Products Liability

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Products Liability For

Pharmaceutical Scientists

Edward P. Richards

Harvey A. Peltier Professor of Law

Louisiana State University School of

Law richards@lsu.edu

http://biotech.law.lsu.edu

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History of Drug Liability

FDA History is the History of Drug

Injuries

FDA Regulation Tries to Prevent Future

Injuries

Tort Litigation Compensates for Past

Injuries

2

Multiple Sovereigns

Tort Law for Drugs is State Law

Basic Theories are the Same

Significant Variation on Details

Federal Courts Apply State Law

Individual Judges Have Great Discretion

Many Case Depend on Whether the Judge

Admits the Plaintiff's Evidence

Forum Shopping

3

Negligence

Traditional Cases Were Usually Based in

Negligence

Had to Show Legal Relationship –

Privity

No Relationship Between Patient and Drug

Company

Ended with Pharmacist

Made Sense when Pharmacists

Compounded all the Drugs

4

Fall of Privity

Courts Found Privity Out of Date with the Industrial Revolution

Thomas v. Winchester (1852)

Supplier Provided Belladonna rather than

Dandelion

Privity would have Blocked the Claim

Court Limited Privity for Dangerous

Activities

5

Early Strict Liability

Many States Imposed Strict Liability for

Ultrahazardous Activities

Blasting

Impounding Water

Plaintiff did not need to Show Negligence, only Injury Due to the Activity

Very Limited Application – not generally extended to Drugs

6

Limits of Negligence

Must Show Breach of Standard of Care

What a Reasonable Manufacturer Would

Do?

Only Evidence is Other Manufacturers

Must Show What Happened to the

Specific Batch

7

Warranty Theories

Predate Strict Liability

Related to UCC Warranties

Cannot Disclaim for Personal Injuries

Based on Promises

Special Problem for Promoting Off-Label

Uses

8

Express Warranty

Manufacturer Is Held to Specific Promises

Shatterproof Windshield Case

Claimed It Was Just “Puffing”

Court Said It Was a Clear Promise

Did Not Matter If It Was Impossible

Can Be Written or Verbal

Can Physicians Give Binding Warranties About

Products?

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Implied Warranties

Implied From the Context of the Sale

A Product Is Safe for What It Is Sold for

FDA Approved Drugs Have Only the Stated

Risks

Implied Warranty of Fitness for a Specific

Purpose

Manufacturer or Seller Says the Product Is

Good for Something Other Than Its Usual

Purpose

Use of Drugs For Unapproved Purposes

10

Jeep Case

Jeep Sold for off the Road Use

Rolled and Killed and Injured Passengers

Made Like a Sardine Can

Manufacturer Claimed Improper Use

How Do You Prove?

Advertising

Representations by Sales Persons

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Shift to Strict Liability

Hard to Prove Negligence for Products

Generic Goods - No Specific Information

Defendant’s Have Lots of Resources

Defects Affect Lots of People

Strict Liability Encourages Safety

Cannot Escape Liability by Just Doing What

Others Do

Safer Products = Lower Costs

12

Restatement of Torts 402a

(1) One who sells any product in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to the ultimate user or consumer, or to his property, if

(a) the seller is engaged in the business of selling such a product, and

(b) it is expected to and does reach the user or consumer without substantial change in the condition in which it is sold .

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Limited Defenses under 402a

(2) The rule stated in Subsection (1) applies although

(a) the seller has exercised all possible care in the preparation and

sale of his product, and

(b) the user or consumer has not bought the product from or entered into any contractual relation with the seller.

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Unavoidably Unsafe Products

Comment K

Key Defense for Drugs

Recognizes that Many Drugs are Very

Dangerous

Pasteur Rabies Vaccine Example

Looks at the Label Information

Does it Explain How to Use the Drug?

Does it Warn about Dangers?

Did it Get to the Decision-maker?

15

Who Else is Liable?

Usually Both Sellers and Manufacturers

Are Liable

Health Care is Different

Product v. Service Distinction

The Patient is Not the Buyer

The Doctor is Not the Seller

The Hospital is Not (Considered) a Supplier

Limited Liability for Pharmacies

16

Product Must Be Defective

Manufacturing Defect

Easy to Prove

Limited Number Affected

Example: Improper Sterilization

Design Defect

Effects Every Unit

Includes Warnings

Thalidomide, DES, Mer-29

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Plaintiff Must Show Causation

Why Does the Defect Make the Product

Unreasonable Dangerous?

Did the Defect Cause the Patient's

Injury?

Often Circular in Drugs

Bendectin Causes Birth Defects so

Bendectin is Defective so Bendectin Caused

My Baby's Birth Defect

Expert Testimony is Critical

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Is it Unreasonably Dangerous?

Courts Use Two Tests

Consumer Expectations

Usually OTC Drugs

Big Issue with Direct Promotion

Risk/Benefit Analysis

Rx Drugs

Little Deference to FDA Determinations

Danger to One Group Can Deny to All

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What if the Doc Uses the Drug

Improperly?

Learned Intermediary Defense

Was the Doc Properly Warned?

Did She Rely on Manufacturer's

Representations?

Does the Manufacturer/Seller

Encourage Misuse?

Over-Promotion - Chloramphenicol

Selling For Improper Use - Oximeters

20

FDA Labels And Products

Liability

Is There A Regulatory Compliance

Defense?

What If The FDA Will Not Let You

Include A Warning?

What Is The Evidentiary Value Of An

FDA Label?

21

Brave New World

Internet Sales

No Doc

No Information

Manufacturers Know About It

Non-Physician Prescribers

States Are Broadening Who Can Prescribe

Courts Have Not Found Nurses, Physicians

Assistants, and other Non-Physicians to be

Learned Intermedi22aries

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