Thomas W. McKAY; Leticia McKay, Plaintiffs-Appellants v. NOVARTIS PHARMACEUTICAL CORPORATION, Defendant-Appellee.
No. 13-50404
United States Court of Appeals, Fifth Circuit
May 27, 2014
751 F.3d 694
Katharine Ruth Latimer, Joe Gregory Hollingsworth, Eric Gordon Lasker, Esq., Rebecca Anne Womeldorf, Hollingsworth, L.L.P., Washington, DC, for Defendant-Appellee.
Before WIENER, ELROD, and HIGGINSON, Circuit Judges.
HIGGINSON, Circuit Judge:
Thomas and Leticia McKay‘s lawsuit against Novartis Pharmaceutical Corporation (“Novartis“) has spanned eight years and two forums. Originally filed by Thomas McKay in the Western District of Texas, this case was transferred by the Judicial Panel on Multidistrict Litigation (“MDL“) to the Middle District of Tennessee in May 2006 as part of the ongoing multidistrict litigation involving, inter alia, two drugs manufactured and distributed by Novartis. The MDL court granted partial summary judgment for Novartis and made two significant rulings: (1) Texas law applied to the McKays’ case, and (2)
I.
As part of Thomas McKay‘s treatment for prostate cancer, he took two drugs—Aredia and Zometa. Novartis manufactures both drugs and markets them accompanied by warnings approved by the FDA. In 2006, McKay sued Novartis in the Western District of Texas. He alleged that Aredia and Zometa caused him to develop “osteonecrosis of the mandible or jaw bone [sic].” As a result of this condition, McKay has lost a number of teeth, has a large, exposed bone protruding through his gums, and has undergone many corrective surgeries on his jawbone. His complaint faults Novartis for, among other things, failing to notify the public and physicians of “the possibility of suffering osteonecrosis of the jaw” until 2004, and failing to notify dental professionals until 2005. McKay‘s claims sound in strict liability, negligence, breach of express warranty, and breach of implied warranty. McKay subsequently amended his complaint to add his wife, Leticia McKay as a plaintiff and to add claims for failure to warn and loss of consortium.
In June 2008—almost a year and a half after the McKays amended their complaint—Novartis moved for partial summary judgment on the McKays’ failure to warn claims in the MDL court.1 Novartis relied on
The MDL court granted Novartis‘s motion for partial summary judgment. First, the MDL court applied the transferor forum‘s choice of law rules (Texas) to determine that Texas substantive law governed the McKays’ case. Second, the MDL court denied the McKays’
On May 22, 2011—almost three years after the MDL court‘s summary judgment ruling—the McKays moved the MDL court to reconsider under
On remand, Novartis recognized that “[t]he MDL court‘s order did not specify the particular counts from each case‘s complaint that were resolved by its order,” and moved for summary judgment on the McKays’ remaining claims “because they all involve the adequacy of [Novartis‘s] warnings or information.”3 The “remand” court interpreted the MDL court‘s order as deciding that
The remand court then held that most of the McKays’ remaining claims were premised on Novartis‘s failure to warn and therefore were precluded by
II.
The McKays assert on appeal that the MDL court abused its discretion by denying their Rule 56(d) motion to continue summary judgment and by “subsequently refusing to apply the overwhelming facts to that decision.” The McKays also fault the remand court for refusing to consider evidence of off-label promotion under
A.
We begin with the McKays’ appeal of the MDL court‘s denials of their Rule 56(d) and Rule 60(b) motions.
1.
In opposition to Novartis‘s motion for summary judgment in the MDL court, the McKays disputed the application of Texas substantive law to their claims. They filed a
The information concerning McKay‘s infusions, prescriptions and other treatments, however, is available to McKay without any need for formal discovery. Indeed, that information became available to McKay when the infusions, prescriptions and treatments occurred. The issues concerning where and how Plaintiff McKay‘s injuries occurred involve information in the possession of McKay and his treating health care providers, and there has been no showing that anything prevented Plaintiff from obtaining that information before he filed this action or, more specifically, in response to Defendant‘s Motion.
On appeal, the McKays contend that this ruling was an abuse of discretion because Thomas McKay did not have his medical
We review a denial of a
If a nonmovant shows by affidavit or declaration that, for specified reasons, it cannot present facts essential to justify its opposition, the court may: (1) defer considering the motion or deny it; (2) allow time to obtain affidavits or declarations or to take discovery; or (3) issue any other appropriate order.
Rule 56(d) motions are “broadly favored and should be liberally granted.” Raby v. Livingston, 600 F.3d 552, 561 (5th Cir. 2010). The Rule 56(d) movant “must set forth a plausible basis for believing that specified facts, susceptible of collection within a reasonable time frame, probably exist and indicate how the emergent facts, if adduced, will influence the outcome of the pending summary judgment motion.” Id. (quoting C.B. Trucking, Inc. v. Waste Mgmt. Inc., 137 F.3d 41, 44 (1st Cir. 1998)). If the requesting party “has not diligently pursued discovery, however, she is not entitled to relief” under Rule 56(d). Beattie v. Madison Cnty. Sch. Dist., 254 F.3d 595, 606 (5th Cir. 2001).
The MDL court “acted within its discretion in concluding that [the McKays] had not pursued discovery diligently enough to warrant relief under” Rule 56(d). Beattie, 254 F.3d at 606. McKay did not need formal discovery to request his own medical records; therefore, it is of no moment that discovery was stayed at the time of summary judgment. See, e.g., St. Bernard Parish v. Lafarge N. Am., Inc., 550 Fed. Appx. 184, 187-88 (5th Cir. 2013) (unpublished) (“The discovery needed by the Parish—its own final expert testimony—was not dependent on the defendant but rather facts and reports completely within its control.“). The fact that the McKays sought formal discovery of evidence that was available to them through informal means is what distinguishes this case from Xerox Corp. v. Genmoora Corp., where the evidence requested was in the hands of the opposing party. 888 F.2d 345, 354 (5th Cir. 1989) (noting that the requested discovery “must come largely, if not entirely, from the ex-directors“). Moreover, McKay filed this suit in 2006, and Novartis did not move for summary judgment until 2008. This two-year period calls into question the McKays’ attempt to frame Novartis‘s motion as a “surprise summary judgment.” See, e.g., Beattie, 254 F.3d at 606 (requesting party did not diligently pursue discovery as to gain Rule 56(d) relief when she “had several months, from the time she sued, to depose the board members, who are named defendants“).4
2.
The McKays next fault the MDL court for “not correcting the [Rule 56(d)] error when, discovery in hand, Plaintiff moved for reconsideration” under
The McKays moved under
McKay‘s connection to Texas is manifest in the record. First, he is a Texas citizen who resides in Texas. Second, “McKay does not dispute that numerous Texas physicians have evaluated and/or treated him for prostate cancer.” Third, “McKay also admit[ted] that several Texas physicians have prescribed and/or administered Aredia and/or Zometa to him.” Fourth, McKay would have Zometa shipped to his house in Texas. Fifth, a majority of McKay‘s Aredia and Zometa infusions took place in Texas. Finally, McKay‘s jaw condition manifested in Texas. The McKays do not dispute these Texas connections, but assert on appeal that they are outweighed by the evidence showing that a California physician, Dr. Leibowitz, prescribed and treated him in California, “[a]lmost all infusions of Aredia and Zometa were purchased in California and his entire medical course was directed from there,” and McKay “received the bulk of his infusions [in California].”
McKay‘s contacts with Dr. Leibowitz do not override his Texas connections to make application of Texas law clearly erroneous. See, e.g., Guillory on Behalf of Guillory v. United States, 699 F.2d 781, 784-86 (5th Cir. 1983) (noting that “the district court should have placed great weight upon the fact that Louisiana citizens were involved in this case” in making a choice of law inquiry, and recognizing that a state has a “strong interest in insuring that its citizens and residents are adequately compensated for others’ tortious conduct“). Although McKay received some of his treatment in California, and Dr. Leibowitz dictated the progression of McKay‘s prescriptions there, it is undisputed that McKay resided in Texas and received treatment multiple times in Texas, and that his condition manifested itself in Texas. The district court did not clearly err by determining that Texas had the most significant relationship to the occurrence in question. See, e.g., Caton v. Leach Corp., 896 F.2d 939, 943 (5th Cir. 1990) (“Texas has a significant interest in remedying civil injury to Texas citizens through tort liability and also in defining the outer limits of tort liability.“). Thus, the McKays’ evidence is not an “overwhelming showing” allowing the MDL court to know “positively . . . that [its] earlier grant of summary judgment could no longer be justified.” Xerox, 888 F.2d at 356.6
B.
As noted above, Novartis recognized on remand that “[t]he MDL court‘s order did not specify the particular counts from each case‘s complaint that were resolved by its order,” and moved for summary judgment on the McKays’ remaining claims “because they all involve the adequacy of [Novartis‘s] warnings or information.” The remand court recognized “that the adequacy of the Novartis’ warnings has been previously litigated and decided by the MDL court;” therefore, it held that the MDL court‘s ruling that
The McKays insisted that the remand court erred by refusing to consider two new arguments it made to the remand court regarding
Indeed, the McKays conceded to the remand court that the law of the case applied: “The Court may hold the striking of the failure to warn count III is the law of the case and need not revisit it, but to
Even without the McKays’ concession, the remand court did not clearly err or abuse its discretion when it applied the law of the case. See In re Ford Motor, 591 F.3d at 412 (“Because the transferor court should have recognized [the MDL court‘s] serious error, its decision not to vacate its decision regarding FNC was also clearly erroneous.“); see also Williams v. Bexar Cnty., Tex., No. 98-51187, 2000 WL 1029171, at *2 (5th Cir. July 14, 2000) (unpublished) (“We therefore review the decision by a trial judge to reconsider a prior trial judge‘s interlocutory ruling for abuse of discretion.“). First, the McKays have not established that the evidence before the remand court was substantially different than that before the MDL court. As to their
Second, because Lofton affirmed the MDL court‘s interpretation of
“The law of the case doctrine requires attention to the special authority granted to the multidistrict transferee judge and ensures that transferor courts respect the transferee court‘s decisions.” In re Ford Motor, 591 F.3d at 411. Allowing the McKays to relitigate in the remand court issues decided by the MDL court with arguments that could have been raised but were not would “frustrate the purposes of centralized pretrial proceedings.” Id. at 411 (quoting Manual for Complex Litigation § 20.133). Thus, the remand court properly applied the law of the case when it refused to reconsider the MDL court‘s rulings that
C.
The remand court held that
To recover on a breach of warranty claim in Texas, “the buyer must within a reasonable time after he discovers or should have discovered any breach notify the seller of breach or be barred from any remedy.”
The McKays argue that they satisfied the notice requirements because (1) Dr. Leibowitz, as McKay‘s agent, notified Novartis, (2) a class action was filed against Novartis “to which Mr. McKay would have been in the class,” and (3) McKay did not have to notify Novartis because his notification to Dr. Leibowitz—an intermediate seller—suffices under the statute. We find these arguments unavailing.
First, even though Dr. Leibowitz did notify Novartis of the problems his patients were experiencing with the drugs, there is no evidence that he alerted Novartis that McKay in particular had suffered an injury. The Texas Court of Appeals has noted “[t]he manufacturer must be made aware of a problem with a particular product purchased by a particular buyer.” U.S. Tire-Tech, Inc. v. Boeran, B.V., 110 S.W.3d 194, 201-02 (Tex. App.—Houston [1st Dist.] 2003, pet. denied). Therefore, Dr. Leibowitz‘s general notifications of problems with Novartis‘s drugs do not suffice. Second, “commencement of litigation” does not satisfy the notice requirement. Boeran, 110 S.W.3d at 201-02; Wilcox v. Hillcrest Memorial Park of Dall., 696 S.W.2d 423, 424-25 (Tex. App.—Dallas 1985, writ ref‘d n.r.e) (“It would be untenable to allow a buyer, such as Wilcox, to recover damages for breach of warranty from a remote seller or manufacturer who was never even made aware that the product in question was defective and who, consequently, never had an opportunity to remedy the defect to the buyer‘s satisfaction before litigation was commenced or even to inspect the product to ascertain if indeed a defect existed.“). That the notification requirement must be satisfied before litigation is consistent with
Third, although the Texas Supreme Court has not decided whether notice must be given to a remote manufacturer or seller to satisfy
We note that [Vintage Homes] was based on a commentary which discussed a version of section 2.607 that differed in an important respect from the version enacted into Texas law as
Tex. Bus. & Com. Code § 2.607(c)(1) . The version discussed by that commentary required that the buyer give note to “his” seller, while the Texas version of section 2.607(c)(1) requires that notice be given to “the” seller.
Wilcox, 696 S.W.2d at 425. Courts disagreeing with Vintage Homes also note that requiring notice to the manufacturer is consistent with the purposes of
Thus, the remand court properly granted summary judgment on the McKays’ warranty claims.10
III.
As neither the MDL court nor the remand court erred reversibly, we AFFIRM.
Notes
McKay asserts that he received some of his Aredia and Zometa doses in California, and his dentist is in Mexico. McKay does not dispute that he has lived in Texas since at least 1987. McKay does not dispute that numerous Texas physicians have evaluated and/or treated him for prostate cancer. McKay also admits that several Texas physicians have prescribed and/or administered Aredia and/or Zometa to him.
(A) the defendant recommended, promoted, or advertised the pharmaceutical product for an indication not approved by the United States Food and Drug Administration; (B) the product was used as recommended, promoted, or advertised; and (C) the claimant‘s injury was causally related to the recommended, promoted, or advertised use of the product.
