Walter Shuker v. Smith & Nephew PLC
Opinion
With the Medical Device Amendments of 1976, Congress added comprehensive medical device approval processes to the Federal Food, Drug, and Cosmetic Act, prescribing tiers of federal requirements for certain devices corresponding to the device's inherent risk level. In exchange for compliance with the strictest federal mandates, Congress afforded manufacturers express preemption from state laws imposing different or additional "safety or effectiveness" requirements for those devices. 21 U.S.C. § 360k(a)(2). This case presents an issue of first impression among the Courts of Appeals: how courts should apply that express preemption provision to state law tort claims challenging the design and manufacture of a medical device comprised of multiple components, some of which are from "Class III" medical devices subject to federal requirements,
Riegel v. Medtronic, Inc.
,
Because the plaintiffs' negligence, strict liability, and breach of implied warranty claims in their Second Amended Complaint are expressly preempted, we will affirm the District Court's ruling in that respect. But because the plaintiffs adequately pleaded other, non-preempted claims, and because jurisdictional discovery is warranted with respect to personal jurisdiction over one of the defendants, we will reverse the District Court's dismissal of some of the plaintiffs' claims in their Third Amended Complaint, vacate the District Court's personal jurisdiction ruling, and remand for proceedings consistent with this opinion.
I. Background
After Walter Shuker underwent a hip replacement surgery that resulted in unexpected complications, he and his wife, Vivian Shuker, brought tort claims against Smith & Nephew, Inc. ("Smith & Nephew"), the manufacturer of his hip replacement system, and Smith & Nephew, PLC ("PLC"), the manufacturer's parent company. Before turning to the details of Mr. and Mrs. Shuker's dispute with Smith & Nephew and with PLC, we review the relevant statutory and regulatory scheme for context.
A. Statutory and Regulatory Context
For purposes of federal statutes governing medical devices, the term "device" is a broad one, encompassing instruments, machines, implants, and "other similar or related" articles, and "including any component, part, or accessory" of those articles.
The Federal Food, Drug, and Cosmetic Act did not originally authorize federal regulation in connection with the introduction of new medical devices, but, over time, consumers and the U.S. Food and Drug Administration ("FDA") began voicing "mounting ... concern" about the unexamined health risks of devices being introduced to the public.
Lohr
,
1. Medical Device Approval Procedures
Approval procedures for new medical devices under the Medical Device Amendments vary depending on a device's class designation. The statute divides devices into three classes "based on the risk that they pose to the public" and applies more rigorous prerequisites to devices that pose greater risks.
Lohr
,
devices receive much less,
Riegel
,
a. Class III Devices: Premarket Approval
Before becoming available to the public, a Class III device must receive "premarket approval" through a process by which the device's manufacturer "provide[s] reasonable assurance of [the device's] safety and effectiveness." 21 U.S.C. § 360c(a)(1)(C). The premarket approval process "is a rigorous one," requiring manufacturers to "submit detailed information regarding the safety and efficacy of their devices, which the FDA then reviews, spending an average of 1,200 hours on each submission."
Lohr
,
Submissions are typically "multivolume application[s]," and thus the time devoted by the FDA to reviewing manufacturers' premarket approval submissions is, unsurprisingly, substantial.
Riegel
,
After reviewing an application, the FDA grants premarket approval only if, based on a weighing of "any probable benefit to health from the use of the device against any probable risk of injury or illness from such use," it finds "there is a 'reasonable assurance' of the device's 'safety and effectiveness.' "
Riegel
,
Notwithstanding the strictures imposed on manufacturers, the Act allows more leeway to health care providers. Even after the FDA grants premarket approval to a medical device or to any supplements, it does not "limit or interfere with the authority of a health care practitioner to prescribe or administer any legally marketed device to a patient...."
b. Class I and Class II Devices: § 510(k) Approval
In contrast to the rigorous premarket approval process for Class III devices, Class I and Class II devices are subject to "a limited form of review" set forth at
2. Express Preemption Provision
The Medical Device Amendments' comprehensive and tiered approval procedures for medical devices leave only limited room for additional state regulation, especially considering the statute contains a broad express preemption provision. This provision proclaims that "no State ... may establish or continue in effect with respect to a device ... any requirement" that "is different from, or in addition to," any federal requirement and that relates either "to the safety or effectiveness of the device" or "to any other matter" included in a federal requirement applicable to the device. 21 U.S.C. § 360k(a).
2
The statute thus preempts any state requirement that has "the effect of establishing a substantive requirement for [the] specific device" in question that relates to safety, effectiveness, or "any other matter" that forms a federal requirement, so long as the state requirement is "different from, or in addition to," the federal mandate.
Lohr
,
Application of the express preemption provision tracks the Medical Device Amendments' tiered statutory scheme for medical device approvals. Because manufacturers of Class I and Class II devices receive only § 510(k) approval and emerge from the approval process with no safety review specific to those devices, manufacturers do not receive the benefit of express preemption,
see
Lohr
,
Riegel
,
But state laws are not shut out entirely. Even for Class III devices, the Medical Device Amendments' express preemption provision does not reach "parallel" claims, i.e., claims premised on state requirements that merely incorporate applicable federal requirements and therefore are not "different from, or in addition to," federal requirements.
Lohr
,
The question of first impression we confront today 3 arises at the intersection of these different classes of devices with their different approval schemes: How do we apply the Medical Device Amendments' express preemption provision to a "hybrid system," i.e., a system that is itself a "device" but that is comprised of Class II components in addition to one or more Class III components? 4 We recount the facts of the parties' dispute before turning to our answer.
B. Factual and Procedural History 5
Mr. Shuker underwent total hip replacement surgery in 2009. The hip replacement system "implant[ed]" was regulated as a "device" under the Federal Food, Drug, and Cosmetic Act,
As is customary, the FDA's premarket approval requirements for the liner extended to the liner's accompanying labeling, which was required to state that "the R3 metal liner [was] intended for use as part of the [Birmingham Hip Resurfacing System] only" and that "the R3 metal liner must be replaced with an R3 poly[ethylene] liner" if the Birmingham Hip Resurfacing System were abandoned or later revised in favor of a total hip replacement system.
Id.
at *2. Thus, as the parties agree,
see
Appellant's Br. 6-7; Appellee Smith & Nephew's Br. 6, because the R3 metal liner's labeling reflected that the FDA had not approved the liner for use outside of the Birmingham Hip Resurfacing System or in a total hip replacement system, Smith & Nephew's promotional materials marketing the R3 metal liner as an "option for its R3 Acetabular System," a separate hip system, App. 14, constituted "off-label promotion,"
Shuker
,
About twenty-one months after his hip replacement surgery, Mr. Shuker "began developing increasing pain and discomfort in his buttocks, groin, and thigh, limiting his daily activities."
Shuker
,
Seeking to hold Smith & Nephew and its parent company PLC liable for Mr. Shuker's hip replacement complications and for Mrs. Shuker's loss of consortium, the Shukers filed suit, bringing various common law claims, and later adding claims based on violations of federal law. 6 PLC moved for dismissal from the case for lack of personal jurisdiction, and Smith & Nephew moved for summary judgment on some of the Shukers' claims, asserting that the Medical Device Amendments expressly preempted those claims.
Without an opinion but with a lengthy explanatory footnote accompanying its order, the District Court granted PLC's motion to dismiss. In a separate order and opinion, the District Court granted summary judgment in favor of Smith & Nephew, holding as relevant to this appeal that the negligence, strict liability, and breach of implied warranty claims in the Shukers' Second Amended Complaint were preempted because "the heart of each of [the Shukers'] claims" challenged the safety and effectiveness of the R3 metal liner, which had received premarket approval, was therefore subject to federal requirements, and, hence, gave Smith & Nephew the benefit of express preemption.
Shuker
,
This appeal followed. 7
II. Discussion
We resolve the questions presented by this case in three parts. First, we consider whether the negligence, strict liability, and breach of implied warranty claims in the Shukers' Second Amended Complaint are expressly preempted. See Section II.A, infra . Second, we review the District Court's decision to dismiss the claims in the Shukers' Third Amended Complaint with prejudice. See Section II.B, infra. Finally, we consider personal jurisdiction as to PLC and whether jurisdictional discovery is warranted. See Section II.C, infra.
A. Preemption
The District Court granted summary judgment to Smith & Nephew on express preemption grounds with respect to the negligence, strict liability, and breach of implied warranty claims in the Shukers' Second Amended Complaint. We review that grant de novo,
Steele v. Cicchi
,
Here, that decision turns on whether the Medical Device Amendments expressly preempt the Shukers' negligence, strict liability, and breach of implied warranty claims in their Second Amended Complaint-the primary issue addressed in the parties' original briefing, as well as their supplemental briefing and an amicus brief filed by the FDA at the request of the Court. 8 We undertake this analysis by (1) reviewing the two-step framework for determining whether a claim concerning a "device" is preempted under the Amendments' express preemption provision, (2) determining what constitutes the "device" when a system is comprised of components with mixed-class designations, and (3) applying the framework applicable to that "device" to the facts of this case.
1. Principles Governing Express Preemption Under the Medical Device Amendments
In products liability actions like this one, the Supreme Court has specified
that "the historic primacy of state regulation of matters of health and safety" requires us to apply the "presumption against the pre-emption of state police power regulations."
9
Lohr
,
The express preemption provision of the Medical Device Amendments states that "no State or political subdivision of a State may establish or continue in effect with respect to a device ... any requirement" that "is different from, or in addition to, any requirement applicable under [the Federal Food, Drug, and Cosmetic Act]" and that relates either "to the safety or effectiveness of the device" or "to any other matter included in a requirement applicable to the device under [the Act]." 21 U.S.C. § 360k(a). Based on this statutory language, the Supreme Court, in
Riegel v. Medtronic, Inc.
, prescribed a two-step framework for determining whether a state law cause of action is preempted.
The first step of
Riegel'
s two-step framework, however, presumes agreement as to the "device" to which it applies. 21 U.S.C. § 360k(a). Therefore, before a court can apply the test, it must address a threshold question: What device is the subject of the "federal requirements"?
Riegel
,
2. Determining the Device at Issue
The Shukers urge on appeal that the "device" at issue is the entire hybrid system itself. Any other determination, they argue, would produce unfairness and incongruity by according preemption even when a component is used off-label in a manner "that was never studied or approved by the FDA," Appellant's Br. 23 (capitalization omitted), merely because that component part was pre-approved for use with another system. Appellees, seconded by the FDA, counter that analysis at the component level is the only way to harmonize various provisions of the statute. We agree with Appellees for three reasons.
First
, analysis at the component level finds support in the text of the statute and regulations. The Federal Food, Drug, and Cosmetic Act defines "device" to mean not simply a finished "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article," but also "any component, part, or accessory" of that article.
Second
, the Act's provision for off-label use supports a component-level analysis. While the premarket approval process requires strict manufacturer compliance with respect to a device's labeling and advertising,
see
Third
, the FDA, "the federal agency to which Congress has delegated its authority to implement provisions of the Act,"
Lohr
,
Taken together, the statutory definition of "device," the treatment of off-label uses, and the guidance of the FDA all counsel in favor of scrutinizing hybrid systems at the component-level. In that circumstance, § 360k(a) preempts any state law "with respect to" a Class III component that is "different from, or in addition to" a federal requirement and that relates either "to the safety or effectiveness of the device" or "to any other matter included in a requirement applicable to the device under [the Act]." 21 U.S.C. § 360k(a). And the
Riegel
test is properly framed at Step One as "whether the Federal Government has established requirements applicable" to a component of the hybrid system, and at Step Two, "whether the [plaintiffs'] claims are based upon [state] requirements with respect to [that component] that are 'different from, or in addition to,' the federal ones, and that relate to safety and effectiveness."
Riegel
,
3. Application to the Shukers' Claims
We turn next to the application of this test to the Shukers' claims and conclude that both prongs of
Riegel
are satisfied. At Step One, the R3 metal liner is a Class III component that received premarket approval as part of the Birmingham Hip Resurfacing System; and that premarket approval "imposed requirements on the liner with respect to its composition, dimensions, and labeling, among other specifications." FDA Amicus Br. 7.
See also
App. 470-473;
Shuker
,
Riegel
Step Two is also met, given the different requirements that would follow from imposing liability for the tort claims at issue; that is, the negligence, strict liability, and breach of implied warranty claims of the Second Amended Complaint.
13
The express preemption provision forecloses claims based on "violations of common-law duties" to the extent that they impose more than "parallel federal requirements,"
Lohr
,
Neither in the District Court nor on appeal have the Shukers identified any freestanding defect with the Class II device or the R3 Acetabular System per se . To the contrary, despite conclusory allegations that the R3 System was defective with and without the R3 metal liner that would foreseeably be used with it, the Shukers' negligence, strict liability and breach of implied warranty claims rest on the premise that the R3 System was defective only because it was used with the R3 metal liner. See Tr. of Oral Arg. 79:13-18 (identifying that the defects arose when "all of the components" are used "in tandem"); id. at 7:19-22 (explaining "[y]ou can't have the debris coming out without the conjunction of the Class 2 and Class 3 components coming together. It's that friction that causes it. So it would be irresponsible to say ... [that] only the liner caused the metal debris or only the cup caused the metal debris."). 14
Even the failure-to-warn allegations embedded in the Shukers' negligence claim would impose different requirements on the R3 metal liner, as the Shukers seek to impose liability because defendants did not accompany their product with proper warnings regarding the risks associated with a premarket-approved device, the R3 metal liner. But the FDA already imposed device-specific labeling requirements on the liner, and thus, as the FDA itself points out in its amicus submission, "a state warning requirement that applie[s] specifically to the use of the R3 system's components with the R3 metal liner in particular" is preempted. FDA Amicus Br. 11 n. 3. 15
In sum, the negligence, strict liability, and breach of implied warranty claims asserted in the Second Amended Complaint, would impose non-parallel state law requirements and are therefore expressly preempted. We will affirm the District Court's order in that respect.
B. Claims in the Third Amended Complaint
We turn next to the Shukers' contention that the District Court erred in holding that their off-label promotion claims in the Third Amended Complaint failed to state a claim. We exercise plenary review over the District Court's dismissal of those claims,
see
Santiago v. Warminster Twp.
,
The Shukers' Third Amended Complaint included three state law tort claims based on Smith & Nephew's alleged off-label promotion in violation of federal law: negligence, loss of consortium, and fraud. We assess each claim in turn, first acknowledging "the elements [the Shukers] must plead to state a claim," then accepting "all of the complaint's well-pleaded facts as true" while disregarding "any legal conclusions," and finally determining whether the well-pleaded factual allegations "plausibly give rise to an entitlement to relief."
Santiago
,
Applying these principles, we hold that the Shukers have met their pleading burden with respect to their negligence and loss of consortium claims. Although they did not adequately plead their fraud claim, which they were required to plead with particularity, see Fed. R. Civ. P. 9(b), we will nonetheless vacate the District Court's dismissal of that claim to the extent that it was with prejudice. We discuss each of the Shukers' three claims from their Third Amended Complaint below.
1. Negligence Based on Off-Label Promotion
The elements of negligence under Pennsylvania law are: (1) "a legally recognized duty or obligation of the defendant," (2) "the breach thereof," and (3) a "causal connection" between the breach and the plaintiffs' damages.
Green v. Pa. Hosp.
,
Construing all reasonable inferences in the Shukers' favor,
see
Victaulic Co.
, 839 F.3d at 257, the Shukers' Third Amended Complaint plausibly alleges each of these three required elements. First, as to duty, the complaint alleges that the R3 metal liner received premarket approval as part
of the Birmingham Hip Resurfacing System and was approved "only ... for use with [that] ... [s]ystem," App. 473, leading to the reasonable inference that the R3 metal liner was a "restricted device" under the Medical Device Amendments, 21 U.S.C. § 360j(e), and that federal law therefore imposed a duty on Smith & Nephew to refrain from publishing "false or misleading" advertising with respect to the R3 metal liner,
Second, as to breach, the complaint asserts that, even though the FDA did not approve the R3 metal liner for use with any hip system other than the Birmingham Hip Resurfacing System, Smith & Nephew "actively marketed the [R3] metal liner as 'optional' for the [separate] R3 Acetabular System," App. 479. The complaint also cites to Smith & Nephew's February 2009 press release, which explicitly announces "the introduction of a metal liner option for [Smith & Nephew's] R3 Acetabular System." App. 14.
17
These factual allegations give rise to the reasonable inference that Smith & Nephew's marketing was "misleading" regarding the FDA-approved uses of the R3 metal liner,
Finally, as to causation, the Shukers' Third Amended Complaint alleges that Mr. Shuker's surgeon "either read" or "was aware" of the information in Smith & Nephew's press release, that the surgeon proceeded to find the R3 metal liner "appropriate" for Mr. Shuker, "given his body habitus and his activity level," and that Mr. Shuker endured pain "caused by metal sensitivity due to the degeneration of the metal on metal articulation" in his hip replacement system. App. 480, 483. Together these factual allegations lead to the reasonable inference that Smith & Nephew's marketing materials caused Mr. Shuker's surgeon to recommend the R3 metal liner and to install it within Mr. Shuker's hip replacement system, a course of action which in turn caused Mr. Shuker's subsequent injuries.
Because the factual allegations in the Shukers' Third Amended Complaint allow us reasonably to infer each of the three legal elements of the Shukers' parallel negligence claim, the complaint contains sufficient facts to "nudg[e]" that claim "across the line from conceivable to plausible,"
Iqbal
, 556 U.S. at 683,
2. Loss of Consortium
Loss of consortium is an injury referring to "the impact of one spouse's physical injuries upon the other spouse's marital privileges and amenities," and, while remaining "a ... distinct cause of action" for "loss of services, society, and conjugal affection of one's spouse," is a claim "derivative" of a spouse's separate
claim of injury.
Darr Constr. Co. v. Workmen's Comp. Appeal Bd.
,
The Third Amended Complaint alleges that, after Mr. Shuker's hip replacement surgery and "due to the degeneration of the metal on metal articulation," he experienced "buttocks, groin and thigh discomfort" that "caused him pain and extremely limited his daily activities." App. 483. Thus, we can reasonably infer that, because of Smith & Nephew's misleading marketing in violation of federal law, the R3 metal liner's subsequent use in Mr. Shuker's hip replacement surgery, and Mr. Shuker's ensuing "physical injuries," Mrs. Shuker suffered a loss of her husband's "services, society, and conjugal affection."
Darr Constr.
,
3. Fraud
In contrast to the Shukers' pleading of their other claims, the Shukers' pleading of their fraud claim is not adequate because it does not satisfy Rule 9(b)'s requirement that, though "intent ... and other conditions of a person's mind may be alleged generally," plaintiffs "must state with particularity the circumstances constituting fraud." Fed. R. Civ. P. 9(b).
To plead fraud under Pennsylvania law, a plaintiff must allege (1) "a representation" which is (2) "material to the transaction at hand," (3) "made falsely, with knowledge of its falsity or recklessness as to whether it is true or false," and (4) made "with the intent of misleading another into relying on it"; (5) "justifiable reliance on the misrepresentation"; and (6) that "the resulting injury was proximately caused by the reliance."
Gibbs v. Ernst
,
Here, the Shukers' Third Amended Complaint pleads many of the elements of a fraud claim: (1) it alleges that Smith & Nephew made "representation[s]" by including and incorporating representations Smith & Nephew made regarding the R3 metal liner; (2) it alleges "material[ity]" by describing those representations' importance in influencing surgeons, such as Mr. Shuker's surgeon, to use the R3 metal liner off-label; (3) it alleges "falsity" by stating that, contrary to Smith & Nephew's representations, the company received FDA approval regarding the R3 metal liner's use within the Birmingham Hip Resurfacing system only; and (4) it alleges "intent" by contending that Smith & Nephew represented that the R3 metal liner was available for use within other hip systems, even though the company had never sought FDA approval for use within those systems.
Gibbs
,
Their complaint comes up short, however, because it does not plead the element of "justifiable reliance" on Smith & Nephew's misrepresentation with the particularly required for Rule 9(b).
The complaint does not meet this standard. In asserting that Mr. Shuker's surgeon "read" or "was aware" of Smith & Nephew's press release about the R3 metal liner, App. 480, the complaint does not provide any details about how the press release "induced or influenced" the surgeon's course of conduct,
TAP Pharm. Prods.
,
We hold, however, that the District Court erred in dismissing the Shukers' fraud claim with prejudice. In most instances where plaintiffs fail to plead fraud with particularity-and especially in cases where plaintiffs may be able to supplement their complaints with additional factual content after discovery-district courts should dismiss the fraud claim "with leave to amend the deficient pleading." 5A Charles Alan Wright et al.,
Federal Practice & Procedure
§ 1300 (3d ed. 2017) ;
accord
Warden v. McLelland
,
C. Personal Jurisdiction
Because two of the Shukers' claims will proceed to discovery, we turn now to the Shukers' challenge to the District Court's denial of jurisdictional discovery as to Smith & Nephew's parent company, PLC, and to the District Court's dismissal of PLC for lack of personal jurisdiction. We review the District Court's decision to deny jurisdictional discovery for abuse of discretion,
see
Toys "R" Us, Inc. v. Step Two, S.A.
,
We perceive no merit in the Shukers' stream-of-commerce theory of personal jurisdiction. That theory sounds in specific personal jurisdiction, which exists when alleged injuries "arise out of or relate to" activities " 'purposefully directed' by a defendant toward residents of the forum state."
Metcalfe v. Renaissance Marine, Inc.
,
A plurality of Supreme Court Justices has twice rejected the stream-of-commerce theory,
see
J. McIntyre Mach., Ltd. v. Nicastro
,
To the extent the Shukers seek to establish specific personal jurisdiction over PLC without reference to the stream-of-commerce theory, their allegations do not meet our Circuit's requirement of purposeful availment: "what is necessary is a deliberate targeting of the forum,"
O'Connor
,
We hold, however, that the Shukers are entitled to limited jurisdictional discovery to explore their alter ego theory
of general personal jurisdiction, i.e., jurisdiction arising from a defendant's " 'continuous and systematic' contacts with the forum, whether or not those contacts are related to the [plaintiffs'] cause of action."
Metcalfe
, 566 F.3d at 334 (quoting
Helicopteros Nacionales de Colom., S.A. v. Hall
,
Under the alter ego theory, the Shukers' factual allegations regarding PLC, if viewed in isolation, suffice to make a prima facie showing of personal jurisdiction, which is all they must do at this juncture.
See
D'Jamoos
, 566 F.3d at 102. Their allegations paint a plausible picture of control by PLC over Smith & Nephew: the two companies' decisionmaking is integrated, PLC has authority over Smith & Nephew's strategic business decisions, PLC pays for the development of Smith & Nephew's products, and executives from both companies work together to make decisions regarding Smith & Nephew's hip systems, as shown in a 2012 Smith & Nephew press release that directed investor and media inquiries not to Smith & Nephew employees, but to PLC executives. Given that no party disputes that personal jurisdiction exists over Smith & Nephew as PLC's subsidiary in Pennsylvania, the Shukers' allegations, taken as true and in isolation, would suffice to show that PLC controlled Smith & Nephew, that Smith & Nephew was PLC's agent, and that personal jurisdiction must exist over both Smith & Nephew and PLC in Pennsylvania.
See
Kehm Oil
,
Our record, though, is not limited to the Shukers' allegations about personal jurisdiction over PLC; it includes declarations from PLC and Smith & Nephew executives that contradict many of the Shukers' assertions. For instance, the executives assert that PLC had "no involvement" in the design, manufacture, or distribution of Smith & Nephew's R3 Acetabular System for hip replacements in the United States and, moreover, that PLC had never approved any business decision regarding that system. App. 320. Because the executives' declarations create a factual dispute regarding the basis for personal jurisdiction over PLC, it is appropriate here to allow the parties and the District Court to "revisit[ ]" the factual issues by means of limited jurisdictional discovery, which we "ordinarily allow" when a plaintiff's claim to personal jurisdiction "is not clearly frivolous." 20 Metcalfe , 566 F.3d at 331, 336.
Accordingly, the District Court abused its discretion in denying jurisdictional discovery, and we will therefore vacate the dismissal of PLC for lack of personal jurisdiction and remand for the District Court to grant the Shukers the opportunity to conduct jurisdictional discovery. 21
III. Conclusion
For the foregoing reasons, we will affirm in part, reverse in part, and remand to the District Court for proceedings consistent with this opinion.
See, e.g.
, Federal Environmental Pesticide Control Act of 1972, Pub. L. No. 92-516, sec. 2, §§ 3-13, 24,
The express preemption provision includes an exception for state requirements that the Secretary of Health and Human Services has exempted from preemption by regulation,
see
21 U.S.C. § 360k(b), but because the Shukers' common law tort claims are not included within the Secretary's regulatory exemptions,
see
Cf.
Mink v. Smith & Nephew, Inc.
,
Here, and when not quoting another source, we use the term "component" to mean, collectively, "component, part, or accessory,"
The factual summary below draws from record evidence that we consider in reviewing the District Court's summary judgment ruling regarding preemption, and its dismissal of PLC for lack of personal jurisdiction. But we consider only the complaint, its exhibits, "undisputedly authentic document[s]" upon which the plaintiffs' claims are based, and the public record in reviewing the District Court's dismissal of the Shukers' Third Amended Complaint for failure to state a claim.
Pension Ben. Guar. Corp. v. White Consol. Indus., Inc.
,
The Shukers originally filed suit in Pennsylvania state court, but Smith & Nephew and PLC removed the case to federal court. The District Court had subject-matter jurisdiction pursuant to
We have jurisdiction pursuant to
While the supplemental briefing and the FDA's submission address implied preemption as well as express preemption, we confine our analysis to express preemption today. The Medical Device Amendments can preempt state common law claims against medical device manufacturers both expressly and impliedly,
see
Buckman Co.
,
We disagree with Smith & Nephew's assertion that "[a]ny presumption against express preemption no longer exists." Appellee Smith & Nephew's Br. 21. Smith & Nephew relies on a Supreme Court case that addressed whether the federal Bankruptcy Code's express preemption provision preempts a Puerto Rico statute,
see
Puerto Rico v. Franklin Cal. Tax-Free Tr.
, --- U.S. ----,
We note that neither the definition of "device," nor the express preemption provision, makes any exception for instances where components that received premarket approval are used with components that did not receive such approval.
See
We "do not defer to an agency's view" concerning preemption, but such views as presented in an amicus brief are " 'entitled to respect' ... to the extent [they] ha[ve] the 'power to persuade.' "
Sikkelee
,
Our decision accords with those of the district courts that have grappled with the Act's definition of "device" while addressing how the Medical Device Amendments' express preemption provision should apply to devices with components of mixed-class designations.
See, e.g.
,
Nagel v. Smith & Nephew, Inc.
, No. 15-0927,
Although the Shukers separately asserted ostensibly parallel claims based on violations of federal law in their Second Amended Complaint, they do not attempt to revive those claims on appeal, resting instead on the amended claims alleging off-label promotion and asserted in their Third Amended Complaint, which we address later in this opinion, see infra Part II.B.
Some district courts, in evaluating complaints that allege "injuries stemming from the combination of [premarket and non-premarket] component parts," have declined to apply express preemption to claims arising from the
interaction
of these mixed class components because "the combination of component[s]" itself was not subject to premarket approval.
Lafountain v. Smith & Nephew, Inc.
, No. 14-1598,
This is not to say that all failure-to-warn allegations as to hybrid systems would be preempted. On the contrary, as the FDA notes, a claim premised on a state requirement that the R3 System carry a warning against "use with metal liners," or that it only be used with polyethylene liners, for example, "would not implicate § 360k(a)" because "the FDA did not impose device-specific labeling requirements on the R3 system components." FDA Amicus Br. 11. But such a claim is not before us, and to the extent the Shukers take issue with the off-label use of the R3 liner as opposed to the promotion of that use, their recourse is in a malpractice claim against the physician that prescribed the off-label use, not in a products liability claim against the Appellees.
See generally, e.g.
, Pa. R. Civ. P. 1042.1 (discussing professional liability actions in Pennsylvania);
Thierfelder v. Wolfert
,
We assume that Pennsylvania law applies without undertaking a choice of law analysis, because both Smith & Nephew and the District Court assumed that Pennsylvania law applied to the claims in the Third Amended Complaint, and because the Shukers have waived any objection to that choice of law by failing to make it,
see
Williams v. BASF Catalysts LLC
,
Because we may consider a "document integral to or explicitly relied upon in the complaint" in considering a Rule 12(b)(6) motion to dismiss,
In re Rockefeller Ctr. Props., Inc. Sec. Litig.
,
To the extent Smith & Nephew contends that a dispute of fact exists as to whether Smith & Nephew's promotional materials were false or misleading, the Shukers are entitled to discovery to explore this issue for, if discovery produces "conflicting evidence," a factual dispute like this one can ripen into a question for a jury to decide.
In re Fosamax (Alendronate Sodium) Prods. Liab. Litig.
,
As we are allowing some of the claims in the Third Amended Complaint to proceed to discovery, we need not address the Shukers' contention that, if we hold they failed to state a claim in their Third Amended Complaint, then they were entitled to additional discovery before that complaint was filed.
We note that such jurisdictional discovery "is not a license for the parties to engage in a fishing expedition" and that "the District Court should take care to circumscribe the scope of discovery ... to only the factual questions necessary to determine its jurisdiction." Schuchardt , 839 F.3d at 353-54. This principle is all the more true after the 2015 amendments to the Federal Rules of Civil Procedure, which added a discussion of proportionality to Rule 26(b)(1). Victaulic Co. , 839 F.3d at 258-59. Applying that rule here, the Shukers may obtain only jurisdictional discovery "regarding ... nonprivileged matter that is relevant to [personal jurisdiction over PLC] and proportional to the needs of the case," taking into account "the importance of the issue[ ] at stake ..., the amount in controversy, the parties' relative access to relevant information, the parties' resources, the importance of the discovery in resolving the issue[ ], and whether the burden or expense of the proposed discovery outweighs its likely benefit." Id. at 259 (quoting Fed. R. Civ. P. 26(b)(1) ).
If evidence adduced from such discovery supports the conclusion that personal jurisdiction is proper as to PLC, then the Shukers may to seek leave under Federal Rule of Civil Procedure 15(a)(2) to amend their Third Amended Complaint to join PLC as a co-defendant.
Reference
- Full Case Name
- Walter SHUKER; Vivian Shuker, Appellants v. SMITH & NEPHEW, PLC; Smith & Nephew, Inc.
- Cited By
- 250 cases
- Status
- Published