OCTOBER TERM 2012 · DECIDED JUNE 24, 2013 · 5–4

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Mut. Pharm. Co. v. Bartlett

ReversedFinal ruling
generic drugsproduct liabilitydrug safetyfederal preemptionpharmaceutical regulation

Opinion of the Court by Justice Alito

The Court ruled that federal law blocks a New Hampshire jury verdict holding a generic drug manufacturer liable for selling an unreasonably dangerous drug, because the manufacturer legally could not change either the drug's chemical makeup or its warning label without violating federal rules.

The decision extends the Court's 2011 ruling on failure-to-warn claims to design-defect claims, meaning consumers hurt by generic drugs generally cannot sue generic manufacturers over a drug's design or its warnings, even for injuries as severe as the woman in this case suffered.

we hold that state-law design-defect claims that turn on the adequacy of a drug's warnings are pre-empted by federal law under PLIVA
Justice Alito

The Court's central holding extending preemption to design-defect claims against generic drug makers.

How it got here: A federal jury awarded Bartlett $21 million on her design-defect claim; the First Circuit affirmed; the Supreme Court agreed to review whether federal law preempted that claim.

The Case in Depth

What happened

Karen Bartlett was prescribed a pain reliever for shoulder pain, and her pharmacist gave her a generic version called sulindac, made by Mutual Pharmaceutical. She developed a severe, disfiguring skin reaction that burned off much of her skin, left her nearly blind, and required months in a medically induced coma. She sued Mutual in New Hampshire, arguing the drug's design was unreasonably dangerous.

The question before the Court

Could a generic drug maker be sued under state design-defect law for not adding stronger warnings, when federal law forbade it from changing the drug's label or formula on its own?

The Court's answer

No — the Court ruled that federal law preempted New Hampshire's design-defect claim, so Mutual Pharmaceutical could not be held liable. Because federal rules require generic drugs to match their brand-name counterparts exactly, Mutual could not legally redesign sulindac, and the Court's 2011 PLIVA decision already barred generic manufacturers from unilaterally strengthening their labels. With both routes to satisfying state law blocked by federal law, the Court held it was legally impossible for Mutual to comply with both, so the state claim had to give way.

The Court also rejected the argument that Mutual could have avoided the conflict by pulling sulindac from the market entirely, calling that "stop-selling" theory incompatible with how preemption law has always worked, since virtually every impossibility-preemption case could otherwise have been avoided the same way.

Curious how the Court got there? See the step-by-step legal reasoning →

Why it matters

People injured by generic drugs lose a major avenue for compensation, since generic manufacturers cannot unilaterally alter a drug's formula or label to satisfy state tort law. Because most prescriptions filled in the U.S. are generic, the ruling significantly narrows when injured patients can recover damages from the company that actually made their medicine.

What changes now

This is a final merits decision, not a temporary order. The $21 million jury verdict is reversed, and Bartlett is left without a remedy from Mutual under this theory. Because the Court reasoned that impossibility preemption applies broadly to design-defect claims against generic manufacturers, similar lawsuits against generic drug makers will generally face the same preemption defense going forward.

What this does not decide

The Court left open whether design-defect claims that track the federal "misbranding" rule — which can require pulling even an approved drug from the market when new evidence shows it is dangerous — would still be preempted, since the jury here was never asked to decide that question.

Concurrences and dissents

Dissent — Justice Breyer

Justice Breyer argued it was not literally impossible for the manufacturer to comply with both laws, since it could have paid damages or left the New Hampshire market. He would have looked instead to whether state law posed an obstacle to federal objectives, and would have given weight to the FDA's views if they had been developed through a more formal process. Since the FDA's positions here were inconsistent and only stated in litigation briefs, he found no basis for preemption.

Dissent — Justice Sotomayor

Today, the Court unnecessarily and unwisely extends its holding in Mensing to pre-empt New Hampshire's law governing design-defects with respect to generic drugs.Sotomayor's core objection that the majority is expanding preemption doctrine too far.

Justice Sotomayor argued the majority wrongly recharacterized Bartlett's design-defect claim as a disguised failure-to-warn claim, when New Hampshire law and the trial record showed the label was only one relevant factor, not a required fix. She argued the manufacturer's real options were to redesign, change the label, leave the market, or pay damages, and that being unable to redesign did not create a legal duty to relabel. She would have found no impossibility and, applying the presumption against preemption, would have let Bartlett's recovery stand.

How the Court got there

The legal reasoning, step by step

  1. The Court asked whether it was truly impossible for the manufacturer to satisfy both its state-law duty and its federal-law duty at the same time — the legal test for finding a state law preempted without needing to dig into Congress's overall purpose.
  2. Under New Hampshire law, a drug is defective if its dangers outweigh its usefulness, a balance that can be improved either by changing the drug's chemical design or by strengthening its warning label.
  3. Federal law made it impossible to redesign sulindac, because generic drugs must have the exact same active ingredients as their brand-name counterparts, and the drug's simple single-molecule structure left no room to alter it anyway.
  4. With redesign off the table, the only way to satisfy the state-law duty was to add stronger warnings — but the Court's 2011 decision in PLIVA v. Mensing had already held that federal law bars generic manufacturers from unilaterally changing their labels.
  5. Because the manufacturer could not comply with both duties at once, the Court held the state design-defect claim was preempted, and it rejected the argument that the manufacturer could have avoided the conflict simply by pulling the drug from the market entirely.

Doctrinal impact

Laws and provisions at issue

Federal Food, Drug, and Cosmetic Act (FDCA)

Federal law requiring FDA approval before any drug can be sold nationwide.

Hatch-Waxman Act

Federal law letting generic drugs get quick approval if identical to an approved brand-name drug.

Supremacy Clause

Constitutional rule that federal law overrides conflicting state laws.

Cases affected by this decision

Reaffirms PLIVA, Inc. v. Mensing

The Court relies on and extends this 2011 ruling that federal law bars generic manufacturers from changing their labels.

Distinguishes Bates v. Dow Agrosciences LLC (544 U.S. 431)

The Court says this case does not control because it involved an express preemption provision, not impossibility preemption.

Supreme Court Opinion

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Mut. Pharm. Co. v. Bartlett | SCOTUS Reporter