Jim Whitney Economics 319

Case brief: template

Case name: Grundberg v. Upjohn Co
Court:

Supreme Court of Utah

Citation; Date:

813 P.2d 89; 160 Utah Adv. Rep. 20; 1991

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PROCEDURAL HISTORY

Trial court: Appeal court (for appeal cases only):
Plaintiff: grundberg Appellant:
Defendant: upjohn Respondent:
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Facts of the case:
    Mildred Lucille Coats died at age 83 from gunshot wounds inflicted by her daughter, Ilo Grundberg, on June 19, 1988. Grundberg and Janice Gray, the personal representative of Coat's estate, brought this action, alleging that Grundberg shot her mother as a result of ingesting the drug Halcion, a prescription drug manufactured by defendant Upjohn to treat insomnia.
    Plaintiffs allege that Grundberg took a .5 milligram dose of Halcion the day she shot her mother. They allege that this dose was recommended by her physician and was consistent with Upjohn's recommended dosage. Plaintiffs assert that Grundberg shot her mother while in a state of Halcion-induced intoxication, which allegedly included side effects such as depression, psychosis, depersonalization, aggressive assaultive behavior, and homicidal compulsion.
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Remedy sought:
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Court opinion (including key issues and arguments):
    This case comes to us pursuant to rule 41 of the Utah Rules of Appellate Procedure as a question certified from the United States District Court for the District of Utah. The issue before us is whether Utah adopts the "unavoidably unsafe products" exception to strict products liability as set forth in comment k to section 402A of the Restatement (Second) of Torts (1965) ("comment k"). This question presents an unanswered issue of law for original disposition by this court.
    We hold that a drug approved by the United States Food and Drug Administration ("FDA"), properly prepared, compounded, packaged, and distributed, cannot as a matter of law be "defective" in the absence of proof of inaccurate, incomplete, misleading, or fraudulent information furnished by the manufacturer in connection with FDA approval. We acknowledge that by characterizing all FDA-approved prescription medications as "unavoidably unsafe," we are expanding the literal interpretation of comment k.
    Plaintiffs' complaint states several causes of action, including common law negligence and strict liability. Plaintiffs claim that Upjohn failed to adequately warn about certain adverse side effects of Halcion and that Halcion was defectively designed. The failure-to-warn claim is scheduled for trial. The strict liability claim based on design defect is the subject of Upjohn's pending summary judgment motion, the outcome of which depends on this court's resolution of the certified question.
    The parties agree that the Restatement (Second) of Torts section 402A, comment k (1965) and the principles it embodies provide an exemption from strict liability for a claimed design defect in the case of products that are "unavoidably unsafe." In moving for partial summary judgment, Upjohn argued that public policy supporting the research and development of new drugs requires a holding that all FDA-approved prescription medications are "unavoidably unsafe products" under comment k and, as such, manufacturers of those drugs would not be liable for a claim based on defective design. Plaintiffs argue that whether a drug is "unavoidably unsafe" must be determined on a case-by-case basis, with a determination in each case of whether the specific drug's benefit exceeded its risk at the time it was distributed.
    We agree with comment k's basic proposition--that there are some products that have dangers associated with their use even though they are used as intended. We also agree that the seller of such products, when the products are properly prepared and marketed and distributed with appropriate warnings, should not be held strictly liable for the "unfortunate consequences" attending their use. Thus, we adopt comment k's basic policy as the law to be applied in this state and must now turn to the issue of how to apply that policy.
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Disposition of case:
We note jurisdiction to decide all the issues raised on appeal, and affirm the trial court on each claim in both the appeal and cross-appeal.
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ECONOMIC ANALYSIS OF THE CASE

   
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