TAYLOR V GATE PHARMACEUTICALS; ROBARDS v GATE PHARMACEUTICALS
Docket Nos. 120624, 120637-120641, 120642-120646, 120653-120654
Supreme Court of Michigan
Argued December 10, 2002. Decided March 26, 2003.
468 MICH 1
ROBARDS v GATE PHARMACEUTICALS
Docket Nos. 120624, 120637-120641, 120642-120646, 120653-120654. Argued December 10, 2002 (Calendar Nos. 7-10). Decided March 26, 2003.
Tamara Taylor and Lee Anne Rintz brought a products liability action in the Wayne Circuit Court against Gate Pharmaceuticals and other manufacturers and distributors of certain diet drugs and against physicians who prescribed the drugs, seeking damages for injuries resulting from the use of the drugs. The defendants’ motion for summary disposition under
Judith H. and Kenneth W. Robards brought a products liability action in the Washtenaw Circuit Court against Gate Pharmaceuticals and other manufacturers and distributors of certain diet drugs and against physicians who prescribed the drugs, seeking damages for injuries resulting from the use of the drugs. The court, David S. Swartz, J., ruled that
The Court of Appeals, MURPHY and JANSEN, JJ. (COLLINS, P.J., did not participate), consolidated the cases, affirmed the order of the Wayne Circuit Court and reversed the order of the Washtenaw Circuit Court, holding that
In an opinion by TAYLOR, J., joined by Chief Justice CORRIGAN and Justices CAVANAGH, YOUNG, and MARKMAN, the Supreme Court held:
US Const, art I, § 1 ,Const 1963, art 4, § 1 , andConst 1963, art 3, § 2 have led to a constitutional discipline, the nondelegation doctrine, which precludes the legislative branch of government from delegating its legislative power to either the executive branch or the judicial branch. One type of nondelegation case involves a referral statute in which, depending on a factual development that is outside the control of the legislative body, certain legal consequences will ensue. Where that factual development is an independently significant standard, the statute making reference to it does not make an improper delegation of legislative power. The independent factual development is simply a measuring device.MCL 600.2946(5) merely provides that specific legal consequences under Michigan law will result from an act or determination by the FDA of a fact that has significance independent of the statute. This is not a delegation of legislative power.
Justice WEAVER concurred in the result only.
Reversed.
Justice KELLY, dissenting, stated that an unconstitutional delegation of authority occurs when a statute references a foreign body‘s factual determinations made on the basis of standards that are not established and essentially unchanging.
1. CONSTITUTIONAL LAW — DELEGATION OF LEGISLATIVE AUTHORITY — REFERRAL STATUTE.
A referral statute, whose operation depends on acts or decisions taken by a private entity for significant purposes unrelated to and independent of the statute and where those acts or decisions are not authorized or directed by the statute, does not constitute an unconstitutional delegation of legislative authority.
2. CONSTITUTIONAL LAW — DELEGATION OF LEGISLATIVE AUTHORITY — PRODUCTS LIABILITY — PHARMACEUTICALS — FEDERAL DRUG ADMINISTRATION APPROVAL.
The Michigan Legislature did not delegate legislative authority to the Food and Drug Administration when it enacted a statute that provides the manufacturer or seller of a drug with an absolute defense to a products liability claim regarding the drug if the drug and its labeling were in compliance with the FDA approval at the time the
Charfoos & Christensen, P.C. (by David R. Parker, Samuel L. Simpson, and J. Douglas Peters), for Tamara Taylor, Lee Anne Rintz, Judith H. Robards, and Kenneth W. Robards.
Buesser, Black, Graham, & Buesser, P.C. (by Ronald F. Graham), and Goodwin & Procter, LLP, for Gate Pharmaceuticals, Inc.
Kitch Drutchas Wagner DeNardis & Valitutti (by Thomas J. Foley and Susan Healy Zitterman) for SmithKline Beecham Corporation.
Plunkett & Cooney, P.C. (by Robert G. Kamenec), McDermott, Will & Emery (by Peter L. Resnik, Cathy McNeil Stein, and Kevin E. Young), and Bingham McCutchen, LLP (by Peter C. Neger), for Medeva Pharmaceuticals, Inc.
Honigman Miller Schwartz & Cohn (by Ronald S. Longhofer and Andrew Doctoroff), Secrest, Wardle, Lynch, Hampton, Truex & Morley (by John Mitchell and Michael L. Updike), and Arnold & Porter (by Donald O. Beers, Darryl W. Jackson, and Michael C. Augustini) for A. H. Robins Company, Incorporated, Wyeth-Ayerst Laboratories Company, and American Home Products Corporation.
Amici Curiae:
Kelley Cawthorne (by Dennis O. Cawthorne), Covington & Burling (by Bruce N. Kuhlik and David H. Remes), and Russel A. Bantham and Marjorie E. Powell for Pharmaceutical Research and Manufacturers of America.
Howard & Howard Attorneys, P.C. (by Mary C. Dirkes), for The Michigan Manufacturers Association.
OPINION OF THE COURT
TAYLOR, J. We granted leave to appeal in these consolidated products liability cases to consider the Court of Appeals holding that
I
Tamara Taylor and Lee Anne Rintz filed a products liability lawsuit in the Wayne Circuit Court against Gate Pharmaceuticals and other manufacturers and distributors of certain prescription diet drugs,1 seeking damages for injuries resulting from use of the drugs. A similar lawsuit was filed in the Washtenaw Circuit Court by Judith and Kenneth Robards. In each lawsuit, the defendants filed a motion arguing that they were entitled to summary disposition on the basis of
The respective plaintiffs opposed the motions for summary disposition, asserting that the statute was an unconstitutional delegation of legislative power. The Wayne Circuit Court entered an order denying defendants’ motion for summary disposition, ruling that the statute was an unconstitutional delegation of legislative power. In contrast, the Washtenaw Circuit Court entered an order granting defendants’ summary disposition motion, rejecting the claim that the statute was unconstitutional.
The Court of Appeals granted an application for leave to appeal in each lawsuit and consolidated the appeals. The Court concluded that
II
This Court reviews de novo a trial court‘s ruling on a motion for summary disposition. Veenstra v Washtenaw Country Club, 466 Mich 155, 159; 645 NW2d 643 (2002). The constitutionality of a statute is also reviewed de novo as a question of law. McDougall v
III
Before it was amended in 1995,
In a product liability action against a manufacturer or seller, a product that is a drug is not defective or unreasonably dangerous, and the manufacturer or seller is not liable, if the drug was approved for safety and efficacy by the United States food and drug administration, and the drug and its labeling were in compliance with the United States food and drug administration‘s approval at the time the drug left the control of the manufacturer or seller. However, this subsection does not apply to a drug that is sold in the United States after the effective date of an order of the United States food and drug administration to remove the drug from the market or to withdraw its approval. This subsection does not apply if the defendant at any time before
the event that allegedly caused the injury does any of the following:
(a) Intentionally withholds from or misrepresents to the United States food and drug administration information concerning the drug that is required to be submitted under the federal food, drug, and cosmetic act, chapter 675, 52 Stat 1040, 21 USC 301 to 321, 331 to 343-2, 344 to 346a, 347, 348 to 353, 355 to 360, 360b to 376, and 378 to 395, and the drug would not have been approved, or the United States food and drug administration would have withdrawn approval for the drug if the information were accurately submitted.
(b) Makes an illegal payment to an official or employee of the United States food and drug administration for the purpose of securing or maintaining approval of the drug.
Pursuant to this statute, unless the fraud exception in subsection a or the bribery exception contained in subsection b applies (plaintiffs make no such claim here), a manufacturer or seller of a drug that has been approved by the FDA has an absolute defense to a products liability claim if the drug and its labeling were in compliance with the FDA‘s approval at the time the drug left the control of the manufacturer or seller. Thus, the Legislature has determined that a drug manufacturer or seller that has properly obtained FDA approval of a drug product has acted sufficiently prudently so that no tort liability may lie.
IV
The United States Constitution provides that “[a]ll legislative powers herein granted shall be vested in a Congress of the United States....”
These constitutional provisions have led to the constitutional discipline that is described as the nondelegation doctrine. A simple statement of this doctrine is found in Field v Clark, 143 US 649, 692; 12 S Ct 495; 36 L Ed 294 (1892), in which the United States Supreme Court explained that “the integrity and maintenance of the system of government ordained by the Constitution” precludes Congress from delegating its legislative power to either the executive branch or the judicial branch.5 This concept has its roots in the separation of powers principle underlying our tripartite system of government.6 Yet, the United States Supreme Court, as well as this Court, has also recognized “that the separation of powers principle, and the nondelegation doctrine in particular, do not prevent Congress [or our Legislature] from obtaining the assistance of the coordinate Branches.” Mistretta v
The first category of nondelegation case law involves an assertion that the Congress or a state legislature improperly delegated its legislative power to a federal agency or state agency, respectively.
In the federal courts these improper delegation challenges to the power of federal regulatory agencies have been uniformly unsuccessful since the advent of large regulatory agencies in the 1930s.8 A recent case, which is representative of the manner in which the federal judiciary has handled these challenges, is Whitman v American Trucking Ass‘ns, 531 US 457, 465; 121 S Ct 903; 149 L Ed 2d 1 (2001), in which the United States Supreme Court considered a statute that directed the Environmental Protection Agency to set primary air quality standards “which are requisite to protect the public health” with “an adequate margin of safety.” It was argued that this delegation was too vague. It was held, however, that this direction to the EPA was not an improper delegation of legislative
In Michigan, this Court has considered similar claims regarding statutes where the claims included an allegation of improperly delegating the Legislature‘s power to a Michigan agency, and we have rejected the claims on a basis similar to the federally developed rationale.9
The second category of cases in which there are challenges concerning the delegation of legislative authority involves situations where the Congress, or the Legislature, enacts a statute that might be described as a referral statute,10 in which, depending on a factual development that is outside the control of the legislative body, certain consequences will ensue.
An example of a permissible federal referral statute was the 1810 United States statute in which Congress authorized the President to bar trade with France or Great Britain if one of those countries had revoked its decree authorizing the seizure of American ships and the other country did not follow suit within three months. When the statute was challenged as an improper delegation of legislative power, the United
Michigan‘s referral statutes are apparently so uncontroversial as to be rarely challenged. This is not surprising when one considers that, for example, any statutory reference to time, weight, age, gender, birth, death, or even print size for legal documents11 is an exercise of the Legislature referring to findings made by someone other than itself. As is apparent in the case of time12 this would be the Naval Observatory and when it comes to weights, it would be the National Bureau of Standards.13 Regarding birth and death, it would be the governmental agencies collecting vital statistics; and, in the case of print size, standards established by consensus in the printing industry. The Legislature can, of course, do such things without fear of running afoul of the nondelegation doctrine because these public or private agency fact
The independently significant standard was described well recently by the New Mexico Supreme Court in Madrid v St Joseph Hosp, 122 NM 524, 531; 928 P2d 250 (1996), in which that court stated:
[W]here a private organization‘s standards have significance independent of a legislative enactment, they may be incorporated into a statutory scheme without violating constitutional restrictions on delegation of legislative powers. A private entity‘s standards cannot be construed as a deliberate law-making act when their development of the standards is guided by objectives unrelated to the statute in which they function.
This concept was also recognized in Lucas v Maine Comm of Pharmacy, 472 A2d 904, 911 (1984), in which the Maine Supreme Court held that legislative incorporation of a decision by a private entity does not violate the nondelegation doctrine where the decision has aspects of significance beyond the legislature‘s reliance on it.
The independently significant standard has also been discussed by administrative law scholars. Professor Kenneth C. Davis in 1 Administrative Law (2d ed), § 3.12, p 196, has explained it as follows: “statutes whose operation depends upon private action which is taken for purposes which are independent of the statute.” Here in Michigan, Thomas M. Cooley Law School Dean Don LeDuc, in his treatise on Michi-
We deal here with the latter type of statute.
V
The Court of Appeals in its handling of this matter concluded that
The Court of Appeals acknowledged the independently significant standard, but placed an unjustified limitation on it. The panel correctly stated that, “[a]ssimilation of standards adopted for a purpose separate from the incorporating legislation, and having independent significance, presents no problem,” but added a condition, which was ”if the standards are established and essentially unchanging.” 248 Mich App 485 (emphasis added). There is no sound legal basis for this limitation.14 Whether the Legislature‘s adoption of the actions of an external body as a cause for statutory legal consequences is a delegation
The Court of Appeals, in buttressing its holding, relied on language in Coffman v State Bd of Examiners in Optometry, 331 Mich 582; 50 NW2d 322 (1951), to the effect that the Legislature could not require an applicant for a license to practice optometry to have graduated from an optometry school or college that received a certain rating by the international association of boards of examiners in optometry. This language was dicta because the actual holding in Coffman was that the applicant was not entitled to mandamus. As dicta, it is in no sense binding authority.
The Court of Appeals also cited Colony Town Club v Michigan Unemployment Compensation Comm, 301 Mich 107; 3 NW2d 28 (1942). This case merely rejected a party‘s argument that a decision by the federal government interpreting a federal statute was binding on a substantially similar Michigan statute. In contrast with the argument rejected in Colony Town Club, the statute at issue here,
The Court of Appeals also cited Dearborn Independent, Inc v Dearborn, 331 Mich 447; 49 NW2d 370 (1951). In Dearborn, the Court considered a statute that provided that a newspaper was qualified to publish legal notices if it was admitted by the United States Post Office for transmission of second-class mail. The Court held the statute in violation of the nondelegation doctrine because it “unlawfully attempts to delegate to the United States post-office department the determination of the qualifications of a newspaper to publish legal notices.” Id. at 454. The Court was concerned that the statute made the validity of publication of legal notices dependent on the future as well as present regulations of the United States Post Office. Id. To the extent that the post office‘s decision whether to approve a newspaper for second-class mail is an act of independent significance, which it appears to us to be, Dearborn Independent is inconsistent with the independently significant standard. It was, thus, incorrectly decided in light of the law‘s subsequent development in this area and is overruled.16
The Court of Appeals also cited Radecki v Director of Worker‘s Disability Compensation, 208 Mich App 19; 526 NW2d 611 (1994). In Radecki, the Court
Finally, to deal with the last of the Michigan cases on which the Court of Appeals relied, our analysis is consistent with Michigan Baptist Homes & Dev Co v Ann Arbor, 55 Mich App 725; 223 NW2d 324 (1974).17 In Baptist Homes, a state statute granted a property tax exemption to nonprofit corporations that had obtained financing under § 202 of the National Housing Act (
VI
The dissent misunderstands the independently significant standard.18 What is central to grasping this doctrine is that if the fact or finding to which the Legislature refers has significance independent of a legislative enactment, because the agency or outside body making the finding is doing it for purposes independent from the particular statute that refers to it, then there is no delegation. Whether the fact or finding of independent significance changes thereafter is irrelevant to the question whether there has been an improper delegation.19
VII
In sum,
CORRIGAN, C.J., and CAVANAGH, YOUNG, and MARKMAN, JJ., concurred with TAYLOR, J.
WEAVER, J., concurred in the result only.
KELLY, J. (dissenting). I agree with the rulings of the Wayne Circuit Court1 and the Court of Appeals2 holding that
I
The majority focuses on the independence of the Food and Drug Administration (FDA). In so doing, it loses sight of the significant fact that the standards used by the FDA change from time to time.
When the Legislature adopts the determinations of a foreign body, it implicitly determines that the body‘s choice is sufficiently reliable to be conclusive. When the foreign body alters the standards by which it makes its determinations, it undermines the stability of the Legislature‘s choice. The foreign body becomes the only authority that approves the changed standards as well as the one that applies them. At that point, it steps into the shoes of the Legislature, making a policy choice for the people of Michigan. Its decision no longer represents the Legislature‘s intent. A statute that enables a foreign body to make a policy determination not embraced by the Legislature perpetrates an unconstitutional delegation of the Legislature‘s power.
The analysis I have set forth is the basis for the Court of Appeals holding: an unconstitutional delegation occurs when a statute references fact-finding that is based on standards that are not “established and essentially unchanging.” 248 Mich App 472, 485; 639 NW2d 45 (2001). Contrary to the assertion of the majority, the Court of Appeals did not invent this limitation. Rather, it drew it directly from this Court‘s holding in Dearborn Independent, Inc v Dearborn, 331 Mich 447; 49 NW2d 370 (1951).
In Dearborn, we examined a statute that prescribed qualifications a newspaper must satisfy in order to publish legal notices. One qualification was that the
Conversely, if the qualifications for second-class mail had been unchanging, the law would have been constitutional. The standard would have had independent significance and its content would have been known to the legislators who adopted it. The Court of Appeals properly interpreted the Dearborn holding as requiring both “established and essentially unchanging” standards. 248 Mich App 485.
The present situation closely parallels that in Dearborn. Here, the statute refers to the findings of the FDA, which are based on changing standards. As a consequence,
II
No previous Michigan case has adopted the “independently significant standard” doctrine. In embracing it, the majority eradicates the precedent that would limit it, overruling Dearborn as “incorrectly decided in light of the law‘s subsequent development in this area....”
I disagree with this approach and prefer to square the “independently significant standard” doctrine with our precedent by limiting the doctrine as Dearborn would have limited it. That is, we should hold it constitutionally acceptable to adopt by reference independent decisions of a foreign body as long as the foreign body‘s standards are “established and essentially unchanging.”
The present statute fails the test. The natures of both science and the drug approval process are of the sort that the FDA‘s standards must evolve over time. Accordingly, FDA determinations are not “essentially unchanging” and a statute that incorporates them perpetrates an unlawful delegation.
The majority rejects this analysis, saying that the determination of a statute‘s constitutionality “cannot rationally depend on a court‘s perception of the rela-
Distrust of the judiciary‘s ability to distinguish standards is an inappropriate basis for upholding an unconstitutional statute and discarding the precedents of this Court.
III
Some characterize
IV
In sum, I would affirm the judgments of the Wayne Circuit Court and the Court of Appeals holding
Notes
Perhaps the most concise description of the delegation doctrine was enunciated in the seminal case of Locke‘s Appeal, 72 Pa 491, 498-499 (1873):
“The legislature cannot delegate its power to make a law; but it can make a law to delegate a power to determine some fact or state of things upon which the law makes, or intends to make, its own action depend. To deny this would be to stop the wheels of government.”
See also
