In Re Pet Food Products Liability Litigation
544 F. Supp. 2d 1378, 2008 U.S. Dist. LEXIS 30433, 2008 WL 1391729 (2008)
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Rule of Law:
A civil action will be transferred for consolidated pretrial proceedings under 28 U.S.C. § 1407 if it shares common questions of fact with an existing Multidistrict Litigation (MDL), even when it involves some unique factual allegations, provided the transfer serves the convenience of the parties and promotes the just and efficient conduct of the litigation.
Facts:
- Natural Balance Pet Foods, Inc. manufactured and sold pet food products.
- The pet food was advertised as being “Made in America.”
- The pet food allegedly contained rice protein concentrate that was tainted.
- This rice protein concentrate was imported from China.
- The Snell plaintiffs allege their pets were harmed by consuming this food, resulting in unusually large financial losses and affecting a large number of pets.
- Numerous other pet food products, many containing tainted wheat gluten also imported from China, were subject to recalls around the same time, leading to widespread litigation.
Procedural Posture:
- Multiple lawsuits alleging liability for tainted pet food products were filed in federal courts across the country.
- The Judicial Panel on Multidistrict Litigation (JPML) centralized these actions into MDL No. 1850 in the U.S. District Court for the District of New Jersey.
- The Snell action was filed separately.
- The JPML issued a conditional transfer order (CTO) to transfer the Snell action into MDL No. 1850.
- The Snell plaintiffs and defendant Natural Balance Pet Foods, Inc. filed a motion with the JPML to vacate the conditional transfer order.
- Defendant Wilbur-Ellis Co. opposed the motion to vacate.
- The JPML considered the arguments on the motion to vacate the CTO.
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Issue:
Does a civil action concerning recalled pet food with a specific tainted ingredient (rice protein concentrate) share sufficient common questions of fact with an existing MDL primarily concerning a different tainted ingredient (wheat gluten) to warrant transfer and consolidation for pretrial proceedings?
Opinions:
Majority - John G. Heyburn II, Chairman
Yes. A civil action will be transferred into an MDL when it shares a core of common factual questions with the centralized actions, despite the presence of some unique factual issues. The court reasoned that the central factual issue in both the Snell action and the existing MDL No. 1850 cases is the recall of allegedly contaminated pet food products containing components manufactured in China. The panel found that the differences, such as the specific tainted ingredient (rice protein vs. wheat gluten) or the scale of loss, did not predominate over the common questions regarding the importation and distribution of tainted pet food components. Furthermore, the panel noted that if the transferee judge later determines the claims are too distinct, the case or individual claims can be remanded back to the original district court with minimal delay.
Analysis:
This order reinforces the broad discretion of the Judicial Panel on Multidistrict Litigation (JPML) to centralize cases for efficiency. It establishes that the standard for transfer is the existence of common factual questions, not factual identity. The decision emphasizes that variations in specific products, theories of liability, or damages among cases will not necessarily prevent consolidation, so long as a common factual core exists, such as a shared supply chain for a component. This promotes efficiency in discovery and pretrial motions while preserving the option for the transferee judge to remand cases that ultimately prove to be unsuitable for coordinated proceedings.
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