K. GARY SEBELIUS, Magistrate Judge.
This matter comes before the court upon Plaintiff's Motion for Leave to File an Amended Complaint (ECF No. 87). Plaintiff Paula M. Mars seeks to amend her complaint to add a prayer for punitive damages. Defendant Novartis Pharmaceuticals Corporation opposes the motion. It argues Ms. Mars unduly delayed in attempting to amend, that Novartis would be unduly prejudiced by the amendment, and that the amendment is futile. Although this case was previously pending for a number of years, it was part of a multi-district litigation (MDL) action where pretrial activities and discovery typically involve a lengthier period of time. The delay in this case does not appear to be "undue." The court also finds Novartis' statements regarding undue prejudice are not sufficiently specific to warrant denying the motion on this basis; importantly, Novartis has been defending other cases remanded from the MDL proceedings that involve prayers for punitive damages. Finally, the arguments regarding futility largely involve a choice-of-law dispute and the weighing of evidence—issues more appropriately addressed at a later stage of this case. For these reasons, and those stated in more detail below, the court grants Ms. Mars' motion.
Fed. R. Civ. P. 15 governs the procedure for amending the pleadings.
When determining whether a movant has unduly delayed in bringing a motion to amend, the court "focuses primarily on the reasons for the delay."
Ms. Mars sought leave to amend by the deadline established by the Scheduling Order the court entered after this case was remanded from the MDL proceedings. The deadline contained in the Scheduling Order is the same deadline the parties proposed in their jointly prepared planning report.
Having not presided over the MDL proceedings, this court is in the difficult position of evaluating whether Ms. Mars did indeed unduly delay in seeking to amend. While Ms. Mars may have arguably been able to amend earlier, the court finds any delay in this case was not "undue" given that the delay occurred in the context of a case consolidated with numerous others for MDL proceedings and given that Ms. Mars moved to amend by the deadline established in the Scheduling Order. Moreover, undue delay is closely related to undue prejudice.
Undue prejudice means undue difficulty in prosecuting or defending a suit as a result of a change in tactics or theories.
Novartis argues it would be unduly prejudiced because the addition of the punitive damages claim would increase the universe of potentially admissible evidence—evidence that Novartis says it failed to inquire about in the depositions specific to this case. Novartis states another federal judge, presiding over a similar case brought by one of Ms. Mars' attorneys, recognized that "corporate conduct" evidence lacked relevance in a case without a demand for punitive damages. Novartis therefore contends the proposed amendment would complicate this case with corporate conduct issues.
The court finds these general statements are insufficient to show undue prejudice. The Tenth Circuit has found that undue prejudice generally "occurs when the amended claims arise out of a subject matter different from what was set forth in the complaint and raise significant new factual issues."
The court may deny a proposed amendment on the basis of futility "if the amendment would not withstand a motion to dismiss or otherwise fails to state a claim upon which relief may be granted."
The parties disagree about whether New Jersey law or Kansas law governs punitive damages in this case. In any event, Novartis argues the choice-of-law dispute is irrelevant because Ms. Mars' prayer for punitive damages fails under both bodies of law. N.J. Stat. Ann. § 2A:58C-5c pertains to punitive damages in products liability actions. The statute precludes punitive damages in actions involving drugs and devices approved by the Food and Drug Administration, except when a plaintiff can establish fraud on the FDA by proving the drug company knowingly withheld or misrepresented certain information. Ms. Mars' proposed amended complaint alleges Novartis failed to report certain information to the FDA or provided information that was inaccurate.
Novartis also argues, however, that New Jersey's statutory fraud-on-the-FDA exception is preempted by federal law and therefore null. Novartis made the same arguments about the New Jersey statute in a similar case, arguments that were rejected by Judge Arthur Spatt, sitting in the Eastern District of New York.
Novartis also argues Ms. Mars' claim for punitive damages fails under Kansas law because, according to Novartis, the proposed amended complaint "fails to allege any evidence remotely approaching [] `clear and convincing evidence' that Novartis `acted toward the plaintiff with willful or wanton conduct' required under Kansas law."
Accordingly,