HomeMy WebLinkAbout40-19 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 40-19
File Number: 2019-0024
OPIOID EPIDEMIC LITIGATION:
A RESOLUTION RECOGNIZING THE OPIOID EPIDEMIC IN THE UNITED STATES OF AMERICA
AND IN ARKANSAS; AND TO ENGAGE IN LITIGATION AGAINST THOSE ENTITIES AND
PEOPLE RESPONSIBLE FOR THIS SOCIETAL CRISIS
WHEREAS, our nation and the state of Arkansas have suffered substantially by virtue of the addiction
and dependency on opioids, both legally prescribed and criminally secured; and,
WHEREAS, on October 26th, 2017 the President of the United States of America declared the opioid
crisis to be a "public health emergency," and;
WHEREAS, Arkansas' hospitals, ambulance services and rehabilitation centers have difficulty and incur
substantial expense trying to keep pace with the flood of victims; and,
WHEREAS, Arkansas was ranked as the number two state in the nation in per capita prescriptions of
opioid medications in 2016; and,
WHEREAS, in 2013 the cost of prescription opioid dependence, abuse and overdose was $78.5 billion
dollars for the nation as a whole: and,
WHEREAS, in 2015 an estimated 12 billion dosage units (pills) were prescribed nationally equating to 97
pills per household; and,
WHEREAS, based upon the number of opioid prescription issued in 2016, it has been estimated that
every man, woman and child, regardless of age would have 37.5 pills in hand at any given time; and,
WHEREAS, drug overdose fatalities in 2016 across the nation numbered 64,000 people while traffic
fatalities for the same period number approximately 40,200; and,
WHEREAS, municipal governments have born a substantial financial and societal burden fighting this
crisis and epidemic and will face abatement costs for this nuisance for many years to come; and,
WHEREAS, the City of Fayetteville has agreed to hire Thrash Law Firm on a purely contingent fee
Page 1 Printed on 217119
Resolution Number 40-19
File Number: 2019-0024
basis to represent the City in the ongoing class action suit against those believed responsible for this
crisis and our damages; and,
WHEREAS, the City of Fayetteville will cooperate with the Arkansas cities that are members of the
Arkansas Municipal League Legal Defense Program and members of its class seeking relief because of
the opioid crisis through the same class action suit.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby recognizes the acute need to
address the opioid crisis in this state and wishes to do so by retaining the Thrash Law Firm,
P.A. on a contingent fee basis pursuant to his proposed letter agreement to represent the City of
Fayetteville in this litigation against those believed responsible.
Section 2: Mayor Jordan is hereby authorized to sign the letter agreement attached to this Resolution.
PASSED and APPROVED on 2/5/2019
Attest:
Lisa Branson, Deputy City l0111rrir/I11
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Paye 2 Printed on 217119
City of Fayetteville, Arkansas 113 West Mountain Street
x• :: Fayetteville, AR 72701
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r (479) 575-8323
Text File
File Number: 2019-0024
Agenda Date: 2/5/2019 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: D. 13
OPIOID EPIDEMIC LITIGATION:
A RESOLUTION RECOGNIZING THE OPIOID EPIDEMIC IN THE UNITED STATES OF AMERICA
AND IN ARKANSAS; AND TO ENGAGE IN LITIGATION AGAINST THOSE ENTITIES AND
PEOPLE RESPONSIBLE FOR THIS SOCIETAL CRISIS
WHEREAS, our nation and the state of Arkansas have suffered substantially by virtue of the addiction and
dependency on opioids, both legally prescribed and criminally secured; and,
WHEREAS, on October 26th, 2017 the President of the United States of America declared the opioid crisis
to be a "public health emergency," and;
WHEREAS, Arkansas' hospitals, ambulance services and rehabilitation centers have difficulty and incur
substantial expense trying to keep pace with the flood of victims; and,
WHEREAS, Arkansas was ranked as the number two state in the nation in per capita prescriptions of opioid
medications in 2016; and,
WHEREAS, in 2013 the cost of prescription opioid dependence, abuse and overdose was $78.5 billion
dollars for the nation as a whole: and,
WHEREAS, in 2015 an estimated 12 billion dosage units (pills) were prescribed nationally equating to 97 pills
per household; and,
WHEREAS, based upon the number of opioid prescription issued in 2016, it has been estimated that every
man, woman and child, regardless of age would have 37.5 pills in hand at any given time; and,
WHEREAS, drug overdose fatalities in 2016 across the nation numbered 64,000 people while traffic fatalities
for the same period number approximately 40,200; and,
WHEREAS, municipal governments have born a substantial financial and societal burden fighting this crisis and
epidemic and will face abatement costs for this nuisance for many years to come; and,
WHEREAS, the City of Fayetteville has agreed to hire Thrash Law Firm on a purely contingent fee basis to
City of Fayetteville, Arkansas Page 1 Printed on 2/7/2019
File Number: 2019-0024
represent the City in the ongoing class action suit against those believed responsible for this crisis and our
damages; and,
WHEREAS, the City of Fayetteville will cooperate with the Arkansas cities that are members of the Arkansas
Municipal League Legal Defense Program and members of its class seeking relief because of the opioid crisis
through the same class action suit.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section l: That the City Council of the City of Fayetteville, Arkansas hereby recognizes the acute need to
address the opioid crisis in this state and wishes to do so by retaining the Thrash Law Firm, P.A. on a
contingent fee basis pursuant to his proposed letter agreement to represent the City of Fayetteville in this
litigation against those believed responsible.
Section 2: Mayor Jordan is hereby authorized to sign the letter agreement attached to this Resolution.
City of Fayetteville, Arkansas Paye 2 Printed on 2!1/2019
City Attorney Kit Williams
City of Fayetteville Staff Review Form
2019-0024
Legistar File ID
1/15/2019
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
1/3/2019
Submitted By Submitted Date
Action Recommendation:
CITY ATTORNEY (021)
Division / Department
Approval of a resolution recognizing the opioid epidemic in the United States and in Arkansas and to authorize
Mayor Jordan to sign an agreement with the Thrash Law Firm of Little Rock to represent the City of Fayetteville in
litigation against the entities and people responsible for the opioid epidemic.
Account Number
Project Number
Budgeted Item? NA
Does item have a cost? No
Budget Adjustment Attached? NA
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Budget Impact:
Fund
Project Title
Current Budget $
Funds Obligated $
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Previous Ordinance or Resolution #
Approval Date:
V20180321
THRASH LAW FIRM, P.A.
1101 Garland Street
Little Rock, AR 72201
Thomas P. Thrash
tlonif hrnshfi71 hrushlawfi, t��p�y.c4ktr
Telephone; 501-374-1058
Facsi oni le: 501-374-2222
January 2, 2019
Mayor Lioneld Jordan
c/o Kit Williams
City of Fayetteville
Re; State ofArkansas, ex rel. Scott Ellington, Second Judicial Circetit
Prosecuting Attorney, el al v. Pardite Pharma, L.P., er. rel.
Crittenden Cotenty Circuit Court— Case No. CV -209,268
Dear Mayor Jordan;
Please allow this letter to confirm your request that we represent the City of Fayetteville,
individually against Purdue Pharn2a L.P., Purdue Pharntct, Inc., The Purdue .Frederick Company,
Inc„ Teva Pharmaceutical Industries, Ltd., Teva Pharniaceatticals USA, Ir7c., Cephalnrr, Irtc.,
Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho -McNeil -Janssen Pharmaceuticals, Inc.
n1k1a Janssen Phartnaceuticals, Inc., Janssen PhartnOceutica Trac. nikla Janssen Pharmacer4ticals,
Inc., Endo Health Solutions Inc., ,Endo Pharmaceuticals, Inc., Watson Pharma, Inc:, Watson
Laboratories, Inc., Aclavis LLC, Actavis Pharma, Inc., Vintage Pharmaceuticals, LLC, INSYS
Therapeutics, Inc., Mallinckrodt, PLC, Mallinckrodt Plrarmaceitticals-, klylan Pharrrmacettticals, Inc.,
SUN Pharmaceuticals Industries, Inc., Aw-obindo Pharnta USA, Inc., Aurvlife Pharma, LLC Lupin
Pharmaceuticals, h7c., Colleghan Pharmaceutical, Inc., Biodelivety Sciences Into?rnalional, Inc.,
Shionogi, Inc., Abbvle, Inc., Abbott Laboratories, Inc., Pea -nix Therapeutics Holdings, Inc., DaUchi
Sankyo, Inc., Forest Laboralur•ies, inc., Forest Pharmaceuticals, Inc., Mayne Pharma, Inc., Apotex,
Inc., West -Ward Pharmaceuticals Corp., Gemini Laboratories, LLC, Poly-P17tn•rr2acettt1cals, Inc.,
,Ikorn, Inc„ V019ant Phar-n;ctceuticals North flrnerica, LLC ECR Pharmaceuticals Inc., Deponted,
Irzc., Yalidus Pharmaceuticals, LLC:, Egalet Corporation, Vernalis ThercUmutics, Inc., UCB Pharrrta,
Inc., Xonodyne Phartnoeeuticals, .Inc., iferical Pharmaceudcals, Inc., Serntynl Therapeutics, Inc.,
Rhodes Technologies, Inc., Rhodes Technologies, I.,.P., Sandox, Inc., Amerisotirvebergen Drug
Corporation, Cardinal Health, Inc., McKesson Corporation, Linden Care, LLC, KJ Medical
Management, LLC, CJN Pharmacy Services, LLC, Perry Cortnly Food & Drag, Inc„ Mahmood
Ahmad, MD., United Pain Care, LTD; Shawn Michael Brooks, M.D., Kristen Holland, Richard
Duane Johns, and Christopher Watson in the alcove -referenced case. Your execution Ind approval
of this Letter of Agreement will represent aux authority to proceed with the above-described
litigation.
You will not be responsible for any attorneys' fees or expenses. We have aV-eed that we will
represent you on a contingency Pee busis. We will receive thirty-three and ane -third percent (33
113%) of the gross recovery, including any recovery of attorneys' fees, plus expenses. Expenses
include, but are not limited tcf: litigation expenses, filing fees, expert witness fees, court reporter
expenses, investibrttioir expenses, photocopies, hostage, telephone charges, travel expense$ and other
similar expense's. We will 1-IdWince all exponses at?d.detluct the expenses Erom any tees}very in this
case.
If this accUuately represents our agreement, please acknowledgc your approval by your
signature below.
Sincerely,
Thomas P. Thrash
CityClerk
From: Mayor
Sent: Tuesday, January 29, 2019 3:40 PM
To: CityClerk
Subject: FW: Proposed Opioid Legislation
Attachments: Purdue - CT - Dismissal.pdf
Please forward to city council. Thanks.
Patti
From: Leigh Anne Yeargan <leighanneyeargan@yahoo.com>
Sent: Tuesday, January 29, 2019 3:25 PM
To: Mayor <Mayor@fayetteville-ar.gov>; Williams, Kit <kwilliams@fayetteville-ar.gov>
Subject: Proposed Opioid Legislation
Dear Mayor and Kit:
I noticed on the Council's agenda for its agenda setting meeting today proposed legislation to hire Tom Thrash to sue
various entities for purported opioid damages. I hope the Council will consider the attached order before adopting such
legislation.
Thank you for your consideration.
Leigh Anne Yeargan
DOCKET NO. X07 HHD CV 17 6o86134 S
CITY OF NEW HAVEN
V.
PURDUE PHARMA, L.P., ET AL
SUPERIOR COURT
JUDICIAL DISTRICT
OF HARTFORD
COMPLEX LITIGATION DOCKET
JANUARY 8, 2019
MEMORANDUM OF DECISION
DISMISSING CASES FOR LACK OF JURISDICTION
:t. Cities suing drug companies bear the ordinary burdens of civil
plaintiffs.
Every year, opioid abuse kills more and more Americans. Annual deaths from
opioid abuse are now in the tens of thousands. Many have attributed the rising death
toll to drug company lies and the over -supply of these addictive pain killers. Federal
prosecutors have been among those blaming the drug companies. They indicted the
leaders of the Purdue Pharma organization, the maker of OxyContin. They accused the
company of tricking doctors and the public into believing opioids were safe for long-
term use. Ultimately, three company officials pled guilty to felonies and the company
paid a $boo million fine.'
Law enforcement actions like the federal case against Purdue Pharma appear in
all respects the righteous manifestations of government vindicating the public interest.
Justly deserved fines and penalties in government eI�forcemn0'iA'.c sus are a public good:
they punish the guilty and deter the tempted. And they are relative' IA asy to bring. The
r7.' 1
-' ' 'l L; � 2 ,''
United States u. Purdue Frederick CO., Inc., 495 F. Supp. 2d 569 (®o3s2j.j
1
strict rules that govern who can sue in ordinary civil damages cases don't apply in
enforcement cases. Specific statutes grant the state and federal government authority to
bring these kind of suits without meeting the ordinary burdens of individual civil
plaintiffs.
But the cities who have brought the lawsuits this court is considering, by contrast,
have been granted no such authority. Yes, the cities are governments, and they are suing
drug companies about opioid abuse. The defendants include Purdue Pharma and
twenty-four other drug companies.2 The trouble is that these matters are ordinary civil
damages cases and face the ordinary civil rules about who can sue for what.
They are ordinary civil cases because without any special statutory authority, the
thirty-seven cities in the cases on this court docket are seeking—not to vindicate the
public interest as a whole—but to gain money solely for themselves. The cities want the
money for the indirect harm they say the drug companies caused them. They say they
have been forced to pay for addicts' social and medical needs and have suffered other
indirect expenses the addicts themselves caused, including extra emergency -responder
expenses, consequences from drug related crimes, etc.
But because they are suing in an ordinary civil lawsuit their lawsuits can't survive
without proof that the people they are suing directly caused them the financial losses
they seek to recoup. This puts the cities in the same position in claiming money as the
brothers, sisters, friends, neighbors, and co-workers of addicts who say they have also
2 The total calculations as to the number of plaintiffs and defendants includes all eight cases that are
currently pending on this court's docket. Nevertheless, this decision only applies to the following matters:
New Haien v. Purdue Pharma, L.P., Docket No. X07 HHD CV 17 6o86184; New Britain v. Purdue
Pharma, L.P., Docket No. X07 HHD CV 18 6o87132; Waterbury v. Purdue Pharma, Docket No. X07
HHD CV 17 6o88121; Bridgeport v. Purdue Pharma, L.P., Docket No. X07 HHD CV 18 6o88462. These
are the only cases where the motions to dismiss were fully briefed and argued before the court on
September 10, 2018 and November 7, 2o18.
indirectly suffered losses caused by the opioid crisis. That is to say—under long-
established law—they have no claims at all.
Why should this be so? Haven't they suffered? Haven't we all suffered? At least
in some indirect way? All probably true. But can all of us line up in court and ask for
our personal share of the extra taxes, declining property values, rising crime rates and
personal anguish we suffer from the addictions surrounding us?
Not if we want a rational legal system. To keep order in law, government
enforcement agencies must represent the indirect public interest in court, not a flurry of
individual plaintiffs—even when they are local governments.
To permit otherwise would risk letting everyone sue almost everyone else about
pretty much everything that harms us. Connecticut rightly rejects this approach. It
judges that allowing these kinds of lawsuits would lead to a wildly complex and
ultimately bogus system that pretends to measure the indirect cause of harm to each
individual and fakes that it can mete out proportional money awards for it. In short, our
courts have declined to get out of the business of reasoned judgment and into the
business of irrational speculation.
These cases illustrate the problem. If they were allowed to proceed under
ordinary civil rules, each of the twenty-five companies being sued here could be held
responsible only for harms they themselves caused to each parry suing. Even if they
could, none of the complaints allege any form of civil conspiracy, so we don't have to
worry about that issue.
This means proving the drug companies caused the specific extra expenses
claimed would require a court or jury to calculate the impact on each of thirty-seven
cities of the activities of each of the twenty-five defendants, as distinguished from each
other, and as distinguished from the impact of all the other strains on municipal
budgets. The strains the court would have to measure would inevitably include the
impact on cities of other drug abuse, alcohol abuse, guns, the economy, government
waste, cuts in state and federal aid, mandatory employee raises and pension
contributions, rising medical expenses, businesses moving out of state, etc.
In the end, any precise number the court might purport to "calculate" would lead
to absurd results that would have a court or jury declaring that a given drug company in
a given city in a given year caused 3.6 percent of the increased cost of Narcan, 2 percent
of the increased emergency services budgets, and i percent of the increased social
service budget. This would inevitably require determining causation by conjecture. It
would be junk justice.
Remember, the cities aren't asking the court to stop misleading advertising or the
oversupply of drugs. They aren't asking the court to fine the companies under some law
or regulation. The cities are asking the court to order allegedly guilty parties to pay for
the damage they each allegedly caused each city. So to collect money from the drug
companies the cities would have to prove both the amount of the damage and the degree
of the cause.
The drug companies ask the court to dismiss these cases because they claim
indirect damages that would turn on conjectural analysis of causes and effects. Because
the companies are right, the court must accede to their request.
2. Ganim v. Smith & Wesson mandates the rejection of the cities'
indirect damages claims.
Our Supreme Court has long ruled claims like these impermissible. In legal
parlance, it has held that the indirectly harmed have no "standing to sue" and that the
courts may not hear, but instead must dismiss, these claims. The courts are said to have
no "subject matter jurisdiction" over this kind of claim. And our Supreme Court has
also said there must be no delay about identifying and dismissing cases that don't
belong in court.
In 1996 in Federal Deposit Ins. Co. v. Peabody, N.E., Inc., our Supreme Court
held that when a challenge is made to the court's subject matter jurisdiction "it must be
immediately acted upon" by the court "before it can move one further step."3 As our
High Court held in 2000 in Ramos v. Vernon, this includes claims like this about
"standing" where the people suing have only a claim that those they sue harmed them in
an immeasurably indirect way.4 Indeed, our Court has considered these issues in a
case remarkably like these cases and has emphatically held that these claims don't
belong in court.
That case was the 2001 Supreme Court decision in Ganim v. Smith & Wesson
Corp., a lawsuit by a city about the indirect consequences of gun violence.5 Ganim
holds that courts can't credibly consider cases derived from harms allegedly connected
to defendants by lengthy, multifaceted chains of causation that must weigh their
conduct while trying to separate that conduct from the myriad of independent factors
that make up most broadly defined social crises like gun and opioid abuse.6
3 239 Conn. 93, 99•
4 254 Conn. 799, 808
5 258 Conn. 313.
6Id•, 345-65•
Ganim makes a policy judgment. The judgment is that the more direct the harm,
the more justice there is in compensating for it. But it also assumes that the more
theoretical the harm, the weaker the claim for compensation. The Ganim Court
understood that our actions have indirect effects on others like the rock that ripples the
pond or the butterfly that flaps its wings. But it is impossible to trace fairly every act to
its utmost consequence.
So how does Ganim decide what's too indirect to sue over? Ganim adopts the
approach of the 1992 United States Supreme Court's decision in Holmes v. Securities
Investor Protection Corp.? Holmes said that to determine causes direct enough to sue
over we must consider three factors:
How indirect is the injury;
• How complicated is it to decide who gets what money;
• Whether directly injured parties could sue instead.
Let's consider these policies here. How indirect is the alleged injury? The Ganim
Court said that the more links people have to make to prove the causation chain the less
likely those people are to have a right to have standing to sue.$
The cities have many links to make here:
Link 1: The manufacturers make the opioids.
Link 2: The manufacturers sell the opioids to the distributors.
Link 3: The distributors sell the opioids to a pharmacy.
Link 4: Doctors prescribe the opioids.
Link 5: Patients take them.
7 503 U.S. 258.
8 258 Conn. at 365.
9
Link 6: Some patients become addicted.
Link 7: The city must give emergency and social services to some addicts while
the city's quality of life, property values and crime rate worsen from the spread of
addiction, further straining city resources.
Of course, the cities can't claim that every person harmed within their borders got
the drugs from just one of the companies they are suing. There are further side sets of
links they would have to rely on to explain some aspects of the problem:
Link 8: Pills get loose and are sold on the black market creating other costly
addicts.
Link g: Pills get too expensive or scarce for some addicts who turn to more
accessible stocks of street fentanyl or heroin, creating costly addicts.
Unfortunately for the cities, these links look remarkably similar to the links
rejected as too indirect in Ganim:
Link i: Manufacturers make the guns.
Link 2: The manufacturers sell the guns to the distributors.
Link 3: The distributors sell the guns to retail outlets.
Link 4: The retailers sell consumers the guns.
Link 5: The consumers use the guns.
Link 6: Some consumers injure themselves or others with the guns.
Link 7: The city must give emergency and social services to some of the
wounded while the city's quality of life, property values and crime rate worsen, further
straining city resources.
The city in Ganim also couldn't claim that every person harmed within its
borders got the guns from one of the companies they were suing. As it is here there were
further side sets of links needed to explain some aspects of the problem:
Link 8: Guns get loose during the distribution chain and get sold on the black
market, creating other costly incidents.
Link 9: Guns get stolen or otherwise get into the hands of third parties creating
costly incidents.
Measured link by link, this case is just like Ganim and Ganim held these links too
attenuated to support a claim.
As in Ganim, complicated rules would also be required here to sort out who
caused what. Blindingly complex ones.
Measuring blame in this part of the Holmes test means measuring money. The
question is the relative complexity of deciding how much to pay to each plaintiff if the
defendants are found liable. Here, this would mean engaging in the kind of rank
speculation the court has been talking about. How much of the extra police expense is
caused by increases in violence stemming from other drugs, from the proliferation of
guns in the city, from trends in domestic violence, from cuts in state aid, from successful
collective bargaining by police unions for raises? Is the price of Narcan going up? Is the
city's cost of medical care going up because of increased drug abuse or because of ever-
increasing drug prices?
Assuming wrongs were found, it would be hard to look the defendants in the eye
while pronouncing them each responsible for a specific percentage of blame for city
expenses. We would have to suppose either that all cities are alike and potentially award
the most money to the worst -managed city or analyze all of these factors for each city,
for each year, for each increased expenditure.
The dizzying complexity and the ultimate need here for rank -guess work means
the second Holmes factor disfavors finding the cities have standing to sue. Any
distribution of money among the cities would look more like the distribution of alms
from the community chest than like the judgment of a court of competent jurisdiction.
Nothing 'in the common law stops federal or state law enforcers from seeking to
distribute fine money in any way they want, but that is not how the ordinary civil system
works.
The third Holmes policy is equally unhelpful to the cities. There are directly hurt
people who can and have sued the drug companies in civil court. Those people are, of
course, the addicts who have suffered, died, and whose concerns often get buried in the
stampede to the courthouse. These cases aren't about them. They are about money to
municipalities, not money for the many whose lives were allegedly ruined by a false
belief that opioids were safe for long-term use.
Many lawsuits have been brought in the names of these addicts. At first, some
failed because self-righteous legal doctrines blamed the addicts and barred their claims
for their own "wrongful conduct" in getting addicted. This thinking ignored the
potential double decrease in free will the addicts claimed.9 Those doped by fatally
addictive opioids often claimed they were first duped by false assurances that the pills
were safe for long-term use.
Fortunately, these restrictive cases began to be supplanted by better thinking in
2005. That year, the West Virginia Supreme Court in Tug Valley Pharmacy, LLC v. All
9 See Tug Valley Pharmacy, LLC v. All Plaintiffs Below in Mingo County, 235 W.Va. 283; Let the
Plaintiffs Sue—Opioid Addiction, The Wrongful Conduct Rule, And The Culpability Exception 34 W�
Mich. U. T.M. Cooley L. Rev. 33,52 (2017)•
Plaintiffs Below in Mungo County adopted the approach our own Connecticut law
mandates by state statute for most tort claims: comparative negligence.10 This
approach means that where drug users know the risks, disregard them, and choose to
destroy their own lives they can't recover money from any drug company. But where the
statute applies and someone could prove their troubles were caused by being deceived
by a defendant about the safety of a drug, they could recover any dollar damages they
prove reduced by any percentage of their losses a jury finds is their own fault.
Certainly, drug users are the "directly injured parties" the Ganim Court talked about.
Naturally, the cities will complain that the drug users can't recover the cities'
expenses for them. But it is inherent in the Ganim judgment that in ordinary civil court
we prefer recoveries only by those mostly directed injured and not just to prevent
double recoveries by the addicts and the cities for the same damage. Instead, we prefer
to compensate just the directly injured because it is sound judicial policy to hold people
responsible only to the degree we can reasonably connect a legally prohibited act to a
directly resulting harm." In this regard, the addicts' claims are clearly superior claims.
And the addicts' claims aren't the only superior claims. Government regulators
have been bringing civil and criminal charges against the drug industry for years and
more are being filed all the time. 12 Enforcement claims are superior to the cities' claims
because individual damages aren't at issue in those cases. This means they don't require
the same causation analysis as ordinary individual lawsuits for compensatory damages.
Unfair trade practices claims are a good example. Because of the absence of direct
10 General Statutes § 52-572h (b).
11258 Conn. at 351.
72 See, e.g., United States v. Purdue Frederick Co., Inc., 495 F. Supp. 2d 569 (2007); New Hampshire u.
Purdue Pharma, L.P., New Hampshire Superior Court, Merrimack County, Docket No. 217 -2017 -CV -
00402 (September 18, 2018, Kissinger, J.);
10
injury, Ganim explicitly bars unfair trade practices claims by the cities in this case. 13
But § 42-110m of the Connecticut Unfair Trade Practices Act authorizes the state (not
cities) as a law enforcement agency to sue unscrupulous businesses. Most importantly,
the statute directly declares that in these law enforcement cases "[p]roof of public
interest or public injury shall not be required."
This means that from a causation standpoint government law enforcement
agencies like the state are better situated than cities to sue allegedly corrupt drug
companies.14 And unlike privately suing addicts the state could potentially recover
funds that might ease the burdens of cities. The state might share some of the money
with cities or at least shore itself up and improve its chances of helping cities hurt by this
epidemic.
So there are two parties better situated to sue than the cities suing here. And
thus the third Holmes factor, and thus all the factors, require this court to dismiss the
cities' claims.
3. Ganim's reasoning isn't undercut by recent rulings in other courts.
Some courts have refused to dismiss cases like these. Of course, this court has to
follow Ganim and not them. But it's worth noting, that nothing in those cases
distinguishes Ganim in any way that might call for a different outcome here.
Courts in New Hampshire, New York, Ohio, and Washington have given some
thought to the subject of whether the claims allege causation directly enough to merit
being heard.15
13 258 Conn. at 374•
14 And the state has now chosen to do so. State v. Purdue Pharma, L.P., Superior Court, judicial district of
Hartford, Docket No. CV 19 6105325•
15 See, e.g., New Hampshire v. Purdue Pharma, L.P., New Hampshire Superior Court, Merrimack County,
Docket No. 217 -2017 -CV -00402 (September 18, 2o18, Kissinger, J.); In re Opioid Litigation, Supreme
11
Some of them have discussed the notion of "proximate cause."i6 They appear
sensibly to recognize that it might be proved that opioid companies should have known
that misleading people into overuse of their products might lead to opioid addiction.
And foreseeability is an element of proximate cause. But observing this doesn't solve
the problem of Ganim's central point: the impossibility of rationally calculating what
part of the actual harm alleged—municipal expenses—was legally caused by what
defendant.
In an ordinary Connecticut civil case, a person can be liable for "causing"
something if the cause at issue is indispensable, foreseeable, and substantial to the harm
claimed.17 Notions of both "legal cause" and "proximate cause" are included in this
formula.
Where the harm would have happened anyway a cause isn't indispensable.
Where the harm at issue isn't a foreseeable result of the wrong then the wrong isn't a
proximate cause. And the requirement of substantiality means that causes that play very
small roles when compared to other concurrent causes aren't proximate.
Critically, each of these factors assumes a court can rationally measure any given
defendant's conduct against any given harm complained of to see whether what each
defendant has done was indispensable, foreseeable, and substantial to the harm
complained of in the lawsuit.
And this is where Ganim draws the line. It holds that there are circumstances
Court of New York, Suffolk County, Docket No. 400000/2017 (June 18, 2018, Garguilo, J.); In re:
National Prescription Opiate Litigation, United States District Court, Docket No. 1:18 -op -45090 (N.D.
Ohio, October 5, 2018); Everett u. Purdue Pharma, L.P., United States District Court, Docket No. C17-
2o9RSM (W.D. Wash., September 25, 2017).
16 Id.
17 Ruiz v. Victory Properties, LLC, 315 Conn. 320, 329 (2015).
12
where courts can't credibly make these measurements. Those circumstances include
cases that pose questions like these cases do: Was the distributor who shipped extra
pills to Bridgeport really responsible for Waterbury's increased police budget or the
extra municipal medical expenses of Beacon Falls? If so, all of it? If not all of it, how
much of it? If these ordinary civil cases are to stay in court, the other court decisions on
opioid cases don't adequately consider that sooner or later someone has to make and
measure these connections.
The cases favoring the cities sensibly enough observe that when you trick people
into overusing opioids you get more addicts. Harm to the addicts is obvious. But the
cities aren't complaining about harm to the addicts. They are claiming about harm to
themselves from the social spin off of rising addiction rates: increases in their social
services, their police expenses, and their fire and ambulance expenses, along with their
medical bills. 18
As the Holmes analysis shows, these expenses are a long radius and many
concentric circles away from the simple observation that promoting more addiction
creates more addicts. To fairly measure the number of rings and the length of the radius
between drug makers pumping out too many pills and police officers piling up too much
overtime requires the guesswork already described.
Our gut instincts may tell us that the rise in addiction did cost cities money, but
Ganim has decided it is fanciful to pretend we can credibly quantify the actual harm to
cities and attribute that harm by individual percentage to over two -dozen defendants.
i8 See Complaint, p. 63-67.
13
Ganim reflects that pretending we can do it would diminish courts as places of that
reasoned, reliable, and replicable thing we call "justice."19
4. Voices at the back of a crowd.
The cities haven't even suggested to the court a way it could rationally make the
required connections. They admit as they must that none of the defendants is loo
percent responsible for causing loo percent of rising city expenses. But the best one
plaintiff could do was to suggest the companies might be considered the cause of all
wrongs in proportion to their share of the opioid market.
But that kind of measure would have nothing to do with measuring the harm an
individual defendant directly caused to a specific city. It is the broader kind of analysis
by which a court might fashion a penalty or a fine vindicating the entire public interest,
but it isn't a way to fashion compensatory damages. In this context, it irrationally
assumes that the cities have already accurately measured the impact of the actions of the
individual defendants on the individual cities instead of identifying some rational way to
do it.
Perhaps that's why most plaintiffs in this case didn't mention the market share
idea during the multiple days this matter was argued. Instead, they did worse. They
offered nothing.
It's certainly been a drag on the court's willingness to believe that there is a
credible case for causation when, despite the court begging them for one, the plaintiffs
couldn't suggest even a possible way to calculate the degree of individual causation in
'9 258 Conn. at 352-53
14
this case. A credible suggestion on measuring causation might have given the court
some pause. But during the long hours spread over two days spaced amply apart during
which this motion was argued in court and during which the plaintiffs knew what the
court wanted, it became apparent that the plaintiffs filed these lawsuits without first
thinking of a way to sort out the causation conundrum. Indeed, the best they could do
was to say that in some other cases in some other place someone is said to be working
on something about it.
And maybe that's why they didn't seem to think it was their responsibility to
develop a theory before filing the lawsuits. These lawsuits are, after all, part of a mixed
crowd of cases assembling on courthouse lawns across the country. Some of them are
brought by individuals, some by cities, some by states, and some by the federal
government. Some are civil actions like this. Some invoke regulatory powers. Some are
criminal. But merely because these cases exist somewhere else doesn't relieve the cities
of their burdens here.
The cities can't just join the swelling chorus calling for justice and shrug off the
burdens of being what they are—ordinary civil plaintiffs that must prove direct
causation to recover compensatory damages. Ganim will not permit it.
5. Conclusion: social problems are poor candidates for compensatory
damage awards.
It might be tempting to wink at this whole thing and add to the pressure on
parties who are presumed to have lots of money and possible moral responsibility.
Maybe it would make them pay up and ease straining municipal fists across the state.
But it's bad law. If the courts are to be governed by principles and not passion, Ganim
15
must apply just as much in hard cases as in easy ones.
Faced with lawsuits brought by parties without standing, this court can only
declare that it has no subject matter jurisdiction to hear these claims.
Therefore, all of the cities' claims in all of the subject lawsuits are dismissed. 20
20 As stated previously, this decision only applies to the following cases: New Haven v. Purdue Pharma,
L.P., Docket No. X07 HHD CV 17 6086134; New Britain v. Purdue Pharma, L.P., Docket No. X07 HHD
CV 18 6o87132; Waterbury v. Purdue Pharma, Docket No. X07 HHD CV 17 6088121; Bridgeport v.
Purdue Pharma, L.P., Docket No. X07 HHD CV 18 6o88462.
16