal remedies osteolysis by "
eliminat[ing]
plastic debris entirely." Neither purported distinction, however, shows MoP to be an "entirely different product" under the above, proper framework.
See
Brockert
,
The question then is whether plastic substantially impairs the hip implant's utility along the durability axis.
See
Bell Helicopter
,
As for reduction of osteolysis, plaintiffs rightly observe that cross-linked polyethylene was intended to do the same thing. The question then is whether the risk of osteolysis from cross-linked MoP substantially reduces MoM's utility, and the record says not. A DePuy executive conceded that MoM, too, can cause osteolysis, and DePuy seems to have known, when it sold
At oral argument, defendants suggested the different-product/alternative-design question should be decided from the ex ante perspective, when DePuy believed MoM would eliminate osteolysis and substantially out-perform plastic. That those marginal benefits may have failed fully to materialize is ostensibly irrelevant to the inquiry. But defendants cite no cases for this contestable proposition 12 ; and regardless, its application here would require the equally contestable factual assumption that defendants did not, and could not, reasonably foresee the risks of instability and metallosis that, according to plaintiffs, dwarf MoM's purported benefits. Plaintiffs presented evidence that defendants knew, even before December 2004 (the earliest date on which any plaintiff received his or her implant) that cross-linked MoP meaningfully addressed the osteolysis risk and that MoM carried potentially catastrophic risks of failure. Thus, the jury could reasonably conclude, even under defendants' ex ante framing, that plaintiffs had identified a viable alternative design. 13
Defendants draw our attention to several other cases applying the alternative-design/different-product distinction, but
Defendants also cite
Hosford v. BRK Brands, Inc.
,
Here, that empirical judgment is obviously inapposite, given that several plaintiffs were revised to the very alternative they propose. None of defendants' cases counsels reversal on our facts.
2.
Defendants suggest the design-defect claims are preempted because they "stand[ ] as an obstacle to the accomplishment and execution of the full purposes and objectives" reflected in the MoM-related regulations of the FDA.
See
Hines v. Davidowitz
,
We begin with the federal objective. Before 1976, the Federal Food, Drug, and Cosmetic Act left "the introduction of new medical devices ... largely for the States to supervise."
Riegel v. Medtronic, Inc.
,
Before class III devices can be brought to market, they generally must survive the FDA's rigorous premarket approval ("PMA") process, designed to ensure a device's "safety and effectiveness." 21 U.S.C. § 360e(d)(1)(A). That process is "quite time consuming," requiring "an average of 1,200 hours [for] each submission."
Buckman Co. v. Plaintiffs' Legal Comm.
,
The 510(k) process does not "denote official approval of the device"; to create a contrary "impression ... constitutes misbranding."
The MDA contains an express-preemption provision that prohibits states from "establish[ing] ... any requirement[ ] (1) which is different from, or in addition to any [MDA] requirement applicable ... to the device, and (2) which relates to [its] safety or effectiveness." 21 U.S.C. § 360k(a). The clause covers class III, PMA products,
Riegel
,
As relevant here, MoMs were sold before 1976 and have traditionally been treated as pre-amendment class III devices that can be brought to market through the 510(k) process. Ultamet followed
Defendants suggest plaintiffs' theory of liability-that MoMs are "categorically defective"-flouts the FDA's considered judgment that MoMs should not be banned outright but rather regulated, and should remain available, as class III medical devices. That theory fails at two levels.
First, plaintiffs' burden was to show only that Ultamet was defective, not that all MoMs were. And because Ultamet was off the market before the trial, the verdict cannot have thwarted the FDA's objectives in that narrow respect. Defendants reply that plaintiffs' only colorable theory at trial covered the MoM interface writ large. Maybe so, but defendants' position assumes, without any support, that our obstacle-preemption inquiry looks through the verdict and judgment to the arguments that lie beneath them. This seems unlikely, as it is the judgment, and not the parties' assertions, that carries binding effect and the attendant power to disrupt the federal regulatory scheme. 17
But even under defendants' look-through inquiry, it is not the case that plaintiffs' theory reached all possible MoMs . All would agree that, despite the sweeping language with which plaintiffs presented their case, their claims were impliedly limited to presently available technologies and the adverse health effects they allegedly engender. 18
This seemingly pedantic point is fatal to defendants' preemption argument. The FDA effectively withdrew all MoMs from the market with its February 2016 final rule and left open a single door in the form of PMA. Arguably, the final rule contemplates the possibility that every MoM then on the market would (and perhaps should) fail PMA. That the FDA chose not to ban MoMs as a class proves no more than that it wished to give manufacturers an opportunity to create MoMs not contemplated by plaintiffs' theory of liability. Unless and until the FDA actually grants PMA to an extant MoM that carries the risks that made Ultamet defective, defendants cannot prove that even plaintiffs' theory of liability obstructs the FDA's regulatory objectives.
3.
Defendants assert plaintiffs' claims are foreclosed by comment k to Restatement (Second) of Torts § 402A:
k . Unavoidably unsafe products. There are some products which, in the present state of human knowledge, are quite incapable of being made safe for their intended and ordinary use. These are especially common in the field of drugs. An outstanding example is the vaccine for the Pasteur treatment of rabies,which not uncommonly leads to very serious and damaging consequences when it is injected.... Such a product, properly prepared, and accompanied by proper directions and warning, is not defective, nor is it unreasonably dangerous. The same is true of many other drugs, vaccines, and the like....
RESTATEMENT ( SECOND ) OF TORTS § 402A, cmt. k. The Texas Supreme Court has incorporated § 402A into its common law,
New Tex. Auto Auction Servs. v. Gomez de Hernandez
,
Jurisdictions are split on whether medical devices enjoy blanket immunity, 20 with the majority of courts favoring the case-by-case methodology. 21 Defendants ask that we deviate from that trend and foreclose all implant-based litigation, based on the conjecture that Texas courts might one day redraw liability boundaries in their favor. But defendants present scant predictive indicia from Texas to that effect, and we decline to step so far ahead of Texas courts, and against the majority view, in foreclosing broad avenues to suit. 22 Comment k does not bar plaintiffs' claims.
B. Marketing Defect
To prevail on their marketing-defect claims, plaintiffs had to show (a) "the warning was defective" and (b) the defect "was a producing cause of the injury."
Ackermann v. Wyeth Pharm.
,
1.
The adequacy of a warning is generally a question of fact. "However, if a
By defendants' description, plaintiffs all "experienced corrosion and friction wear from their hip implants" and "suffered adverse reactions to that debris." Defendants claim specifically to have warned of these circumstances in the two "Instructions for Use" pamphlets (IFUs) inserted into their acetabular cup and metal liner packages. The cup's IFU warns that "[t]issue reactions, osteolysis, and/or implant loosening caused by metallic corrosion, allergic reactions, or the accumulation of polyethylene or metal wear debris or loose cement particles" are among "the most frequently encountered adverse events ... in hip arthroplasty." The liner's IFU additionally warns of "[s]ubclinical nerve damage ... associated with surgical trauma," "subluxation resulting from importer position and/or muscle and fibrous tissue laxity," "[h]istological reactions [from] exposure to a foreign material," "higher ion release" where "bone cement is not used," and the "potential for release of metallic debris into the joint space." Defendants maintain these warnings reach all of plaintiffs' purported conditions and were therefore adequate as a matter of law.
But in determining whether warnings are adequate as a matter of law, Texas courts subject them to a demanding standard of specificity. In
Jordan v. Geigy Pharmaceuticals
,
As for the cup IFU, it was drafted before the Ultamet liner was ever created, and it addresses only general adverse events relevant to all hip arthroplasty. Assuming Ultamet is defective for the reasons plaintiffs allege, the warning fails to put surgeons on notice as to the distinctive risks that arise from MoM-"metallosis," "pseudotumors," and "tissue necrosis"-or the magnitude of those risks. The liner IFU fairs no better: It fails squarely to address "metal wear debris" that occurs when the metal ball articulates against the metal liner, the underlying cause of plaintiffs' injuries. And, taken in context, its warnings about nerve damage, dislocation, and ion release concern complications not at issue in this case- e.g. , surgical trauma and the implant's adaptation to the bone.
Not until after the FDA issued its proposed rule in 2013 did defendants specifically warn about the metallosis, pseudotumors, and tissue necrosis-the sorts of conditions that plaintiffs maintained caused their revision surgery. In short, though defendants' IFUs identified metal debris generally, a reasonable jury could conclude that the warning failed to describe with reasonable specificity the source of the wear-debris problem, the conditions to which it gives rise, and the magnitude of the risk. Texas law requires a closer match than these defendants can show.
2.
Defendants alternatively suggest plaintiffs failed to provide expert testimony that
3.
Defendants claim plaintiffs failed to show the inadequate warning actually caused their physicians to select Ultamet. Under the learned-intermediary ("LI") doctrine, which Texas applies in "medical products liability actions,"
24
"the manufacturer ... satisfies its duty to warn the end user of its product's potential risks by providing an adequate warning to a 'learned intermediary,' who then assumes the duty to pass on the necessary warnings to the end user."
Centocor
,
At the threshold, the parties debate the relevance, under Texas law, of "objective evidence"-that is, evidence "that a different warning would have affected the decision of a reasonable doctor." Id . at 171. The Texas Supreme Court referenced "objective evidence" just once, in Centocor , noting that the plaintiffs not only "lack[ed] subjective evidence [about what the particular physician would have done] but presented no objective evidence that a different warning would have affected the decision of a reasonable doctor to prescribe [the relevant drug] for [plaintiff's] condition." Id . (emphasis added). Here, plaintiffs proffered objective evidence in Morrey Jr.'s testimony that, if the full risks of MoM were known to physicians, "they would run to polyethylene."
At least one federal district court has dismissed
Centocor
's language as
dictum
26
-but that is error. As our caselaw
Relevance, however, does not imply sufficiency. In the LI context, causation entails two distinct factual predicates : first, that the doctor would have read or encountered the adequate warning 27 ; and second that the adequate warning would have altered his treatment decision for, or risk-related disclosures to, the patient. 28 Centocor addressed only the latter, suggesting a jury might be allowed to presume a particular physician would respond "reasonably" to fuller disclosure. But that presumption must yield to contrary subjective testimony by the treating physician, 29 and Centocor fails to explain how objective evidence would apply to whether that doctor would have read or encountered the warning in the first instance. 30 When considered for the limited purpose intimated in Centocor , objective evidence would have little bearing on any of plaintiffs' claims.
Take Greer and Peterson. Their treating physicians, Goletz and Schoch, did not testify, and plaintiffs offer no record evidence suggesting the two actually read or encountered defendants' inadequate warnings. On appeal, plaintiffs cite only their own statements for support: Greer testified Goletz told him his "[MoM] would not wear, [and] would last [his] lifetime," and according to Peterson, Schoch said the same "because [Peterson's MoM] wouldn't have any plastic to wear out." But these snippets say nothing of how the doctors came to hold their respective views. Did Schoch and Goletz rely upon defendants' representations in choosing Ultamet, or did they learn of MoM's purported advantages by some other means? If the latter, how would better disclosure have reached the doctors? Not even "objective evidence" can fill these discrete evidentiary voids. The jury was left to guess, and plaintiffs' claims fail as a result.
See
Pustejovsky
,
Aoki's and Klusmann's claims are more complex, given that the testimony from their treating physician, Heinrich, contains
In Aoki's case, Heinrich testified he used aSphere, Pinnacle's metal femoral head, because DePuy's "simulator data" suggested it "minimize[d] th[e] wear-in phase"-the immediate post-operative period in which articulation causes "an increased release of ions"-relative to alternative metal head designs. Heinrich "asked" "DePuy people" about "aSphere" and "made the decision" to use the product "based on" their representations. Meanwhile, plaintiffs presented Heinrich with emails suggesting DePuy knew its claims about aSphere were untrue, a deception Heinrich seemed to know nothing about. Heinrich also acknowledged more generally that "J & J[/]DePuy" said nothing of the increased "problems" with MoMs in "2008, 2009, maybe even in 2010."
Klusmann's case presents a similarly mixed bag. He received bilateral MoM implants in 2004 and 2005 and began to experience intermittent pain as early as 2006. Heinrich consistently treated Klusmann with "conservative care" until 2011, when he first recommended revision. In explaining that delay, Heinrich testified that "doing things like checking ion levels and things of that nature" was less common then. Plaintiffs' counsel then read a letter from a DePuy physician criticizing MoMs for their potentially "catastrophic complications" and detailing the proper post-operative detection procedures. He then asked Heinrich, "[I]f DePuy had sent you this information-it certainly would have changed the way you were treating Mr. Klusmann, wouldn't it?" Heinrich offered a qualified replied: "To a certain degree. The only thing I would say is that he put in here that once he has ruled out other issues like back problems, loose implants, tendinitis, then he goes on to this workup. And so from that standpoint, yes, I agree." At the least, this testimony suggests DePuy's omission altered the course of Klusmann's post-operative care.
To summarize: Though Heinrich had general awareness of the possibility that metal wear debris could cause adverse tissue reactions, he seems to have been unaware of (a) the magnitude of the risk, (b) the proper post-operative procedures to be followed with MoM patients who experience pain (Klusmann), and (c) DePuy's misstatements about aSphere's wear-related advantages (Aoki). Additionally, Heinrich relied on disclosures by DePuy's representatives in making his treatment decisions. A reasonable jury could discern causation on two bases. First, Heinrich's mixed messages may have been too equivocal to rebut plaintiffs' objective evidence,
cf.
Centocor
,
Christopher's case is the most straightforward of the lot. Kearns, his treating physician, testified, "The metal liner, according to the data supplied by the company, through publication and representatives, [could] last much longer than all the other product liners available at the time." Kearns claimed he "got [his] information from" "a DePuy consensus panel," a "brochure that [his] DePuy representative gave [him]," "word of mouth, from [his] partners, and from the literature ...
In short, defendants were entitled to JMOL on marketing-defect claims by Greer and Peterson. That is not so for Aoki, Christopher, or Klusmann.
C. Statute of Limitations
Defendants suggest Greer's and Klusmann's claims are barred by Texas's statute of limitations, which requires that personal injury suits be filed "not later than two years after the day the cause of action accrues." TEX. CIV. PRAC. & REM. CODE ANN. § 16.003(a). Under Texas's discovery rule, limitations is tolled "until the plaintiff discovers, or through the exercise of reasonable care and diligence should have discovered, the nature of the injury." 31 "The term 'discovered[ ]' ... is quite broad," 32 and it occurs whenever the plaintiff "has knowledge of facts which would cause a reasonable person to diligently make inquiry to determine his or her legal rights." 33
Greer and Klusmann received their MoM implants in 2004 and 2005, respectively, underwent revision surgery between 2011 and 2012, and sued within a few months of revision. Defendants claim that both began to experience hip-related pain as early as 2008, placing them on inquiry notice as to potential defects in their implants outside the statutory window. That assertion assumes pain was a "fact" sufficient to motivate an inquiry into the implant's defect. But both the record and Texas caselaw suggest otherwise.
The record shows that despite plaintiffs' and their surgeons' diligence, neither group linked plaintiffs' symptoms to a potential defect in Ultamet for several years post-implant. And Texas caselaw confirms that appellate courts will reverse the factfinder's judgment on the accrual date only where the connection between the treatment decision and the pain is obvious-for example, when the plaintiff or his physician expressly connects the symptom to the allegedly defective product. 34 Because none of defendants' record citations proves this, we lack a sufficient evidentiary basis to reverse the finding of timeliness.
III. Personal Jurisdiction
J & J claims it was never a proper party because the district court lacked personal jurisdiction over it. The
"This court reviews a district court's exercise of personal jurisdiction
de novo
,"
In re DePuy
,
Plaintiffs' principal jurisdictional theory is "stream of commerce." That doctrine recognizes that a defendant may purposely avail itself of the protection of a state's laws-and thereby will subject itself to personal jurisdiction-"by sending its goods rather than its agents" into the forum.
Nicastro
,
J & J insists that it cannot be subject to personal jurisdiction because DePuy-its executives, engineers, and salespeople-and not J & J, played the principal role in developing and selling the Ultamet. Preliminarily, it cannot be, as J & J suggests, that nonmanufacturing parents categorically lie beyond the stream of commerce no matter the nature of their contributions. Personal jurisdiction does not turn on labels or
relative
connection to the forum.
38
Instead, we look to "the relationship among the defendant, the forum, and the litigation."
Walden v. Fiore
, --- U.S. ----,
J & J's role in Ultamet's design, promotion, and sale demonstrates that J & J significantly contributed to the product's placement into the stream of commerce.
42
On design, the record suggests J & J (a) merged DePuy with another subsidiary that developed Ultamet's precursor Ultima,
43
(b) integrated the design teams, and (c) transferred a helpful patent to DePuy. On marketing and sale, J & J (a) reviewed, edited, and approved DePuy's Pinnacle ads, product brochures, journal articles, public statements, and representations to regulators promoting Pinnacle MoMs
44
; (b) provided substantial funding
These factors also distinguish J & J's role from the passive parent-subsidiary relationship that we have held insufficient to support jurisdiction.
47
Where all the above considerations obtain, a parent corporation like J & J has "purposely avail[ed] itself of the privilege of conducting activities" in the states it expects the product to be sold, "thus invoking the benefits and protections of [that state's] laws."
Nicastro
,
Accordingly, J & J's significant role in placing the Ultamet into the stream of commerce with the expectation that it would be purchased by consumers in Texas rendered J & J amenable to suit for injuries caused by the Ultamet in Texas. The district court properly exercised personal jurisdiction over J & J.
IV. Claims Against J & J
J & J avers that the claims against it-aiding and abetting, nonmanufacturer seller, and negligent undertaking-all fail on the merits. We agree with J & J only as to aiding and abetting.
A. Aiding and Abetting
Plaintiffs' cause of action for aiding and abetting derives from Section 876(b) of the Restatement (Second) of Torts, which provides that, "[f]or harm resulting to a third person from the tortious conduct of another, one is subject to liability if he ... knows that the other's conduct constitutes a breach of duty and gives substantial assistance or encouragement...." The Texas Supreme Court "has not expressly decided whether Texas recognizes a cause of action for aiding and abetting," 48 and the parties disagree at length about whether Texas courts, if squarely presented with the question, would fashion an aiding-and-abetting cause of action, outside of the conspiracy context, when the predicate offense sounds in strict liability.
But that debate is beside the point. When sitting in diversity, a federal court exceeds the bounds of its legitimacy in fashioning novel causes of action not yet recognized by the state courts.
49
Here, despite ample warning, the district court exceeded its circumscribed institutional role and "expand[ed] [Texas] law beyond its presently existing boundar[y]."
Rubinstein
,
Plaintiffs offer two responses, neither persuasive. First, they suggest treating the state courts' abstention as a de facto rejection would effectively eviscerate the Erie analysis. 50 Not so. Erie authorizes us to wager a guess about how the state court might fill the interstices of existing doctrinal frame-works; inventing a new framework ex nihilo is another matter entirely.
Plaintiffs also cite three Texas cases,
51
for the proposition that Texas has long
B. Nonmanufacturer Seller
J & J challenges plaintiffs' "nonmanufacturer seller" claim. Section 82.003(a) of the Texas Civil Practice & Remedies Code declares that "[a] seller that did not manufacture a product is not liable for harm caused to the claimant by that product unless the claimant proves" one of seven exceptions. Question 3 of the jury charge asked whether J & J was a "nonmanufacturing seller" under section 82.003 and then whether J & J satisfied the requirements of either of two exceptions to that immunity-whether it "participate[d] in the design" of the Ultamet and whether it "actually kn[e]w of" a defect in the Ultamet. The jury answered yes to both questions.
J & J claims "nonmanufacturer seller" is an affirmative defense rather than a standalone cause of action. The verdict proves that J & J could be found guilty under one of the exceptions to the affirmative defense, but only if it had also been found liable for a standalone cause of action such as design or marketing defect. It claims no such finding was made-ergo, the nonmanufacturer-seller charge was "bizarre" and "meaningless."
But J & J creates confusion from whole cloth. The first two questions in the jury charge concerning design and marketing defects focus on the product, rather than the conduct or identity of the responsible parties, 55 because that is the focus of Texas products-liability law. 56 Though Questions 1 and 2 mention DePuy and not J & J, those references serve only to fix the relevant temporal frame-i.e., what condition was the product in when it left DePuy's possession?-rather than to exclude other nonmanufacturer sellers from liability.
C. Negligent Undertaking
J & J maintains that plaintiffs' negligent-undertaking claim fails for insufficient evidence. Negligent undertaking requires a finding that (1) J & J undertook to perform services that it knew or should have known were necessary for plaintiffs' protection (here, a duty to design Ultamet for safe use and to regulate its marketing, sale, and distribution); (2) J & J failed to exercise reasonable care in performing those services; and (3) plaintiffs or their physicians relied on J & J's performance,
or
J & J's performance increased plaintiffs' risk of harm.
Nall v. Plunkett
,
Texas caselaw reveals no precise control threshold a parent must cross before undertaking a duty to its subsidiary's customers. Texas courts have made clear that mere possession of "the authority to compel" a subsidiary is not enough-the parent "must actually" exercise that authority in a manner relevant to the undertaking inquiry. 58 At the same time, it is plainly sufficient to show the parent has "the controlling, primary authority for maintaining safety at [its subsidiary's] facilitates." 59
The gap between these two poles is wide, and there is little guidance. Nothing J & J points to in Texas law suggests "primary authority for maintaining safety" is necessary to sustain an undertaking claim. Given that plaintiffs have identified several instances in which J & J actually exercised its veto authority, especially in the marketing context, we cannot say every "reasonable" juror reviewing J & J's role in Ultamet's design, marketing, and distribution would find that J & J had not undertaken a duty to Ultamet users. 60 The challenge is to sufficiency of the evidence, and there is nothing unreasonable in the jury's determination. 61
In the alternative, defendants request a new trial based on irrelevant and prejudicial evidence. A district court can grant a new trial if it finds "the verdict [was] against the weight of the evidence, the damages awarded [were] excessive, the trial was unfair, or prejudicial error was committed in its course."
Smith v. Transworld Drilling Co.
,
A. The Deferred Prosecution Agreement and Saddam Hussein
We begin with the most problematic evidence: the bribes paid by non-party J & J subsidiaries to the "henchmen" and "regime" of Saddam Hussein in Iraq. In 2011, J & J entered into a Deferred Prosecution Agreement ("DPA") in which it "admit[ted], accept[ed], and acknowledg[ed] that it [was] responsible for" violations of the Foreign Corrupt Practices Act committed by non-party affiliates. One of the alleged violations involved bribes by two such affiliates to the Iraqi government, then under Hussein's control. In the middle of trial, the court ordered DePuy to produce a Federal Rule of Civil Procedure 30(b)(6) corporate representative to testify before the jury at length about the DPA. Plaintiffs' counsel then mentioned it several times, including during closing arguments.
The district court allowed these repeated references to Hussein and the DPA because defendants had supposedly "opened the door" by eliciting testimony on their corporate culture and marketing practices. This justification is strained, given that J & J owns more than 265 companies in 60 countries, and the Iraqi portion of the DPA addresses conduct by non-party subsidiaries.
"[T]he Rules of Evidence do not simply evaporate when one party opens the door on an issue."
62
And a party cannot introduce evidence of prior bad "acts ... to show that on a particular occasion the person acted in accordance with the character." FED. R. EVID. 404(b)(1). Our Rule 404(b) inquiry proceeds in two steps: "First, it must be determined that the extrinsic offense evidence is relevant to an issue other than the defendant's character. Second, the evidence must possess probative value that is not substantially outweighed by its undue prejudice and must meet the other requirements of rule 403."
63
Though our inquiry
The Rule 404(b) question lends itself to just one reasonable resolution. During closing arguments, Lanier suggested unequivocally that the jury treat the DPA not as impeachment, nor even as otherwise-inadmissible rebuttal evidence offered "curatively," 66 but as a proxy for J & J's liability:
If you go back and look at the DPA, that's the deferred prosecution agreement where the company paid money one time because of kickbacks to doctors in America, the other time because of the bribes to Saddam Hussein's government, the bribes in Greece, Romania, Poland and other places where they were bribing people to put in ... their products. The DPA has [J & J] admitting its responsibility in it. J & J is admitting that they're responsible. They have already taken this issue out of your hands realistically. That alone is a winner .... [J & J] has admitted their responsibility for this. That ought to be enough . [Emphasis added.]
Indeed. Lanier tainted the result by inviting the jury to infer guilt based on no more than prior bad acts, in direct contravention of Rule 404(b)(1). That alone provides grounds for a new trial. 67
Plaintiffs insist the DPA was admissible because it went to defendants' "intent, knowledge, plan, motive, and opportunity." But that suggestion is as dubious as it is vague. The record makes plain that the DPA and Hussein were "wafted before the jury to trigger their punitive instinct." 68 Lanier repeatedly referenced bribes to the Hussein "regime," despite that the alleged bribes involve neither DePuy nor its products. Crucially, he then invited the jury to infer J & J's liability based solely on that. Nothing in our otherwise inclusive Rule 404(b) jurisprudence countenances such a tactic. 69
A general instruction at the close of trial was "grossly inadequate under the circumstances."
McPhee
,
B. Allegations of Race Discrimination
Lanier coupled his impermissible references to Saddam Hussein with hearsay allegations of race discrimination. While questioning DePuy's president, Andrew Ekdahl, Lanier read the following excerpts from a resignation letter by a former DePuy employee: "I will never understand the humor in a joke about me eating KFC, and yet blamed for my inability to forge relation-ships with people that find this humor funny. I'm tired of 'over-hearing' the word 'N-i-g-g-e-r' or words like it...." And, to quote counsel, "she goes on and on and on." Before the letter was read, defendants objected on hearsay and Federal Rule of Evidence 403 grounds and, after a lunch recess, moved for a mistrial. The court overruled the objections and denied the motion. As with Hussein, reference to a "filthy ... racial email" resurfaced once more during Lanier's closing argument, in his explanation of why J & J had participated in Ultamet's design and knew of its defects. 70
Plaintiffs again suggest defendants placed their character in issue by describing DePuy as an employee-friendly workplace.
See
Croce v. Bromley Corp.
,
Plaintiffs posit that the letter was admissible under Federal Rule of Evidence 801(d)(2)(D), as a statement by an employee on a matter within the scope of employment. But Rule 801(d)(2)(D) does not apply to resignation letters, where the employee is no longer "inhibited by [his] relationship with the principal."
VI. Rule 60(b)(3) Motion
In their companion appeal,
72
defendants challenge the district court's
A. Facts
The story begins in August 2015, when, in preparation for the second bellwether trial ( Aoki ), plaintiffs' counsel made expert disclosures listing Morrey Sr. and Morrey Jr. as expert witnesses "who ha[v]e not been retained or specially employed to provide expert testimony in this litigation." 73 In December of that year, Lanier met with Morrey Sr. to discuss the history of MoM implants. Toward the end of their meeting, Lanier offered payment, which Morrey Sr. declined. Lanier then asked whether there was a charity to which he could contribute, and Morrey identified his alma mater, St. Rita's Catholic School in Fort Worth. Lanier wrote it a $10,000 check, dated December 4, 2015-five weeks before to trial.
The Aoki trial began January 11, 2016. Plaintiffs claim Morrey Sr. first agreed, and was called on, to testify two weeks after the trial had already begun. 74 Yet, he appears in the trial transcripts as early as opening statements, when plaintiffs' counsel described him as "Mayo trained" and "eminently qualified to give [his opinion]." Once Morrey Sr. did eventually take the stand, Lanier explained how he had " hoped you [Morrey Sr.] would be testifying." Recounting their meeting in December, Lanier described to the jury how they shared the "best apple pie in the world." St. Rita's and the $10,000 check went unmentioned.
Morrey Sr. was a compelling witness. He walked the jury through the history of MoP and MoM designs and explained that he used MoP, a safer alternative, on all his patients, including Billy Graham and former-President George H.W. Bush. During both the direct and redirect, Lanier repeatedly emphasized Morrey Sr.'s independence-reflected in his peer-reviewed work, royalty-collection practices, and continuing-education lectures-and contrasted that independence with the purportedly biased and self-interested work of DePuy's doctors.
His son, Morrey Jr., also an orthopaedic surgeon, performed Greer's revision surgery and evaluated Klusmann. Before Morrey Jr.'s testimony, defendants moved to exclude any testimony that would exceed his role as a treating physician. During arguments on the motion, Lanier emphasized how "very important" it was "for the Court to know and the record to reflect that Dr. Morrey was properly and
Long after the Morreys had exited the scene, Lanier reminded the jury of their compelling pro bono testimony, which he contrasted repeatedly with the "bought testimony" of defendants' paid experts. For example, when defense expert pathologist Scott Nelson claimed he was compensated "like all experts," Lanier seized the opportunity: "Dr. Matt Morrey wasn't compensated. Bernard Morrey wasn't compensated.... For him to say-." The court cut short and quickly sustained the objection. And again on cross, Lanier returned to the subject, reminding the jury that "Dr. Morrey, Sr. ... the one that put in President Bush's metal-on-poly hips ... came and testified here, on his own ." Additionally, the Morreys featured prominently in Lanier's closing statement: "Dr. Morrey senior, no expense coming to this courtroom, not a paid witness." And again:
If President Bush could talk to the surgeon and pick him, he's good enough for me. And to pick a metal-on-poly hip, good enough for me. That's who did the surgery. That's the kind of [implant] that he put in. And the reason that he was here is I called his son and said what happened here. He said I don't use this kind of hip. Why not? My dad told me not to. That's not bought testimony . That's not conjured. That's not rehearsed. That's real life . That's the way they lived. [Emphasis added.]
The jury was instructed that it could "consider any bias evidence that the expert witness has been or will be paid for ... reviewing the case and testifying." As between "real life" and "bought testimony," it chose the former by a margin of $502 million.
But that choice was a false one, manufactured entirely by Lanier. During preparation for the third bellwether trial, details emerged suggesting that (a) Morrey Sr. had directed a $10,000 donation to his alma mater before trial, (b) Morrey Jr. had expected compensation from the start, and (c) both received sizeable sums after the verdict. The revelations began when plaintiffs' counsel chose to bring back the Morreys and redesignate them as traditional expert witnesses for the next trial. After shifting designations, plaintiffs produced two letters from Lanier, both dated April 7, 2016, thanking the Morreys for their "pro bono" testimony at the Aoki trial and enclosing generous checks-$35,000 to Morrey Sr. and $30,000 to Morrey Jr.
The checks raised red flags. And so defendants' counsel questioned Morrey Sr. during a deposition about whether he had received "any other compensation" for his testimony. His reply revealed, for the first time, the existence of the donation: "[Lanier and I] had a preliminary discussion, and a check was given to a charitable organization[,] ... St. Rita's Catholic School in Fort Worth."
A similarly striking revelation emerged during Morrey Jr.'s deposition. He told defendants' counsel that he had expected payment from the start and had even inquired of plaintiffs' counsel about how to receive payment. Rather than rebuffing that request as inappropriate, plaintiffs' team told Morrey Jr. "don't worry about
Misrepresentations in hand, defendants moved for relief from judgment under Rule 60(b)(3), which affords redress in cases of "fraud ..., misrepresentation, or misconduct." FED. R. CIV. P. 60(b)(3). The district court denied the motion. It found no "agreement for compensation" at the time of trial; and it reasoned that, regardless, defendants had "not shown how evidence of [p]laintiffs' experts receiving a fraction of the compensation of [d]efendants' experts would have produced a different result at trial."
B. Analysis
Defendants had a heavy burden, in the district court, to show by clear and convincing evidence that plaintiffs had engaged in misrepresentation that prevented defendants from fully and fairly presenting their case.
Wilson v. Thompson
,
The district court misstated the substantive test under Rule 60(b)(3). The inquiry is not whether the misrepresentation altered the result, 76 but whether it "prevented the losing party from fully and fairly presenting his case or defense ." 77 Defendants need only show that the alleged misrepresentations foreclosed potentially promising cross-examination tactics; the misrepresentations need not be outcome-determinative, nor even intentional, to compel reversal. 78
Now, to the question whether Lanier, knowingly or unknowingly, misled the jury in representing repeatedly that the Morreys had neither pecuniary interest nor motive in testifying. The facts speak pellucidly: The pre-trial donation check, Morrey Jr.'s expectation of compensation, and the post-trial payments to both doctors are individually troubling, collectively devastating.
Consider first the check to St. Rita's. In December, Lanier and Morrey Sr. met at the latter's house, they discussed the contents of his testimony, and Lanier made a donation to a charity of Morrey Sr.'s
In his defense, Lanier asserts the date of the donation "confirms [it] was a 'thank you' for time spent with [plaintiffs' counsel] rather than a promise by [Lanier] to make a charitable contribution in exchange for Dr. Morrey's testimony." Before interrogating this story, let us speak plainly: Lawyers cannot engage with a favorable expert, pay him "for his time," then invite him to testify as a purportedly "non-retained" neutral party. That is deception, plain and simple. And to follow that up with post-trial "thank you" check merely compounds the professional indiscretion.
As for counsel's explanation, we cannot rule out the possibility Lanier believes what he says. But our inquiry turns on the various actors' conduct and what it reasonably suggests, rather than self-serving ex-post statements as to state of mind. A lawyer would not make a $10,000 donation to an expert's charity of choice-a "gift" for his time-without realizing the "gift" would likely induce subsequent testimony.
Granted, the record includes no evidence that Lanier stated expressly that the donation came with strings attached. But sometimes, in matters of persuasion, what goes without saying is best left unsaid. Take Lanier's post-trial checks. At oral argument, he acknowledged those thank-you payments were designed to induce the Morreys to testify at the next bellwether trial, despite never expressly making that request. The pattern leaves little doubt about the desired effects of the donation. 81
Morrey Jr.'s expectation of payment is equally troubling. Lanier claims Morrey Jr. did not necessarily expect payment " by the Plaintiffs ," and even if he had, Lanier and crew were not "mind-readers" and cannot be expected to have divined Morrey Jr.'s secret wishes. Such suggestions require a suspension of common sense. As Morrey Jr.'s deposition makes clear, his expectation of payment derived from his intuitive understanding that expert witnesses are entitled to payment for their services. That intuition led him to inquire about payment with the plaintiffs , the parties that solicited and directly benefited from his services.
As for "mind reading," plaintiffs' counsel has it backward: This is a free-market
Finally, the deceptions obviously prevented defendants from "fully and fairly" defending themselves.
See
Rozier,
Conclusion
DePuy is entitled to JMOL on Greer's and Peterson's defective marketing claims, and J & J is entitled to JMOL on all plaintiffs' aiding-and-abetting claims. The remaining claims avoid JMOL, though a new trial is required for the district court's serious evidentiary errors and counsel's misrepresentations. The judgments are REVERSED in part, and the judgment and the order denying Rule 60(b)(3) relief are VACATED, and the remaining claims are REMANDED for a new trial consistent with this opinion. 83
Notes
For background,
see
In re DePuy Orthopaedics, Inc.
,
Three spouses-Jacqueline Christopher, Susan Klusmann, and Karen Peterson-alleged loss of consortium. Their claims were consolidated as well.
More precisely, J & J owns Johnson & Johnson International, Incorporated, which owns DePuy Synthes, Incorporated, which owns a subsidiary, which owns DePuy.
Plaintiffs' cross-appeal is meritless, and we dispose of it by footnote.
Several of defendants' theories implicate the murkier areas of Texas tort law. In considering these challenges, we are guided by the en banc court's admonition:
[I]t is not for us to adopt innovative theories of state law, but simply to apply that law as it currently exists.... We are emphatically not permitted to do merely what we think best; we must do that which we think the [state] [s]upreme [c]ourt would deem best.... If the law of [the state] is to be changed, it is up to the [s]upreme [c]ourt of [the state] and not this court to change the substantive law of that state.
Jackson v. Johns-Manville Sales Corp.
,
(1) decisions of the [state] [s]upreme [c]ourt in analogous cases, (2) the rationales and analyses underlying [state] [s]upreme [c]ourt decisions on related issues, (3) dicta by the [state] [s]upreme [c]ourt, (4) lower state court decisions, (5) the general rule on the question, (6) the rulings of courts of other states to which [state] courts look when formulating substantive law and (7) other available sources, such as treatises and legal commentaries.
Centennial Ins. Co. v. Ryder Truck Rental, Inc.
,
Tex. Civ. Prac . & Rem. Code Ann. § 82.005(b). The alternative design must also be economically and scientifically feasible,
see
Honda of Am. Mfg., Inc. v. Norman,
See
Brockert v. Wyeth Pharm., Inc.
,
Cf.
Jackson v. Firestone Tire & Rubber Co
.,
For example, parties could merely dispute the level of generality at which the product's function should be described.
Defendants shift course in their reply brief, stressing that MoM "eliminate[s]
plastic debris
." That distinction is real but "of little analytical value."
Bell Helicopter
,
Put differently, plastic elimination was only the means, never the functional endgame. And though plaintiffs must do more than show that MoP has "the same general purpose as the allegedly defective product,"
Brockert
,
Defendants' proposal presents interrelated problems of proof and incentives. On the incentive side, sophisticated actors could exploit the rule by making sub-optimal investments in
ex ante
risk detection, blinding themselves to the potential dangers of a particular product. And, as for proof, how should courts go about discerning the manufacture's "
ex ante
" intentions? Should we ask the engineers how they expected the innovation to perform relative to its market alternatives? Must we credit a designer's self-serving speculation as to the magnitude of expected benefit as well?
See generally
Steven Shavell, Foundations of Economic Analysis of Law 237-38 (2004). These and other evidentiary problems counsel caution. Additionally, the purpose of the "different product" rule is to guard against "eliminat[ing] whole categories of
useful
products from the market,"
Caterpillar,
See
Torkie-Tork v. Wyeth
,
Cf.
Michael v. Wyeth, LLC
, No. 2:04-0435,
U.S. Dep't of Health and Human Servs., et al.,
The 510(k) Program: Evaluating Substantial Equivalence in Premarket Notifications
6 (July 28, 2014), http://www.fda.gov/downloads/MedicalDevices/DeviceRegulationandGuidance/GuidanceDocuments/UCM284443.pdf.
But see
Eghnayem v. Boston Sci. Corp.
,
See
United States v. Shirey
,
For example, a claim that all MoPs are defective, if made before the development of cross-linked MoPs, would probably not reach next-generation, cross-linked plastic that reduces the very risks that made first-generation MoPs defective.
Defendants' suggestion that Texas has already rejected the case-by-case approach is unfounded. They rely on a lone federal district court decision from the prescription-drug context; but that decision relied on no more than its own policy judgment and three decisions from other jurisdictions.
See
Hackett v. G.D. Searle & Co.
,
Compare
Hufft v. Horowitz
,
See
Transue v. Aesthetech Corp
.,
Galindo v. Precision Am. Corp.
,
See
Perez v. Goodyear Tire & Rubber Co.
, No. 04-14-00620-CV,
Porterfield v. Ethicon Inc.
,
Plaintiffs posit only that DePuy had a duty to warn Aoki and Klusmann directly of Ultamet's risks.
See
Murthy v. Abbott Labs
,
In re Mentor Corp.
, MDL Docket No. 2004 4:08-MD-2004 (CDL), Case No. 4:13-cv-229 (Burke),
Pustejovsky v. Pliva Inc.
,
See
Centocor
,
See
Centocor
,
Pustejovsky
,
Porterfield
,
Vaught v. Showa Denko K.K.
,
Bell v. Showa Denko K.K.
,
See
Porterfield
,
"A federal court sitting in diversity may exercise personal jurisdiction over a nonresident defendant (1) as allowed under the state's long-arm statute; and (2) to the extent permitted by the Due Process Clause of the Fourteenth Amendment."
Mullins v. TestAmerica, Inc.
,
The test for specific personal jurisdiction has a third requirement: Assertion of jurisdiction must be fair and reasonable.
Nuovo Pignone, SpA v. STORMAN ASIA M/V
,
Where the district court conducts a pre-trial evidentiary hearing on jurisdiction, the preponderance-of-the-evidence standard applies.
Travelers
,
See
Irving v. Owens-Corning Fiberglas Corp.
,
Burger King,
Int'l Shoe Co. v. Washington
,
Bd. Of Cty. Comm'rs v. Umbehr
,
See
Irving
,
In seeking the FDA's 510(k) clearance, DePuy characterized Ultamet as Ultima's "substantial equivalent."
A number of these materials, in particular the brochures and advertisements, included misleading statements related to MoM's "fluid film lubrication," limited wear debris, and general survivorship rate. Plaintiffs' claims were based in part on these statements.
J & J asserts that the clearance document was never admitted into evidence. The trial record confirms that it was.
See
Choice Healthcare, Inc.
,
See, e.g.
,
Dickson Marine v. Panalpina
,
First United Pentecostal Church of Beaumont v. Parker
,
Johnson v. Sawyer
,
See also
In re Hous. Reg'l Sports Network, L.P.
,
City of Fort Worth v. Pippen
,
Pippen
,
Kinzbach Tool
,
McKinnon & Van Meter,
Question 1 reads in relevant part,
Was there a design defect in the Pinnacle Ultamet Hip Implant at the time it left the possession of DePuy Orthopaedics, Inc. ...? ...
...
In answering this question, you are instructed to consider only the condition of the Pinnacle Ultamet Hip Implant, and not the conduct of DePuy Orthopaedics, Inc. The Pinnacle Ultamet Hip Implant may have a design defect even if DePuy Orthopaedics, Inc. exercised all possible care in designing it.
Question 2 asked, "Was there a defect in the warnings at the time the Pinnacle Ultamet Hip Implant left the possession of DePuy Orthopaedics, Inc. ...?"
Gonzales v. Caterpillar Tractor Co.
,
In a footnote, defendants question whether J & J was properly deemed a seller under Section 82.003. They cite no cases for that under-defended theory, so we do not consider it.
See
Little v. Delta Steel, Inc.
,
See
Johnson v. Abbe Eng'g Co.
,
See
Bagby Elevator Co. v. Schindler Elevator Corp.
,
United States v. Bursey
,
United States v. Beechum
,
United States v. Shaw
,
1 McCormick on Evid . § 57 (7th ed. Updated June 2016).
At oral argument, Lanier suggested the underlying issue in questions 3, 4, and 5 was whether J & J was a "seller," and his reference to the DPA served only to show J & J previously had claimed responsibility for its subsidiary's bad acts. That theory is doubly flawed: First, counsel expressly referenced the bribes in Iraq, which involved nonparty subsidiaries, and second, questions 4 and 5-J & J's liability for negligent undertaking and aiding and abetting-clearly require more than the conclusion that J & J was a "seller"-e.g., that it knew or should have known the product was defective. Considered in context, Lanier's statements obviously invited the jury to infer liability based solely on J & J's admissions in the DPA.
Shows v. M/V Red Eagle
,
Plaintiffs alternatively suggest the DPA was admissible under Federal Rule of Evidence 406 as evidence of a "routine practice" of bribing doctors. Not so. In
United States v. West
,
His exact words were, "J & J participated in the design all the way up to aSphere where the president of [J & J] is getting updates from the head of marketing at DePuy, Richard Berman of the filthy email fame and the racial email fame. Did [J & J] know of the defect?"
The same is true of counsels' unit-of-time argument, made during closing argument. Lanier's co-counsel first told the jury, "If you don't consider the damages by the day, by the hour, by the minute, then you haven't considered their damages." Then, during rebuttal, Lanier elaborated, "[P]lease, please, please, if they [the defendants] will pay their experts a thousand dollars an hour to come in here, when you do your math back there don't tell these plaintiffs that a day in their life is worth less than an hour's time of this fellow, or people they put on the stand." The court promptly overruled defendants' objection.
As a general matter, unit-of-time arguments like this one are impermissible because they can lead the jury to "believ[e] that the determination of a proper award for ... pain and suffering is a matter of precise and accurate determination and not, as it really is, a matter to be left to the jury's determination, uninfluenced by arguments and charts."
Foradori v. Harris
,
Plaintiffs urge that the district court could cure the problem by offering a "specific cautionary instruction" that the unit-of-time claim reflects the lawyer's private opinion, "which the jury is free to disregard."
Colburn v. Bunge Towing
,
Inc.
,
We decline to address defendants' remaining evidentiary challenges regarding DePuy's 2007 DPA, the
Doubt is Their Product
book, cancer and suicide, the "thousands" of pending Ultamet suits, and unrelated transvaginal mesh suits. The district court should weigh carefully the applicability of Rules 403 and 404(b) and, where necessary, should issue specific instructions to avoid undue prejudice.
See, e.g.
,
Croce
,
In their cross-appeal, plaintiffs assert that Section 41.008 of the Texas Civil Practice and Remedies Code -which caps exemplary damages at twice the amount of economic damages, plus non-economic damages not exceeding $750,000-violates the state constitutional right to "open courts," Tex. Const. , art. 1, § 13, and the federal Constitution's equal protection clause. Those claims are frivolous.
To the first, Texas courts have uniformly held that Section 41.008 does not violate the "open courts" provision.
See
Waste Disposal Ctr., Inc. v. Larson
,
Non-retained, or uncompensated, experts need not prepare expert reports in advance of their testimony. Fed. R. Civ. P. 26(a)(2)(B).
On the eve of Morrey Sr.'s testimony, defendants filed a late-night motion asserting that plaintiffs had improperly designated him as a "nonretained" expert-he was not a treating physician of any of the plaintiffs, and his opinions were not formed in the course of treatment-and that his testimony should therefore be excluded. At trial the next day, the court allowed Morrey Sr. to testify, but only on condition that he later provide a written report and make himself available for a deposition and future cross-examination. Plaintiffs eventually provided defendants with an expert report summarizing his testimony, but it made no mention of any compensation agreement, and the doctor never reviewed it.
The judge allowed the testimony on the condition that Morrey Jr. file a report and be available for cross-examination. Morrey Jr. later provided a summary of his testimony, and defendants did not recall him for further cross.
Wilson
,
Rozier v. Ford Motor Co.
,
See
Lonsdorf v. Seefeldt
,
Plaintiffs' counsel did not disclose the check until after oral argument in a Fifth Circuit Rule 28(j) letter. Interestingly, plaintiffs' briefing relies on Morrey Sr.'s deposition testimony for the proposition that the check was tendered after his testimony. And when pressed at oral argument that a pre-trial date would invite "devastating impeachment," Lanier's co-counsel conceded, "I agree with your logic. I do agree with your logic. But Mr. Lanier is not sure exactly when it was done."
Saunders v. Comm'r
,
Suppose we did believe Lanier's various and independent explanations for why he could pay his expert before and after trial without ever compromising the witness's nonretained status. An opinion countenancing his behavior would read like a blueprint on how to evade Rule 26 with impunity. Parties could pay experts "for their time" before trial and later exchange compelling "pro bono" testimony for sizable, post-trial "thank you" checks.
Plaintiffs respond that the "possibility of bias was exponentially greater with Defendants' experts," because they were paid far greater sums of money "over many years." They add that Morrey Sr.'s decision to divert the $10,000 to a charity would only serve to bolster his credibility. But these jury arguments confuse the inquiry. The central question is not whether the non-disclosure was outcome-determinative but, instead, whether disclosure would have opened up potentially promising impeachment tactics on cross-examination, which it patently did.
As the court confirmed by questions at oral argument, the defendants, despite their serious critiques of the district judge's actions in this case and related MDL proceedings,
see
In re DePuy Orthopaedics, Inc.
,
