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STERLING DRUG, INC. v. CORNISH

United States Court of Appeals, Eighth Circuit.
Jan 5, 1967
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Factual and Procedural Background

This is an appeal in a diversity action from a remitted judgment of $80,000 on a $110,000 jury award to a fifty-year-old Kansas resident for permanent eye injury (chloroquine retinopathy) allegedly caused by appellant Sterling Drug, Inc.'s failure to warn prescribing physicians of a known side effect of its prescription drug Aralen (chloroquine phosphate). Appellee took Aralen daily from November 1958 to December 1962. Trial resulted in a jury verdict for appellee; the district court remitted the award and entered judgment. Appellant appealed, raising three grounds: (I) insufficiency of evidence and requested directed verdict; (II) errors in jury instructions and refusal to give certain requested instructions; (III) that the action was barred by the statute of limitations or that accrual was a jury question. The Court of Appeals affirmed.

Legal Issues Presented

  1. Whether there was sufficient evidence to support the jury verdict against appellant (challenge to denial of directed verdict).
  2. Whether the trial court erred in its jury instructions and in refusing certain requested instructions, including the scope of a manufacturer's duty to warn regarding hypersensitive or idiosyncratic reactions and whether physicians' conduct constituted an intervening proximate cause.
  3. Whether the action was barred by the statute of limitations under applicable Kansas law and whether accrual of the cause of action should have been submitted to the jury.

Arguments of the Parties

Appellant's Arguments

  • The evidence was insufficient to support a verdict for appellee, warranting a directed verdict for appellant.
  • The trial court erred in its instructions and in refusing appellant's requested instructions, particularly that a manufacturer does not owe a duty to warn for injuries caused by individual hypersensitivity to a product.
  • The action was barred by the statute of limitations (Kansas two-year rule) because appellee's cause of action accrued earlier (appellant alleged injury in spring 1961), or, alternatively, the question of accrual should have been submitted to the jury.

Appellee's Position (as presented in the opinion)

  • Appellee claimed permanent retinal injury from prolonged Aralen use and contended appellant knew or should have known some users would suffer such retinal damage and negligently failed to warn prescribing doctors.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Fullerton v. Sauer, 337 F.2d 474 (8th Cir. 1964) Standard for reviewing jury verdicts (view evidence in light most favorable to prevailing party; verdict not set aside unless no substantial evidence). Applied to uphold that there was sufficient evidence to support the jury's finding for appellee.
City of West Plains, Mo. v. Loomis, 279 F.2d 564 (8th Cir. 1960) Same standard of review for jury verdicts. Used with Fullerton to justify deferential review of the jury verdict.
Merrill v. Beaute Vues Corp., 235 F.2d 893 (10th Cir. 1956) Authority cited for proposition that manufacturer need not warn of reactions due to individual hypersensitivity (in context of over-the-counter products). Not adopted as controlling; distinguished because Merrill concerned retail/OTC products and unforeseeable idiosyncratic reactions.
Bonowski v. Revlon, Inc., 251 Iowa 141, 100 N.W.2d 5 (1959) Case supporting nonliability for hypersensitive individuals in OTC contexts. Cited by appellant; court declined to follow its reasoning for prescription drug context, distinguishing facts.
Kaempfe v. Lehn Fink Prods. Corp., 21 A.D.2d 197, 249 N.Y.S.2d 840 (1964) Similar authority denying relief to hypersensitive plaintiffs for OTC products. Cited but distinguished on basis that prescription drug/learned intermediary context makes warnings effective.
Gober v. Revlon, Inc., 317 F.2d 47 (4th Cir. 1963) Authority recognizing manufacturer's duty to warn in some hypersensitivity contexts. Noted as contrary authority to appellant's position; supports the view that duty to warn may extend to groups susceptible to rare side effects.
Wright v. Carter Prods., 244 F.2d 53 (2d Cir. 1957) Another contrary authority recognizing potential duty to warn. Referenced to show split in authority; court aligned with view imposing duty in prescription drug context.
Braun v. Roux Distrib. Co., 312 S.W.2d 758 (Mo. 1958) Missouri case holding defendant had duty to warn if it knew of a group who could suffer injury, even if group was small (allergic reaction to hair dye). Cited as persuasive and consistent with imposing a duty to warn here; used to support court's conclusion that duty existed.
Andrews v. Olin Mathieson Chemical Corp., 334 F.2d 422, 429 (8th Cir. 1964) Principle that failure to object at trial forecloses appellate challenge to evidence rulings. Applied to sustain trial court's limitation of unobjected hearsay; appellant could not appeal that evidentiary ruling.
1 Wigmore, Evidence § 18 (3d ed. 1940) Treatise cited for the proposition that failure to object prevents appellate review and informs judge of legal issues. Used to support the court's view that absence of objection precludes reversal on hearsay handling.
Burgert v. Union Pac. R.R., 240 F.2d 207 (8th Cir. 1957) Applied for the proposition that Missouri's borrowing statute requires application of plaintiff's home-state statute of limitations (Kansas). Supported use of Kansas statutes and Kansas accrual law in determining limitations question.
Hill v. Hays, 193 Kan. 453, 395 P.2d 298 (1964) Kansas authority holding cause of action accrues when injury occurs (strict accrual rule). Described as binding Kansas precedent on accrual; court applied Kansas law in limitations analysis.
McCoy v. Wesley Hosp. Nurse Training School, 188 Kan. 325, 362 P.2d 841 (1961) Kansas case rejecting discovery rule; accrual when injury occurs. Relied on to state Kansas's then-strict accrual rule for personal injury actions.
Graham v. Updegraph, 144 Kan. 45, 58 P.2d 475 (Kan. 1936) Earlier Kansas precedent on accrual timing. Included in the line of Kansas cases construing accrual as the time injury occurs.
Christensen Grain, Inc. v. Garden City Co-op. Equity Exch., 192 Kan. 785, 391 P.2d 81 (1964) Related Kansas case cited in discussion of limitations/accrual. Cited to illustrate Kansas jurisprudence on accrual questions.
Wilson v. Evans, 185 Kan. 520, 345 P.2d 1002 (1959) Kansas authority that statute of limitations is an affirmative defense which must be pleaded and proved by the asserting party. Applied to hold appellant failed to meet its burden to prove limitations bar.
Fisher v. Pendleton, 188 Kan. 221, 361 P.2d 864 (1961) Support for the principle that limitations is an affirmative defense under Kansas law. Used to reinforce that appellant bore burden to plead and prove limitations.
Mayfield v. Hesston Mfg. Co., 187 Kan. 91, 353 P.2d 789 (1960) Another Kansas case on pleading/proof of limitations defense. Cited with Wilson and Fisher to conclude appellant did not prove or generate a jury question on limitations.

Court's Reasoning and Analysis

The court applied the following analysis:

  • Standard of review: viewing evidence most favorably to appellee, the court concluded there was substantial evidence to support the jury verdict (citing Fullerton and City of West Plains).
  • Evidence on causation and timing: medical literature linking chloroquine to retinal damage emerged after appellee began treatment; appellant revised product literature in mid-1960 (FDA-approved August 1960) and sent a general letter to physicians in January 1963 (too late for appellee). The timeliness and adequacy of warnings were factual questions for the jury.
  • Duty to warn: the court distinguished cases denying recovery for hypersensitive individuals in the OTC context, finding them inapplicable to prescription drugs where the physician is a learned intermediary. The court concluded appellant had a duty to warn physicians of a susceptible subgroup and the symptoms of chloroquine retinopathy, a matter properly left to the jury given the evidence (relying in part on Braun and contrasting other authorities).
  • Intervening proximate cause: the court rejected appellant's contention that physicians' alleged negligence was an intervening cause; the dispositive issue was whether appellant made reasonable efforts to warn physicians—if it failed, appellant is liable regardless of physicians' subsequent conduct.
  • Hearsay ruling: an unobjected-to hearsay statement about alleged overdose was limited by the trial court to impeachment use; the appellate court found no error, noting failure to object precludes appellate relief (citing Andrews and Wigmore).
  • Statute of limitations: because Missouri's borrowing statute required application of Kansas law, the court applied Kansas's then-prevailing rule that the cause accrues when the injury occurs. The complaint was filed November 26, 1963. The court found no evidence of irreversible impairment before June 1962 and held appellant failed to plead and prove the limitations defense or present evidence creating a jury question (citing Wilson, Fisher, Mayfield). Thus the trial court did not err in denying a directed verdict on limitations grounds.

Holding and Implications

HOLDING: The judgment of the district court is AFFIRMED.

Implications: The affirmance leaves the remitted judgment in favor of appellee intact. The court affirmed that (1) there was sufficient evidence to submit the adequacy and timeliness of warnings to the jury; (2) a manufacturer of a prescription drug may owe a duty to warn prescribing physicians about risks to a susceptible subgroup (learned intermediary doctrine applied); (3) alleged physician negligence did not constitute an intervening proximate cause that relieved the manufacturer; and (4) under the applicable Kansas law and the record, the statute of limitations defense was not proved or presented as a jury question. The opinion does not announce a novel rule beyond application of existing authority and the court's factual holdings in this case.

Show all summary ...

McMANUS, District Judge.

This is an appeal in a diversity case from an $80,000.00 remitted judgment on a $110,000.00 jury award to a fifty year old Kansas citizen for permanent injury to her eyes caused by drug manufacturer's failure to warn her doctors of a prescribed drug's side effect.

Appellant's grounds for appeal are as follows:

I. Refusal of the trial court to direct a verdict for appellant because there was insufficient evidence to support a verdict for the appellee.

II. Alleged errors in the court's instructions to the jury and refusal to give certain of appellant's requested instructions.

III. Refusal of the trial court to direct a verdict for appellant because the action was barred by the applicable statute of limitations, or, in the alternative, to submit to the jury the question of when the cause of action accrued for purposes of the statute of limitations.

We affirm.

I.

Chloroquine phosphate, the drug in question, is manufactured and sold by appellant drug company under the trade name Aralen. There is no question here of any defect in the manufacture of the drug, nor of its beneficial qualities when taken as prescribed. The drug has been used widely and effectively in the treatment of arthritis. Unfortunately, the drug produces a very serious side effect in a small percentage of those to whom it is administered. The side effect is a condition known as chloroquine retinopathy, a degeneration or destruction of certain cells in the retina of eye caused by the chloroquine chemical in the drug. The condition results in blindness in that part of the retina which is destroyed, and is apparently irreversible. Appellee is one of those in whom the side effect occurred. As a result of her taking Aralen daily for approximately four years, from November 1958 to December 1962, she has suffered an extensive and permanent impairment of her vision. It is impossible to predict in advance in which users of the drug the side effect will occur. However, it was appellee's contention that appellant knew or should have known that some people would be so affected, and was negligent in its failure to warn doctors, including appellee's doctors, to be on the lookout for symptoms of the condition.

In reviewing conclusions reached by the jury, we must view the evidence in the light most favorable to the prevailing party, and the verdict must not be set aside unless there was no substantial evidence to support it. Fullerton v. Sauer, 337 F.2d 474 (8th Cir. 1964); City of West Plains, Mo. v. Loomis, 279 F.2d 564 (8th Cir. 1960). We believe there was sufficient evidence in this case to support the jury's verdict. Chloroquine retinopathy is a relatively recent medical discovery. The first article to describe the condition appeared in a British medical journal in October 1959, almost a year after appellee began taking the drug. Thereafter, several other articles were written and published in various medical journals. The early articles were cautious in attributing the condition to chloroquine treatment. As more cases developed and were examined, the connection between the drug and the retinal damage became more definite. Whether appellant was or should have been sufficiently certain of the connection in time to warn appellee's doctors and prevent her injury is a question that was properly left to the jury.

Appellant did in fact make revisions in some of its literature as early as June 1960. Appellant's Aralen "product card," a card containing information about a particular drug, was changed to include the possibility of a side effect causing retinal damage. This revised product card was approved by the FDA in August 1960, and was thereafter distributed to doctors by appellant's "detail men." However, the jury could have found from the testimony that doctors do not regularly refer to these product cards, and quite possibly would not be aware of changes made in them. In January of 1963, too late to help appellee, appellant sent a letter to all doctors specifically calling their attention to the retinal side effects of Aralen. Appellant contends the letter was not sent sooner because the connection between the drug and the condition was not yet sufficiently established, and because some time was consumed in clearing the letter with the FDA. The whole question of the timeliness of appellant's warning was, in our opinion, one upon which reasonable men could differ. The question was therefore properly left to the jury, and there was no error in the trial court's refusal to direct a verdict for appellant.

II.

Appellant raises several objections to the trial court's instructions and refusal to give appellant's requested instructions. In our opinion, only three of these objections merit discussion.

The first deals with the court's instruction concerning appellant's duty to warn appellee's doctors of the side effect. The evidence at trial established that chloroquine retinopathy has been observed only in a very small percentage of those to whom the drug has been administered in the normally prescribed quantity. It appears that a small number of people are specially susceptible to chloroquine. The court instructed the jury that if appellant knew or should have known that a group of persons would suffer rare side effects, appellant had a duty to warn the medical profession of the susceptibility of such a hypersensitive or idiosyncratic group. Appellant insists that the duty to warn does not extend to those few individuals who are injured because of their own unusual hypersensitivity to a product. Several cases are cited in support of this proposition. E.g., Merrill v. Beaute Vues Corp., 235 F.2d 893 (10th Cir. 1956); Bonowski v. Revlon, Inc., 251 Iowa 141, 100 N.W.2d 5 (1959); Kaempfe v. Lehn Fink Prods. Corp., 21 A.D.2d 197, 249 N.Y.S.2d 840 (1964). However, appellant's view has not been universally accepted. See Gober v. Revlon, Inc., 317 F.2d 47 (4th Cir. 1963); Wright v. Carter Prods., 244 F.2d 53 (2d Cir. 1957); No applicable Kansas cases have been found. There is one Missouri case in point, and it appears to be contra to appellant's position. See Braun v. Roux Distrib. Co., 312 S.W.2d 758 (Mo. 1958). In the Braun case, the plaintiff had been awarded damages by a jury for defendant's negligent failure to warn of a possible allergic reaction to a toxic ingredient in hair dye manufactured by defendant. Testimony tended to show that, at most, three to four percent of the users of the product had suffered an allergic reaction. In affirming the verdict, the Supreme Court of Missouri indicated that defendant had a duty to warn if it had knowledge of a group who could suffer injury, even though the group was admittedly small. Id. at 764-765.

Under the facts of this case, we believe the better view is that appellant did have a duty to warn. The instant case is readily distinguishable from those cases denying relief to hypersensitive or idiosyncratic plaintiffs. Those case cited by appellant deal with over the counter retail products. The denial of relief seems to be based on the unforeseeability of the injury and the futility of a warning even if given. It is said to be unreasonable to expect a manufacturer to foresee that some few persons among its many customers will suffer a rare allergic reaction to some ingredient in the product. See Merrill v. Beaute Vues Corp., supra 235 F.2d at 897; Bonowski v. Revlon, Inc., supra 251 Iowa at 147, 100 N.W.2d at 8. In addition, a warning printed on a retail package to the effect that those allergic to a specified ingredient in the product should not use it would be effective only if the purchaser knew in advance of his allergy, a knowledge which most purchasers would not have. See Merrill v. Beaute Vues Corp., supra 235 F.2d at 897; Kaempfe v. Lehn Fink Prods. Corp., 249 N.Y.S.2d supra at 847. In the instant case there was sufficient evidence for the jury to find that appellant did in fact know, and thus could have foreseen, that some persons would be injured by the drug's side effect. Moreover, in this case we are dealing with a prescription drug rather than a normal consumer item. In such a case the purchaser's doctor is a learned intermediary between the purchaser and the manufacturer. If the doctor is properly warned of the possibility of a side effect in some patients, and is advised of the symptoms normally accompanying the side effect, there is an excellent chance that injury to the patient can be avoided. This is particularly true if the injury takes place slowly, as is the case with the injury in question here. Therefore, the reasons given for denying liability in other cases do not exist here. We believe the court's instruction was an accurate statement of the law.

Appellant alleges that appellee's doctors negligently failed to keep up with medical literature, including appellant's literature. It is argued that this negligence was an intervening proximate cause of appellee's injury, and that the trial court erred in failing so to instruct the jury. We find this argument without merit. There is no question of intervening proximate cause in this case. The sole issue was whether appellant negligently failed to make reasonable efforts to warn appellee's doctors. If appellant did so fail, it is liable regardless of anything the doctors may or may not have done. If it did not so fail, then it is not liable for appellee's injury. The issue was to be resolved by the jury, and we see no error in the court's instruction.

Appellant urges that the court erred in instructing the jury not to consider certain hearsay testimony to the effect that appellee took more than the suggested dosage of the drug. The statement was not objected to when made. The court, apparently on its own motion, instructed the jury that the statement could be considered only as impeachment of appellee's doctor's testimony that he prescribed the correct dosage. We find no error in the instruction. The purpose of requiring a party to object is to inform the judge that there is an issue of law, so that the judge may consider whether there has been error and make appropriate corrections. Therefore, if a party makes no objection, he has no grounds for appeal. See Andrews v. Olin Mathieson Chemical Corp., 334 F.2d 422, 429 (8th Cir. 1964); 1 Wigmore, Evidence § 18 (3d ed. 1940). It is not error for a judge to exclude or limit testimony that he knows to be erroneous, even though he has not been notified by a party. Here the hearsay statement was entirely uncorroborated and could have been highly prejudicial. The court properly instructed the jury not to consider it as direct evidence.

III.

The final issue in this appeal concerns the running of the applicable statute of limitations. Because of the Missouri borrowing statute, the statute of limitations we must consider is that of Kansas. Mo.Rev.Stat. § 516.190 (1959); Burgert v. Union Pac. R.R., 240 F.2d 207 (8th Cir. 1957). The Kansas statute of limitations provides that actions for personal injuries can be brought only within two years after the cause of action shall have accrued. Kan.Gen.Stat. Ann. § 60-306 (1949). During the time relevant to this appeal, the statute was very strictly construed by the Kansas Supreme Court. That court held on several occasions that the cause of action accrues for the purposes of beginning the two-year period when the injury occurs. The argument that the period should not begin to run until the plaintiff has had a reasonable opportunity to discover the injury has been considered and rejected by the court. See Hill v. Hays, 193 Kan. 453, 395 P.2d 298 (1964); McCoy v. Wesley Hosp. Nurse Training School, 188 Kan. 325, 362 P.2d 841 (1961); Graham v. Updegraph, 144 Kan. 45, 58 P.2d 475 (Kan. 1936); cf. Christensen Grain, Inc. v. Garden City Co-op. Equity Exch., 192 Kan. 785, 391 P.2d 81 (1964).

This more liberal view has since been adopted in Kansas by legislative amendment. See Kan.Stat.Ann. § 60-513 (1964).

The complaint in this case was filed November 26, 1963. The trial court denied appellant's motion for a directed verdict, one of the grounds for which was the bar of limitations, and did not submit the question to the jury.

Appellant contends that the injury occurred in the late spring of 1961, when appellee first noticed a very small "golden light" which did not interfere with her vision. However, the medical testimony suggests that transient visual disturbances are not uncommon in patients undergoing Aralen treatment, and nothing in the record establishes that the small "golden light" was other than such a transient disturbance. There is no evidence that appellee suffered irreversible impairment of vision before June 1962, when she barely avoided an automobile accident after failing to see another car, nor that she could have maintained a cause of action for permanent eye injury prior thereto.

Under Rule 8, Fed.R.Civ.P., and Kansas law, the statute of limitations is an affirmative defense which must be pleaded and proved by the asserting party. Kan.Stat.Ann. § 60-208 (1965); Wilson v. Evans, 185 Kan. 520, 345 P.2d 1002 (1959); See Fisher v. Pendleton, 188 Kan. 221, 361 P.2d 864 (1961); Mayfield v. Hesston Mfg. Co., 187 Kan. 91, 353 P.2d 789 (1960) On this issue, appellant neither met its burden of proof, nor presented any evidence generating a fact question for the jury. The ruling of the trial court was not error.

The judgment is affirmed.