# Petition for Writ of Certiorari — Wyeth v. Levine

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2009
- **Citation:** 555 U.S. 555

## Text

’
a

Supreme Court. J
i FLED
No. 06- 061249 Map 12 9007
hemp OFFICE OF THE CLERK

Supreme Court of the United States

WYETH,
Petitioner,
V:
DIANA LEVINE,
Respondent.

On PeviTion FOR A WRIT OF CERTIOKARI
TO THE SUPREME COURT OF THE STATE OF VERMONT

PETITION FOR A WRIT OF CERTIORARI

ALLAN R. KEYES Bert W. REIN
R. Josep O'Rourke Counsel of Record
RYAN, SmirxH, Carine, LTD. KARYN K. ABLIN
98 Merchants Row Wiittam S. Consovoy
P.O. Box 310 Witey Rein LLP
Rutland, VT 05702-0310 1776 K Street NW
(802) 786-1000 Washington, D.C. 20006

(202) 719-7000

Attorneys for Petitioner

A mal ce

P t pet

(Remap P74 TAIT © (ROOD 189-6854

i
QUESTION PRESENTED

Whether the prescription drug labeling judgments
imposed on manufacturers by the Food and Drug
Administration (“FDA”) pursuant to FDA’s comprehensive
safety and efficacy authority under the Federal Food, Drug,
and Cosmetic Act, 21 U.S.C. § 301 ef seg., preempt state
law product liability claims premised on the theory that
different labeling judgments were necessary to make drugs
reasonably safe for use.

il
LIST OF PARTIES

Pursuant to Rule 14.1(b), the following list identifies all
of the parties to the appellate proceeding in the Supreme
Court of Vermont, whose judgment is sought to be reviewed:

A. Petitioner

Wyeth

B. Respondent

Diana Levine

CORPORATE DISCLOSURE STATEMENT

Petitioner Wyeth has no parent corporation, and no
publicly held company owns 10% or more of its stock.

ill

TABLE OF CONTENTS

Page
QUESTION PRESENTED ..... cece ccscscces 1
Sg ere ore re Tree il
CORPORATE DISCLOSURE STATEMENT ..... il
pg ss en ee il
TABLE OF CITED AUTHORITIES ............ v
peo ee Xil
oe ok eek eek ee SRO ee l
+ tcc shed du eee Fone oe os me one |
PERTINENT CONSTITUTIONAL, STATUTORY,

AND REGULATORY PROVISIONS ......... I
EE Wes sis wh dpc uken ¥e bees 9070 l
STATEMENT OF THE CARE ...... ccc eeeeeess 3

a og ee ie we axees 3

1. FDA Regulatory Regime ............ 3
2. FDA’s Regulation of Phenergan ...... 6

3. The Operative Phenergan Label when
Respondent Was Treated ............ 8

iv

Contents
Page

4. The Administration of Phenergan to
ES cat aay wh at an CoS Ke 9

I re 10

1. The Trial Court Proceedings ......... 10

2. The Appeal to the Vermont Supreme
re ene a eres yee eee 10

REASONS FOR GRANTING THE PETITION ... 13

I. The Court Should Grant Review To Correct
Vermont’s Rejection of Impossibility Conflict
Preemption Stemming from its Mischaracterization
of FDA’s Comprehensive Regulatory Regime.

Pe ee eee See eo Ce Eee 15

II. The Court Should Grant Review To Clarify the
Effect, If Any, of the Presumption Against
Preemption and Section 202 of the 1962 FDCA
Amendments on the Application of “Obstacle”

Conflict Preemption to Prescription Drug
ee rare re eee ae ee 2)

Ill. The Court Should Grant Review To Resolve
the Conflict Concerning the Degree of
Deference that Courts Should Accord FDA’s
Formal Position on the Extent to Which State
Tort Law Labeling Judgments Interfere with
PDAS Labetmeg Remene. ........ccsceees 27

SEE so0 6S Cee heehee We et eweee wae 30

TABLE OF CITED AUTHORITIES

Page(s)
FEDERAL CASES
Auer v. Robbins,
oo ree ry Teer ce 29
Bates v. Dow Agrosciences LLC,
SG Us Ge BN 5 co kets seceseveaveseta 26, 30

In re Bextra & Celebrex Marketing Sales Practices
& Product Liability Litigation,
No. 05-1699, 2006 WL 2374742
CPOE SA FO FE vet kee tcesccecss 29

Buckman Co. v. Plaintiffs’ Legal Committee,
Pe CH POPE 8:05-6:00 A cds Showa CRTs 26

Caraker v. Sandoz Pharmaceuticals Corp.,
172 F. Supp. 2d 1018 (S.D. Hl. 2001) .......-. 16,18

Cartwright v. Pfizer, Inc.,
369 F. Supp. 2d 876 (E.D. Tex. 2005) ......... 16

Cipollone v. Liggett Group, Inc.,
MS Perey ee 14, 24

City of Camden v. Beretta U.S.A. Corp.,
81 F. Supp. 2d 541 {D.N.J. 2000) ............ 23

Colacicco v. Apotex, Inc.,
432 F. Supp. 2d 514 (E.D. Pa. 2006) .......... 29

vi
Cited Authorities
Page(s)
Ehlis v. Shire Richwood, Inc.,
233 F. Supp. 2d 1189 (D.N.D. 2002), aff'd,
367 F.3d 1013 (8th Cir. 2004) ............... 17

Fidelity Federal Savings & Loan Ass'n v. de la Cuesta,
cca bavenenseanences 14, 28

Florida Lime & Avocado Growers, Inc. v. Paul,
EE 14

Freightliner Corp. v. Myrick,
cer k kets ese ee dena 17

Geier v. American Honda Motor Co.,
deve eke cede ese seeeees passim

Heckler v. Chaney,
ee Ce wea eeheeuaenea 4 20

Hillsborough County v. Automated Medical
Laboratories, Inc., 471 U.S. 707 (1985) ....... 28

Hines v. Davidowitz,

ee Wed cab dude one enee 14

Horn v. Thoratec Corp.,
376 F.36 163 (36 Cir. 2004) ..... 2... ccc eens: 21, 29

International Paper Co. v. Ouellette,
Ee 24, 26

Jackson v. Pfizer, Inc.,

432 F. Supp. 2d 964 (D. Neb. 2006) .......... 29

vil

Cited Authorities

Mazur v. Merck & Co..,

742 F. Supp. 239 (E.D. Pa. 1990) .........

McDermott v. Wisconsin,

ot So oe Wid va 6 b'0.00 06 be

McNellis v. Pfizer, Inc.,
No. Civ. 05-1286, 2005 WL 3752269
(D.N.J. Dec. 29, 2005), stay granted and
motion to certify appeal granted,
No. Civ. 05-1286 (JBS),
2006 WL 2819046 (D.N.J. Sept. 29, 2006)

See eeeseeeeeegee@eedtceeePgcete@tee@eec@e~esgeeoe@@ete@esses8 @

Medtronic Inc. v. Lohr,

i ics; on cnc cck eee ewek

Needleman v. Pfizer, Inc.,
No. 3:03-C V-3073-N, 2004 WL 1773697

Ge Hs CE GR ED nic seve cccccce:

Nutraceutical Corp. v. Von Eschenbach,

459 F.3d 1033 (10th Cir. 2006) ..........

Perry v. Novartis Pharma. Corp.,

456 F. Supp. 2d 678 (E.D. Pa. 2006) ......

Rice v. Santa Fe Elevator Corp.,

Ec ccccncsceeestsevns

Schering Corp. v. FDA,

Fe Cede SOP EPO Ge SOUOD 6 cccccccccnses

Foss 22

Cans 16

wake 21

jeen 17

er 20

inne 28

dm 24

doles 20

vill

Cited Authorities

Schneidewind v. ANR Pipeline Co.,

SP EE wake Scevcdeccends

Sinnot v. Davenport,

63 U.S. (22 How.) 227 (1859) .........

Smith v. United States,

Fe rer rs

Thomas Jefferson University v. Shalala,

FE Ws SPE SOOED 0 0c chr ccccedeces

Udall v. Tallman,

Ps DE wawcnsceccncecesses

United States v. Locke,

ED bc vcccwonccceusae

United States v. Rutherford,

Se TED cecscbecececeseds

Weinberger v. Bentex Pharmaceuticals, Inc.,
Ge ee UD 0 0606s dedweceeees

Weiss v. Fujisawa Pharmaceutical Co.,

464 F. Supp. 2d 666 (E.D. Ky. 2006)

TTT Tr 23

padden 19

sep ae 30

-enee 28

reser 24

rodwus 25

paesséi 20

reer 19

ix

Cited Authorities

Page(s)
FEDERAL STATUTES
re 6 EO bo ower eas eee eeews i
NS EES rrr reer re or re. 3
ie we id a ee ada ee eels 3
CE I eS ee se 18
is 4. 2s ete ile hes Ga noeee nee 18
scbs ts vee tiveadegee weakens 18
ee itis kuckistehevens Perivascular extravasation occurs when a drug administered
intravenously leaks out of the vein into the surrounding tissue, where it
may come into contact with arterial blood. App. 4a, 42a. Perivascular
extravasation occurs through no fault of the physician or the drug
manufacturer. App. 42a.

7

through a series of communications and at least one in-person
meeting to refine Phenergan’s warnings with respect to [V push
administration. As of at least 1974, Phenergan’s label made clear
that intramuscular (““IM”’) injection was the “preferred parenteral
route of administration” and advised that IV administration was
“well-tolerated” but “not without some hazard” because
gangrene could result from exposure of Phenergan to arterial
blood. App. 53a.

As of 1981, the Phenergan label included the following
language: ““When administering any irritant drug intravenously,
it is usually preferable to inject it through the tubing of an
intravenous infusion set that is known to
be functioning satisfactorily” — i.e., through IV drip
administration. App. 54a (emphasis added). While FDA noted
its preference for the IV drip method, it never suggested that
the [V push method of injection should be contraindicated or
foreclosed.

In 1987, after Wyeth complied with a general FDA mandate
to reformat Phenergan’s labeling and submit it by a supplementa:
New Drug Application (“sNDA”) for approval, FDA
recommended revisions concerning the “recognition and
management of unintended intra-arterial injection.” App. 150a-
157a. These changes included an enhanced instruction
concerning IV drip administration: “Injection through a properly
running intravenous infusion [set] may enhance the possibility
of detecting arterial placement. In addition, this results in
delivery of a lower concentration of any arteriolar irritant.”
App. 152a. Again, however, FDA never suggested that the IV
push method should be contraindicated or foreclosed.

On May 3, 1988, Wyeth submitted new draft labeling for
FDA approval that essentially incorporated FDA’s recommended
changes relating to IV drip administration: “Injection into an
intravenous infusion set that is known to be running properly
should decrease the possibility of inadvertently injecting

8

promethazine intra-arterially. In addition, this results in delivery
of a lower concentration of any arteriolar irritant.” App. 54a.

In 1997 — explaining that it had taken extra time to review
Phenergan’s proposed labeling changes to ensure that it had
“dotted every ‘i’ and crossed every ‘t’” — FDA specifically
ordered Wyeth to “[rJetain [the] verbiage in [the] current label”
concerning inadvertent intra-arterial injection and to make other
labeling changes. App. 158a-159a, 162a. Wyeth submitted a
revised draft package insert on May 8, 1998 in compliance with
FDA’s orders. FDA then approved that labeling and expressly
commanded Wycth that “(tthe final printed labeling (FPL) for
the package insert must be identical to the draft package insert
submitted May 8, 1998.” App. 165a (emphasis added).

FDA’s consistent decision not to foreclose IV push
administration of | aenergan reflected a classic balancing of risks
and benefits. The beneficial effects of IV injection generally
begin within five minutes; IV drips (when equipment is
available) are slower to administer, and IM injection can require
twenty minutes or more to take effect. App. 165a. This is no
small difference: extreme nausea can cause a patient to lose
fluids quickly, which leads to dehydration, a serious medical
condition. A doctor, confronted with a patient in dire need of
relief from nausea, could reasonably decide that the benefits of
IV push administration would warrant taking its increased nsk.’

3. The Operative Phenergan Label when
Respondent Was Treated

In 2000, as a result of the foregoing FDA oversight over a
45-year period and a series of revisions, Phenergan’s two-page
label included repeated, prominent notice of the risk of gangrene
arising from inadvertent arterial exposure in no fewer than four

‘ Moreover, under certain circumstauces, IM injection is unreliable
or ineffective, such as in the treatment of overweight patients and patients
with poor blood flow to the various muscle groups due to dehydration or
cardiac disease. In such a situation, a doctor could determine that TV push
injection is the only way to provide the patient with the needed relief.

9
separate sections — i.e., “Contraindications,” “Warnings,”
“Adverse Reactions,” and “Dosage and Administration.” Two
such sections provided the following notice in upper-case type:

INADVERTENT INTRA-ARTERIAL INJEC-
TION CAN RESULT IN GANGRENE OF THE
AFFECTED EXTREMITY.

App. 4a, 167a. The label further warned that:

Due to the close proximity of arteries and veins in the
areas most commonly used for intravenous injection,
extreme care should be exercised to avoid perivascular
extravasation cr inadvertent intra-arterial injection.
Reports compatible with inadvertent intra-arterial
injection of Phenergan Injection, usually in conjunction
with other drugs intended for intravenous use, suggest
that pain, severe chemical imitation, severe spasm of
distal vessels, and resultant gangrene requiring
amputation are likely under such circumstances.

App. 4a, 167a. The label also included lengthy instructions
concerning the means of minimizing this risk in both the “Dosage
and Administration” and “Warnings” sections. App. 167a.

4. The Administration of Phenergan to Respondent

On April 7, 2000, Respondent sought treatment from
Northeast Washington County Community Health, Inc. (the
“Health Center”) for a severe migraine headache and associated
nausea and dehydration. App. 2a. Respondent was initially
treated with Phenergan via IM injection, the preferred method
of administration. App. 2a.

Respondent returned to the Health Center later that day
because she had not obtained effective relief. App. 2a. A second
dose of Phenergan was then administered directly into
Respondent's vein via IV push injection. App. 2a. Phenergan’s
FDA-approved label specifically instructed practitioners to
proceed with extreme caution in any administration; the
administering physician assistant was aware of these instructions
and of the risk of arterial exposure through misinjection.

2 es

10

Respondent thereafter developed the symptoms of arterial
exposure and had to have her forearm amputated. App. 2a.
Before the commencement of this case, Respondent sued the
health care providers for malpractice and settled for $700,000.

B. Proceedings Below

1. The Trial Court Proceedings

Respondent brought state-law-based liability claims against
Wyeth on the theory that Wyeth should have revised Phenergan’s
FDA-approved label to bar [V push administration. App. 38a,
4a. The jury returned a verdict in favor of Respondent, who
was ultimately awarded $ 6,774,000. App. 3a.

Wyeth sought judgment as a matter of law on the ground
that federal law preempted Respondent’s claims. The trial court
denied Wyeth’s motion, issuing an opinion independently
addressing preemption as a matter of law. App. 4a, 74a. In its
view, FDA’s CBE regulation, 21 C.F.R. § 314.70, “permit[s]}
strengthened warnings without approval on an interim basis,”
App. 64a, such that Wyeth could be required to conform its
labeling to common law tort duties. The court acknowledged
the inevitable differences between FDA’s comprehensive
balancing of public safety and efficacy interests and the tort
precess, which views “the matter in hindsight through the lens of a
single catastrophic case,” App. 62a, but still found that the jury’s
state-law-based judgment presented no obstacle to FDA’s regulatory
objectives, App. 63a.

2. The Appeal to the Vermont Supreme Court

Wyeth timely appealed to the Vermont Supreme Court.
Wyeth contended that the tral court erred, inter alia, by failing
to hold that Respondent’s common law claims were preempted
because: (1) Wyeth would have been unable to comply with
both Vermont’s common law duty to foreclose IV push injection
and FDA’s directive, as evidenced by the drug’s approved label,
to retain it; and (2) the claims would obstruct the full
accomplishment of FDA's risk-benefit objective to optimize use
of Phenergan by imposition of a duty to foreclose [V push
injection. App. Sa-6a. The Vermont Supreme Court rejected both

arguments and affirmed the trial court’s decision. App. | 9a, 28a.

The court first rejected Wyeth’s claim that it would be
impossible for Wyeth to comply with both a Vermont common
law duty to foreclose IV push injection and a federal duty to use
an FDA-approved label that allowed the drug to be administered
in this fashion. Like the trial court, the Supreme Court relied on
the CBE regulation, 21 C.F.R. § 314.70(c). In the court’s view,
“FDA approval of a particular label does not preempt a jury
finding that the label provided insufficient warning, as defendant
was free under § 314.70(c) to strengthen the warning without
prior FDA approval.” App. | 7a. The court also declined to accord
any significance to FDA’s directive to Wyeth to “[r]etain
verbiage in current label.” App. 17a.

The court next refused to consider Wyeth’s claim that
Vermont's decision to impose a state tort law duty on Wyeth
created an obstacle to the objectives of the FDA regulatory
regime. The court held that all such “obstacle” preemption
claims were foreclosed by language in the 1962 amendments to
the FDCA that premised preemption on a “direct and positive
conflict between such amendments and [a] provision of State
law.” App. 21a (quoting Drug Amendments of 1962, § 202, 76
Stat. at 793, App. 1 12a). The court reasoned that section 202
restated the standard for “impossibility” preemption and thus
“remove[d] from ... consideration the question of whether
common-law tort claims present an obstacle to the purposes
and objectives of Congress.” App. 21a.

Last, the court refused to give any weight to FDA’s formal
preemption analysis. Specifically, in a regulatory preamble to
recent amendments to its labeling rule, FDA rejected the
positions adopted by many federal courts and the Vermont
Supreme Court that (1) section 314.70 broadly permits
manufacturers to make unilateral labeling changes and (2)
“[s}]tate law serves as an appropriate source of supplementary
safety regulation for drugs by encouraging or requiring
manufacturers to disseminate risk information beyond that
required by FDA under the act.” App. 24a (quoting 71 Fed.

12

Reg. at 3934, App. 126a). To the court, FDA’s analysis was
“neither an authoritative interpretation of an ambiguous statutory
provision entitled to deference, nor a persuasive policy statement
entitled to respect.” App. 28a (internal citation omitted).

Chief Justice Reiber dissented. The Chief Justice first
concluded that an “actual conflict” existed between the jury
verdict and federal law because “the FDA clearly addressed the
risks attending IV administration of the drug[,] .. . approved
IV administration generally, and specifically warned of the
dangers of direct IV administration, including inadvertent arterial
injection possibly resulting in amputation.” App. 38a. “These
assessments are, in fact, the very essence of the FDA’s approval
and are in furtherance of the federal objective of advancing
public health by balancing the risks and benefits of new drugs
and facilitating their optimal use.” App. 38a.

The Chief Justice also found that Wyeth was not “‘free’ to
change drug labels under [section] 314.70” because the purpose
of this regulatory provision “ts to allow manufacturers to address
newly discovered risks.” App. 39a-40a. Here, not only was there
a complete absence of new evidence concerning IV push
administration of Phenergan, but “FDA had already evaluated
the risk of inadvertent arterial injection .. . and had mandated
warming language for the label to reflect that risk assessment”
in its 1997 directive to Wyeth. App. 40a. Wyeth thus “could not
both list all forms of IV administration as an approved use, as
required by the FDA, and exclude all or some forms of IV
administration as unsafe, as required by the jury’s verdict in
this case.” App. 43a.

The Chief Justice next rejected the majority’s view that the
section 202 “direct and positive conflict” language forbade the
court from assessing whether state tort law obstructed the federal
purposes and objectives served by FDA’s regulatory regime.
App. 44a-45a. On the merits of Wyeth’s argument, the Chief
Justice concluded that “obstacle preemption” applied in this
case under the reasoning of Geier v. American Honda Motor
Co., 529 U.S. 861 (2000). App. 45a. The Chief Justice

13

analogized the federal safety standard at issue in Geier — which
“allow[ed] a choice of passive restraint systems while not
mandating any particular system” and “was a deliberate decision
that reflected a balance of diverse policy concerns” — with FDA’s
risk-benefit balancing judgment, which “considers various
policy factors that are sometimes in tension with one another”
to “maximize the availability of beneficial treatments.” App.
48a. According to the Chief Justice, FDA’s conclusion that
“Phenergan is safe and effective when delivered through IV
administration” preempts any tort duty that would require Wyeth

to bar that particular use. App. 48a.

REASONS FOR GRANTING THE PETITION

The Vermont Supreme Court held that a manufacturer may
be liable under state law for failing to bar a particular method
of administration of a prescription drug. The federal agency
expert in evaluating the safety and efficacy of drugs had
concluded that this highly potent method of administration
should remain available and directed the manufacturer to retain
a label that, while urging prescribers to use extreme care in
administering the drug, nonetheless retained it as a medical
option. This case thus presents a direct conflict between the
considered labeling decision of a federal agency exercising its
ex ante responsibility to make comprehensive public health
judgments and an ex post case-specific determination of one
state jury that the federally approved labeling was inadequate.

Unfortunately, this conflict is far from uncommon. There
are tens of thousands of individual claims, and potentially
millions of class action claims, currently pending in the lower
federal and state courts, in which plaintiffs contend that a
manufacturer’s use of FDA-approved labeling for its
prescription drug is inadequate to satisfy state-law duties to
warn.* Divided lines of authority already have emerged and are

* See, e.g., In re Bextra & Celebrex Marketing, Sales Practices &
Prods. Liab. Lit., No. 05-cv-01699-CRB (N.D. Cal.) (litigation consists
of over 1,800 lawsuits); Jn re Prempro Prods. Liab. Litig., No.

4:03C V01507 (F.D. Ark.); In re Vioxx Marketing, Sales Practices &
(Cont'd)

14

highly unlikely to be reconciled by further lower court decisions.
By deciding key preemption issues here on a record that squarely
and cleanly presents them,’ this Court can forestall erroneous
decisions in numerous cases and the huge expenditure of
resources required to correct those errors and reprocess the
underlying cases.

The Vermont Supreme Court made basic and fundamental
doctrinal errors in its preemption analysis. Wyeth has
consistently argued that a jury verdict premised on the alleged
inadequacy under state law of an FDA-approved prescription
drug label is preempted when it “actually conflicts” with the
federal drug labeling regime. State law “actually conflicts” with
federal law when “compliance with both federal and state
regulations is a physical impossibility,” Florida Lime & Avocado
Growers, Inc. v. Paul, 373 U.S. 132, 142-43 (1963), or when
state law “stands as an obstacle to the accomplishment and
execution of the full purposes and objectives of Congress,”
Hines v. Davidowitz, 312 U.S. 52, 67 (1941). These bedrock
principles apply with equal force to federal regulations, see
Fidelity Federal Savings & Loan Ass'n v. de la Cuesta, 458
U.S. 141, 153 (1982), and do not differentiate between common
law rules arising from state jury verdicts and positive legislative
enactments, see Cipollone v. Liggett Group, Inc., 505 U.S. 504,
522 (1992). Prescription drug labeling cases implicate both
species of conflict preemption. |

Determining whether state tort claims “actually conflict”

(Cont'd)

Prods. Liab. Litig., No. 05-MDL-1657 (E.D. La.) (approximately 27,400
lawsuits, including over 46,100 plaintiff groups, and approximately 264
putative class actions as of December 2006). Individual suits like that
presented here are almost too numerous to count.

* This case presents an ideal vehicle for resolving these legal issues
because the facts underlying the preemption question are not in dispute.
There is no allegation that Wyeth had failed to react to safety information
not considered by FDA or that Wyeth breached any other state law duty
that might make the Vermont Supreme Court’s mistaken preemption
analysis insufficient to reverse the judgment.

15

with FDA prescription drug labeling rules requires resolution
of three key legal questions. First, does FDA’s labeling
regime developed under congressional mandate provide
only a minimum safety standard open to unlimited state
supplementation or a fully calibrated risk-benefit balance of
national applicability that state law should not disrupt? Second,
are principles of “obstacle” conflict preemption trumped in
prescription drug cases either by a presumption against
preemption or by a statutory requirement that preemption arise
from a “direct and positive” conflict? Third, should weight be
given in the preempti- = analysis to FDA’s recent formal
assessment of the adverse impact of tort actions on the integrity
of its labeling regime?

The Vermont Supreme Court answered al! of these questions
incorrectly. First, it concluded — contrary to the agency’s view
of its own regulations — that FDA’s labeling requirements merely
provided a “floor” and that a manufacturer was free unilaterally
to change its labeling without prior FDA approval. Second, the
court erroneously declined even to consider whether the state
tort law duty would “stand as an obstacle” to the effectiveness
of federal drug regulation, mistakenly reading a provision in
the FDCA as precluding this entire line of traditional preemption
analysis. Finally, the court dismissed FDA's carefully considered
judgment that tort suits like the instant one disrupt the agency's
ability to ensure that the optimal information about the risks
and benefits of using prescription drugs is provided to
prescribers. Each of these conclusions was erroneous, and each
independently warrants reversal.

I. The Court Should Grant Review To Correct Vermont’s
Rejection of Impossibility Conflict Preemption
Stemming from its Mischaracterization of FDA’s
Comprehensive Regulatory Regime.

The Vermont Supreme Court's opinions in this case
exemplify an ongoing dispute in the lower courts as to whether
FDA's labeling approvals establish only a minimum requirement
(“floor”) for safety-related disclosures or, alternatively, a

16

calibrated approach (‘floor and ceiling”) that neither underwarns
nor overdeters effective use. This base disagreement is very often
outcome determinative and has been characterized by FDA as a
threat to the integrity of its comprehensive regulatory regime.
See 71 Fed. Reg. at 3934, App. 130a (“FDA has learned of
several instances in which product liability lawsuits have directly
threatened the agency’s ability to regulate manufacturer
dissemination of risk information for prescription drugs in
accordance with the act.”’).

A majority of the Vermont Supreme Court adopted the
former view in this case, following a line of cases holding that
“FDA’s drug labeling decisions impose only ‘minimum’
standards that are open to supplementation by state law through
a jury’s verdict enforcing a manufacturer’s common law duty
to warn.” Caraker v. Sandoz Pharm. Corp, 172 F. Supp. 2d
1018, 1033 (S.D. Ill. 2001); Mazur v. Merck & Co., 742 F. Supp.
239, 247 (E.D. Pa. 1990) (“Manufacturers must meet state safety
requirements, whether codified or embodied in the common
law, in addition to satisfying initial FDA requirements.”);
Cartwright v. Pfizer, Inc., 369 F. Supp. 2d 876, 883 (E.D. Tex.
2005) (“FDA only sets forth minimum standards for labeling
and safety of drugs.”); McNellis v. Pfizer, Inc., No. Civ. 05-
1286, 2005 WL 3752269, at *7 (D.N.J. Dec. 29, 2005) (“FDA's
regulations do not conflict with New Jersey’s failure to warn
law because those federal regulations merely set minimum
standards with which manufacturers must comply.”’), stay
granted and motion to certify appeal granted, No. Civ. 05-1286
(JBS), 2006 WL 2819046 (D.N.J. Sept. 29, 2006). Under this
approach, state labeling requirements — whether imposed through
positive legislative enactments or judicial decree — can almost never
be incompatible with FDA’s labeling regime. App. |5Sa
(“When further warnings become necessary, the manufacturer is
at least partially responsible for taking additional action,
and if it fails to do so, it cannot rely on the FDA’s continued
approval of its labels as a shield against state tort liability.”).

Chief Justice Reiber’s dissent looked to different authority
holding that “inadequate warning claim[s] would . . . conflict

17

with the federal requirements imposed during the regulation
of” the prescription drug by, “in effect, allowing a state regulation
to impose labeling requirements contrary to those required by
federal law.” Needleman v. Pfizer, Inc., No. 3:03-CV-3073-N,
2004 WL 1773697, at *2 (N.D. Tex. Aug. 6, 2004); /n re Bextra
& Celebrex Marketing Sales Practices & Prod. Liab. Litig.,
No. 05-1699, 2006 WL 2374742, at *10 (N.D. Cal. Aug. 16,
2006) (“Plaintiffs’ state law failure-to-warn-claims conflict with
the FDA’s determination of the proper warning and pose an obstacle
to the full accomplishment of the objectives of the FDCA.”);
Ehlis v. Shire Richwood, Inc., 233 F. Supp. 2d 1189, 1198 (D.N.D.
2002) (finding that prescription drug warning claim was preempted
where “FDA dictates the contents of the label” and where
“defendants were prohibited from changing it without prior
approval from the FDA, except in limited circumstances for a
limited period of time”’), aff ‘d, 367 F.3d 1013 (8th Cir. 2004).

As Chief Justice Reiber explained, it would have been
literally impossible for Wyeth to have complied with both the
duty newly imposed under Vermont common law and FDA’s
command that Phenergan be marketed under labeling identical
to that submitted by Wyeth on May 8, 1998. Respondent’s cause
of action onginated from — and inis case ultimately turned on —
the premise that Phenergan’s labeling should have foreclosed
IV push administration of Phenergan. App. 37a (“[W]hat
plaintiff sought was an elimination of a use of Phenergan that
had been approved by the FDA.”) (Reiber, C.J., dissenting).
Thus, Wyeth could have complied with the legal duty it allegedly
breached under Vermont law only if it had modified its FDA-
approved label without prior FDA authorization before April 7,
2000, when Respondent was injected. Unless federal law
permitted such modification, well-established conflict
preemption principles would preclude holding Wycth liable for
failing to follow a state mandate that would have forced it to
violate federal law. See Freightliner Corp. v. Myrick, 514 US.
280, 287 (1995).

18

No FDCA provision authorizes manufacturers to modify
FDA-approved labeling without prior FDA consent. Indeed, as
the Vermont Supreme Court acknowledged, the FDCA
conditions the right to ship prescription drugs in interstate
commerce on the use of FDA-approved labeling. As FDA
routinely advises manufacturers receiving New Drug approvals,
“[mJarketing the product with [labeling] that is not identical to
the approved labeling text may render the product misbranded
and an unapproved new drug.” Letter from Edward Cox, Acting
Director, Center for Drug Evaluation and Research, to David
Hallinan, VP Regulatory Affairs, Idenix Pharms., Inc. (Oct. 25,
2006), available at http://www.fda.gov/cder/foi/appletter/2006/
02201 15000ltr.pdf (approving NDA 22-011 (Tyzeka)); see also
App. 165a (commanding that Phenergan’s “final printed labeling

. must be identical to the [FDA-approved] draft package
insert”). Marketing a misbranded or unapproved prescription
drug would subject the manufacturer to substantial criminal and
civil penalties. 21 U.S.C. §§ 332(a), 333(a), 334.

To meet the need to disseminate newly discovered safety
information without delay, FDA adopted its “change being
effected,” or “CBE,” regulation, 21 C.F.R. § 314.70(c)(6)(iii),
in 1982. Rather than properly interpreting that regulation as a
limited exception to FDCA’s pre-approval labeling regime,
however, courts adopting the “minimum” standards approach
have seized on it to open the door to far-reaching state safety
regulation. The CBE regulation descnbes certain categories of
interim labeling changes that manufacturers may make without
prior FDA approval, including “[t]o add or strengthen
an instruction about dosage or administration that is intended
to increase the safe use of the drug product.” /d.
§ 314.70(c)6)(ii(C). Under the Vermont court’s construction,
this regulation allows “unilateral changes to drug labels
whenever the manufacturer believes it will make the product
safer, and places no limit on the duration of pre-approval
warnings unless the FDA disapproves of the change.” App. 13a
(citation omitted); see also Caraker, 172 F. Supp. 2d at 1034
(“Even after approval, additional or more forceful warnings may,

19

in the drug manufacturer’s judgment, be added to labeling
without prior FDA approval and on the drug manufacturers’
own initiative.”). Thus, “[w]hile specific federal labeling
requirements and state common-law duties might otherwise
leave drug manufacturers with conflicting obligations, § 314.70(c)
allows manufacturers to avoid state failure-to-warn claims
without violating federal law.” App. | 1a (citation omitted).

This expansive and result-oriented reading of the CBE
regulation is clearly incompatible with FDA’s overall regulatory
labeling regime. As FDA explained in adopting the CBE
provision in 1982, that regulation creates a limited exception to
the general pre-approval regime to permit newly discovered
information to be timely disseminated. See New Drug and
Antibiotic Regulations, 47 Fed. Reg. 46,622, 46,623, 46,635
(Oct. 19, 1982) (codified at 21 C.F.R. pts. 310, 312, 314, 430,
431, 433); see also Perry v. Novartis Pharma. Corp., 456 F.
Supp. 2d 678, 682 (E.D. Pa. 2006) (“This particular regulation
was promulgated precisely to allow drug-makers to quickly
strengthen label warnings when evidence of new side effects
are discovered.” (emphasis added) (internal quotation marks
and citation omitted)); Weiss v. Fujisawa Pharm. Co., 464 F.
Supp. 2d. 666, 675 (E.D. Ky. 2006) (explaining that a “drug
manufacturer may warm patients and healthcare providers should
they discover new evidence of a particular risk following the
approval of the original label” (emphasis added)). While a “new
information” trigger for using the CBE provision is not express
in its text, it is necessarily implicit in FDA’s larger regulatory
scheme. See Labeling and Prescription Drug Advertising;
Content and Format for Labeling for Human Prescription Drugs,
44 Fed. Reg. 37,434, 37,447 (June 26, 1979) (codified at 21
C.F.R. pts. 201-202); 71 Fed. Reg. at 3934, App. 128a-132a.
FDA’s comprehensive, particularized regulation of label formats
and wording at the time of NDA approval cannot be reconciled
with according manufacturers thereafter an unlimited ability to
modify critical label language without prior FDA approval. See
Smith v. United States, 508 U.S. 223, 234 (1993) (“A provision
. . . lS often clanfied by the remainder of the statutory scheme . . .

20

because only one of the permissible meanings produces a
substantive effect that is compatible with the rest of the law.”
(internal quotation marks and citation omitted)). In the words of
Chief Justice Reiber, “the regulation does not allow manufacturers
to simply reassess and draw different conclusions regarding the
same risks and benefits already balanced by the FDA.” App. 40a.

The facts of this case clearly show how the FDA regime can
be disrupted by the CBE minimum standards approach. Here, the
record unequivocally established that all information relating to
the risks of IV injection of Phenergan put before the jury was
available to FDA when it.acted on Wyeth’s supplemental NDA in
1997. The Vermont judicial process simply differed with FDA on
the risk-benefit assessment appropriate to these facts, thus turning
the CBE regulation into a recipe for balkanized and unbounded
state second-guessing of federal regulatory actions. See App. 65a
(calling FDA’s regulatory process “slow and imperfect” and
suggesting that FDA did not review “intravenous administration
of Phenergan with scientific ngor or any sense of urgency”).

This Court and the federal courts of appeal consistently have
made clear that Congress has safeguarded FDA's science-based
discretionary decisions from second-guessing in the federal courts,
let alone fifty state courts. See, e.g., Heckler v. Chaney, 470 U.S.
821, 835 (1985); see also Weinberger v. Bentex Pharms., Inc.,412
U.S. 645, 653-54 (1973) (“The determination whether a drug is
generally recognized as safe and effective . . . necessarily implicates
complex chemical and pharmacological considerations” and is
“peculiarly suited to initial determination by the FDA.”):
Nutraceutical Corp. v. Von Eschenbach, 459 F.3d 1033, 1043 (10th
Cir. 2006) (“The review of scientific literature is properly m the
province of the FDA, to which this Court grants deference based
on its expertise.”); Schering Corp. v. FDA, 51 F.3d 390, 399 (3d
Cir. 1995) (“[FDA’s] judgments as to what is required to ascertain
the safety and efficacy of drugs fall squarely within the ambit of
the FDA’s expertise and merit deference from us.”’).

Distorting the CBE regulation to permit second-guessing by
judges and junes in prescription drug injury cases, as occurred here,

21

is particularly pernicious. While FDA makes risk-benefit
labeling decisions from a systemic, forward-looking perspective
to optimize use of beneficial treatments, supra at 4, state judicial
decisions make the same determinations “in hindsight through
the lens of a single catastrophic case,” App. 62a, and with an
inevitable bias toward finding fault as a basis for compensation.
Were manufacturers to labei in response to, or in anticipation
of, state determinations, they would be subject to myriad
conflicting mandates, and numerous FDA judgments concerning
optimal labeling and administrations of prescription drugs could
be overridden, to the detriment of overall public health. See
Horn v. Thoratec Corp., 376 F.3d 163, 178 (3d Cir. 2004)
(observing that excessive risk-oriented regulation “can harm
the public health ... by encouraging ‘defensive labeling’ by
manufacturers to avoid state liability, resulting in scientifically
unsubstantiated warnings and underutilization of beneficial
treatments”).

This Court should grant review to restore the integrity of
FDA’s regulatory regime in a “case in which the Federal
Government has weighed the competing interests relevant to
the particular requirement in question, reached an unambiguous
conclusion about how those competing considerations should
be resolved in a particular case or set of cases, and implemented
that conclusion via a specific mandate on manufacturers or
producers.” Medtronic Inc. v. Lohr, 518 U.S. 470, 501 (1996).
At least absent newly discovered scientific information
permitting action under section 314.70(a), manufacturers like
Wyeth should not be held liable for adhering to an FDA-
approved label.

Il. The Court Should Grant Review To Clarify the Effect,
If Any, of the Presumption Against Preemption and
Section 202 of the 1962 FDCA Amendments on the
Application of “Obstacle” Conflict Preemption to
Prescription Drug Cases.

Review also would allow the Court to articulate the
analytical framework for applying conflict preemption principles

id

22

to the prescription drug regime when FDA's labeling regime
permits manufacturers to initiate some modifications. Even if
states have some authority to regulate such discretion as FDA
affords to manufacturers, well-establis»ed principles of
preemption forbid states from exercising that authority in a
manner that would obstruct the objectives of federal law.
See McDermott v. Wisconsin, 228 U.S. 115, 132 (1913) (“[T]o
the extent that state law interferes with or frustrates the operation
of the acts of Congress, its provisions must yield to the superior
Federal power. . . .”). This Court has consistently made clear
that conflict preemption analysis requires consideration both
of whether it would be impossible to comply with federal and
state law and of whether the state law would stand as an obstacle
to the objectives of federal law:

The Court has not previously driven a legal wedge -

only a terminological one — between “conflicts” that

prevent or frustrate the accomplishment of a federal

objective and “conflicts” that make it “impossible” for
private parties to comply with both state and federal
law. Rather, it has said that both forms of conflicting
state law are “nullified” by the Supremacy Clause, and

it has assumed that Congress would not want either

kind of conflict.

Geier, 529 U.S. at 873 (citations omitted).

The Vermont Supreme Court majority, however, simply
declined to analyze obstacle preemption. The court determined
that this line of inquiry was foreclosed by sect‘on 202 of the
1962 amendments to the FDCA, which it read as limiting the
operation of preemption to cases in which it ts impossible for a
manufacturer to comply with both state and federal law. App.
22a (“[U]nder any circumstances where it is possible to comply
with both state law and the FDCA the state law in question is
consistent with the purposes and objectives of Congress.”). The
majority attempted to bolster its conclusion by relying on a
“presumption against preemption” of state regulatory powers
in the area of public health. App. 23a-24a.

23

The majority’s construction of section 202’s “direct and
positive” language is mistaken. This Court has made clear that
the existence of such savings clauses specifically designed to
protect the operation of state law does not preclude application
of conflict preemption — including obstacle preemption. See
Geier, 529 U.S. at 373-74 (“The Court has thus refused to read
general “saving” provisions to tolerate actual conflict both in
cases involving impossibility and in frustration-of-purpose
cases. ...” (internal quotation marks and citations omitted)).
Instead of foreclosing conflict preemption, such provisions —
within an otherwise comprehensive regulatory scheme — ave
best read to indicate Congress’s intent merely to preclude field
preemption — on which Wyeth does not rely. See Schneidewind
v. ANR Pipeline Co., 485 U.S. 293, 299-300 (1988).

That is precisely the effect of section 202. Because the 1962
FDCA amendments greatly expanded FDA’s regulatory
authority, there was legitimate concern that Congress might have
been deemed to occupy the field of drug safety. The use of the
phrase “direct and positive” was intended to preclude field
preemption while fully preserving conflict preemption, nothing
more. As the House sponsor of section 202 explained, this
provision “would merely say that this Food and Drug Act shall
not be construed as the intent of Congress to abolish a// State
laws on the same subject where they are not in conflict with the
Federal law.” See 108 Cong. Rec. 21,083 (1962) (statement of
Rep. Smith) (emphasis added). Indeed, courts determining
whether a “direct and positive” conflict exists routinely conduct
both an impossibility conflict and an obstacle conflict
preemption analysis and make clear that this language operates
only to bar field preemption. See, e.g., Sinnot v. Davenport, 63
U.S. (22 How.) 227, 242-43 (1859) (finding “direct and positive”
conflict between federal and state law coasting trade provisions
despite vessel owner’s ability to comply with both and holding
that “if this State law can be upheld, the full enjoyment of the
right to carry on the coasting trade . . . is denied to the vessel in
question”); City of Camden vy. Beretta U.S.A. Corp., 8\ F. Supp.
2d 541, 549 (D.N.J. 2000) (finding that Gun Control Act's

24

“direct and positive conflict” phrase “compels a finding that
the Gun Control Act only may be raised as an ordinary
preemption defense to a conflicting state Jaw, and not as a
jurisdictional bar to all state claims relating to firearms” (internal
quotation marks omitted)).°

The general presumption against preemption does not alter
this result. The presumption is designed to ensure that “the
historic police powers of the States were not to be superseded
by the Federal Act unless that was the clear and manifest purnose
of Congress.” Rice v. Santa Fe Elevator Corp., 33\ U.S. 218,
230 (1947). Importantly, however, this presumption “is not
triggered when the State regulates in an area where there has
been a history of significant federal presence.” United States v.
Locke, 529 U.S. 89, 108 (2000); see also Int'l Paper Co. v.
Ouellette, 479 U.S. 481, 491 (1987) (“[I]t is not necessary for a
federal statute to provide explicitly that particular state laws
are pre-emptec.”). In this regard, FDA has observed that “[i}n
determining the proper role for state law in this context, . . . it is
significant that the federal government has been regulating the
meaufacture and sale of drugs since 1906” — i.e., for more than
a century. Br. of the United States as Amicus Curiae in Support
of Defendants-Appellees (filed Dec. 4, 2006), Colacicco v.
Apotex, Inc., No. 06-3107 (3d Cir.), at 17-18 n.7 (“Colacicco
Br.”). Granting review would enable this Court to make clear
that state courts are not free simply to ignore this Court's settled
“obstacle” conflict preemption doctrine through the overzealous
application either of “direct and posiiive conflict” provisions
or of the presumption against preemption.

The Vermont court should have examined whether the
common law duty imposed on Wyeth posed an obstacle to FDA's

* This Court also has made clear that a federal statute's use of the
term “provision” refers to positive enactments - not tort suit judgments.
See Cippollone v. Liggett Group. Inc., SOS U.S. 504, 518 (1992); see
also Black's Law Dictionary 1262 (8th ed. 2004) (defining “provision”
as “[a] clause im a statute, contract, or other legal instrument”). By its
express terms, section 202 thus would not bar obstacle preemption even
under the Vermont majority's misconstruction.

25

accomplishment of its congressionally mandated regulatory
objectives. Under that analysis, the jury’s verdict is preempted.
As explained supra at 3, Congress specifically charged FDA
with optimizing the use of prescription drugs by balancing their
risks against their benefits to the overall public health. Permitting
state tribunals to impose differing risk-benefit judgments on
manufacturers, and to coerce labeling changes that FDA would
not accept, would defeat congressional intent and lead to
conflicting safety and warning standards imposed through the
backward-looking lens of individual claims instead of the forward-
looking public health determination that Congress mandated.

The facts of this case demonstrate why a state court’s
backward-looking, case-specific focus is inconsistent with
FDA’s broader regulatory perspective. FDA evaluated the risks
associated with IV injection of Phenergan over a period of
decades. Based on its scientific expertise, FDA determined that
the efficacy benefits outweighed the nsks and that physicians
should retain the option to administer Phenergan via IV push,
taking account of the extensive precautions and warnings in the
approved label. App. 167a. FDA’s determinations reflect its
considered judgment that Phenergan’s label reflected the correct
risk-benefit balance and thus would render the drug of greatest
benefit to the greatest number of people. See United States v.
Rutherford, 442 U.S. 544, 555 (1979) (“[FDA] generally
considers a drug safe when the expected therapeutic gain justifies
the risk entailed by its use.”). The Vermont Supreme Court would
allow a jury to disagree with FDA’s risk-benefit assessment and
to override the federal regime by imposing a different labeling
regime on Wyeth.

This 1s a paradigmatic case of state law frustrating the
objectives and purposes of a federal regulatory regime by
foreclosing a treatment option that the federal government has
decided to hold open. As this Court made clear in Geier, such
interference cannot survive constitutional scrutiny. In Geier. this
Court held that a state common law duty to install airbags in all
cars was preempted where federal regulation “deliberateiy

26

provided the manufacturer with a range of choices among
different passive restraint devices.” 529 U.S. at 875. Geier held
that the state duty “would have presented an obstacle to the
variety and mix of devices that the federal regulation sought”
and “‘stood as an obstacle to the general passive restraint phase-
in that the federal regulation deliberately imposed.” /d. at 881;
see also Int'l Paper Co., 479 U.S. at 494 (striking down state
law under conflict preemption that “upset{] the balance of public
and private interests so carefully addressed by the [federal] Act”);
Buckman Co. v. Pls.’ Legal Comm., 531 U.S. 341, 348 (2001)
(observing that FDA uses its authority “to achieve a somewhat
delicate balance of statutory objectives” and that this balance
“can be skewed by allowing” state tort law claims that second-
guess FDA’s enforcement decisions).

Just as the petitioner in Geier could not use tort law to
foreclose choices that the Department of Transportation deemed
appropriate, Vermont here cannot be permitted to disturb the
hierarchy of options for Phenergan administration that FDA
repeatedly chose to preserve in Phenergan’s labeling. This Court
should grant certiorari and reverse the decision below so that
lower courts will undertake the careful review necessary to
determine whether compliance with a state-enforced duty, even
if not expressly foreclosed by federal command, would, as here,
obstruct rather than complement the objectives and purposcs of
FDA regulation.’

’ Bates v. Dow Agrosciences LLC, 544 U.S. 431 (2005), is fully
consistent with this understanding. In Bates, this Court held that federal
law did not expressly preempt “parallel” state law remedies for violation
of federal misbranding law. See 544 U.S. at 449-51. Here, unlike Bates,
Vermont common law secks to provide litigants a cause of action scparate
and distinct from federal law; indeed, the Vermont courts made clear that
Wyeth would be held liable irrespective of its fidelity to the federal labeling
mandate. App. 28a. Accordingly, the reasoning that saved state “parallel
requirements ' from preemption is wholly inapposite here. The Vermont
common law rule and FDA’s labeling regime are not parallel.

we

27

I1l. The Court Should Grant Review To Resolve the Conflict
Concerning the Degree of Deference that Courts Should
Accord FDA’s Formal Position on the Extent to Which
State Tort Law Labeling Judgments Interfere with
FDA’s Labeling Regime.

Finally, this Court should grant review to resolve a lower
court split on whether FDA’s recently expressed judgments with
respect to the adverse impact of state tort suits on its
comprehensive prescription drug labeling regime are entitled
to deference. In its preamble to an amended labeling regulation,
FDA recently reiterated its longstanding view that suits such as
this one obstruct its ability to ensure that prescribers receive
accurate and helpful information about the proper uses of
prescription drugs. See 71 Fed. Reg. at 3935, App. 132a-133a.
The agency has explained why, in its expert judgment, additional
labeling requirements imposed by state law may interfere with
its ability to carry out its congressionally mandated function:

State law actions ... threaten FDA's statutorily
prescribed role as the expert Federal agency responsible
for evaluating and regulating drugs. State actions are
not characterized by centralized expert evaluation of
drug regulatory issues. Instead, they encourage, and in
fact require, lay judges and juries to second-guess the
assessment of benefits versus risks of a specific drug
to the general public — the central role of FDA -
sometimes on behalf of a single individual or group of
individuals. That individualized reevaluation of the
benefits and risks of a product can result in relief --
including the threat of significant damage awards or
penalties - that creates pressure on manufacturers to
attempt to add warnings that FDA has neither approved
nor found to be scientifically required. This could
encourage manufacturers to propose ‘‘defensive
labeling’’ to avoid State liability, which, if implemented,

28

could result in scientifically unsubstantiated warnings

and underutilization of beneficial treatments.
Id. at 3935.

This observation, based on FDA’s expertise and experience,
fully supports FDA’s view that “[s]tate law conflicts with and
stands as an obstacle to achievement of the full objectives and
purposes of Federal law if it purports to preclude a firm from
including in labeling . . . a statement that is included in [FDA-
approved] prescription drug labeling.” /d.; see also id. at 3934
(“FDA approval of labeling under the act, whether it be in the
old or new format, preempts conflicting or contrary State law.”).
For all these reasons, FDA reiterated that it “interprets the act
to establish both a ‘floor’ and a ‘ceiling,’ such that additional
disclosures of risk information can expose a manufacturer to
liability under the act if the additional statement is
unsubstantiated or otherwise false or misleading.” /d. at 3935."

FDA expressed this same view in a number of recent amicus
briefs. See, e.g., Colacicco Br., supra; Letter Br. for FDA (filed
Sept. 21, 2006), Perry v. Novartis Pharms., No. 05-5350 (E.D.
Pa.) (“Perry Br.”). FDA explained therein that, “[i]n that context
of drug labeling, Congress has authorized FDA to use scientific
expertise to determine, in the first instance, what warnings are
appropriate and necessary for a particular drug.” Colacicco Br.,
supra, at 20. Moreover, “[i]f the agency had made a
determination at a relevant time that a particular warning was
unsubstantiated or would otherwise render the drug misbranded,
then federal preemption bars liability for the failure to provide
that warning.” /d. at 23 n.10. Accordingly, “[e}ven if compliance
with both state and federal law in these circumstances would
not be impossible, state tort liability would pose a sufficient

* See Hillsborough County v. Automated Med. Labs., Inc., 47\
U.S. 707, 718 (1985) (confirming that agencies “can speak through a
variety of means, including regulations, preambles, interpretive
statements, and responses to comments”); Fid. Fed Sav. & Loan Ass'n v.
de la Cuesta, 458 U.S. 141, 158 (1982) (looking to regulatory preamble
“for the administrative construction of the regulation, to which ‘deference
is... clearly in order’” (quoting Udall v. Tallman, 380 U.S 1, 16 (1965)).

29

threat to federal regulatory objectives to be preempted under
the Supremacy Clause.” Perry Br., supra, at 10.°

According to the Vermont Supreme Court, “FDA’s
statement is neither an authoritative interpretation of an
ambiguous statutory provision entitled to deference, nor a
persuasive policy statement entitled to respect.” App. 28a
(internal citations omitted); see also Jackson v. Pfizer, Inc. , 432
F. Supp. 2d 964, 968 (D. Neb. 2006) (“The recent notice issued
by the FDA claiming preemption is not persuasive.”). In
particular, the majority refused to credit FDA’s conclusion that
the “direct and positive” language of section 202 did not
foreclose an analysis of state law interference with FDA's
regulatory objectives. App. 135a, 21a.

Other courts have taken a different view of the importance
of FDA’s views on how °tate tort suits conflict with its regulatory
regime and hamper its ability to do its job. See /n re Bextra,
2006 WL 2374742, *6 (“The FDA’s interpretation of the
preemptive effect of its regulations is entitled to deference.”’);
Colacicco v. Apotex, Inc., 432 F. Supp. 2d 514, 525 (E.D. Pa.
2006) (“The FDA’s view is critical to this Court’s analysis
because Supreme Court precedent dictates that an agency’s
interpretation of the statute and regulations it administers is
entitled to deference.”); see also Horn, 376 F.3d at 171 (“[T]he
Supreme Court has instructed us that the FDA’s preemption
determinations are significant and should inform our
interpretation. .. .”).

This latter view is correct - FDA’s substantive interpretation
of its own regulations should be entitled to considerable
deference — not the dismissive treatment given by the Vermont
Supreme Court. See Auer v. Robbins, 519 U.S. 452, 461 (1997)

* See Geier v. Am. Honda Motor Co., 529 U.S. 861, 883 (2000)
(granting deference to the views expressed in an amicus brief submitted
by the Solicitor General); Auer v. Robbins, 519 U.S. 452, 453 (1997)
(“The Secretary’s interpretation is not rendered unworthy of deference
by the fact that it is set forth in an amicus brief; it is not a position
adopted in response to litigation, and there is no reason to suspect that
it does not reflect the Secretary's fair and considered judgment.”).

30

(holding that an agency’s interpretation of its regulations is
“controlling unless plainly erroneous or inconsistent with the
regulation” (internal quotation marks and citation omitted)).
Similarly, FDA is best able to determine what interferes with
its ability to fulfill its statutory mandate, and its views on that
issue also merit substantial deference:

Congress has delegated to [the agency] authority to

implement the statute; the subject matter is technical;

and the relevant history and background are complex

and extensive. The agency is likely to have a thorough

understanding of its own regulation and its objectives

and is “uniquely qualified” to comprehend the likely

impact of state requirements.
Geier, 529 U.S. at 883; see also Thomas Jefferson Univ. v.
Shalala, 512 U.S. 504, 512 (1994) (finding that deference is
especially warranted where agency decisions “require significant
expertise and entail the exercise of judgment grounded in policy
concerns” (internal quotation marks and citation omitted)).

Prescription drug labeling is precisely the type of complex
and technical regulatory regime that warrants deference to the
expertise of the agency that Congress charged with administering
it. See Bates v. Dow Agrosciences LLC, 544 U.S. 431, 455 (2005)
(“As suggested by Medtronic, the federal agency charged with
administering the statute is often better able than are courts to
determine the extent to which state liability rules mirror or distort
federal requirements.”) (Breyer, J., concurring). By disrecarding
FDA's interpretation of its own regulations and its views on the
impact of state tort suits on the agency's regulatory objectives,
the Vermont court committed a crucial error that infected its
entire preemption analysis. The Court should grant review to
correct this error and resolve this split in authority.

CONCLUSION

For the foregoing reasons, this Court should grant the

petition for a writ of certiorari

Respectfully submitted,

ALLAN R. Keyes Bert W. Rein

R. JosepH O’ RourKE Counsel of Record
Ryan, SmitH, Carsine, LTD. Karyn K. ABLIN

98 Merchants Row WILLIAM S. Consovoy
P.O. Box 310 Wiey Rem LLP
Rutland, VT 05702-0310 1776 K Street NW
(802) 786-1000 Washington, D.C. 20006

(202) 719-7000

Attorneys for Petitioner

la

APPENDIX A — OPINION OF THE VERMONT
SUPREME COURT FILED OCTOBER 27, 2006

SUPREME COURT
No. 2004-384
Diana Levine

v.
Wyeth

On Appeal from
Washington Superior Court

October Term, 2005
Geoffrey W. Crawford, J.

Richard I. Rubin and Kerry B. DeWolfe of Rubin, Kidney,
Myer & DeWolfe, Barre, for Plaintiff-Appellee.

Allan R. Keyes and R. Joseph O’Rourke of Ryan, Smith &
Carbine, Ltd., Rutland, and Bert W. Rein, Karyn K. Ablin
and Sarzh E. Botha of Wiley Rein & Fielding LLP, and Daniel
S. Pariser of Arnold & Porter LLP, Washington, D.C., for
Defendant-Appellant.

Present: REIBER, C.J.,. DOOLEY and JOHNSON, JJ., and
MORRIS, D.J., and ALLEN, C.J. (Ret.), Specially Assigned.

2a

Appendix A
JOHNSON, J.

Defendant Wyeth, a drug manufacturer, appeals from a
jury verdict in favor of plaintiff Diana Levine, who suffered
severe injury and the amputation of her arm as a result of
being injected with defendant’s drug Phenergan. Plaintiff
claimed at trial that defendant was negligent and failed to
provide adequate warnings of the known dangers of injecting
Phenergan directly into a patient’s vein. Defendant argues
that the trial court should not have allowed the jury to
consider plaintiff's claims because the claims conflict with
defendant’s obligations under federal law regulating
prescription drug labels. We hold that there is no conflict
between state and federal law that requires preemption of
plaintiff's claim. Defendant also raises two claims of error
relating to the jury instructions on damages. We hold that
the court’s rulings on these jury instructions were correct,
and we affirm.

In April 2000, plaintiff was injected with defendant’s
drug Phenergan at Northeast Washington County Community
Health, Inc. (“the Health Center”). The drug was administered
to treat plaintiff's nausea resulting from a migraine headache.
Plaintiff received two injections. The drug was first
administered by intramuscular injection. Later the same day,
when plaintiff's nausea continued, she received a second dose
by a direct intravenous injection into her arm, using a
procedure known as “IV push.” The second injection resulted
in an inadvertent injection of Phenergan into an artery. As a
result, the artery was severely damaged, causing gangrene.
After several weeks of deterioration, plaintiff's hand and
forearm were amputated.

3a

Appendix A

Plaintiff brought a superior court action for negligence
and failure-to-warn product liability, alleging that defendant’s
inadequate warning of the known dangers of direct
intravenous injection of Phenergan caused her injuries.
During a five-day jury trial, both parties presented expert
testimony regarding the adequacy of the warnings defendant
placed on Phenergan’s label. Plaintiff’s experts testified that
the label should not have allowed IV push as a means of
administration, as it was safer to use other available options,
such as intramuscular injection or administration through the
tubing of a hanging IV bag. Defendant’s expert testified that
allowing IV push with instructions cautioning against
inadvertent arterial injection was sufficient. The court
instructed the jurors that they could consider the FDA’s
approval of the label in use at the time of plaintiff's injury,
but that the label’s compliance with FDA requirements did
not establish the adequacy of the warning or prevent
defendant from adding to or strengthening the warning on
the label. At the conclusion of the trial, the jury found in
favor of plaintiff on both the negligence and product-liability
claims and awarded her $2.4 million in economic damages
and $5 million in non-economic damages. Pursuant to the
parties’ stipulation, this award was reduced to a total of
$6,774,000 to account for pre-judgment interest and
plaintiff's recovery in a settlement of a separate action she
had filed against the Health Center.

In a summary judgment motion prior to trial, as well as
in its timely motion for judgment as a matter of law following
trial, both of which the superior court denied, defendant
argued that federal law preempted plaintiff's claim. These
arguments rested in part on defendant’s contention that it

4a

Appendix A

had submitted an adequate warning to the FDA, but that the
FDA rejectedthe change because it did not favor
strengthening the warning.' Plaintiff contended that neither
warning would have been adequate. The trial court stated, in

1. The warning on the label that was in use in 2000 read in
relevant part:

INADVERTENT INTRA-ARTERIAL INJECTION: Due to the
close proximity of arteries and veins in the areas most commonly
used for intravenous injection, extreme care should be exercised to
avoid perivascular extravasation or inadvertent intra-arterial
injection. Reports compatible with inadvertent intra-arterial injection
of [Phenergan], usually in conjunction with other drugs intended for
intravenous use, suggest that pain, severe chemical irritation, severe
spasm of distal vessels, and resultant gangrene requiring amputation
are likely under such circumstances. Intravenous injection was
intended in all the cases reported but perivascular extravasation or
arterial placement of the needle is now suspect. There is no proven
successful managemert of this condition after it occurs. . . .

When used inti enously [Phenergan] should be given in a
concentration no greater than 25 mg per ml and at a rate not to exceed
25 mg per minute. WHEN ADMINISTERING ANY IRRITANT
DRUG INTRAVENOUSLY IT IS USUALLY PREFERABLE TO
INJECT IT THROUGH THE TUBING OF AN INTRAVENOUS
INFUSION SET THAT IS KNOWN TO BE FUNCTIONING
SATISFACTORILY.

(Emphasis added.) The revised warning the FDA failed to adopt
read in relevant part:

INADVERTENT INTRA-ARTERIAL INJECTION: There are
reports of necrosis leading to gangrene, requiring amputation,
(Cont'd)

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Appendix A

its decision on defendant’s motion for judgment as a matter
of law, that although the FDA had rejected a new warning,
the agency’s “brief comment” failed to explain its reasoning
or demonstrate that it “gave more than passing attention to
the issue of whether to use an IV infusion to administer the
drug. The proposed labeling change did not address the use
of a free-flowing IV bag.” The court concluded that there
was “no basis for federal preemption” and upheld the jury’s
verdict.

Defendant claims the superior court erred by: (1) failing
to dismiss plaintiff's claim on the basis that the Food and
Drug Administration’s approval of the Phenergan label

(Cont'd)

following injection of [Phenergan], usually in conjunction with other
drugs; the intravenous route was intended in these cases, but arterial
or partial arterial placement of the needle is now suspect. . . .

There is no established treatment other than prevention:

1. Beware of the close proximity of arteries and veins at
commonly used injection sites and consider the possibility of aberrant
arteries.

2. When used intravenously, |[Phenergan] should be given in a
concentration no greater than 25 mg/ml and a rate not to exceed 25
mg/minute. INJECTION THROUGH A PROPERLY RUNNING
INTRAVENOUS INFUSION MAY ENHANCE THE POSSIBILITY
OF DETECTING ARTERIAL PLACEMENT. IN ADDITION, THIS
RESULTS IN DELIVERY OF A LOWER CONCENTRATION OF
ANY ARTERIOLAR IRRITANT.

(Emphasis added.)

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Appendix A

preempted state common law claims that the label was
inadequate; (2) failing to instruct the jury to reduce plaintiff's
damages by the amount of fault attributable to the Health
Center; and (3) failing to instruct the jury to calculate the
present value of plaintiff's damages for future non-economic
losses. We reject these claims of error, and we affirm.

I. Federal Preemption

Defendant’s principal argument on appeal is that the
court should have dismissed plaintiff's claim because it was
preempted by federal law. Defendant asserts that any state
common law duty to provide a stronger warning about the
dangers of administering Phenergan by IV push conflicts with
the FDA’s approval of the drug’s label. As preemption is a
question of law, we review the trial court’s decision de novo.
Office of Child Support v. Sholan, 172 Vt. 619, 620, 782
A.2d 1199, 1202 (2001) (mem.). We hold that the jury’s
verdict against defendant did not conflict with the FDA’s
labeling requirements for Phenergan because defendant could
have warned against IV-push administration without prior
FDA approval, and because federal labeling requirements
create a floor, not a ceiling, for state regulation.

The United States Constitution provides that federal law
is the supreme law of the land. U.S. Const. art. V1, cl. 2. The
Supremacy Clause is the basis for the doctrine of preemption,
according to which “state law that conflicts with federal law
is ‘without effect.”” Cipollone v. Liggett Group, Inc., 505
U.S. 504, 516, 112 S.Ct. 2608, 120 L.Ed.2d 407 (1992)
(quoting Maryland v. Louisiana, 451 U.S. 725, 746, 101 S.Ct.
2114, 68 L.Ed.2d 576 (1981)). In Cipollone, the Court

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Appendix A

described the relevant analysis for determining whether
Congress intended a federal statute to preempt state law:

Congress’ intent may be explicitly stated in the
statute’s language or implicitly contained in its
structure and purpose. In the absence of an express
congressional command, state law is pre-empted
if that law actually conflicts with federal law, or
if federal law so thoroughly occupies a legislative
field as to make reasonable the inference that
Congress left no room for the States to supplement
it.

Id. (quotations and citations omitted). Absent clear
congressional intent to supersede state law, including state
common law duties, there is a presumption against
preemption. Medtronic, Inc. v. Lohr, 518 U.S. 470, 485, 116
S.Ct. 2240, 135 L.Ed.2d 700 (1996) (“[B]ecause the States
are independent sovereigns in our federal system, we have
long presumed that Congress does not cavalierly pre-empt
state-law causes of action.”’); Cipollone, 505 U.S. at 516
(“Consideration of issues arising under the Supremacy Clause
‘start|s] with the assumption that the historic police powers
of the States [are] not to be superseded by ... Federal Act
unless that [is] the clear and manifest purpose of Congress.’”
(quoting Rice v. Santa Fe Elevator Corp., 331 U.S. 218, 230,
67 S.Ct. 1146, 91 L.Ed. 1447 (1947))). This presumption
has “add[{ed] force” when there has been a “long history of
tort litigation” in the area of state common law at issue. Bates
v. Dow Agrosciences LLC, 544 U.S. 431, 449, 125 S.Ct. 1788,
161 L.Ed.2d 687 (2005).

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Appendix A

Defendant concedes that Congress has not expressly
preempted state tort actions through the Food, Drug and
Cosmetics Act (FDCA), 21 U.S.C. 4 4 301-399, and that
Congress did not intend ‘he FDCA to occupy the entire field
of prescription drug regulation. Rather, it asserts that
plaintiff's action “actually conflicts with federal law.”
Cipollone, 505 U.S. at 516. This requires defendant to show
either that “it is impossible for a private party to comply
with both state and federal requirements,” or that Vermont’s
common law “stands as an obstacle to the accomplishment
and execution of the full purposes and objectives of
Congress.” Freightliner Corp. v. Myrick, 514 U.S. 280, 287,
115 S.Ct. 1483, 131 L.Ed.2d 385 (1995) (quotations and
citations omitted).

Defendant presents two alternative bases for its assertion
of conflict preemption: (1) in the specific context of the
Phenergan label, the FDA was aware of the dangers of IV-
push administration and specifically ordered defendant to
use the warning it used, making it impossible for defendant
to comply with both its state common-law duty and the
requirements of federal law; and (2) by penalizing drug
companies for using FDA-approved wording on drug labels,
state tort claims like plaintiffs present an obstacle to the
purpose of the FDA’s labeling regulations. Before reaching
these issues, we briefly examine the FDA’s role in regulating
prescription drug labels and the general approach courts have
taken to the preemptive effect of federal labeling
requirements.

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Appendix A
A. Regulatevy Background

Prior to distributing a prescription drug such as
Phenergan, the manufacturer must submit a New Drug
Application (NDA) for FDA approval. 21 U.S.C, 4 355(a).
The FDA must approve the application unless it fails to meet
certain criteria, including whether test results and other
information establish that the drug is “safe for use under the
conditions prescribed, recommended, or suggested in the
proposed labeling thereof,” whether there is “substantial
evidence that the drug will have the effect it purports or is
represented to have under the conditions of use prescribed,
recommended, or suggested in the proposed labeling thereof,”
and whether, “based on a fair evaluation of al] material
facts, such labeling is false or misleading in any particular.”
Id. 4 355(d).

“FDA regulations mandate the general format and
content of all sections of labels for all prescription drugs as
well as the risk information each section must contain,” and
“{f]inal approval of the NDA is ‘conditioned upon the
applicant incorporating the specified labeling changes exactly
as directed, and upon the applicant submitting to FDA a copy
of the final printed label prior to marketing.”” McNellis v.
Pfizer, Inc., 2005 WL 3752269, at *4 (D.N.J.) (citing 21
C.F.R. 4 201.56, 201.57, and quoting 21 C.F.R. 314.105(b)).
Once a drug and its label have been approved, any changes
to the label ordinarily require submission and FDA approval
of a “Supplemental NDA.” /d.; 21 C.F.R. 314.70(b)(2)(v)(A).

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Appendix A

If the NDA process and the submission of changes for
FDA approval were the exclusive means of creating and
altering prescription drug labels, this might be a very different
case. A key FDA regulation, however, allows a drug’s
manufacturer to alter the drug’s label without prior FDA
approval when necessary. The regulation provides in relevant
part:

(6) The agency may designate a category of changes
for the purpose of providing that, in the case of a change
in such category, the holder of an approved application
may commence distribution of the drug product
involved upon receipt by the agency of a supplement
for the change. These changes include, but are not
limited to:

(111) Changes in the labeling ... to accomplish any
of the following:

(A) To add or strengthen a contraindication,
warning, precaution, or adverse reaction;

(B) To add or strengthen an instruction about
dosage and administration that is intended to
increase the safe use of the drug product{.]

21 C.F.R. § 314.70(c).

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Appendix A

Section 314.70(c) creates a specific procedure allowing
drug manufacturers to change labels that are insufficient to
protect consumers, despite their approval by the FDA. “The
FDA’s approved label ... can therefore be said to set the
minimum labeling requirement, and not necessarily the
ultimate label where a manufacturer improves the label to
promote greater safety.” McNellis, 2005 WL 3752269, at *5.°
While specific federal labeling requirements and state
common-law duties might otherwise leave drug
manufacturers with conflicting obligations, 4 314.70(c)
allows manufacturers to avoid state failure-to-warn claims
without violating federal law. /d. (“[I]t is apparent that prior
FDA approval need not be obtained, nor will a product be
deemed mislabeled, if the manufacturer voluntarily or even
unilaterally strengthens the approved warnings, precautions
or potential adverse reactions upon the label pursuant to 21
C.F.R. § 314.70(c)(6)(ii1)(A).”). There is thus no conflict
between federal labeling requirements and state failure-to-
warn claims. Section 314.70(c) allows, and arguably
encourages, manufacturers to add and strengthen warnings
that, despite FDA approval, are insufficient to protect
consumers. State tort claims simply give these manufacturers
a concrete inceritive to take this action as quickly as possible.

B. Conflict Preemption in Other Jurisdictions

In light of the leeway created by 4 314.70(c) for drug
manufacturers to add warnings, courts have been nearly
unanimous in holding that state failure-to-warn tort claims
do not conflict with federal law. See, e g., McNellis, 2005
WL 3752269, at *7 (“[T]he FDCA and the FDA’s regulations
do not conflict with New Jersey's failure to warn law because

12a

Appendix A

those federal regulations merely set minimum standards with
which manufacturers must comply.”). McNellis is the latest
in a series of recent cases addressing this issue as it relates
to the anti-depressant Zo/oft, which allegedly increases the
risk of suicide in some patients. See id., at *7-8 (denying
summary judgment and rejecting conflict preemption in
Zoloft case); accord Zikis v. Pfizer, Inc., 2005 WL 1126909,
at *2-3 (N.D.III.); Witczak v. Pfizer, Inc., 377 F.Supp.2d 726,
729-30 (D.Minn.2005); Motus v. Pfizer, Inc., 127 F.Supp.2d
1085, 1096-1100 (C.D.Cal.2000); see also Cartwright v.
Pfizer, Inc., 369 F.Supp.2d 876, 882 (E.D. Tex. 2005) (“With
little exception, courts that have considered this exact issue
have concluded that state failure to warn claims are not
preempted by the FDCA and its attendant regulations.”).
Contra Needleman vy. Pfizer, Inc., 2004 WL 1773697, at *1
(N.D. Tex.) (granting summary judgment to the defendant
on basis of conflict preemption).

The Zoloft cases are representative of a general rule that
FDA approval of a drug’s label does not preempt state failure-
to-warn claims. See, e.g., Eve v. Sandoz Pharm. Corp., 2002
WL 181972, at *1-3 (S.D.Ind.) (rejecting conflict preemption
of failure-to-warn claim regarding the drug Parlodel);
Caraker v. Sandoz Pharm. Corp., 172 F.Supp.2d 1018, 1032
(S.D.111.2001) (same); Bryant v. Hoffman-La Roche, Inc. , 262
Ga.App. 401, 585 S.E.2d 723, 725 (Ga.Ct.App.2003) (heart
medication); Bell v. Lollar, 791 N.E.2d 849, 854-55
(Ind.Ct.App.2003) (prescription pain medication); Kurer v.
Parke, Davis & Co., 2004 WI App 74, 21, 272 Wis.2d 390,
679 N.W.2d 867 (oral contraceptive). But see Eh/is v. Shire
Richwood, Inc., 233 F.Supp.2d 1189, 1198 (D.N.D.2002)
(granting summary judgment to defendant on basis of conflict
preemption of claim regarding the drug Adderall).

l3a

Appendix A

Defendant cites two cases, Needleman and Ehlis, that
support the preemptive effect of the FDCA in failure-to-warn
cases regarding prescription drug labels. Needleman, 2004
WL 1773697, at *1; Ehlis, 233 F.Supp.2d at 1198. Needleman
is not perticularly helpful under the circumstances here. Its
holding relied on the facts of the Zo/oft litigation, particularly
an FDA statement that the warning advocated by the plaintiff
would have been misleading. 2004 WL 1773697, at *1. The
courts in the other Zoloft cases took a different approach to
the FDA’s statement, in part because the FDA’s statement
was not “an official agency position,” and in part because
the FDA later retracted its position regarding the link between
Zoloft and suicide. See, e.g., Witczak, 377 F.Supp.2d at 730.
Here, the FDA has not indicated that a stronger warning
would be misleading, so the reasoning of Needleman appears
inapplicable to this case. Ehlis interpreted 4 314.70(c) as
allowing unapproved changes to a label only temporarily,
and only under “limited circumstances.” 233 F.Supp.2d at
1197-98. We can find no support for this interpretation in
the language of the regulation, which appears to allow
unilateral changes to drug labels whenever the manufacturer
believes it will make the product safer, and places no limit
on the duration of pre-approval warnings unless the FDA
disapproves of the change. 21 C.F.R. 4 314.70(c).

Defendant next attempts to draw a comparison to the
regulation of medical devices under the FDCA, citing medical
device cases in which state tort law has been preempted. See
Buckman Co. v. Plaintiffs’ Legal Comm., 531 U.S. 341, 348,
121 S.Ct. 1012, 148 L.Ed.2d 854 (2001) (holding that “fraud-
on-the-FDA” claim relating to device regulated by Medical
Device Amendments to FDCA was preempted); Horn v.

l4a

Appendix A

Thoratec Corp., 376 F.3d 163, 177 (3d Cir.2004) (holding
that failure-to-warn claim was preempted by Medical Device
Amendments). We find this analogy unpersuasive. Neither
Buckman nor Horn weakens the force of the drug-labeling
cases cited above. The claim that was preempted in Buckman
was for “fraud on the FDA,” not failure to warn; the Court
held that the presumption against preemption applies only
when a claim implicates “‘the historic primacy of state
regulation of health and safety,” which is not the case when
the claim arises from a federal statute. 531 U.S. at 347-48
(quoting Medtronic, 518 U.S. at 485). Plaintiff's negligence
and product-liability claims fall squarely withn the scope of
traditional state regulation, so it is appropriate to apply the
presumption against preemption here. In Horn, the Third
Circuit relied on an express preemption clause in the FDCA
that relates only to medical devices. 376 F.3d at 176. Because
no such clause exists for prescription drugs, Horn’s reasoning
does not apply to this case.

Finally, defendant cites a third group of cases relating
generally to the United States Supreme Court’s recent use of
conflict preemption in other fields. This argument relies
primarily on Geier v. American Honda Motor Co., 529 U.S.
861, 120 S.Ct. 1913, 146 L.Ed.2d 914 (2000). In Geier, the
Court held that state tort claims based on the production of
automobiles without airbags conflicted with federal
regulations making airbags one of several permissible safety
equipment options. 529 U.S. at 881. Geier, however, rested
on the conclusion that the Department of Transportation’s
intent in drafting the regulation at issue was to provide a
range of different safety options, thus precluding any state
determination that a specific type of equipment should be

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Appendix A

required. /d. The history of the regulation at issue indicated
that the agency intended to phase in automobiie safety
requirements gradually, allowing the public to choose
between mandatory seatbelt laws at the state level and a
federal passive-restraint requirement. /d. at 880-81. Allowing
state tort claims based on the lack of a particular safety
mechanism would have conflicted with both the agency’s
phase-in plan and its intent to provide consumers with a range
of safety options. /d. at 881. The Court explicitly stated that
in a different context, an agency could promulgate regulations
that provided a floor, but not a ceiling, for state regulation.
Id. at 870.

The FDA’s labeling requirements are exactly that type
of regulation. Section 314.70(c) does not allow us to interpret
FDA approval of a drug label as anything but a first step in
the process of warning consumers. When further warnings
become necessary, the manufacturer is at least partially
responsible for taking additional action, and if it fails to do
so, it cannot rely on the FDA’s continued approval of its labels
as a shield against state tort liability. While a state common-
law duty may encourage departure from a label that the FDA
has approved in great detail, such a duty does not create a
conflict with federal requirements because the FDA and the
state share the purpose of encouraging pharmaceutical
companies to alter their drug labels when they are inadequate
to protect consumers. We agree with the significant majority
of courts that state failure-to-warn claims are generally not
preempted by federal labeling requiremenis.

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Appendix A

We must now apply this reasoning to defendant’s two
original contentions: (1) notwithstanding the fact that it is
generally possible for manufacturers to comply with both
federal and state law through the procedures created by
314.70(c), the FDA’s specific actions with respect to
Phenergan made it impossible for defendant to comply with
both federal and state law; and (2) even if plaintiff's claim
and the cases cited above do not make it impossible for
manufacturers to comply with both state and federal law, they
present an obstacle to federal objectives.

C. Impossibility of Compliance

Defendant contends that in this case, it was impossible
to comply with both state and federal law because the FDA
prohibited the use of a stronger warning with respect to IV-
push administration of Phenergan. This claim is not supported
by the evidence defendant presented to the trial court. The
record lacks any evidence that the FDA was concerned that
a stronger warning was not supported by the facts, that such
a stronger warning would distract doctors from other
provisions in the drug’s label, or that the warning might lead
to less effective administration of the drug. Instead, defendant
essentially relies on two factual assertions: 1) the FDA
approved the label that was in use in 2000; and 2) the FDA,
in reviewing the label for use in a different version of
Phenergan, expressed its opinion of the adequacy of the
warning in the original label by stating, “Retain verbiage in
current label.” AB 5, 5 n. 7

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Appendix A

With respect to defendant’s first assertion, our analysis
above demonstrates that FDA approval of a particular label
does not preempt a jury finding that the label provided
insufficient warning, as defendant was free under 4 314.70(c)
to strengthen the warning without prior FDA approval.
Defendant’s second assertion depends on the meaning of the
instruction, “[rjetain verbiage in current label.” Tort liability
for defendant’s failure to strengthen its warningcould have
created a direct conflict requiring federal preemption only if
the FDA intended the instruction to prohibit any language
strengthening the original warning. In other words, unless
we interpret the FDA’s statement as evidence that it would
have rejected any attempt by defendant to strengthen its label
through 4 314.70(c), we cannot conclude that it was
impossible for defendant to comply with its state common-
law duty without violating federal law.

Defendant argues that the instruction reflected the FDA’s
opinion not only that a stronger warning was unnecessary,
but also that it would have harmed patients by eliminating
IV push as an option for administering Phenergan. The record
does not support this interpretation. Defendant has provided
a number of letters exchanged by the FDA and defendant
regarding Phenergan’s label, but these letters do not indicate
the FDA’s opinion of the value of I[V-push administration.
Neither the letters nor any other evidence presented to the
jury indicated that the FDA wished to preserve the use of IV
push as a method of administering Phenergan. Nor can we
infer such concern from the agency’s instruction to “[r]etain
current verbiage” instead of adopting the proposed warning.
The specific warning the agency rejected in favor of the
original label did not indicate any more clearly than the

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Appendix A

original label that IV-push administration was unsafe, which
is what plaintiff argued made the original label inadequate.
The FDA could have rejected the new warning for any number
of reasons, including clarity or technical accuracy, without
implicitly prohibiting a stronger warning. Defendant’s
unsupported hypothesis that the FDA saw the new warning
as harmful seems among the least likely explanations, as the
rejected proposal would not have eliminated IV push as an
option for administering Phenergan.’ With respect to IV
administration, the original label read, “When administering
any irritant drug intravenously it is usually preferable to inject
it through the tubing of an intravenous infusion set that is
known to be functioning satisfactorily,” while the proposed
label stated, “[i]njection through a properly running
intravenous infusion may enhance the possibility of detecting
arterial placement. In addition, this results in delivery of a
lower concentration of any arteriolar irritant.” See supra 4 n.
| (comparing proposed and original warnings). Simply stated,
the proposed warning was different, but not stronger. It was

2. The dissent appears to interpret any warning that would
eliminate IV-push administration as inherently inconsistent with the
FDA's approval of Phenergan for |V administration in general. We
see no such inconsistency, as an approval of a drug for IV
administration is not the same as a conclusion that all methods of IV
administration are safe. In any case, a jury verdict in a failure-to-
warn case simply establishes that the relevant warning was
insufficient; it does not mandate a particular replacment warning.
There may have been any number of ways for defendant to strengthen
the Phenergan warning without completcly eliminating I1V-push
adininistration. Our purpose in pointing out that the proposed warning
the FDA rejected did not eliminate IV push is simply that rejecting
this warning could not be seen as an affirmative effort by the FDA
to preserve IV push as an option.

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Appendix A

also no longer or more prominent than the original warning,
so it could not have raised a concern that it might overshadow
other warnings on the label or drive doctors away from
prescribing the drug. There is no evidence that the FDA
intended to prohibit defendant from strengthening the
Phenergan \abel pursuant to 4 314.70(c).’ Thus, we cannot
conclude that it was impossible for defendant to comply with
its obligations under both state and federal law.

D. Obstacle to Congressional Purposes and Objectives

Defendant next contends that state common-law liability
for its use of an FDA-approved label presents an obstacle to
federal objectives. We hold that plaintiff's claim does not
interfere with any objective that can legitimately be ascribed
to Congress. We agree with the reasoning in the cases cited
above, supra 14-15, that federal labeling requirements
pursuant to the FDCA create a floor, not a ceiling, for state
regulation. Defendant presents a new FDA rule containing
language disputing this reasoning, but this statement does
not alter our conclusion that there is no conflict between
federal objectives and Vermont common law.

3. We also reject defendant's argument that it would have been
prosecuted for “misbranding” if it had strengthened the label without
prior approval. See Witczak, 377 F.Supp.2d at 731, 729 (“[T]he
validity and authority of state law ... does not depend on speculative
hypotheticals” regarding “assumptions of what the FDA would have
done™ in response to a stronger warning. ).

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Appendix A

1. The Purposes and Objectives of Congress

In the absence of a conflict that makes it impossible for
a regulated entity to comply with both state and federal law,
federal law will preempt state law only if it “stands as an
obstacle to the accomplishment and execution of the full
purposes and objectives of Congress.” Freightliner, 514 U.S.
at 287 (quotations omitted). We must therefore examine what
“the full purposes and objectives of Congress” were with
respect to federal labeling requirements for prescription
drugs. We agree with the McNellis court that a system under
which “federal regulations merely set minimum standards
with which manufacturers must comply” is

fully consistent with Congress’ primary goal in
enacting the FDCA, which is “to protect
consumers from dangerous products,” United
States v. Sullivan, 332 U.S. 089, 696, 68 S.Ct. 331,
92 L.Ed. 297 (1948), as well as Congress’ stated
intent that the FDCA “‘must not weaken the
existing laws,’ but on the contrary ‘it must
strengthen and extend that law’s protection of the
consumer.’” United States v. Dotterweich, 320
U.S. 277[, 282] (1943) [quoting S.Rep. No. 152,
75th Cong., Ist Sess., p. |].

2005 WL 3752269, at *7; see also Witczak, 377 F.Supp.2d
at 731 (“Congress certainly did not intend to bar drug
companies from protecting the public when enacting the
FDCA; its goal was to protect the public.... Any contrary
interpretation of Congress's intent is perverse.”).

a4

2la

Appendix A

In fact, Congress has expressed its purposes clearly, not
only in the general sense that the statute was intended to
“protect the public,” but also more specifically, with respect
to the FDCA’s preemptive effect. In the 1962 amendments
to the FDCA, Congress included a clause expressly limiting
the preemptive effect of the statute: “Nothing in the
amendments made by this Act to the Federal Food, Drug.
and Cosmetic Act shall be construed as invalidating any
provision of State law ... unless there 1s a direct and positive
conflict between such amendments and such provision of
State law.” Drug Amendments of 1962 (Harris Kefauver Act),
Pub.L. No. 87 781, 4 202, 76 Stat. 780, 793 (1962).

This amendment essentially removes from our
consideration the question of whether common-law tort
claims present aa obstacle to the purposes and objectives of
Congress. Congress intended that the FDCA would leave
state law in piace except where it created a “direct and
positive conflict” between state and federal law. Drug
Amendments 4 202. This language “simply restates the
principle that state law is superseded in cases of an actual
conflict with federal law such that ‘compliance with both
federal and state regulations is a physical impossibility.””
See S. Blasting Servs., Inc. v. Wilkes County, 288 F.3d 584,
591 (4th Cir.2002) (interpreting “direct and positive conflict”
language in the preemption clause of a federal statute
governing explosive materials to allow states to “impose
more stringent requirements than those contained in the
federal regulations”) (quoting Hillshorough County v.
Automated Med. Labs., Inc., 471 U.S. 707, 713, 105 S.Ct.

22a

Appendix A

2371, 85 L.Ed.2d 714 (1985)).* In other words, under any
circumstances where it is possible to comply with both state
law and the FDCA, the state law in question is consistent
with the purposes and objectives of Congress. Thus, our

4. The debate surrounding the amendment helps confirm that
it was intended to preserve the right of states to regulate beyond the
federal requirements of the FDCA. During the floor debate in the
House, the subject of preemption arose several times. First,
Congressman Smith of California expressed concern that the bill, as
reported, contained “no language ... which says anything to the effect
that this particular measure will not preempt all State food and drug
laws,” and thus, might risk interfering with the efforts of some states
to make their own, stricter regulations. 108 Cong. Rec. 21046 (1962)
(“[I]t seems to me that if we are going to pass this law, someone
ought to offer an amendment to make certain that the passage of this
bill, which gives all of this power to the Department of Health,
Education, and Welfare and the Food and Drug Administration, will
not preempt any State laws”). Shortly thereafter, Congressman Harris
of Arkansas, the primary House sponsor of the bill, offered his
opinion that “there is nothing in this bill that in any way preempts
the authority and prerogatives of the States.” /d. at 21047.
Congressman Schenck of Ohio agreed, stating, “[m]Jany very helpful
State laws are in effect; many such laws in some instances are even
stronger than Federal laws for the protection of human health in the
public interest.” /d. at 21056.

Congressmen Schenck and Harris, despite insisting that the bill
as written would not preempt stronger state laws, eventually
supported the “direct and positive conflict” amendment, and Schenck
reiterated that preemption should not apply in the “many instances
where State laws in the area of food and drugs and health are even
stronger than some of the Federal laws.” /d. at 21083. Neither the
desirability of allowing states to regulate beyond the FDCA nor the
intent of the amendment to protect such regulation from preemption
was called into question during the debate.

23a

Appendix A

discussion above regarding defendant’s impossibility
argument, supra 21-23, provides a complete answer to the
question of preemption.

We recognize that our dissenting colleague has reached
the opposite conclusion. There is little to say, beyond what
we have already said, except that we respectfully disagree
with his analysis of the FDCA, the FDA’s regulations, and
the specific context of this lawsuit. Numerous courts have
concluded, over the course of decades, that the FDCA
provides a floor, not a ceiling, for state regulation. See supra,
14-15. While the dissent cites favorably the minority view,
we agree with the majority view. There is much to be said
for the policy arguments employed by courts adopting this
minority view, including the argument that permitting too
much state activity in this area will make beneficial dmgs
less available to consumers. Similarly, there is merit to the
majority perspective that eliminating lawsuits like the one
at issue here would leave consumers without recourse in the
event the FDA cannot move quickly enough to require
strengthened warnings when they are appropriate. Our view
is that neither policy argument is relevant here. The plain
language of the statute indicates that Congress did not intend
to interfere with state prerogatives except where doing so is
absolutely necessary, see supra, 25-27, and the plain language
of the regulation makes such interference unnece *ary here,
see supra, 12-13. This analysis is consistent with the
constitutionally rooted presumption against preemption. To
look more broadly at arguments relying on assumptions about
safety and economic efficiency is to apply the opposite
presumption-the presumption that Congress could not
possibly have intendec' to allow states to intrude on what

24a

Appendix A

seers, intuitively, to be an area of federal expertise. It is
weither our responsibility, nor that of the FDA, to question
the policy judgments of Congress. The litigation at issue here
does not pose a direct and positive conflict with federal law,
and thus, there is no basis for federal preemption.

2. The FDA’s New Statement on Preemption

Defendant, after oral argument in this case, cited a new
FDA regulation that contains a statement relating to the
preemptive cffect of the FDCA. The substance of the
regulation changes certain aspects of labeling requirements
for prescription drugs, but these changes are irrelevant to
this appeal because the new rule did not take effect until
June 2006. Food and Drug Administation, Requirements on
Content and Format of Labeling for Human Prescription
Drug and Biological Products, Supplementary Information,
71 F d.Reg. 3922, 3922 (Jan. 24, 2006). The rule’s
“Supplementary Information” section, however, contains a
broad statement regarding the preemption of state common-
law failure-to-warn claims. /d. at 3933-36. In this statement,
the FDA asserts that recent cases rejecting preemption of
these claims, including those cited above, pose an obstacle
to the agency’s enforcement of the labeling requirements.
Id. Among the interpretations the agency claims are incorrect
are: (1) those rejecting preemption on the basis of 4 314.70(c);
and (2) those stating that federal labeling requirements are
minimum standards and that “[s]tate law serves as an
appropriate source of supplementary safety regulation for
drugs by encouraging or requiring manufacturers to
disseminate risk information beyond that required by FDA
under the act.” /d. at 3934.

25a

Appendix A

We are ordinarily required to defer to an agency’s
interpretation of a statute it administers. Chevron, U.S.A.,
Inc. v. Natural Res. Def. Council, 467 U.S. 837, 844, 104
S.Ct. 2778, 81 L.Ed.2d 694 (1984) (“We have long
recognized that considerable weight should be accorded to
an executive department’s construction of a statutory scheme
it is entrusted to admuinister....”). Plaintiff, however, urges
us noi to defer to the FDA's statement because it “was adopted
without the requisite comment period” and “lack[s] the force
of law.” Presumably, if we were to credit plaintiff's argument,
we would owe the statement only the limited deference due
to agency statements made outside the agency's rulemaking
authority. See United States v. Mead Corp., 533 U.S. 218,
226-27, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001) (stating
that Chevron deference applies only “when it appears that
Congress delegated authority to the agency generally to make
rules carrying the force of law, and that the agency
interpretation claiming deference was promulgated in the
exercise of that authority”). We need not decide this difficult
question of administrative law, however, because we
conclude that irrespective of the level of deference we might
apply, the statement woul? not affect the outcome of this

appeal.

Under Chevron, deference to an agency’s interpretation
is appropriate only when a statute is “silent or ambiguous
with respect to the specific issue” the agency has considered;
otherwise, “the court, as well as the agency, must give effect
to the unambiguously expressed intent of Congress.” $67
U.S. at 842-43. Moreover, “[t}he judiciary is the final
authority on issues of statutory construction and must reject
administrative constructions which are contrary to clear

/

26a

Appendix A

congressional intent.” /d. at 843 n. 9. “If a court, employing
traditional tools of statutory construction, ascertains that
Congress had an intention on the precise question at issue,
that intention is the law and must be given effect.” Jd. When
an agency's interpretation is not the type of interpretation
entitled to Chevron deference, we must still grant it some
respect, but only “a respect proportional to its ‘power to
persuade.’” Mead, 533 U.S. at 235 (quoting Skidmore v. Swift
& Co., 323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124 (1944)).

Under either standard, the FDA’s statement deserves no
defereuce. We have already concluded, supra 26-27, that
Congress intended the FDCA to preempt only those state
laws that would make it impossible for manufacturers to
comply with both federal and state requirements. Nothing in
the FDA’s new statement alters our conclusion that it would
be possible for defendant to comply with both its federal
obligations and the obligations of state common law. The
regulatory framework for prescription drug labeling allows
drug manzfacturers to add or strengthen a warning “to
increase the safe use of the drug product” without prior
FDA approval. See supra 10-13 (citing 21 C.F.R.
{ 314.70(c)(6)(iti)(C)). Even if the new rule eliminated or
altered this provision, the change in the regulation did not
take effect until June 2006.° Without such a change, it is
possible for manufacturers to comply with beth FDA
regulations and duties imposed by state common law, and

there is no “direct and positive conflict” between state and
federal law.

5. The only alteration the new rule appears to make to © 314.70
is that changes to the new “Highlights” section of a drug labe! may
not be made without prior approval. 71 Fed.Reg. at 3934.

27a

Appendix A

The FDA does not attempt to establish such a conflict or
explain the inconsistency between its position and the
language of the preemption amendment. The statement cites
the amendment, but then proceeds as if Congress had not
spoken on the issue of preemption. The agency relies on Geter
to support its disregard of Congress’s “direct and positive
conflict” language, asserting that “[t]he existence of a
legislative provision addressing pre-emption does not bar the
operation ofordinary principles of implied preemption.” 71
Fed.Reg. at 3935 (citing Geier, 529 U.S. at 869). Geier does
state that implied preemption applies even when a statute
addresses preemption expressly, 521 U.S. at 869, but it does
not allow courts or agencies to preempt state laws that have
been expressly preserved by Congress. Instead, it simply
stands for the proposition that Congress’s intent not to
preempt a provision of state law cannot be inferred from
either (1) an express preemption clause that does not include
the state law in question in its scope, or (2) a clause that
prevents regulated entities from using compliance with
federal law as a defense in state common-law suits. /d. at
869-70. According to Geier, the former clause does not
support a negative inference that Congress must have
intended to preserve laws it did not expressly preempt; the
latter indicates only that Congress intended to preserve some
common-law claims, not that it intended to allow even claims
that conflict with federal requirements. /d. But see id. at 870
(stating that even the latter clause would “preserve [ ] those
actions that seek to establish greater safety than the minimum
safety achieved by a federal regulation intended to provide a
floor’).

28a

Appendix A

Here, we are not attempting to infer the effect of statutory
language that only indirectly addresses the specific state law
at issue. Instead, we are interpreting an unambiguous express
preemption clause that specifically preserves the type of state
law at issue. Under these circumstances, ordinary preemption
principles must give way to Congress’s intent to preserve
state laws that do not create a “direct and positive conflict”
with federal law. Drug Amendments §| 202. There is no such
conflict here. Accordingly, the FDA’s statement is neither an
authoritative interpretation of an ambiguous statutory
provision entitled to deference, Chevron, 467 U.S. at 842-
43, nor * persuasive policy statement entitled to respect.
Mead, 533 U.S. at 235. Plaintiff's claim does not impose
conflicting obligations on defendant or present an obstacle
to the objectives of Congress. We therefore agree with the
trial court that the claim is not preempted by federal law.

Il. Apportionment of Damages

Defendant next contends the court erred by ‘ailing to
instruct the jury to reduce plaintiff's damages by che’amount
of fault attributable to the Health Center. “Reversing a jury
verdict based on allegedly faulty jury instructions is
warranted where the party claiming error establishes that the
instructions were erroneous and prejudicial.” Simpson v.
Rood, 2005 VT 21, 5, 178 Vt. 474, 872 A.2d 306 (mem.).
We hold that there was no error in the court's failure to require
apportionment of damages between defendant and the Health
Center.

Defendant argues that pursuant to Vermont's comparative
negligence statute, a defendant is liable for only the portion
of the plaintiffs damages attributable directly to that

_—

29a

Appendix A

defendant’s negligence. 12 V.S.A. | 1036. Our traditional
rule is that multiple tortfeasors are jointly and severally liable.
See Zaleskie v. Joyce, 133 Vt. 150, 158, 333 A.2d 110, 115
(1975) (“[T]he law of this state ... permits a plaintiff to pursue
all, or any part, of his recovery from either joint tortfeasor’).
According to defendant, § 1036 applies not only under
circumstances where comparative negligence is alleged on
the part of the plaintiff, and not only when multiple
defendants are sued in the same action, but also any time the
plaintiff recovers from someone besides the defendant. Thus,
because plaintiff and the Health Center reached a settlement
in a separate lawsuit related to the same injury, defendant
claims the jury should have been required to calculate the
Health Center’s proportion of causal negligence and subtract
that percentage from the verdict.

Section 1036 states, under the heading of “Comparative
negligence,”

Contributory negligence shall not bar recovery in
an action by any plaintiff, or his legal
representative, to recover damages for negligence
resulting in death, personal injury or property
damage, if the negligence was not greater than the
causal total negligence of the defendant or
defendants, but the damage shall be diminished
by general verdict in proportion to the amount of
negligence attributed to the plaintiff. Where
recovery is allowed against more than one
defendant, each defendant shall be liable for that
proportion of the total dollar amount awarded as
damages in the ratio of the amount of his causal

30a

Appendix A

negligence to the amount of causal negligence
attributed to all defendants against whom recovery
is allowed.

12 V.S.A. 4 1036. We interpreted this statute under slightly
different circumstances in Plante v. Johnson, 152 Vt. 270,
565 A.2d 1346 (1989). In Plante, the defendant resisted
joinder of the plaintiffs’ claims against her and a third party,
resulting in a joint trial with two separate verdicts. The jury
first returned a verdict against the third party for the entire
amount of the plaintiff's damages, then found against the
defendant for the same amount, and the court consolidated
the judgments. The defendant appealed, arguing that the first
verdict made the third party’s share of the fault 100%. She
concluded that under 4 1036, she was entitled to a ruling
apportioning 100% of the liability for the plaintiff's damages
to the third party. The defendant failed to argue this point at
trial, making a holding regarding 4 1036 unnecessary. We
nevertheless examined the statute in depth to demonstrate
that our determination that the defendant was not entitled to
apportionment was “more than a technical omission.” /d. at
272, 565 A.2d at 1347. We concluded that the statute did not
apply to the defendant in Plante because “the statute provides
for apportionment among defendants, suggesting that only
those joined in the same action should be considered in
apportioning damages,” and “there is no allegation that the
plaintiff was negligent in this case.” /d. at 273, 565 A.2d at
1347-48.

6. We also listed as an additional reason, not applicable here,
that the third party whose liability was at issue in Plante was held
liable under a different theory of liability that was not clearly within
the scope of 1036. Id. at 273, 565 A.2d at 1348.

3la

Appendix A

In reaching this conclusion, we relied in part on the fact
that “the New Hampshire Supreme Court has held that its
nearly identical statute does not apply to create several
liability in the absence of an allegation of negligence on the
part of the plaintiff.” /d., 565 A.2d at 1348 (citing Lavoie v.
Hollinracke, 127 N.H. 764, 513 A.2d 316, 319-20
(N.H.1986)). Defendant points out that Lavoie has since been
overruled, but the decision overruling it, Nilsson v. Bierman,
150 N.H. 393, 839 A.2d 25 (N.H.2003), relied on a legislative
revision of New Hampshire’s statute that placed the concepts
of comparative negligence and apportionment under separate
headings. /d. at 29. In the absence of action by the Legislature
to amend Vermont's comparative negligence statute, we see
no reason to depart from the interpretation of 4 1036
contained in Plante. The Health Center was not a party to
plaintiff's action against defendant, and defendant does not
allege that plaintiff was comparatively negligent, so 4 1036
‘does not apply in this case.

Defendant argues that whether or not 4 1036 applies, we
can depart from our common law and determine that joint
and several liability should no longer prevent apportionment
among joint tortfeasors when one tortfeasor has settled in a
previous action. We decline to do so. In Howard v. Spafford,
132 Vt. 434, 321 A.2d 74 (1974), which also involved an
interpretation of 4 1036, we expressed our hesitation to depart
from the rule precluding contribution among joint tortfeasors,
preferring not to “substitute judicial fiat for legislative
action.” /d. at 435, 321 A.2d at 75. Among the many reasons
cited in Howard for adhering to the common law was the
sheer number of alternative schemes adopted by other states.
Id. at 436-37, 321 A.2d at 75-76. This reasoning applies here

32a

Appendix A

as well. Our choice is not between the traditional rule and a
uniform new rule, but rather between a traditional rule and a
number of potential new rules or combinations of rules. The
Nilsson court pointed out the divide among states requiring
jury verdicts to be reduced by the dollar amount of the
plaintiff's settlement with a third party (pro tanto), those
requiring verdicts to be reduced by the percentage of the
settling party's fault (proportional share), and those requiring
verdicts to be divided among all joint tortfeasors equally (pro
rata). 839 A.2d 30-31. That court pointed out that while “[t}he
American Law Instituie favors the proportional share
approach ..., the overwhelming majority of States reject the
proportional share approach in favor of some version of the
pro tanto approach,” and New Hampshire’s legislature chose
a combination of the two. Id. at 31 (citations and quotations
omitted). It is important to note that if we were to adopt the
majority rule, our decision would have no effect on this case,
as plaintiff and defendant have stipulated to a pro tanto
reduction. Like the New Hampshire court, we will allow the
Legislature to determine which approach is best, if it has not
done so already by leaving 4 1036 in place after our
interpretation in Plante.

Ill. Present Value of Damages

Finally, defendant contends the court erred by failing to
instruct the jury to calculate the present vale of plaintiff's
damages for future non-economic losses, such as pain and
suffering. Defendant claims that the jury’s verdict, which
granted plaintiff $5 million in non-economic damages,
exceeded the present value of plaintiff's requested amount
by $856,073. In rejecting defendant's proposed instruction,

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Appendix A

the court pointed out that defendant failed to provide the
jury with expert guidance as to how present value should be
calculated, and that “[j]udges and lawyers are universally
incapable of performing the discount calculations with or
without a calculator and the tables of historic interest rates
and inflationary factors.” We agree that it would have been
inappropriate to instruct the jury to make such a calculation
under these circumstances.

Even if defendant had presented testimony allowing the
jury to make an informed calculation, we would have upheld
the jury’s verdict for several reasons. First, defendant’s
assertion that the jury did not take account of the present
value of plaintiff's non-economic damages is pure
speculation, as plaintiff's calculation of her economic
damages was presented in terms of its present value, and
“the jury was not required to demonstrate its calculations”
with respect to plaintiff's non-economic damages. Debus v.
Grand Union Stores of Vt., 159 Vt. 537, 543, 621 A.2d 1288,
1292 (1993). Second, we limit pre-judgment interest to
economic damages because non-economic damages are
“inchoate and rarely ascertainable at the time of injury.”
Turcotte v. Estate of LaRose, 153 Vt. 196, 200 n. 2, 569 A.2d
1086, 1088 n. 2 (1989). These damages become no less
inchoate following a judgment, and we will not require juries
to apply a precise economic calculation to a figure we have
identified as inherently imprecise.

Finally, most jurisdictions and the Restatement (Second)
of Torts reject the concept of requiring juries to make present-
value calculations with respect to non-economic damages.
See, e.g., Tavior v. Denver & Rio Grande W. R.R., 438 F.2d

34a

Appendix A

351, 353 (10th Cir. 1971) (holding that instruction requiring
present-value reduction for pain and suffering was crror and
stating that most courts that have considered the issue have
decided “that the better reasoned authority supports the rule
that future pain and suffering should not be reduced to current
worth”); Restatement (Second) of Torts 4 913A cmt. a(1979)
(stating that while future pecuniary losses should be reduced
to present value, “an award for future pain and suffering or
for emotional distress is not discounted in this fashion’’).
But see Olivieri v. Delta S.S. Lines, Inc., 849 F.2d 742, 750-
51 (2d Cir.1988) (stating that “[i]f we were writing on a clean
slate, we might be inclined to accept the view of the other
circuits and reject any discounting of future non pecuniary
losses,” but previous Second Circuit holdings required such
discounting in some form). Defendant's reliance on our
decision in Parker v. Roberts, 99 Vt. 219, 131 A.2d21 (1925),
is misplaced, as Parker, while it required a jury instruction
on the present value of future losses, did not address the
distinction between pecuniary and non-pecuniary losses. /d.
at 224-25, 131 A. 21, 131 A.2d at 23. The trial court did not
err in refusing to instruct the jury to reduce plaintiffs non-
economic damages to present value.

Affirmed.

Associate Justice

35a

Appendix A

Dissenting

REIBER, C.J., dissenting. The overarching issue in this
appeal is whether plaintiff's common-law claim for failure
to warn conflicts with the FDA’s regulation of Phenergan,
the drug responsible for plaintiff's injuries. I would conclude
that the jury’s verdict in this case conflicts with federal law
for two reasons.

First, it would be impossible for defendant Wyeth to
comply with the requirements of both state and federal law.
Specifically, the FDA approved IV administration of
Phenergan and required that IV administration be listed on
the Phenergan label. By contrast, plaintiff's theory of the case
required Wyeth either to remove this approved use from the
Phenergan label, add a warning that would directly contradict
the label’s indication that [V administration was a safe and
effective use, or, at a minimum, add a warning that only
certain types of IV administration should be used. Thus,
compliance with state law in this case would require Wyeth
to eliminate uses of Phenergan approved by the FDA and
required to be included in the Phenergan labeling.

Second, plaintiff's state-law claim conflicts with federal
law in that it poses an obstacle to federal purposes and
objectives. In short, by approving Phenergan for marketing
and distribution, the FDA concluded that the drug-with its
approved methods of administration and as labelea-was both
safe and effective. See 21 U.S.C.;9 355(d) (listing criteria
for drug approval). In finding defendant liable for failure to
warn, a Vermont jury concluded that the same drig-with its
approved methods of administration and as labeled-was
“unreasonably dangerous.” See Town of Bridport v. Sterling

36a
Appendix A

Clark Lurton Corp., 166 Vt. 304, 308, 693 A.2d 701, 704
(1997) (to succeed on failure-to-warn claim, plaintiff must
show that “failure to warn made the product unreasonably
dangerous and therefore defective”). These two conclusions
are in direct conflict.

For both of these reasons I would conclude that the state-
law cause of action is preempted. I respectfully dissent.

1. Impossibility of Compliance

As explained by the majority, because there is no clause
in the FDCA expressly preempting state law, Wyeth must
demonstrate that preemption is implied by showing either
that federal law thoroughly occupies the regulatory field (a
claim that Wyeth does not advance) or that there is an actual
conflict between state and federal law. Actual conflict, in
turn, can be demonstrated in one of two ways: by showing
that it 1s impossible for the regulated party to comply with
both state and federal law or that state law “stands as an
obstacle to the accomplishment and execution of the full
purposes and objectives of Congress.” Freightliner Corp. v.
Myrick, 514 U.S. 280, 287, 115 S.Ct. 1483, 131 L.Ed.2d 385
(1995) (quotations omitted).

The majority in essence concludes that it is not
impossible for Wyeth to comply with both federal and state
standards because Wyeth never sought FDA approvai of a
“stronger warning” ofthe type advocated by plaintiff.
According to the majority, because the FDA was not
presented with, and therefore did not explicitly reject, such
strengthened language, there 1s no reason to presume that

37a

Appendix A

the FDA would disapprove. Therefore, the majority reasons,
there 1s no actual conflict between state and federal law. See
ante § 21-22. It is inaccurate, however, to characterize the
requirements imposed by the jury verdict in this case as
merely requiring a “stronger warning.” Rather, what plaintiff
sought was an elimination of a use of Phenergan that had
been approved by the FDA. Furthermore, the FDA’s rejection
of Wyeth’s efforts to alter the language of the warning in
2000 supports Wyeth’s claim that the FDA had an affirmative
preference for the language of the original warning.

A.

The crux of plaintiff's claim was not based on the label
warnings per se, but on the approved uses listed there. See,
e.g., ante ¥ 3 (“Plaintiff's experts testified that the label
should not have allowed IV push as a means of
administration....”"). A review of plaintiff's complaint and the
evidence presented at trial makes clear that the standard
plaintiff seught to establish (i.e., the change to the label that
would be required in light of the jury’s finding of liability)
was to remove IV administration-or at least certain types-as
an approved use. For example, plaintiit’s complaint asserted
that the warnings on the label were inadequate and that:

[t]he Phenergan sold by defendant is ... NOT
REASONABLY SAFE FOR INTRAVENOUS
ADMINISTRATION because the foreseeab!c
risks of harm posed by intravenous administration
of the drug are sufficiently great in relation to its
foreseeable theraputic benefits that reasonable
health care providers, knowing of such foreseeable

38a

Appendix A

risks and benefits, WOULD NOT PRESCRIBE
THE DRUG INTRAVENOUSLY FOR ANY
CLASS OF PATIENTS.”

(Emphasis added.) !n her appellate brief, p

[Text truncated at 120,000 characters. The full text is on the page linked above.]

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0529%3A02. Public record. Not legal advice.
