Boone County Commission v. Amerisourcebergen Drug Corporation et al

MOTION

S.D.W. Va.June 13, 2017

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA CHARLESTON DIVISION CABELL COUNTY COMMISSION, Plaintiff, v. AMERISOURCEBERGEN DRUG CORPORATION, et al., Defendants. _______________________________________ KANAWHA COUNTY COMMISSION, Plaintiff, v. RITE AID OF MARYLAND, INC., et al., Defendants. _______________________________________ FAYETTE COUNTY COMMISSION. Plaintiff, v. CARDINAL HEALTH, INC., et al., Defendants. _______________________________________ WAYNE COUNTY COMMISSION, Plaintiff, v. RITE AID OF MARYLAND, INC., et al., Defendants. _______________________________________ BOONE COUNTY COMMISSION, Plaintiff, v. AMERISOURCEBERGEN DRUG CORPORATION, et al., Defendants. CIVIL ACTION NO. 3:17-01665 CIVIL ACTION NO. 2:17-01666 CIVIL ACTION NO. 2:17-01957 CIVIL ACTION NO. 3:17-01962 CIVIL ACTION NO. 2:17-02028 Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 1 of 7 PageID #: 992 LOGAN COUNTY COMMISSION. Plaintiff, v. CARDINAL HEALTH, INC., et al., Defendants. _______________________________________ CIVIL ACTION NO. 2:17-02296 CARDINAL HEALTH’S MOTION FOR SUMMARY JUDGMENT OR PARTIAL SUMMARY JUDGMENT AS TO ALL CLAIMS Pursuant to Federal Rule of Civil Procedure 56, Defendant Cardinal Health 110, LLC (“Cardinal Health”) moves for summary judgment on all of the Counties’ claims against Cardinal Health. At a minimum, summary judgment should be entered for all negligence claims prior to two years before the date of filing suit by each County, and for all nuisance claims prior to one year before the date of filing suit by each County. First, the res judicata doctrine bars these cases, for that doctrine precludes the re- litigation of (i) the same or similar claims (ii) by a party in privity with the State (iii) where there has been a final adjudication on the merits of the prior claims. Here, the Plaintiff Counties— political subdivisions of the State—assert the very same claims made by the State in its 2012 lawsuit,1 which ended with an order dismissing the lawsuit with prejudice. Second, the statute of limitations bars these cases. The West Virginia statute of limitations for negligence is two years and for nuisance, one year. The Counties were on notice of their claims against Cardinal Health no later than June 2012, when the Attorney General sued the company, but they waited five years before bringing this action. 1 See State of West Virginia ex rel. McGraw v. AmerisourceBergen Drug Corp., et al., No. 12-C- 141 (Boone Cty. W. Va. Cir. Ct. June 28, 2012); State of West Virginia ex rel. McGraw v. Cardinal Health, Inc., No. 12-C-140 (Boone Cty. W. Va. Cir. Ct. June 26, 2012). Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 2 of 7 PageID #: 993 The accompanying memorandum is further supported by the exhibits attached to Cardinal Health’s Motion Requesting Judicial Notice in Further Support of Cardinal Health 110, LLC’s Motion for Summary Judgment or Partial Summary Judgment as to All Claims. Dated this the 13th day of June, 2017. CARDINAL HEALTH 110, LLC By Counsel, By: /s/ Brian A. Glasser Brian A. Glasser (WVSB #6597) bglasser@baileyglasser.com Steven R. Ruby (WVSB #10752) sruby@baileyglasser.com Raymond S. Franks II (WVSB #6523) rfranks@baileyglasser.com BAILEY & GLASSER, LLP 209 Capitol Street Charleston, WV 25301 (304) 345-6555 Counsel for Cardinal Health 110, LLC, in all cases except Kanawha v. Rite Aid of Maryland, et al. By: /s/ Susan M. Robinson Susan M. Robinson (WVSB #5169) srobinson@tcspllc.com THOMAS COMBS & SPANN, PLLC P. O. Box 3824 Charleston, WV 25338-3824 (304) 414-1800 Counsel for Cardinal Health 110, LLC, in Kanawha v. Rite Aid of Maryland, et al. Enu Mainigi (visiting attorney) emainigi@wc.com F. Lane Heard (visiting attorney) lheard@wc.com Steven M. Pyser (visiting attorney) spyser@wc.com WILLIAMS & CONNOLLY LLP 725 Twelfth Street, N.W. Washington, DC 20005 (202) 434-5000 Counsel for Cardinal Health 110, LLC Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 3 of 7 PageID #: 994 CERTIFICATE OF SERVICE I hereby certify that on June 13, 2017, I electronically filed the foregoing Motion for Summary Judgment or Partial Summary Judgment as to All Claims with the Clerk of the Court using the CM/ECF system, which sent notification of such filing to all attorneys of record as follows: Anthony J. Majestro (WVSB #5165) POWELL & MAJESTRO, PLLC 405 Capitol Street, Suite P-1200 Charleston, WV 25301 (304) 346-2889; Fax (304) 346-2895 amajestro@powellmajestro.com Counsel for all Plaintiffs except Wyoming County Commission Paul T. Farrell, Jr. (WVSB #7443) Bert Ketchum (WVSB #6618) GREENE KETCHUM FARRELL, BAILEY & TWEEL 419 11th Street Huntington WV 25701 (304) 521-4778; Fax: (304) 529-3284 paul@greeneketchum.com Counsel for Plaintiffs J. Robert Rogers (WVSB #3153) LAW OFFICES OF J. ROBERT ROGERS 3972 Teays Valley Road Hurricane, WV 25526 (304)757-3809 jrobertrogers@hotmail.com Counsel for Plaintiff Boone County Commission Stephanie L. Ojeda (WVSB #7761) HENDRICKSON & LONG P. O. Box 11070 Charleston, WV 25339 (304) 346-5500 sojeda@handl.com Counsel for Plaintiff Boone County Commission Warren R. McGraw, II (WVSB #5086) THE WARREN MCGRAW LAW FIRM P.O. Box 534 Pineville, WV 24874 (304) 252-1014 mcgrawlaw1@aol.com Counsel for Plaintiff Wyoming County Commission Alvin L. Emch (WVSB #1125) Adam J. Schwendeman (WVSB #11989) JACKSON KELLY PLLC 500 Lee Street, East, Suite 1600 P.O. Box 553 Charleston, WV 25322 (304) 340-1000 aemch@jacksonkelly.com aschwendeman@jacksonkelly.com Counsel for AmerisourceBergen Drug Corporation, Bellco Drug Corp. Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 4 of 7 PageID #: 995 Eric W. Sitarchuk (visiting attorney) Meredith S. Auten (visiting attorney) MORGAN LEWIS & BOCKIUS LLP 1701 Market Street Philadelphia, PA 19103 (215) 963-5000 eric.sitarchuk@morganlewis.com meredith.auten @morganlewis.com Counsel for AmerisourceBergen Drug Corporation, Bellco Drug Corp. Jeffrey M. Wakefield (WVSB #3894) FLAHERTY SENSABAUGH BONASSO PLLC P. O. Box 3843 Charleston, WV 25338-3843 (304) 345-0200 JWakefield@flahertylegal.com Counsel for McKesson Corporation in Cabell, Fayette, and Wyoming Enu Mainigi (visiting attorney) F. Lane Heard (visiting attorney) Steven M. Pyser (visiting attorney) WILLIAMS & CONNOLLY LLP 725 Twelfth Street, N.W. Washington, DC 20005 (202) 434-5000 emainigi@wc.com lheard@wc.com spyser@wc.com Counsel for Cardinal Health 110, LLC Geoffrey Hobart (visiting attorney application to be filed) Matthew Benov (visiting attorney application to be filed) COVINGTON & BURLING LLP One CityCenter 850 Tenth Street, NW Washington, DC 20001 (202) 662-6000 ghobart@cov.com mbenov@cov.com Counsel to McKesson Corporation Russell D. Jessee (WVSB #10020) Devon J. Stewart (WVSB #11712) STEPTOE & JOHNSON PLLC P.O. Box 1588 Charleston, WV 25326-1588 (304) 353-8000; russell.jessee@steptoe-johnson.com devon.stewart@steptoe-johnson.com Counsel for McKesson Corporation in Kanawha, Wayne, Boone, and Logan Fazal A. Shere (WVSB #5433) Gerard R. Stowers (WVSB #3633) Ronda L. Harvey (WVSB # 6326) BOWLES RICE MCDAVID GRAFF & LOVE P. O. Box 1386 Charleston, WV 25325-1386 (304) 347-1100 fshere@bowlesrice.com Counsel for Kroger Limited Partnership I, Kroger Limited Partnership II, SAJ Distributors Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 5 of 7 PageID #: 996 Webster J. Arceneaux, III (WVSB #155) LEWIS GLASSER CASEY & ROLLINS P. O. Box 1746 Charleston, WV 25326-1746 (304) 345-2000 wjarceneaux@lgcr.com Counsel for Rite Aid of Maryland, Inc. Alexander L. Turner (WVSB #10839) Marc E. Williams (WVSB #4062) NELSON MULLINS RILEY & SCARBOROUGH P. O. Box 1856 Huntington, WV 25719-1856 (304) 526-3502 alex.turner@nelsonmullins.com Counsel for H.D. Smith Wholesale Drug Co. Jessie F. Reckart (WVSB #12057) BOWLES RICE 7000 Hampton Center, Suite K Morgantown, WV 26505 (304) 285-2500 jreckart@bowlesrice.com Counsel for Kroger Limited Partnership, I, Kroger Limited Partnership II Keith A. Jones (WVSB #1923) JONES LAW GROUP P. O. Box 13395 Charleston, WV 25360 (304) 984-9800 kjoneslaw@aol.com Counsel for Anda, Inc. and Anda Pharmaceuticals Dean T. Barnhard (visiting attorney) Larry A. Mackey (visiting attorney) BARNES & THORNBURG 11 South Meridian Street Indianapolis, IN 46204 (317) 231-7501 dean.barnhard@btlaw.com Counsel for H.D. Smith Wholesale Drug Co. Michael J. Farrell (WVSB #1168) FARRELL WHITE & LEGG P. O. Box 6457 Huntington, WV 25772-6457 (304) 522-9100 mjf@farrell3.com Counsel for Generics Bidco I, LLC, Qualitest Pharmaceuticals, Inc. Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 6 of 7 PageID #: 997 Jonathan M. Stern (visiting attorney) SCHNADER HARRISON SEGAL & LEWIS 750 9th Street, NW, Suite 550 Washington, DC 20001-4534 (202) 419-4200 jstern@schnader.com Counsel for Generics Bidco I, LLC Claude F. Reynaud, Jr. (visiting attorney) Thomas R. Temple, Jr. (visiting attorney) BREAZEALE SACHSE & WILSON P. O. Box 3197 Baton Rouge, LA 70821 (225) 387-4000 claude.reynaud@bswllp.com Counsel for Qualitest Pharmaceuticals, Inc. Sean O. Morris (visiting attorney) ARNOLD & PORTER KAYE SCHOLER 44th Floor 777 South Figueroa Street Los Angeles, CA 90017 (213) 243-4222 Counsel for Generics Bidco I, LLC John J. Polak (WVSB #2929) Paul L. Frampton, Jr. (WVSB #9340) ATKINSON & POLAK P. O. Box 549 Charleston, WV 25322-0549 (304) 346-5100 jjpolak@amplaw.com Counsel for Qualitest Pharmaceuticals, Inc. /s/ Brian A. Glasser Brian A. Glasser (WVSB #6597) Counsel for Cardinal Health 110, LLC Case 2:17-cv-02028 Document 70 Filed 06/13/17 Page 7 of 7 PageID #: 998 Case 2:17-cv-02028 Document 70-1 Filed 06/13/17 Page 1 of 2 PageID #: 999 Case 2:17-cv-02028 Document 70-1 Filed 06/13/17 Page 2 of 2 PageID #: 1000 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA CABELL COUNTY COMMISSION, Plaintiff, v. AMERISOURCEBERGEN DRUG CORPORATION, et al., Defendants. _______________________________________ KANAWHA COUNTY COMMISSION, Plaintiff, v. RITE AID OF MARYLAND, INC., et al., Defendants. _______________________________________ FAYETTE COUNTY COMMISSION. Plaintiff, v. CARDINAL HEALTH, INC., et al., Defendants. _______________________________________ WAYNE COUNTY COMMISSION, Plaintiff, v. RITE AID OF MARYLAND, INC., et al., Defendants. _______________________________________ BOONE COUNTY COMMISSION, Plaintiff, v. AMERISOURCEBERGEN DRUG CORPORATION, et al., Defendants. CIVIL ACTION NO. 3:17-01665 CIVIL ACTION NO. 2:17-01666 CIVIL ACTION NO. 2:17-01957 CIVIL ACTION NO. 3:17-01962 CIVIL ACTION NO. 2:17-02028 Case 2:17-cv-02028 Document 70-2 Filed 06/13/17 Page 1 of 4 PageID #: 1001 2 LOGAN COUNTY COMMISSION. Plaintiff, v. CARDINAL HEALTH, INC., et al., Defendants. _______________________________________ CIVIL ACTION NO. 2:17-02296 ORDER GRANTING CARDINAL HEALTH 110, LLC’S MOTION FOR SUMMARY JUDGMENT OR PARTIAL SUMMARY JUDGMENT AS TO ALL CLAIMS On June 13, 2017, Defendant Cardinal Health 110, LLC (“Cardinal Health”) filed a Motion for Summary Judgment or Partial Summary Judgment as to All Claims in the above- captioned cases. The Court has considered Cardinal Health’s Motion, the accompanying memorandum in support, and all other papers and evidence submitted in opposition and reply. The Court has taken notice of the exhibits attached to Cardinal Health’s Motion Requesting Judicial Notice in Further Support of Cardinal Health 110, LLC’s Motion for Summary Judgment or Partial Summary Judgment as to All Claims. Cardinal Health has demonstrated that there are no genuine disputes as to any material fact and that it is entitled to judgment as a matter of law on the grounds that the above-captioned cases are barred by res judicata. Therefore, pursuant to Rule 56, and for good cause shown, it is HEREBY ORDERED that the Motion for Summary Judgment is GRANTED. [IN THE ALTERNATIVE] Cardinal Health has demonstrated that there are no genuine disputes as to any material fact and that it is entitled to judgment as a matter of law the grounds that the above-captioned cases are barred by the applicable statutes of limitations. Therefore, pursuant to Rule 56, and for good cause shown, it is HEREBY ORDERED that the Motion for Summary Judgment is GRANTED. [IN THE ALTERNATIVE] Cardinal Health has demonstrated that there are no genuine disputes as to any material fact and that it is entitled to judgment as a matter of law, on the basis Case 2:17-cv-02028 Document 70-2 Filed 06/13/17 Page 2 of 4 PageID #: 1002 3 of the applicable statutes of limitations, as to all claims and all damages that accrued prior to the dates listed below: Boone County Comm’n v. AmerisourceBergen Drug Corp., et al., No. 2:17-cv-02028 (S.D. W. Va. Mar. 27, 2017) Negligence Claims and Damages: March 27, 2015 (two years prior to filing suit) Nuisance Claims and Damages: March 27, 2016 (one year prior to filing suit) Cabell County Comm’n v. AmerisourceBergen Drug Corp., et al., No. 3:17-cv-01665 (S.D. W. Va. Mar. 9, 2017). Negligence Claims and Damages: March 9, 2015 (two years prior to filing suit) Nuisance Claims and Damages: March 9, 2016 (one year prior to filing suit) Fayette County Comm’n v. Cardinal Health, Inc., et al., No. 2:17-cv-01957 (S.D. W. Va. Mar. 21, 2017) Negligence Claims and Damages: March 21, 2015 (two years prior to filing suit) Nuisance Claims and Damages: March 21, 2016 (one year prior to filing suit) Kanawha County Comm’n v. Rite Aid of Maryland, Inc., et al., No. 2:17-cv-01666 (S.D. W. Va. Mar. 9, 2017) Negligence Claims and Damages: March 9, 2015 (two years prior to filing suit) Nuisance Claims and Damages: March 9, 2016 (one year prior to filing suit) Logan County Comm’n v. Cardinal Health, Inc., et al., No. 2:17-cv-02296 (S.D. W. Va. Apr. 11, 2017) Negligence Claims and Damages: April 11, 2015 (two years prior to filing suit) Nuisance Claims and Damages: April 11, 2016 (one year prior to filing suit) Case 2:17-cv-02028 Document 70-2 Filed 06/13/17 Page 3 of 4 PageID #: 1003 4 Wayne County Comm’n v. Rite Aid of Maryland, Inc., et al., No. 3:17-cv-01962 (S.D. W. Va. Mar. 21, 2017). Negligence Claims and Damages: March 21, 2015 (two years prior to filing suit) Nuisance Claims and Damages: March 21, 2016 (one year prior to filing suit) Therefore, pursuant to Rule 56, and for good cause shown, it is HEREBY ORDERED that the Motion for Partial Summary Judgment is GRANTED. The Clerk is directed to send copies of this Order to all counsel of record. IT IS SO ORDERED this ____ day of ________, 2017. ENTER: David A. Faber Senior United States District Judge Case 2:17-cv-02028 Document 70-2 Filed 06/13/17 Page 4 of 4 PageID #: 1004