H. RUSSEL HOLLAND, District Judge.
Defendants move to dismiss
Plaintiffs are Debra and Patrick Martin. Defendants are Medtronic, Inc. and Medtronic Sofamor Danek USA, Inc.
Defendants manufacture and sell a Class III medical devise known as Infuse® Bone Graft/LT-Cage Lumbar Tapered Fusion Device. The "Infuse® product consists of (1) a metallic spinal fusion cage (the LT-Cage™); (2) Infuse® Bone Graft kit which comes with a vial of liquid rhBMP-2 and absorbable collagen sponges (ACS), which serve as carriers for the rhBMP-2 when the two are placed inside the LT-Cage."
"On or about July 14, 2010, the [p]laintiff Debra Martin underwent a posterolateral lumbar fusion at L4-5 and L5-1. To achieve fusion, [Debra's] surgeon, Dr. Yadship Pannu, performed an unapproved procedure by utilizing a posterolateral approach and by packing Atlas vertebral cages with Infuse® Bone Graft and placing the cages into multiple levels of [Debra's] spine."
More specifically, plaintiffs allege that
Plaintiffs allege that "on or around August 2013, [Debra] was diagnosed with bony overgrowth at L5-S1. A CT-scan also revealed the formation of a cyst near the cage, which had become displaced. As a result, [Debra] has required extensive medical treatment."
On February 27, 2014, plaintiffs commenced this action. In their original complaint, Debra asserted seven state law causes of action against defendants: 1) fraudulent misrepresentation/fraud in the inducement, 2) strict products liability — failure to warn, 3) strict products liability — design defect, 4) strict products liability — misrepresentation, 5) product liability — negligence, 6) breach of express warranty, and 7) violation of Arizona's Consumer Protection statutes. Debra's claims were based on her contention that defendants "should not have violated federal law by falsely and misleadingly promoting and marketing new designs and uses for a product that were never considered or approved by the FDA."
Defendants moved to dismiss plaintiffs' original complaint, and on July 23, 2014, 32 F.Supp.3d 1026, 2014 WL 3635292 (D.Ariz.2014), the court granted that motion and all of plaintiff's claims were dismissed.
On August 13, 2014, plaintiffs filed their first amended complaint. In the amended complaint, Debra again asserts seven state law causes of action: 1) fraudulent misrepresentation/fraud in the inducement, 2) strict products liability — failure to warn, 3) strict products liability — design defect, 4) strict products liability — misrepresentation, 5) product liability — negligence, 6) breach of express warranty, and 7) violation of Arizona's Consumer Protection statutes. Patrick again asserts a claim for loss of consortium. Plaintiffs also appear to be asserting a claim for punitive damages.
Pursuant to Rules 9(b) and 12(b)(6), Federal Rules of Civil Procedure, defendants now move to dismiss plaintiffs' amended complaint. Should the court not dismiss all of plaintiffs' claims, defendants move to strike certain portions of plaintiffs' amended complaint.
"Rule 12(b)(6) authorizes courts to dismiss a complaint for `failure to state a claim upon which relief can be granted.'" In re Rigel Pharmaceuticals, Inc. Securities Litig., 697 F.3d 869, 875 (9th Cir.2012) (quoting Fed.R.Civ.P. 12(b)(6)). "To avoid dismissal, the complaint must provide `more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.'" Id. (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). "[A] plaintiff must `allege sufficient factual matter ... to state a claim to relief that is plausible on its face.'" OSU Student Alliance v. Ray, 699 F.3d 1053, 1061 (9th Cir.2012) (quoting Pinnacle Armor, Inc. v. United States, 648 F.3d 708, 721 (9th Cir.2011)). "In evaluating a Rule 12(b)(6) motion, the court accepts the complaint's well-pleaded factual allegations as true and draws all reasonable inferences in the light most favorable to the plaintiff." Adams v. U.S. Forest Srvc., 671 F.3d 1138, 1142-43 (9th Cir.2012). "Rule 9(b) provides that `[i]n alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake.'" United States ex rel. Cafasso v. General Dynamics C4 Systems, Inc., 637 F.3d 1047, 1054-55 (9th Cir.2011) (quoting Fed.R.Civ.P. 9(b)). "To satisfy Rule 9(b), a pleading must identify `the who, what, when, where, and how of the misconduct charged,'" as well as "`what is false or
Defendants first move to dismiss the claims that this court found were preempted but which Debra has again asserted in the amended complaint. Although they were not given leave to amend as to these claims, plaintiffs have repleaded 1) Debra's fraud claims in Counts 1, 4, and 7 which are based on allegations that defendants made misrepresentations and omissions in the labeling of the Infuse device; 2) Debra's strict products liability claim in Count 2 that is based on the off-label promotion of the Infuse device; 3) Debra's strict products liability — design defect claim in Count 3; and 4) Debra's negligence claims in Count 5 which were based on allegations that defendants failed to provide warnings on the labeling of the Infuse device, were negligent during the manufacture or design of the Infuse device, and were negligent in promoting the Infuse device for off-label use. Plaintiffs noted that they were repleading these claims for purposes of an appeal, but there was no reason to do so. See Lacey v. Maricopa County, 693 F.3d 896, 928 (9th Cir.2012) ("For claims dismissed with prejudice and without leave to amend, [the court] will not require that they be repleaded in a subsequent amended complaint to preserve them for appeal"). These claims are again dismissed and to the extent it was not clear in the court's order on defendants' first motion to dismiss, these claims are dismissed with prejudice.
Defendants next argue that Debra's strict products liability failure to warn claim (Count 2) and negligence claim (Count 5) which are based on allegations that defendants failed to warn the FDA about adverse events should be dismissed. Defendants argue that plaintiffs have again failed to allege how the failure to warn the FDA about adverse events caused or contributed to their damages or injuries. "Manufacturers are required by the FDCA to report to the FDA adverse events where an approved device may have caused or contributed to a death or serious injury, or where a recurring malfunction would likely cause or contribute to a death or serious injury." Hawkins, 2014 WL 346622, at *8. In order for an adverse events claim to be plausible, there must be "a causal connection between [plaintiffs'] injuries and the alleged failure to report...." Id. at *8.
Plaintiffs allege that "Medtronic ... failed to report adverse events to the FDA" and thus Debra's "surgeon was unable to access this information via the FDA's adverse event database."
Plaintiffs also allege that Dr. Pannu "relied on the Medtronic Defendants' inadequate warnings in deciding to use Infuse® in an off-label manner. Plaintiff and Plaintiff's physician would not have used
Plaintiffs' allegations are insufficient to state a plausible claim. Plaintiffs still have not alleged how defendants' alleged failure to warn the FDA about adverse events contributed to their injuries. What is missing from Debra's adverse events claims is any connection between defendants' alleged failure to report adverse events and her surgery. Plaintiffs also have not alleged any factual support for these claims, such as any details (the date, nature of injuries, or method of implant) about any adverse events that should have been reported. Without such factual detail, it is not possible to tell if timely reporting would have affected the off-label use of the Infuse device during Debra's surgery. Debra's adverse events claims in Count 2 and Count 5 are dismissed. These claims are dismissed with prejudice. Plaintiffs are not given leave to amend because they have already had one opportunity to amend these claims and they still failed to state a plausible claim. See Cafasso, 637 F.3d at 1058 (quoting Ascon Props., Inc. v. Mobil Oil Co., 866 F.2d 1149, 1160 (9th Cir.1989)) ("`[t]he district court's discretion to deny leave to amend is particularly broad where plaintiff has previously amended the complaint'").
Defendants next argue that plaintiffs have again failed to plead Debra's off-label promotion fraud claims with the required particularity. Defendants argue that plaintiffs still have not pled with particularity any false promises or misrepresentations allegedly made by defendants to Debra or her physician. Although plaintiffs have alleged that "Dr. Pannu relied heavily upon the medical literature that he read on Infuse® Bone Graft ... none of which disclosed any adverse events[,]"
As plaintiffs are quick to point out, however, they have alleged that Dr. Pannu read a particular article (the Haid article) that addressed using the Infuse device off-label and that Dr. Pannu relied on the medical literature he was reading in deciding whether to use the Infuse device off-label. They have alleged which particular statements in the Haid article were false and they have alleged why they were false.
Plaintiffs' other allegations as to how Dr. Pannu was impacted by defendants' off-label promotion are not, however, sufficiently particular. Plaintiffs argue that they have also alleged that the medical literature influenced Dr. Pannu indirectly, as Dr. Pannu discussed the safety and efficacy of the Infuse device with Dr. Ahuja.
Plaintiffs also make a general argument that their amended complaint is replete with allegations that the representations that defendants made that the Infuse device was safe for off-label use were false
But these allegations are not tied specifically to Dr. Pannu or to Debra. Rather, these allegations suggest that what plaintiffs are attempting to do here is advance a "fraud-on-the-market" theory, with the "market" being the medical community at large. But courts have generally found such theories inapplicable to product liability cases. See, e.g., Chudasama v. Mazda Motor Corp., 123 F.3d 1353, 1369 n. 39 (11th Cir.1997) ("The fraud on the market theory of securities law, however, is based on concepts and policies that simply do not apply in a products liability case"). Plaintiffs cannot pursue a "fraud of the market" theory.
Defendants next argue that Debra's breach of express warranty claim should be dismissed because it is not adequately pled and it is barred by the Infuse warranty disclaimer. "Under Arizona law, `[a]ny affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.'" Arvizu v. Medtronic Inc., 41 F.Supp.3d 783, 793, 2014 WL 4204933, at *9 (D.Ariz.2014) (quoting Dillon v. Zeneca Corp., 202 Ariz. 167, 42 P.3d 598, 602 (Ariz.Ct.App.2002)). "[A]ny affirmation that forms the basis of an express warranty must be between the seller and the buyer.'" Id. (quoting Ramirez v. Medtronic Inc., 961 F.Supp.2d 977, 1001 (D.Ariz.2013)).
Plaintiffs allege that defendants "utilized journal articles, advertising media, sales representatives/consultants, and paid Key Opinion Leaders to urge the use, purchase, and utilization of unapproved uses of Infuse® Bone Graft" to "expressly warrant[] to physicians, including [Debra's] physician and other members of the general public and medical community, that such off-label uses, including uses in lumbar fusion procedures, were safe and effective."
Debra has still failed to state a plausible breach of express warranty claim. Debra's vague allegations that there were affirmations made by defendants and defendants' agents that the Infuse device was safe and effective when used off-label are insufficient. In order to state a plausible claim, plaintiffs needed to allege that defendants made affirmations directly to Debra, which they have not done. Thus, Debra's breach of express warranty claim is dismissed. This claim is dismissed with prejudice. Plaintiffs are not given leave to amend as they have had an opportunity to amend this claim and still failed to state a plausible claim.
Defendants next argue that Patrick's loss of consortium claim should be dismissed. But, Patrick's loss of consortium claim survives defendants' motion to dismiss because Debra's fraud claims based on defendants' off-label promotion survive.
Lastly, defendants argue that plaintiffs' punitive damages claim should be dismissed because punitive damages are a remedy, not a claim. See Allen v. Quest Online, LLC, Case No. CV-11-138-PHX-GMS, 2011 WL 4403674, at *11 (D.Ariz. Sept. 22, 2011) ("Damages cannot stand alone as a separate claim"). Plaintiffs may seek punitive damages as a remedy, but it is not a substantive claim for relief. To the extent that plaintiffs have asserted a separate claim for punitive damages, that claim is dismissed.
Although the court has determined that Debra's fraud claims based on defendants' off-label promotion survive defendants' Rule 12(b)(6) motion and that Patrick's loss of consortium claim also survives, plaintiffs' amended complaint is nonetheless dismissed in its entirety for failure to comply with Rule 8(a)(2). "When a complaint fails to comply with" Rule 8(a)(2), "the district court has the power, on motion or sua sponte, to dismiss the complaint...." Simmons v. Abruzzo, 49 F.3d 83, 86 (2d Cir.1995). "Rule 8(a)(2) of the Federal Rules of Civil Procedure requires that each claim in a pleading be supported by `a short and plain statement of the claim showing that the pleader is entitled to relief....'" Landers v. Quality Communications, Inc., 771 F.3d 638, 640 (9th Cir.2014). Plaintiffs' amended complaint is 146 pages long and contains 675 numbered paragraphs and has seven exhibits attached. Quite simply, it "says too much." Knapp v. Hogan, 738 F.3d 1106, 1109 (9th Cir.2013). It is "prolix, replete with redundancy, and largely irrelevant...." McHenry v. Renne, 84 F.3d 1172, 1177 (9th Cir.1996). Even with the majority of Debra's claims dismissed, it would be unfair to require defendants to answer the amended complaint. See Cafasso, 637 F.3d at 1059 (quoting Mendez v. Draham, 182 F.Supp.2d 430, 433 (D.N.J. 2002) ("`Only through superhuman patience, effort, and insight, could any attorney review the allegations of the Complaint and make paragraph-by-paragraph responses.'")).
However, plaintiffs are given leave to file a second amended complaint but only as to Debra's fraud claims which are based on defendants' off-label promotion and as to Patrick's loss of consortium claim. Plaintiffs' allegations in their second amended complaint must be limited to
Defendants' Rule 12(b)(6) motion to dismiss