By P.J. D’Annunzio, From The Legal Intelligencer

Alabama law, which allows for uncapped damages, will apply in the case of a woman from that state who allegedly died from liver failure after taking Tylenol, a federal judge has ruled.

U.S. District Judge Lawrence F. Stengel of the Eastern District of Pennsylvania decided Wednesday that in the bellwether case in the Tylenol multidistrict litigation—headquartered in Pennsylvania—Alabama law would apply to all of the plaintiff’s claims, including punitive damages.

The case, scheduled for trial in June, is one of about 200 in the MDL alleging that McNeil, the maker of Tylenol, knew that its drug could cause liver damage at the recommended dosage. It was brought by Rana Terry, the sister of Denice Hayes, who died of liver failure in Alabama in 2010.

While the parties agreed that Alabama law governs the substantive claims in the case, they disagreed on which state’s law governs the wrongful-death claim. McNeil argued the law of New Jersey—where McNeil’s parent company, Johnson & Johnson, is headquartered—would control. The plaintiff argued that Alabama law, or, alternatively, Pennsylvania law, would control. McNeil manufactures Tylenol at its Fort Washington plant.

In his opinion, Stengel said the choice was based in part on which state’s interests had greater stake in the litigation.

“Alabama has several significant contacts related to this action,” Stengel said. “It is the place of the decedent’s injury and death. The decedent allegedly purchased Tylenol in Alabama, ingested Tylenol in Alabama, was treated by her doctors for her injuries in Alabama, and eventually died from those injuries in Alabama. Some of the conduct considered to have caused the injury occurred in Alabama. The decedent received warnings about the product in Alabama and viewed advertising about Tylenol in Alabama.”

Stengel said New Jersey also had a significant role in the case as it is the home state for Tylenol’s manufacturer, but the parties’ relationship was centered in Alabama.

“The defendants sold the Tylenol in Alabama, marketed the Tylenol in Alabama, and were expected to comply with the laws of Alabama,” Stengel said. “It appears the decedent had no contact with New Jersey. She didn’t travel there, ingest Tylenol there, nor was she injured there. The two parties interacted through their consumer relationship in Alabama.”

Another aspect to consider under Pennsylvania’s choice-of-law rules was whether the two venues had conflicting laws. Stengel pointed out that Alabama’s law was more favorable to plaintiffs while New Jersey’s was a product of tort reform, aimed at limiting damages against companies.

“Alabama has made clear that its wrongful-death statute is intended to protect the lives of those within its borders by imposing damages without limits on tortfeasors causing death,” Stengel said. “By making a wrongful death ‘expensive,’ Alabama seeks to deter similar tortious conduct.”

“New Jersey, on the other hand,” Stengel continued, “considers limiting damages to be more important, especially for pharmaceutical companies operating within its borders. Under the New Jersey punitive damages statute, punitive damages are not available in drug products-liability actions when a drug has been approved by the Food and Drug Administration. In 1987, the New Jersey Legislature enacted this provision in order to ‘re-balance the law in favor of manufacturers.'”

Stengel said New Jersey’s law prohibiting punitive damages in the wrongful-death case would “substantially frustrate” Alabama’s interest in protecting its citizens and regulate corporations doing business in-state.

“Applying New Jersey law to the issue of punitive damages could require this court to apply New Jersey law on other substantive claims,” Stengel said. “Under these circumstances, Alabama’s interest in having its law applied to all of its claims outweighs New Jersey’s interest in having its law applied to the punitive damages claim.”

David Abernethy of Drinker Biddle & Reath represented Johnson & Johnson and did not return a call seeking comment.

An attorney for the plaintiff, Michael Weinkowitz of Levin, Fishbein, Sedran & Berman, said, “The plaintiff steering committee is pleased with the ruling.”

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For more on this story go to: http://www.thelegalintelligencer.com/id=1202727116340/Alabama-Law-Applies-in-Tylenol-MDL-Death-Case#ixzz3asP0SmdP