J. LEON HOLMES, District Judge.
On February 28, 2007, a pelvic mesh medical device was surgically implanted into Freda R. Shepherd at Baptist Health Medical Center in Little Rock. The mesh device was manufactured and distributed by Johnson & Johnson and Ethicon, Inc. On September 11, 2012, Shepherd commenced an action against Baptist Health,
On November 6, 2012, the Multidistrict Panel entered an order conditionally transferring this action to the Honorable Joseph
When a motion to transfer or a notice of tag-along is pending before a Multidistrict Panel, the Court can choose to withhold any rulings on the action before it, including a decision on jurisdiction. See In re Ivy, 901 F.2d 7, 9 (2d Cir.1990) ("[T]he MDL Panel has jurisdiction to transfer a case in which a jurisdictional objection is pending, that objection to be resolved by the transferee court." (citation omitted)). However, "[t]he mere pendency of a motion to transfer before the Multidistrict Panel does not . . . limit [the Court's] ability to act on matters properly before it." General Elec. Co. v. Byrne, 611 F.2d 670, 673 (7th Cir.1979); see also Rules of Procedure of the Judicial Panel on Multidistrict Litigation, 147 F.R.D. 589, 601 (J.P.M.L.1993) ("The pendency of a . . . conditional transfer order . . . before the Panel concerning transfer or remand of an action pursuant to 28 U.S.C. § 1407 does not affect or suspend orders and pretrial proceedings in the district court in which the action is pending and does not in any way limit the pretrial jurisdiction of that court."); Kohl v. Am. Home Products Corp., 78 F.Supp.2d 885, 888 (W.D.Ark. 1999) ("[A] motion to transfer a case to MDL does not automatically stay discovery, postpone rulings on pending motions, or generally suspend further proceedings in the court in which the action was filed.").
Here, "judicial economy and the objectives of the MDL will be furthered by this Court's consideration of the pending Motion to Remand, which involves fraudulent joinder issues turning entirely on questions of Arkansas law." Hobbs v. Wyeth, Inc., 3:04-CV-0176, 2004 WL 6005569, at *2 (E.D.Ark. July 13, 2004). The defendants themselves observe that the primary purposes of transfer and consolidation are "to eliminate duplicative discovery; prevent inconsistent pretrial rulings . . .; and conserve the resources of the parties, their counsel, and the judiciary." In re Cal. Retail Natural Gas & Elec. Antitrust Litig.,
The three named defendants contend that Shepherd's claims against Baptist Health are barred by the statute of limitations in Arkansas's Medical Malpractice Act. The limitations provision in the Act states:
Ark. Code Ann. § 16-114-203. The Act defines the following key terms:
Id. § 16-114-201. In the defendants' view, all of Shepherd's claims against Baptist Health are "actions for medical injury" as defined by the Act because she only alleges "adverse consequences arising out of or sustained in the course of the professional services being rendered by a medical care provider." Thus, the defendants argue, Shepherd's claims are barred by the Act because she waited more than five years to commence an action.
For case law support, the defendants rely on Adams v. Arthur, 333 Ark. 53, 969 S.W.2d 598 (1998). In Adams, several patients had an experimental spacer implanted in their spines during surgery. These patients subsequently sued the hospitals where the surgeries were performed, alleging claims for negligence and strict liability, among other things. The hospitals then moved for summary judgment, arguing that the claims against them were barred by the Medical Malpractice Act's statute of limitations. The trial court agreed and granted summary judgment, after which the defendants appealed to the Arkansas Supreme Court. Id. at 61, 969
Id. at 86-87, 969 S.W.2d at 615. The court acknowledged that this created a potential conflict because, in addition to the Medical Malpractice Act's statute, several other statutes of limitation arguably applied to the claims against the hospital, including the Product Liability Act statute. Id. at 86-88, 969 S.W.2d at 614-16. After examining this conundrum, the court concluded that, "in light of the all-inclusive language used by the General Assembly in defining an action for medical injury[,] . . . the Medical Malpractice Act's two-year statute of limitations governs the appellants' product-liability claims brought against the hospitals." Id. at 88, 969 S.W.2d at 616. All of the plaintiffs' claims—negligence and product liability included—were dismissed based upon the same rationale. See id. at 61-62, 969 S.W.2d at 602 ("The trial court . . . granted summary judgment to the doctors and hospitals finding that all claims were barred by the two-year limitations period for medical injury found in the Medical Malpractice Act. . . . As to the appellee hospitals, we affirm the grant of summary judgment in all cases." (emphases added)).
The facts in Adams are substantially similar to the facts in the present action; in both, a medical device was implanted into a patient at a hospital, the device allegedly failed, and the patient sued the hospital on various claims including negligence and strict liability. In Adams, the Supreme Court of Arkansas held that the two-year statute of limitations from the Medical Malpractice Act applied; the same result must obtain here.
Shepherd admits that, pursuant to Adams, the two-year period of limitations in the Medical Malpractice Act governs. She argues, nevertheless, based on the Arkansas Supreme Court's decision in Martin v. Arthur, 339 Ark. 149, 3 S.W.3d 684 (1999), that her claims against Baptist Health survive because of the "discovery rule," under which the statute of limitations begins to run when the plaintiff knew or reasonably should have discovered the underlying injury and its causation.
Shepherd argues, in the alternative, that her negligence and gross negligence claims should survive because the Medical Malpractice Act does not cover them. See Bedell v. Williams, 386 S.W.3d 493, 2012 Ark. 75 (2012), and Health Facilities Mgmt. Corp. v. Hughes, 365 Ark. 237, 227 S.W.3d 910 (2006) (distinguishing between a medical-malpractice claim and an ordinary negligence claim). The defendants admit that it is possible in Arkansas to state an ordinary negligence claim against a hospital, as opposed to a negligence claim covered by the Medical Malpractice Act, but argue that Shepherd has not actually done so.
For a claim to be governed by the Medical Malpractice Act, the alleged injury must be a "medical injury." Ark. Code Ann. § 16-114-202. "[T]o constitute a `medical injury' under the Medical Malpractice Act, the injury must be the result of (1) a professional service, (2) a doctor's treatment or order, or (3) a matter of medical science." Paulino v. QHG of Springdale, Inc., 2012 Ark. 55, at *9-10, 386 S.W.3d 462 (2012) (citing Howard v. Ozark Guidance Ctr., 326 Ark. 224, 228, 930 S.W.2d 341, 343 (1996)). Thus, an injury flowing from a clinic's mishandling of an employee's sexual relationship with a client, a hospital nurse's failure to maintain patient confidentiality, a nursing home's failure to supervise a patient properly when the patient escaped and was killed by a motorvehicle, or a physician's fondling of a patient during a medical exam does not constitute a "medical injury." Howard, 326 Ark. at 224, 930 S.W.2d at 341; Paulino, 2012 Ark. 55, at *8, 386 S.W.3d 462.
Shepherd's negligence allegation is that Baptist Health "failed to give proper warnings and instructions as to the known risks and benefits associated with the use of the Johnson and Johnson [mesh device]." Document #2, at 3. Assuming that a duty to warn falls on the hospital,
In the absence of federal question jurisdiction, federal courts may exercise subject matter jurisdiction only when the opposing parties are completely diverse in their citizenship. See 28 U.S.C. § 1332(a). "Complete diversity of citizenship exists where no defendant holds citizenship in the same state where any plaintiff holds citizenship." In re Prempro Prods. Liab. Litig., 591 F.3d 613, 620 (8th Cir.2010) (citation omitted). An action commenced in state court can be removed on diversity jurisdiction grounds only if none "of the parties in interest properly joined and served as defendants is a citizen of the State in which such action is brought." 28 U.S.C. § 1441(b)(2).
It is undisputed that Shepherd and Baptist Health are Arkansas citizens, and that Johnson and Ethicon are New Jersey citizens.
"[A] plaintiff cannot defeat a defendant's `right of removal' by fraudulently joining a defendant who has `no real connection with the controversy.'" Knudson v. Sys. Painters, Inc., 634 F.3d 968, 976 (2011) (quoting Chesapeake & Ohio Ry. Co. v. Cockrell, 232 U.S. 146, 152, 34 S.Ct. 278, 280, 58 L.Ed. 544 (1914)). The burden of demonstrating fraudulent joinder is a heavy one, and it is on the defendant. See Casias v. Wal-Mart Stores, Inc., 695 F.3d 428, 433 (6th Cir.2012); Travis v. Irby, 326 F.3d 644, 649 (5th Cir.2003). To meet this burden, the defendant must show that there is no "reasonable basis for predicting that the state law might impose liability based upon the facts involved." Junk v. Terminix Int'l Co., 628 F.3d 439, 446 (8th Cir.2010) (quoting Filla v. Norfolk S. Ry. Co., 336 F.3d 806, 811 (8th Cir. 2003)). Thus, that Shepherd's claims against Baptist Health are dismissed does not resolve the question of fraudulent joinder because a defendant who alleges fraudulent joinder must "do more than merely prove that the plaintiff's claim should be dismissed pursuant to a Rule 12(b)(6) motion." Knudson, 634 F.3d at 980. All "ambiguities in state law are to be resolved in favor of [the] plaintiff." Kohl, 78 F.Supp.2d at 889. It is widely accepted "that a statute of limitations defense is properly considered in connection with a fraudulent joinder inquiry." Brown v. Jevic, 575 F.3d 322, 327 (3d Cir.2009); see also Hunter v. Philip Morris USA, 582 F.3d 1039, 1045 (9th Cir.2009).
Here, there is no reasonable basis for predicting that Arkansas law might impose liability on Baptist Health in this action. First, as explained above, the Arkansas
In summary, there is no reasonable basis for predicting that Arkansas law might impose liability on Baptist Health, which means that Baptist Health was fraudulently joined. Because Shepherd and the two remaining defendants are completely diverse in their citizenship, this Court has jurisdiction pursuant to 28 U.S.C. § 1332. The motion to remand is denied.
The Court must now determine whether to stay any further activity in this action pending the Multidistrict Panel's decision on transfer. In a similar case, the late, great Judge Franklin Waters concluded: "While we believe the prudent course is to decide the motion to remand, we
For the foregoing reasons, Baptist Health's motion to dismiss is GRANTED, and Shepherd's motion to remand is DENIED. Documents #4 and #18. Having granted Baptist Health's motion to dismiss and denied Shepherd's motion to remand, the motion for stay is GRANTED. Document #13. This action is hereby stayed pending a decision from the Judicial Panel on Multidistrict Litigation.