The Development of a Common European Case Law on Liability for Drugs Stefan Lenze, BIICL, Lovells The Case Law on the Directive • European Court of Justice 5 • National Courts about 100 relevant decisions – – – – – UK 7 France 7 Spain 20 Germany 25 Austria over 50 Supreme Court decisions alone • Decisions on pharmaceuticals 3 – 2 on infected blood (A v National Blood Authority; Scholten) – 1 tranquilizer (Halcion) Roadmap for courts in shaping the law on liability for drugs • • • • Risk-benefit analysis Regulatory compliance defence Development risks defence Warnings: the role of the learned intermediary • Causation Risk-benefit analysis and PLD • shortcomings of expectations test • legitimate expectations ≠ not actual expectations • pharmaceuticals - a special case - public perception of risk is inadequate harmonization with regulatory framework DTI Explanatory Note 1985 German Drug Act (r/b) seen to be in line with PLD Halcion case Risk-benefit analyis and PLD (2) • Directive: “ … all circumstances … including…” • A v National Blood – All “relevant factors” – Important factors are listed: German Directive: “insbesondere”; French Directive: “notamment” – Risk-benefit would be an important factor but is not listed • Why A v National Blood is wrong: – Misinterpretation of German and French Directive – Only unimportant factors could be considered: are they relevant? – Materials from the legislative process Listed factors are just examples • A v National Blood concerns manufacturing defect (nonstandard product) Risk-benefit analysis in action • The regulatory approach - • Assessment on basis of pre-marketing knowledge (reviews) Suspected harmful effects v prospective benefits Absolute-risk benefit analysis Possible approach of the Directive - Knowledge at time of trial ( Art. 7 e) Regulatory environment at the time of circulation ( Art. 6 (1) c) Alternative therapies - Proven harmful effects v benefits “Good for any class of patients” (US Third Restatement)? Limits of judicial decision-making? - not as to pharmaceuticals Regulatory compliance defence • Debate at EU Level – Suggestions by industry groups – Commission and national governments very sceptical about automatic defence – Discussed before adoption Directive • Part of the defect rule – BIICL database (e.g. German case law) Causation under the Directive • Causation as an element of the PLD - General causation is part of defect rule in Article 6 PLD - Specific causation - Substantive law: Article 1 PLD - Burden of proof: Article 4 PLD - Standard of proof: national law • • • • Material contribution/increased risk: substantive law concept Loss of chance: substantive law concept Uncertainty over producer (Fairchild): substantive law concept Reversal of burden of proof in new German Drug Act contravenes Article 4 Solution for courts (and lawyers) Comparative Law European Court of Justice does it National Courts do it - A v National Blood Authority (PLD) - Fairchild (Negligence) - Austrian and German decisions BIICL Database has it “There is law elsewhere!” - Lord Bingham -