CATHERINE C. BLAKE, District Judge.
Now pending is Smith & Nephew's ("S&N") motion to dismiss all or most of the claims in 27 BHR track cases
The motion has been fully briefed. Lead plaintiffs' counsel filed a response on behalf of all plaintiffs, (Lead Opp'n, ECF 1897), and the plaintiffs in three cases filed a separate, supplemental response, (McPherson et al. Opp'n, ECF 1870). Oral argument was heard on December 18, 2019. For the reasons explained below, the plaintiffs' request for leave to amend will be denied, and S&N's motion will be granted in part and denied in part.
S&N previously filed a motion to dismiss 55 BHR track cases as time barred under applicable state law. (ECF 795). S&N argued that each relevant state statute of limitations inquiry could be resolved by looking to two dates: (1) when the complaint was filed; and (2) when the plaintiff received revision surgery. On November 19, 2018, the court granted in part and denied in part the motion to dismiss. (ECF 1190, 1191). The court generally declined to rule on the timeliness of claims subject to a discovery rule, because the determination of when a claim accrues under a discovery rule is fact-intensive and thus unsuited to decision at the motion to dismiss stage. Where S&N identified claims arising in states without applicable discovery rules, however, the court dismissed claims that were clearly time barred on the face of the complaint. The court also dismissed several claims arising in states with applicable discovery rules, where the claims were untimely even based on the plaintiffs' theory of accrual. The court ascertained the plaintiffs' theory of accrual by looking to the Master Amended Consolidated Complaint ("MACC"). Paragraph 268 of the MACC states that "Plaintiffs' statute of limitation would have begun to run from the recall date in September 2015, or the date of his revision surgery, whichever is later." (MACC ¶ 268, ECF 124).
The use of a MACC in this multidistrict litigation was first proposed by the plaintiffs. (ECF 76). In their "Motion for Case Management Order No. 3 for the Adoption of a Master Complaint to Maximize the Efficiency of this MDL," the plaintiffs argued that "[a] master complaint will increase the efficiency in this MDL by providing the Court with a single, centralized, operative complaint for the Court to determine the viability of the claims of the hundreds of plaintiffs with cases in this MDL." (MACC Mot. at 1-2, ECF 76-1). "The purpose of an MDL," argued the plaintiffs, "is to manage hundreds of cases efficiently through devices such as a master complaint — not to have hundreds of plaintiffs continually file pleadings to conform to the evidence as the case develops." (Id. at 4). The plaintiffs proposed a process whereby individual plaintiffs would file short form complaints that would supplement the MACC and "highlight the specific facts of each plaintiff's allegations." (Id. at 3).
Pursuant to Case Management Order ("CMO") No. 3, (ECF 120), the plaintiffs filed the MACC on August 11, 2017. CMO No. 3 stated that "[t]he MACC shall be deemed adopted by and applicable to all Plaintiffs in matters filed in or transferred to MDL 2775 before or after the entry of this Order." (CMO No. 3 at 2-3). In a joint motion, S&N and the plaintiffs proposed a template for short form complaints, which included the statement that "Plaintiff adopts the allegations of the Master Amended Consolidated Complaint ... and all amendments to the MACC," and included a space for individual plaintiffs to write in exceptions or additions to their adoption of the MACC. (ECF 115-2).
For over two years, individual cases have joined this MDL using the MACC and short form complaints, the procedure first proposed by the plaintiffs. The parties—and the court—have relied on the MACC throughout litigation of myriad pretrial issues. Indeed, the court specifically referenced ¶ 268 of the MACC in dismissing several cases as "untimely based on the plaintiffs' theory of accrual." (Nov. 19, 2018, Mem. at 4 n.6, ECF 1190).
S&N's now-pending motion to dismiss expressly relies on the court's reasoning in the November 19, 2018, Memorandum. S&N first argues that five cases arising under Michigan law and six cases arising under New York law should be dismissed because, as the court previously determined, Michigan and New York do not have applicable discovery rules,
To survive a motion to dismiss, the factual allegations of a complaint "must be enough to raise a right to relief above the speculative level on the assumption that all the allegations in the complaint are true (even if doubtful in fact)." Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007) (internal citations omitted). "To satisfy this standard, a plaintiff need not `forecast' evidence sufficient to prove the elements of the claim. However, the complaint must allege sufficient facts to establish those elements." Walters v. McMahen, 684 F.3d 435, 439 (4th Cir. 2012) (citation omitted). "Thus, while a plaintiff does not need to demonstrate in a complaint that the right to relief is `probable,' the complaint must advance the plaintiff's claim `across the line from conceivable to plausible.'" Id. (quoting Twombly, 550 U.S. at 570). A court may consider a statute of limitations defense on a motion to dismiss only "where the defense is apparent from the face of the complaint." Wright v. U.S. Postal Service, 305 F.Supp.2d 562, 563 (D. Md. 2004).
The threshold issue is whether the plaintiffs should be granted leave to amend their complaints. In all but one of the cases subject to the motion to dismiss, the plaintiffs' short form complaints adopt the MACC in its entirety, including the theory of accrual in ¶ 268.
Federal Rule of Civil Procedure 15 provides that "[t]he court should freely give leave [to amend] when justice so requires." Fed. R. Civ. P. 15(a)(2). The Fourth Circuit has held that "leave to amend should be denied only when the amendment would be prejudicial to the opposing party, there has been bad faith on the part of the moving party, or amendment would be futile." Matrix Capital Mgmt. Fund, LP v. BearingPoint, Inc., 576 F.3d 172, 193 (4th Cir. 2009). S&N claims that in all but four cases, amendment would be futile, as the proposed amended short form complaints continue to adopt the MACC in its entirety. (Reply at 12, ECF 1930). With respect to the other four cases, S&N argues that the plaintiffs should be denied leave to amend on the basis of futility or bad faith.
The court agrees with S&N that amendment would be futile in the cases where the proposed amended short form complaints continue to adopt the MACC in full. The plaintiffs have presented no arguments—either in written form or at oral argument—that the plaintiffs who still adopt the MACC without exception should nonetheless escape dismissal of their claims.
The court also agrees that in the remaining four cases, the plaintiffs should be denied leave to amend. With respect to one of the cases, Carlson v. Smith & Nephew, Inc., CCB-19-117, amendment would be futile pursuant to this court's November 19, 2018, ruling on Michigan's statute of limitations. See infra Part II. With respect to the other three cases—McPherson v. Smith & Nephew, Inc., CCB-19-2128; Gischer v. Smith & Nephew, Inc., CCB-19-2365; and Shelton v. Smith & Nephew, Inc., CCB-18-1968—the court finds there is sufficient evidence of bad faith to deny leave to amend.
It has long been the plaintiffs' position that individual actions accrued on the later of two dates: the date of a plaintiff's revision surgery, or the date of the BHR recall.
Here, the plaintiffs admit that the proposal of amended short form complaints is an attempt to "get around or plead sufficient facts to escape a Motion to Dismiss even under [the court's] previous ruling." (Dec. 18, 2019, Hr'g Tr. at 22:2-4, ECF 1973). The court, however, cannot allow the plaintiffs to change course on their theory of accrual at this late stage simply to permit cases to stay in the MDL. Accordingly, the plaintiffs in the remaining four cases will be denied leave to amend. See infra Part III.
S&N argues that certain claims in eleven cases are time barred pursuant to the court's ruling on the statutes of limitations in Michigan and New York. For the reasons explained in this subsection, the court agrees.
S&N claims that five cases are entirely time barred under Michigan law: (1) Geldner v. Smith & Nephew, Inc., CCB-18-2800; (2) Clark v. Smith & Nephew, Inc., CCB-18-2778; (3) Kirsten v. Smith & Nephew, Inc., CCB-17-1079; (4) Carlson v. Smith & Nephew, Inc., CCB-19-117; and (5) Thomas v. Smith & Nephew, Inc., CCB-19-2180. Michigan has a three-year statute of limitations, Mich. Comp. Laws § 600.5805(2), (12), and no applicable discovery rule, id. § 600.5827.
First, the plaintiffs do not address plaintiff Clark's case or appear to contest its dismissal.
Fourth, the plaintiffs argue that plaintiff Carlson's case should not be dismissed as untimely because he was "specifically and expressly told by letter from the General Counsel at Smith & Nephew that he did not have a legal claim." (Lead Opp'n at 14). The letter, however, cannot form the basis for tolling the statute of limitations. The letter, which was a response to a settlement demand from Carlson, affirms the quality of S&N's implants, states that a legal claim may be preempted by federal law, and suggests that Carlson consult further with his legal advisor (Lead Opp'n Ex. A, ECF 1897-1). This sort of lawyer's statement, coming from a potential adversary, does not relieve a plaintiff of their duty to exercise ordinary diligence in pursuing legal claims. See Douglass v. NTI-TSS, Inc., 632 F.Supp.2d 486, 493 (D. Md. 2009). Accordingly, the five Michigan cases identified above will be dismissed.
S&N claims that three cases are entirely time barred under New York law: (1) Nichol v. Smith & Nephew, Inc., CCB-18-2442; (2) Pagano v. Smith & Nephew, Inc., CCB-18-1619; (3) Vroman v. Smith & Nephew, Inc., CCB-19-2257. S&N further argues that all claims in another three cases, except for the breach of express warranty claims; are time barred: (1) Grove v. Smith & Nephew, Inc., CCB-18-955; (2) Nardelli v. Smith & Nephew, Inc., CCB-18-2373; and (3) Surdo v. Smith & Nephew, Inc., CCB-18-1476.
Under New York's discovery rule, a three-year statute of limitations applies to personal injury claims arising from "the latent effects of exposure to any substance or combination of substances." NY CPLR § 214-c. This statutory period is triggered at the moment of discovery of symptoms, rather than the discovery of the symptoms' cause. Gaillard v. Bayer Corp., 986 F.Supp.2d 241, 245-46 (E.D.N.Y. 2013) ("The three year limitations period runs from the date when plaintiff first noticed symptoms, rather than when a physician first diagnosed those symptoms." (quoting Galletta v. Stryker Corp., 283 F.Supp.2d 914, 917 (S.D.N.Y. 2003))). As the court previously ruled, under this discovery rule, a New York plaintiff's personal injury claim accrued on the date of his or her revision surgery. (Nov. 19, 2018, Mem. at 25-26). The plaintiffs in the cases identified here all had their revision surgeries more than three years prior to the filing of their complaints.
First, the plaintiffs argue that because Nardelli and Nichol filed their complaints within three years of the BHR recall, their cases are timely. (Lead Opp'n at 7). But this argument fails; under New York's applicable discovery rule, the relevant date for accrual purposes is the date of the revision surgery, not the recall. Second, the plaintiffs argue that the "unknown cause" exception to New York's discovery rule, NY CPLR § 214-c(4), applies to the identified plaintiffs' claims and extends the limitations period. But, as the court previously ruled, the "unknown cause" exception does not apply where, as here, the plaintiffs have not made a showing that "technical, scientific or medical knowledge and information sufficient to ascertain the cause of [the] injury had not been discovered, identified or determined" during the ordinary three-year statutory period, see NY CPLR § 214-c(4). (Nov. 19, 2018, Mem. at 27).
Third, the plaintiffs argue that, pursuant to the doctrine of fraudulent concealment, S&N should be equitably estopped from invoking a statute of limitations defense. New York law tolls a limitations period where "the plaintiff is prevented from filing an action within the applicable statute of limitations due to his or her reasonable reliance on deception, fraud or misrepresentations by the defendant." Putter v. N. Shore Univ. Hosp., 7 N.Y.3d 548, 552-53, (2006). The plaintiffs claim generally that "[t]he allegations in the MACC are sufficient for the Court to apply the doctrine of equitable estoppel and deny Smith & Nephew's Motion in its entirety," (Lead Opp'n at 1), but do not offer any specific arguments as to why accrual should be tolled in the New York cases subject to the motion to dismiss.
Finally, New York applies a four-year statute of limitations for breach of warranty claims. NY UCC § 2-725. As plaintiffs Nichol, Pagano, and Vroman's actions accrued more than four years before the filing of their complaints, their breach of warranty claims are also untimely. Accordingly, all claims in Nichol, Pagano, and Vroman will be dismissed. All claims except for the breach of express warranty claims in Grove, Nardelli, and Surdo will be dismissed.
S&N argues that certain claims in 16 cases are time barred under the relevant state's statute of limitations. The short form complaint in one case, Bentley v. Smith & Nephew, Inc., CCB-19-931, indicates that it is a THA track case. (ECF 1490). As S&N's arguments for dismissal pertain to BHR track cases, the court will deny the motion without prejudice as to Bentley. The court agrees, however, that the claims in the other 15 cases identified in this subsection are time barred under the plaintiffs' theory of accrual. While these cases arise in states that employ discovery rules that generally would be inappropriate for analysis on a motion to dismiss, application of the theory of accrual set forth in the MACC may require dismissal of even those claims arising in states with discovery rules. (See Nov. 19, 2018, Mem. at 4-5 (dismissing four claims subject to discovery rules as untimely under the plaintiffs' theory of accrual)).
S&N claims that one case, Martin v. Smith & Nephew, Inc., CCB-18-3744, is entirely time barred under Arizona law. In Arizona, personal injury, product liability, and breach of express warranty actions have a two-year statute of limitations. Ariz. Rev. Stat. § 12-542; In re Bos. Sci. Corp., Pelvic Repair Sys. Prod Liab. Litig., No. 2:13-CV-14904, 2015 WL 1198545, at *3 (S.D.W. Va. Mar. 16, 2015) (citing Wetzel v. Commercial Chair Co., 500 P.2d 314, 317 (Ariz. Ct. App. 1972)) (holding that a breach of express warranty claim related to an underlying personal injury claim is subject to a two-year limitations period). Plaintiff Martin had her revision surgery before the BHR recall,
S&N argues that the claims in Juliano v. Smith & Nephew, Inc., CCB-17-3422, are time barred under Colorado law, except for the breach of express warranty and deceptive trade practices claims. Colorado applies a two-year statute of limitations to all tort actions, including personal injury and products liability actions. Colo. Rev. Stat. § 13-80-102(1)(a)-(b); id. § 13-80-106(1). In products liability cases, breach of express and implied warranties claims are subject to a three-year statute of limitations. See Wieser v. Firestone Tire & Rubber Co., 596 F.Supp. 1473, 1475 (D. Colo. 1984) (Colo. Rev. Stat. § 4-2-725 (citing. § 13-80-101(1)(a)), under which contract claims are subject to a three-year of limitations period, applies to breach of warranty claims arising in products liability cases).
S&N claims that two cases are entirely time barred under Georgia law: Boissy v. Smith & Nephew, Inc., CCB-17-2837; and Brown v. Smith & Nephew, Inc., CCB-18-2589. In Georgia, personal injury actions are subject to a two-year statute of limitations. Ga. Code § 9-3-33.
S&N argues that all claims in McPherson v. Smith & Nephew, Inc., CCB-19-2128, and Thompson v. Smith & Nephew, Inc., CCB-19-1446, except for the breach of express warranty claims, are time barred under Illinois law. Illinois imposes a two-year statute of limitations for personal injury and product liability claims. 735 Ill. Comp. Stat. 5/13-202, 5/13-213(d). Plaintiff Thompson's revision surgery was prior to the BHR recall,
S&N argues that all claims in Henry v. Smith & Nephew, Inc., CCB-18-2843, except for the breach of express warranty claim, are time barred under Maryland law. In Maryland, personal injury claims are subject to a three-year statute of limitations. Md. Code, Cts. & Jud. Proc. § 5-101; Phillips v. G.D. Searle & Co., 884 F.2d 796, 797-98 (4th Cir. 1989) ("Under the Maryland statutes, actions for negligence, strict liability and fraudulent misrepresentation are barred three years after the cause of action accrues."). Plaintiff Henry had his revision surgery before the BHR recall, so his action accrued on September 10, 2015.
S&N claims that Sides v. Smith & Nephew, Inc., CCB-19-431, is time barred under Montana law. In Montana, personal injury claims are subject to a three-year statute of limitations. Mont. Code § 27-2-204. As plaintiff Sides had his revision surgery before the BHR recall,
S&N identifies two cases that it claims are entirely time barred under New Jersey law: Marino v. Smith & Nephew, Inc., CCB-18-3142; and McDermott v. Smith & Nephew, Inc., CCB-19-798. Under New Jersey law, a two-year statute of limitations applies to claims of personal injury, product liability, and breach of express warranty. N.J. Stat. Ann § 2A:14-2(a); Goodman v. Mead Johnson & Co., 534 F.2d 566, 570 (3d Cir. 1976) (§ 2A:14-2 "covers all personal injury claims," including negligence and breach of warranty). Plaintiffs Marino and McDermott both had revision surgery before the BHR recall,
S&N claims that Garner v. Smith & Nephew, Inc., CCB-19-2274, is entirely time barred under North Carolina law. In North Carolina, personal injury and breach of warranty claims are subject to a three-year statute of limitations. N.C. Gen. Stat. § 1-52(16) (three-year statute of limitations for personal injury claims); Dellinger v. Pfizer Inc., No. 5:03CV95, 2006 WL 2057654, at *5 (W.D.N.C. July 19, 2006) (citing Bernick v. Jurden, 306 N.C. 435, 444-45 (1982)) ("North Carolina extends personal injury as an essential element in breach of express and implied warranty cases, thereby triggering a three-year statute of limitations."). Plaintiff Garner had his revision surgery before the BHR recall,
S&N claims that Fisher v. Smith & Nephew, Inc., CCB-18-2698, is time barred under Utah law. In Utah, personal injury and breach of warranty claims arising from an alleged defective product are subject to a two-year statute of limitations. Utah Code § 78B-6-706; Davidson Lumber Sales, Inc. v. Bonneville Inv., Inc., 794 P.2d 11, 16 (Utah 1990) (personal injury statute of limitations period applies to breach of implied warranty claims brought as part of a personal injury claim). Plaintiff Fisher had revision surgery before the BHR recall,
S&N claims that Oliver v. Smith & Nephew, Inc., CCB-18-3711, is entirely time barred under Wisconsin law. In Wisconsin, personal injury claims—and breach of warranty claims arising therefrom—are subject to a three-year statute of limitations. Wis. Stat. § 893.54(a); Forst v. SmithKline Beecham Corp., 602 F.Supp.2d 960, 964 (E.D. Wis. 2009) (three-year statute of limitations applies to breach of warranty claims stemming from an underlying tort claim). Plaintiff Oliver had revision surgery before the BHR recall,
S&N claims that Gischer v. Smith & Nephew, Inc., CCB-19-2365, is entirely time barred under Oregon law. Plaintiff Gischer states that her case arises under Washington, not Oregon law. (McPherson et al. Opp'n at 5). S&N counters that Gischer's claims are time barred under Washington law as well. In Washington, personal injury and breach of warranty claims premised on a theory of products liability are subject to a three-year statute of limitations. Wash. Rev. Code § 7.72.060(3); Martin v. Patent Scaffolding, 37 Wn.App. 37, 39-41 (1984). Gischer had her revision surgery before the BHR recall,
S&N claims that Shelton v. Smith & Nephew, Inc., CCB-18-1968, is entirely time barred under Virginia law. In Virginia, personal injury claims—and breach of warranty claims arising therefrom—are subject to a two-year statute of limitations. Va. Code § 8.01-243(A); Torkie-Tork v. Wyeth, 739 F.Supp.2d 887, 890-91 (E.D. Va. 2010) (applying two-year statute of limitations to the negligence, product liability, and breach of warranty claims within a personal injury action). Plaintiff Shelton had his revision surgery before the BHR recall,
For the reasons stated above, S&N's motion will be granted in part and denied in part. A separate order follows.
(Aug. 29, 2018, Hr'g Tr. 33:21-34:4, ECF 921).