Kristiana Burrell v. Bayer Corporation
Opinion
Kristiana Tweed Burrell and her husband filed suit against Bayer in connection with a female sterilization device known as Essure, alleging that Burrell suffered a stillbirth and then underwent a hysterectomy due to complications from the device. The Burrells commenced this action in North Carolina state court, seeking damages for violations of North Carolina tort and products liability law.
The issue we confront in this appeal is not the merits of the Burrells' claims, but whether those claims should be heard in state or federal court. According to Bayer, this is a federal case: Although the Burrells seek relief under state law, their claims necessarily implicate significant questions regarding Bayer's compliance with federal regulations and thus give rise to federal question jurisdiction under
I.
A.
The crux of Bayer's argument for federal question jurisdiction is that because Essure is regulated by the federal government, the Burrells' suit regarding Essure will require the resolution of important federal-law questions. We begin by briefly describing the federal laws and regulations that govern Essure, to provide necessary context for Bayer's position and the proceedings in this case.
Essure is a permanent female contraceptive consisting of metal coils, known as "micro-inserts," inserted into a woman's fallopian tubes. Once released through a disposable delivery system, the micro-inserts expand and anchor in the fallopian tubes, causing fibrous tissue growth that blocks the tubes and prevents pregnancy.
Essure is regulated by the Food and Drug Administration ("FDA") as a Class III medical device, under the 1976 Medical Device Amendments to the Federal Food, Drug, and Cosmetic Act ("FDCA" or "Act"). Class III devices are subject to the most stringent oversight under the Act,
see
21 U.S.C. § 360c(a)(1)(C), and a novel Class III device like Essure cannot be distributed until it receives premarket approval from the FDA,
The Act does not establish a private right of action to enforce these requirements under federal law. With respect to state-law remedies, the Act includes an express preemption provision, prohibiting states from imposing requirements on premarket-approved Class III medical devices - like Essure - that are "different from, or in addition to" federal requirements. 21 U.S.C. § 360k(a). That leaves room, as the Supreme Court has explained, for state-law remedies for violations of common-law duties that "parallel" federal regulatory requirements.
Medtronic, Inc. v. Lohr
,
Essure received premarket approval from the FDA in 2002. Accordingly, the Burrells may proceed against Bayer under North Carolina law consistent with § 360k(a) to the extent (and only to the extent) that the state-law duties on which they rely "parallel" the federal requirements that apply to Essure. What relief is available under North Carolina law is of course a question of state and not federal law.
B.
Kristiana Tweed Burrell received an Essure implantation in December 2013. According to Burrell, tests performed in the ensuing months found that the device was causing only a partial blockage of her left fallopian tube, and thus failing to provide contraceptive protection.
On June 5, 2015, Burrell discovered that she was pregnant when she felt fetal movement. Two days later, she experienced abdominal pain and vaginal bleeding, and went into premature labor at home. Burrell was admitted to the hospital, where her baby was delivered stillborn at an estimated 24 to 27 weeks. Burrell was diagnosed with placental abruption, a serious pregnancy complication in which the placenta prematurely separates from the uterus. Subsequent doctor visits confirmed that Burrell's Essure implant had failed and was eroding through the left fallopian tube. To remove the device, Burrell then was required to undergo a total hysterectomy - that is, a surgical procedure to remove her uterus.
In December 2016, Burrell and her husband filed separate lawsuits in North Carolina state court against the Bayer Corporation and related defendants (collectively, "Bayer"). 2 The lawsuits, later consolidated, seek damages for personal injuries, emotional distress, and wrongful death under various state-law causes of action, relying primarily on four core allegations. First and most prominently, the Burrells allege that Bayer failed to disclose to the medical community or the FDA numerous adverse events similar to those they experienced, depriving them of proper warning about Essure's risks. Second, they assert that Bayer failed to update its labeling and marketing materials to reflect these risks, further depriving them of adequate warning. Third, they claim that Bayer sold Essure implants with manufacturing defects, suggesting that one of these defects may have been present in Burrell's implant and caused her injuries. And fourth, they allege that Bayer did not adequately train doctors, including Burrell's obstetrician-gynecologist, on the implantation procedure, despite informing the public otherwise.
That conduct, according to the complaints, violated state law in multiple respects. Specifically, the complaints assert the following causes of action against Bayer under North Carolina law: that Bayer was negligent and breached its duty to warn the Burrells of known dangers regarding Essure; that Essure was unreasonably dangerous in violation of state products liability law; that Bayer breached both express and implied warranties; and that Bayer engaged in fraud and unfair or deceptive trade practices. In anticipation of a federal preemption defense, as outlined above, the complaints also allege that Bayer violated numerous federal regulatory requirements that purportedly parallel Bayer's duties under state law.
C.
The jurisdictional question at issue in this appeal arose when Bayer removed the Burrells' actions to federal court, invoking
Cases generally are deemed to "arise under" federal law when it is federal law, not state law, that creates the cause of
action.
See
Merrell Dow
,
The district court agreed, denying the Burrells' motion to remand the case to state court and retaining jurisdiction under § 1331. The court began by laying out the "four-part test" that governs whether a lawsuit based on state-law claims gives rise to federal question jurisdiction: To come within § 1331, the case must feature a state-law claim that (1) "necessarily raise[s]" a federal issue, and that federal issue must be "(2) actually disputed, (3) substantial, and (4) capable of resolution in federal court without disrupting the federal-state balance approved by Congress." J.A. 1130 (quoting
Gunn v. Minton
,
As to the first two prongs - whether the Burrells' state-law claims "necessarily raise[ ]" disputed federal issues - the court essentially adopted Bayer's argument. The Burrells' complaints, the court reasoned, are "replete with references to the FDA" and allegations that Bayer failed to comply with its federal regulatory duties. J.A. 1131. As a result of the Act's express preemption provision, the court continued, the Burrells cannot succeed on their state-law claims unless they can show that Bayer in fact deviated from those federal requirements. "Accordingly, [the federal regulations governing Essure] are implicated here and in dispute." J.A. 1133.
The court relied again on the Act's preemptive effect under the latter two prongs of the analysis. Because "state law is generally pre-empted" under § 360k(a), the court determined, "[i]t does not upset the federal-state balance to allow [manufacturers of] federally-approved medical devices to be sued ... in federal court." J.A. 1136. And because what is at issue is "federal oversight of Class III medical device products," the district court further reasoned, the dispute as to federal law is "substantial."
Having retained jurisdiction, the court two months later granted Bayer's motion to dismiss the Burrells' case, largely on preemption grounds.
See
Burrell v. Bayer Corp.
,
II.
We begin and end with the district court's jurisdictional holding. "Subject matter jurisdiction defines a court's power to adjudicate cases or controversies - its adjudicatory authority - and without it, a court can only decide that it does not have jurisdiction."
United States v. Wilson
,
Franchise Tax Bd. of Cal. v. Constr. Laborers Vacation Trust
,
A.
Under
As the Supreme Court has emphasized, courts are to be cautious in exercising jurisdiction of this type, which lies at "the outer reaches of § 1331."
Merrell Dow
,
Applying those factors, a substantial majority of district courts to consider the issue have held that state-law tort and products liability claims regarding medical devices regulated by the FDA - including Bayer's Essure - do not give rise to federal question jurisdiction. Some have concluded that these state-law claims do not "necessarily raise" federal-law questions.
See, e.g.
,
Sangimino v. Bayer Corp.
, No. 17-cv-01488-WHA,
We agree with those courts. As the party seeking removal, Bayer bears the burden of establishing federal jurisdiction, in a context in which we
"strictly construe" jurisdictional limits because of the "significant federalism concerns" that attend the removal of cases from state court to federal court.
Mulcahey
,
B.
We start with the requirement that a plaintiff's claims, though brought under state law, "necessarily raise" federal-law questions. As we explain, the theory adopted by the district court - that the Burrells' state-law claims necessarily raise federal preemption questions under § 360k(a) - is not a basis for § 1331 jurisdiction. Whether there might be some other theory on which the Burrells' complaints necessarily raise federal questions is a closer question that we need not decide in this case.
1.
As described above, the district court agreed with Bayer that the "necessarily raised" standard was satisfied here because the Burrells' complaints allege numerous violations of federal regulatory requirements that parallel state-law duties. Under § 360k(a) 's express preemption provision, the court reasoned, the Burrells' right to relief on their state-law claims turns on whether Bayer breached parallel federal requirements, and so the question of Bayer's compliance with federal law is necessarily implicated by the Burrells' action.
On this point, Bayer and the district court are fundamentally mistaken. A federal question is "necessarily raised" for purposes of § 1331 only if it is a "necessary element of one of the well-pleaded state claims."
Franchise Tax Bd.
,
We applied exactly that principle in
Pinney
, finding that § 1331 did not confer federal question jurisdiction over state tort and products liability claims regarding a wireless telephone subject to extensive federal regulation.
The same rule applies here. As in
Pinney
, we look only to the necessary elements of the Burrells' causes of action to determine whether they raise federal questions under § 1331. And for most of their theories of liability, it is clear and undisputed that the Burrells can establish all the necessary elements entirely independently of federal law. One example will suffice: In North Carolina, a claim for inadequate warning is made out if "the manufacturer or seller acted unreasonably in failing to provide such warning;" the "failure to provide adequate warning or instruction was a proximate cause of the harm for which damages are sought;" and either "the product, without an adequate warning or instruction, created an unreasonably dangerous condition" or the manufacturer "failed to take reasonable steps to give adequate warning" after becoming aware "that the product posed a substantial risk of harm to a reasonably foreseeable user." N.C. Gen. Stat. § 99B-5(a). Each of those elements raises purely state-law questions; none requires a showing that Bayer violated federal law.
Cf.
Pinney
,
2.
In the face of this clear precedent, Bayer now advances a new rationale for treating the Burrells' state-law action as one that necessarily raises questions of federal law. Among the Burrells' many theories of recovery, Bayer argues, are a few in which violations of federal law are alleged not in anticipation of a preemption defense, but as actual predicates for state-law liability. For one, Bayer emphasizes, the complaints repeatedly assert Bayer's alleged failure to report adverse events to the FDA - a duty created solely by federal law, according to Bayer - in connection with multiple causes of action. And both parties focus on the complaints' assertion that Bayer was negligent per se - that is, that Bayer's alleged violations of federal law in and of themselves establish negligence under North Carolina tort law. In instances like these, Bayer urges, a violation of federal law becomes a "necessary element" of the plaintiffs' own state-law claims, satisfying the well-pleaded complaint rule and giving rise to federal question jurisdiction under § 1331.
We may assume for purposes of this appeal that the premise of Bayer's argument is correct, and that the assertions it has identified - including the "fraud on the FDA" allegation - in fact turn on questions of federal law.
4
Even so, there is another hurdle for Bayer: A federal question is not "necessarily" raised under § 1331 unless it is essential to resolving a state-law claim, meaning that "
every
legal theory supporting the claim requires the resolution of a federal issue."
Dixon
,
According to Bayer, the complaints' allegations of negligence per se and fraud on the FDA should be treated as distinct claims, each requiring resolution of federal-law questions and thus satisfying the "necessarily raised" prong. But the Burrells see it differently, insisting that allegations like negligence per se and fraud on the FDA are merely alternative theories of liability, and that they can recover on each of their actual claims - negligence, products liability, and the like - on an alternative state-law theory that in no way implicates federal law.
See
In re Lipitor Antitrust Litig.
,
Under the well-pleaded complaint rule, the Burrells are the "master[s] of the[ir] claim,"
Pinney
,
At the same time, we think this question is not entirely free from doubt. The distinction between a stand-alone claim and a theory of liability is not always clear. And because that distinction may turn on the precise way in which a complaint is drafted, there is no bright-line rule in the precedent to guide our analysis - nor a prospect that we could provide one through a line-by-line parsing of these particular complaints. Ultimately, we need not decide in this appeal whether the Burrells' complaints assert any distinct claim that can be resolved only by reference to federal law. Instead, for the reasons we turn to now, we conclude that Bayer in any event cannot establish federal question jurisdiction under the third and fourth prongs of the § 1331 analysis.
C.
Under the standard set out by the Supreme Court for identifying the narrow class of state-law actions that will give rise to federal question jurisdiction, it is not enough that a plaintiff's state-law claim necessarily raises some contested federal issue. That federal issue also must be "substantial," indicating a "serious federal interest" in sending the case to a federal forum; and even if it is, exercising federal jurisdiction must be "consistent with congressional judgment about the sound division of labor between state and federal courts."
Grable
,
1.
Our analysis is framed by two Supreme Court cases, one identifying the kind of state-law action that will not give rise to jurisdiction under this standard, and one identifying the kind of action that will. First, in
Merrell Dow v. Thompson
, the Supreme Court held that § 1331 did
not
confer federal question jurisdiction over an action much like this one, in which the plaintiffs alleged state-law products liability claims regarding a pharmaceutical regulated under the FDCA - the same federal statute that governs Essure - and incorporated the federal standard into a cause of action for negligence per se.
In the second case,
Grable & Sons v. Darue
, the Supreme Court applied
Merrell Dow
and this time found that a state quiet-title claim
did
present a removable federal question under § 1331, where resolution of the claim depended on the interpretation of a notice standard in federal tax law.
2.
From those book-end cases - and subsequent Supreme Court decisions applying them - we can derive most of the principles that govern this case. First, as
Grable
makes clear, there is a high bar for treating a federal issue as sufficiently "substantial" under the third prong of the § 1331 analysis. The "classic example," according to
Grable
, is a federal question regarding the constitutionality or construction of a federal statute,
The federal questions implicated by the Burrells' assertions of negligence per se and fraud on the FDA - assuming, as we do, that they are necessarily raised - bear none of these hallmarks of "substantiality." At bottom, what they require are fact-intensive inquiries into Bayer's compliance with certain FDA requirements: whether Bayer timely notified the FDA of alleged adverse events concerning Essure, manufactured Burrell's implant consistent with the FDA-approved design, and properly disseminated FDA-authorized labels and warnings. The Burrells do not allege, by contrast, that the Act is unconstitutional in any of its relevant applications, or that the FDA has exceeded its statutory authority or misapplied its own regulations in its oversight of Essure. Their claims are purely "backward-looking,"
Bayer argues, however, that fact-specific questions regarding its federal compliance should be treated as "substantial" in this case because they recur in numerous other cases involving Essure, so that exercising federal jurisdiction would help to ensure uniformity. But the Supreme Court considered and rejected that very argument in
Merrell Dow
, holding that even a strong interest in uniformity of results is not enough to make a federal question "substantial" so that it may be heard in federal court.
Finally, to the extent Bayer or the district court suggests that the "substantiality" prong is satisfied because the question of federal preemption is a "substantial" one, this is mistaken. It may be true that adjudication of Bayer's federal preemption defense will be important to the outcome of the Burrells' action, and even that the precedent it sets might affect non-parties to this case. But as we have explained already, a federal preemption defense, no matter how substantial, is not grounds for § 1331 jurisdiction.
See
Franchise Tax Bd.
,
3.
Bayer's failure to satisfy the substantiality prong of the § 1331 analysis by itself necessitates a remand to state court.
See
Pressl
,
Indeed, the Supreme Court effectively held as much in
Grable
, in the course of explaining why a state quiet-title action,
unlike
Merrell Dow
's state tort action, could be removed to federal court without upsetting the federal-state judicial balance. Quiet-title actions, the Court observed, only rarely raise substantial questions of federal law, and so they can be removed to federal court when they do without "materially affect[ing] ... the normal currents of litigation."
And there is no indication that Congress intended to divert a multitude of fact-intensive, state-law suits against medical-device manufacturers to federal court. Again,
Grable
's understanding of
Merrell Dow
is controlling. In
Merrell Dow
, the Court explained in
Grable
, the Court relied on two factors to assess Congress's intent with respect to state-law actions involving pharmaceuticals regulated under the FDCA: Congress had not created a private right of action - a direct pathway to federal court - for FDCA violations, and Congress also had not preempted state-law remedies for violations. That combination, the Court concluded, was "an important clue to Congress's conception of the scope of jurisdiction" under § 1331, because it evinced an intent to have such cases heard by state courts.
The same is true here. Like the pharmaceuticals at issue in
Merrell Dow
, Bayer's Essure, a medical device, is regulated under the FDCA. For medical devices, like pharmaceuticals, Congress declined to create a federal cause of action for violations of the Act, while allowing states to "provid[e] a damages remedy for claims premised on a violation of FDA regulations" when those regulations parallel state-law duties.
Riegel
,
under state law." (internal quotation marks omitted)).
The district court, in concluding otherwise, reasoned that because Congress provided for exacting regulation of medical devices by the FDA and expressly preempted "different" or "addition[al]" state requirements,
see
21 U.S.C. § 360k(a), the exercise of federal jurisdiction would be consistent with congressional intent. But that conflates the question of preemption with the question of jurisdiction. Congress's desire that a uniform substantive standard apply to FDA-regulated medical devices is a question of preemption law, distinct from congressional intent to vest jurisdiction over such claims in a state or federal forum.
See
Merrell Dow
,
III.
The Burrells' action does not fall within the small class of cases in which state-law claims may be deemed to arise under federal law for purposes of conferring federal jurisdiction under § 1331. Accordingly, the district court erred in denying the Burrells' motion to remand their case to state court and deciding Bayer's motion to dismiss. We therefore vacate the judgments of the district court and remand with instructions that the action be remanded to North Carolina state court.
VACATED AND REMANDED
Specifically, a manufacturer like Bayer must report to the FDA any instance in which its approved device "may have caused or contributed to a death or serious injury," and any malfunction that would "be likely to cause or contribute to a death or serious injury if the malfunction were to recur." 21 U.S.C. § 360i(a)(1)(A)-(B).
The Burrells also sued the obstetrician-gynecologist and medical practice that performed the implantation, alleging medical malpractice under North Carolina law. The district court ultimately declined to exercise supplemental jurisdiction over that claim, so it is not addressed or affected by our decision today.
It is well established, of course, that preemption is an affirmative defense. The burden of establishing preemption, in other words, is on the defendant; plaintiffs like the Burrells are not required to establish, nor to allege in their complaints, that their claims are
not
preempted.
Great-W. Life & Annuity Ins. Co. v. Info. Sys. & Networks Corp.
,
The Burrells acknowledge that their negligence per se theory is predicated on establishing violations of federal law. But it is less clear that the same is true of the "fraud on the FDA" allegation. In
Stengel v. Medtronic Inc.
,
The Court in
Grable
took the opportunity to clarify that
Merrell Dow
does not establish a "bright-line rule" that there can be no jurisdiction in contexts in which Congress has declined to provide a private right of action for enforcement of a federal statute.
Reference
- Full Case Name
- Kristiana Tweed BURRELL, Individually and as Administratrix of the Estate of Ariel Grace Burrell; Travis Burrell, Plaintiffs - Appellants, v. BAYER CORPORATION, an Indiana Corporation; Bayer Healthcare LLC, a Delaware Corporation; Christopher Ford Williams; Stacy D. Travis, Dr.; Biltmore Ob-Gyn, P.A. ; Bayer Essure Inc., F/K/A Conceptus, Inc., a Delaware Corporation; Bayer Healthcare Pharmaceuticals, Inc., a Delaware Corporation, Defendants - Appellees.
- Cited By
- 108 cases
- Status
- Published