In Re Brand-Name Prescription Drugs Antitrust Litigation
This matter is before the Judicial Panel on Multidistrict Litigation on the motion of various defendants 1 to vacate a conditional remand order (CRO), dated July 3, 2002, in which the Panel conditionally remanded the remaining Robinson-Patman Act claims in the seventeen actions listed in Appendix A to the district courts in which they were originally brought (and from which they previously had been transferred). For the reasons elucidated below, the Panel orders that the claims at issue, with a few exceptions (see infra n. 2), be remanded to the United States District Court for the Eastern District of New York.
The labyrinthine history of this litigation begins with the discovery of a compendium of alleged antitrust and price discrimination violations in the brand-name prescription drug industry. The plaintiffs in the various actions comprise over 400 retail drug stores ranging in size from small “mom and pop” pharmacies to large, multi-state chains. This disparate group of claimants banded together to allege that a number of manufacturers and wholesalers had conspired to fix the prices of brand-name prescriptions drugs.
Many of these suits were brought as class actions; they alleged violations of section 1 of the Sherman Act,
Extensive pretrial discovery took place under Judge Kocoras’s astute supervision. In November 1994, Judge Kocoras certified a Sherman Act class.
See In re Brand-Name Prescription Drugs Antitrust Litig.,
MDL No. 997,
In April 1995, Judge Kocoras entered a case-management order authorizing discovery to proceed on behalf of the twenty-four opt-out plaintiffs (the designated plaintiffs) against the five designated defendants. See supra note 1. This order distinguished between the two types of claims asserted by the designated plaintiffs.
On October 19, 2001, the Panel, acting pursuant to
On February 19, 2002, the transferee court recommended that the Panel remand the designated plaintiffs’ Robinson-Pat-man Act claims against the designated defendants to the district courts in which they had been initiated (and from which they originally had been transferred). On July 3, 2002, the Panel entered a CRO. 3 The motion to vacate followed.
The movants first asseverate that the Panel should refuse to remand the Robinson-Patman Act claims at all, leaving those claims with the transferee court in order to resolve remaining factual issues. We reject this asseveration.
The Panel’s organic statute,
Moreover, the Panel’s Rules of Procedure provide that the Panel may consider the question of remand on the motion of a party, the suggestion of the transferee court, or its own initiative. Rule 7.6(c),
We treat such suggestions respectfully. After all, the transferee judge is charged with the day-to-day supervision of centralized pretrial proceedings and, accordingly, has special insight into the question of whether further coordinated or consolidated proceedings are likely to be useful. A transferee judge’s suggestion of remand to the Panel is an obvious indication that he has concluded that the game no longer is worth the candle (and, therefore, that he perceives his role under
This decision does not end our journey. A question remains as to the identity of the court(s) to which we should remand. We turn next to that question.
We start this phase of our inquiry with the Panel’s organic statute,
The court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims, or issues.
With these rules in mind, we turn to the provisions of
For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.
The history of the proceedings is informative. As said, Judge Kocoras ordered the designated plaintiffs’ Robinson-Pat-man Act claims separated from their Sherman Act claims pursuant to
That was the state of the record in October of 2001, when the Panel, acting pursuant to
Subsequent to this remand, each transferor court save two,
see supra
note 2, ordered a transfer pursuant to
It follows that, from this point forward, nothing remained in the original transferor courts. When an action is transferred, its essential nature remains unchanged, and the action, together with all its accouterments, is sent to the receiving court.
See Magnetic Eng’g & Mfg. v. Dings Mfg., 178
F.2d 866, 868 (2d Cir.1950) (L.Hand, J.);
Phebus v. Search,
While the situation confronting us is unique, the Tenth Circuit faced an analogous situation in
Chrysler Credit.
In that case, the plaintiffs filed an action in the Western District of Oklahoma. Various counterclaims and a third-party complaint followed. The district court separated the claims under
On appeal, the Tenth Circuit reversed and remanded with instructions to vacate for lack of jurisdiction.
Id.
at 1521-22. It distinguished the separation of claims under
The same principles are controlling here. For the most part — the two exceptions are described in note 2,
supra
— the district courts in which the cases originally were filed have transferred those actions to the Eastern District of New York. In each instance, the transfer encompassed the entire action, that is, not only the remanded Sherman Act claims but also the residual right to receive the Robinson-Patman Act claims upon their eventual remand. The transferor courts no longer have jurisdiction over any part of the actions, and a remand to those courts would be a nullity. Thus, the only sensible result is that the “originating court,” for remand purposes, is no longer the district court in which a suit originally was commenced, but, rather, the court in which that suit is now pending (the Eastern Dis
This outcome is not inconsistent with Panel Rule 7.6, R.P.J.P.M.L. That rule states: “In the absence of unusual circumstances ... [e]ach action transferred only for coordinated or consolidated pretrial proceedings that has not been terminated in the transferee district court shall be remanded by the Panel to the transferor district for trial.” For the reasons discussed above, the Eastern District of New York has become the de facto transferor district for all of these cases. By the same token, this outcome is not inconsistent with
Lexecon,
in which the Court stated that “the statutory language of
We add a coda. We are aware that when the original transferor courts made their decisions to transfer the actions to the Eastern District of New York under
We need go no further. 6 For the reasons stated herein, the CRO previously entered is vacated and a new order, consistent with this opinion, shall issue forthwith.
So Ordered.
REMAND ORDER
Consistent with the Opinion and Order delivered this date by Judge Selya, pursuant to
APPENDIX A
DOCKET NO. 997 IN RE BRAND-NAME PRESCRIPTION DRUGS ANTITRUST LITIGATION
—transferee ~- DIST. DIV. C.A.NO. — TRANSFEROR — DIST. DIV. C.A.NO. CASE CAPTION
ILN I 95-2582 NYE I 02-4002 Allard's Bell Park v, Abbott Laboratories, et al (as to plaintiff Martin’s Drug Store, Inc.) (formerly D. Connecticut, C.A. No. 3:94-1995)
ILN I 95-3266 NYE l 02-2454 Mims Pharmacy, Inc, v, Abbott Laboratories, et al. (as to plaintiff Hobb’s Pharmacy, Inc.) (formerly M.D. Florida, C-A. No. 6:95-336)
ILN 1 95-37 NYB 1 02-3697 Meadows v. Abbott Laboratories, et al. (as to plaintiff Reagan’s Pharmacy, Inc. d/b/a Reagan’s Home Care Pharmacy) (formerly S.D. Georgia, C.A. No. 5:94-85)
ILN 1 95-2934 NYE 1 02-3696 Ace Pharmacy, Inc. v, Abbott Laboratories, et al. (as to plaintiff Don Auld’s RX Shop., Inc. d/b/a Don Auld’s) (formerly S.D. Georgia, C.A, No. 5:95-24)
ILN 1 95-741 NYE 1 02-2258 Austin Pharmacy, Inc. v Abbott Laboratories, et al. (as to plaintiffs Cauan’s Pharmacy and Low Cost Rx, Inc.) (formerly S.D. Indiana, C.A. No. 1:94-1966)
ILN 1 94-7816 NYE 1 02-4118 RX Centerv. Abbott Laboratories, et al. (as to plaintiff Rowan Drug, Iuc. d/b/a The Medicine Shoppe) (formerly B.D. North Carolina, C.A. No. 5:94-807)
ILN I 95-1866 NYE 1 95-402 31* Wise Pharmacy v. Abbott Laboratories, et al. (as to plaintiff Randolph J. Weaver d/b/a The Medicine Shoppe)
ILN 1 95-3142 NYE 1 95-1292 Drug Mart Pharmacy Corp. v, Abbott Laboratories, et al. (as to plaintiff Miller of Wyckoff, Inc.)
ILN 1 95-1668 NYE 1 02-3161 Al Tell Pharmacy & Gift Shoppe v. Abbott Laboratories, et al. (as to plaintiffs Fox Drug Co. and Lyndhur-st Drug d/b/a Lyndhurst Drug/Fox #1) (formerly N.D. Ohio, C-A. No. 4:94-2665)
ILN 1 94-3669 OHS 1 94-160 Albertson's Inc, v. Abbott Laboratories, et al. (as to plaintiffs Albertson’s Inc. and Kroger Co.)
ILN 1 94-7272 NYE 1 02-2510 2401E. York Street, Inc., et al. v. Abbott Laboratories, et al. (as to plaintiff William R. Seifzinger d/b/a Stapleton Pharmacy) (formerly M.D. Pennsylvania, C.A. No. 1:94-1694)
ILN 1 94-1200 NYE 1 02-4432 Site Atd. Corp. v. American Home Products Corp. (as to plaintiffs Rite Aid Corp. and Reveo, D.S., Inc.) (formerly MD. Pennsylvania, C.A. No. 4:93-1580)
ILN I 95-3215 NYE 1 02-2761 Savitz Drug Store, Inc. v. Abbott Laboratories, et al. (as to plaintiff D.A.P., Inc. d/b/a Burke’s Main Street Pharmacy) (formerly D. South Carolina, C.A. No. 2;95*869)
-A2-
ILN 1 94-2650 NYE 1 02-2504 Malley's Pharmacy, Inc. v. Abbott Laboratories, et al. (as to plaintiffs Prescription Mart Pharmacy, Inc. d/b/a Generic Pharmacy and Lovoi & Sons Pharmacy, Inc.) (foxmerJy E-D. Texas, C.A. No. 1:94-97)
ILN 1 95-2711 NYE 1 02-3008 Chin v. Abbott Laboratories, et al. (as to plaintiff Gloemco. Inc. d/b/a Pinewood Pharmacy) (formerly S.D. Texas, C.A. No. 3:95-167)
ILN 1 95-2931 NYE 1 02-3205 Marshall Pharmacies v. Abbott Laboratories, et al. (as to plaintiffs Towler Drug Co., Inc. and Fridley’s Pharmacy, Inc.) (formerly E.D. Virginia, CA. No. 3:95-240)
ILN 1 95-796 NYE 1 02-3724 4 W's, Inc. v, Abbott Laboratories, et al. (as to plaintiff Newport Hills Drugs, Inc.) (formerly W.D. Washington, C.A. No. 2:94-1767)
Notes
. The transferee court, while establishing rules for managing the Robinson-Patman Act claims, created the designated parties.
See In re Brand-Name Prescription Drugs Antitrust Litig.,
MDL No. 997,
. There were two exceptions: (1) a case pending in the Southern District of Ohio was not transferred at all; and (2) a group of cases already pending in the Eastern District of New York simply remained in that venue.
. The CRO was over-inclusive in one respect: the Panel, inter alia, conditionally remanded the Robinson-Patman Act claims of the designated plaintiffs against the non-designated defendants. The parties agree that the CRO, as framed, overstepped the boundaries of the transferee judge's suggestion of remand. On reflection, we share this view. Remand of these Robinson-Patman Act claims is not warranted at this time. Consequently, we vacate the CRO as it applies to the non-designated defendants.
. We note, however, that although the
Lexe-con
Court concluded that a transferee court could not transfer a case to itself for trial, the Court did not foreclose all possibility that a transferee judge could try an action that had been transferred to him or her under
. This result might well be different had the transferee court severed the claims under
. We note that the language of