Magistrate Judge's Report Reads Physical Injury Requirement Out of Strict Liability Statute

A recent report and recommendation from a US Magistrate Judge raises the question:  Does a group of patients who were exposed to pathogens but never developed a disease have a cause of action?

In Descoteau v. Analogic Corp., 2010 WL 325933 (D. Me. Jan. 21, 2010), Magistrate Judge John Rich III suggests that they do, although he clearly seems to stretch Maine law in order to find a cause of action for a bad factual situation.  If this report and recommendation is affirmed by the District Court, it will not be the first time hard facts have made bad law.

The facts are not pretty.  Plaintiff is one of some 23,000 veterans who were potentially exposed to HIV, Hepatitis B, Hepatitis C, and other bloodborne viral pathogens when they underwent diagnostic procedures and biopsies at VA hospitals using a rectal probe made by the defendants.  Both the operation manual for the rectal probe -- as well as the oral instructions from the device representative who demonstrated it at the VA hospital that treated plaintiff -- indicated that the probe could be cleaned by flushing it with a syringe full of detergent and water.  Years after the hospital bought and began using the defendants' rectal probe, the hospital's staff discovered that blood and fecal matter remained in the probe even after it had been cleaned according to the manufacturer's instructions -- without using a brush.  The VA conducted a systemwide review and notified some 23,000 veterans nationwide of the potential exposure and their need to receive testing for bloodborne pathogens and disease.  Plaintiff received his notice on April 14, 2006, was tested on April 27, 2006, and was notified that fortunately his test results were negative on May 11, 2006.  Plaintiff sued on behalf of a class of 528 veterans who were potentially exposed to bloodborne pathogens at the Togus VA Medical Center in Augusta, Maine, asserting causes of action for strict liability and negligent infliction of emotional distress.

The defendants moved to dismiss, asserting Maine's 6-year statute of limitations, arguing that plaintiff's original diagnostic procedure occurred more than six years prior to his filing suit.  The Magistrate Judge easily dispatched of that challenge, holding that plaintiff's cause of action for emotional distress did not accrue until he was notified in 2006 that he might be infected.  Thus, the suit was well within the statute of limitations.

Defendants also moved to dismiss the strict liability count, citing the language of Maine's strict liability statute, which provides:

One who sells any goods or products in a defective condition unreasonably dangerous to the user or consumer or to his property is subject to liability for physical harm thereby caused to a person whom the manufacturer, seller, or supplier might reasonably have expected to use, consume or be affected by the goods, or to his property, if the seller is engaged in the business of selling such a product and it is expected to and does reach the user or consumer without significant change in the condition in which it was sold. 

Id. at *5 (quoting statute).

The defendant argued that a prerequisite to a strict liability claim is physical harm or impairment, and that plaintiff -- who contracted no disease and suffered no impairment -- thus could not bring a claim.  Plaintiff argued, however, that the needle stick required for the HIV and Hepatitis testing qualified as "physical harm" sufficient to support a strict liability claim.  The court -- striving to find a cause of action for an obviously-inconvenienced plaintiff -- bought the argument, observing that "[t]he defendants cite no authority in support of the proposition that a needle stick or blood draw constitutes insufficient physical harm, as a matter of law, to support a strict liability claim, and I find none."  Id.

But the rule of strict liability is not available for all types of harm; rather, it is reserved for physical injury and damage to property.  The Restatement defines physical injury as a "detrimental change in the physical condition of a person's body."  Id. at n.4.  The court's stretching of the definition of physical injury to encompass a subsequent needle stick effectively reads the physical injury element out of the statute.  Nevertheless, the court recommended that the strict liability claim should survive the motion to dismiss.

The defendants also moved to dismiss the negligent infliction of emotional distress ("NIED") claim.  The court began by opining that the plaintiff had sufficiently alleged a count for negligence for physical injury (i.e., the needle stick).  But as for emotional distress, the court was bound by Maine precedent that reserves the cause of action for defendants who are in a special relationship with the plaintiff.  Maine courts have found such special relationships in very limited circumstances (e.g., doctor-patient, counselor-patient, hospital-decedent's family).  Id. at *6.  The court held that because its research had not uncovered an instance where the Maine courts had found a special relationship between a manufacturer and an end user, the NIED claim must be dismissed.

It remains to be seen whether the District Court will adopt the report and recommendation in Descoteau, which effectively reads the physical injury requirement out of Maine's strict liability statute and thereby would impose upon manufacturers strict liability for purely emotional harm.  Even if it did, however, it is difficult to fathom how 528 people's emotional harm could be adjudicated on a classwide basis consistent with the requirements of Rule 23.

Sixth Circuit Holds That The Holy See Is Not Wholly Immune from Mass Tort Class Action

One of the most fascinating things about practicing mass tort litigation is when these cases intersect with international law and policy, as they did recently in O'Bryan v. See, 2009 WL 305342 (6th Cir. Feb. 10, 2009).  There, the Sixth Circuit -- in a precedent-setting opinion -- allowed some mass tort causes of action to be pursued against the highest authority in the Roman Catholic Church.

In O'Bryan, three Kentucky residents brought a class action suit against the Holy See for injuries suffered by all of those who were allegedly "sexually abused, molested and assaulted by a Roman Catholic priest . . . while they were under the care, custody, authority, control and influence of an abusive Roman Catholic priest, which authority was granted to him by the Defendant, Holy See."  Id. at *1.  This lawsuit differed from many previous sexual abuse lawsuits in that it did not bother naming individual dioceses or priests.  Rather, following the advice once given to Bob Woodward, plaintiffs sought to "follow the money" to thereby reach the Big Kahuna. 

There was only one problem:  the Holy See is a State that the United States has recognized as a foreign sovereign since 1984.  Id.  As such, the defendant argued that it was immune from suit (and the court lacked subject matter jurisdiction) under the Foreign Sovereign Immunities Act, 28 U.S.C. sec. 1602.  Even the US government appeared in this lawsuit arguing on the Holy See's behalf.

But, of course, the Holy See is not just a foreign principality.  In a passage that brings to mind the migraine-inducing lessons on the nature of the Holy Trinity that I endured in Sunday School, the Sixth Circuit explained:  "The Holy See is both a foreign state and an unincorporated association and the central government of an international religious organization, the Roman Catholic Church."  Id. 

And that was basically plaintiffs' point:  they were injured not by the way the foreign state ran its consulate, but rather by how an international religious organization ran its churches in the United States.  For purposes of plaintiffs' lawsuit, the Holy See's contemporaries were not Monaco and Liechtenstein, but rather the Episcopalians and the Lutherans -- neither of which are entitled to sovereign immunity for torts they might commit.

Plaintiffs pled their lawsuit carefully.  First, they alleged that each abusive priest was an agent, servant or employee of the Holy See acting with apparent authority arising from his agency or employment relationship.  Second, they premised their causes of action on the so-called "1962 Policy" -- a privately-circulated document allegedly issued by the Congregation of the Holy Office in Rome and specifically approved by Pope John XXIII that expressly required bishops in the United States "to, among other things, refuse to report childhood sexual abuse committed by priests to criminal or civil authorities, even where such failure to report would itself be a criminal offense."  Id. at *2.  Third, they pled the following causes of action:  violation of customary international law of human rights; negligence; breach of fiduciary duty; and the tort of outrage/intentional infliction of emotional distress.

In response to defendant's FSIA jurisdictional argument, plaintiffs pressed their point that their dispute was with the Holy See as the governing body of a religious organization, not a State.  But the Sixth Circuit wasn't buying it.  There can be no dispute that the United States recognizes the Vatican as a foreign state, and thus the FSIA applies.  Period.

But the FSIA has exceptions that might allow for suit:  (1) waiver of immunity, (2) actions conducted in a commercial capacity, and (3) money damages sought for personal injuries stemming from the State's (or its agent's) tortious conduct within the United States.  The Sixth Circuit proceeded to analyze each of the exceptions in turn.

The first exception was a non-starter, as there was no evidence that The Holy See had voluntarily waived immunity.  As for the commercial activity exception, the Sixth Circuit was also unpersuaded.  The court applied two "limitations" on this exception to conclude that it was not relevant here.  First, the activities plaintiffs alleged were not -- according to the court -- "of the type in which private individuals engage" during commercial activity.  Rather, governance of the church was more akin to the actions of a sovereign.  Second, the court looked to the gravamen of the plaintiff's claims.  Because they were not of a type one would expect from commercial activity -- property damage, breach of contract, copyright infringement, etc. -- this also counseled against finding in favor of a commercial activity exception.

But then the court analyzed the elements of the "tortious act" exception, concluding that some -- but not all -- of plaintiffs' claims had correctly survived the motion to dismiss and were properly the subject of federal jurisdiction.  The alleged acts of sexual abuse were not performed while the tortfeasors were acting within the scope of their employment, so the Sixth Circuit concluded that the Holy See could not be sued for sexual abuse conducted in the United States by its clergy.  Similarly, "any portion of plaintiffs' claims that relies upon acts committed by the Holy See abroad cannot survive."  Id. at *16.   Thus, the Holy See could not be sued simply for promulgating the 1962 policy in Rome.

However, the court held that the Holy See could be properly sued under the "tortious act" exception for the supervisory acts or omissions its agents committed in the United States:

All of plaintiffs' claims also advance theories of liability premised on the conduct of Holy See employees in the United States engaged in the supervision of the allegedly abusive priests.  These portions of plaintiffs' claims meet the four requirements for application of the tortious act exception.

First, . . . plaintiffs have pled both that the relevant archbishops, bishops and other Holy See personnel had knowledge of the alleged sexual abuse of priests and that they failed to act on that knowledge.  In doing so, it would seem that the complaint also pleads that conduct of [these people was] a substantial factor in causing plaintiff's damages, satisfying Kentucky's causation requirements.

In addition, . . . tortious acts committed by [these people] while engaged in the supervision of allegedly abusive priests satisfy the requirements of the FSIA's tortious act exception that the tortious act occur in the United States and within the scope of employment.

* * *

Thus, the portions of plaintiffs' claims that are based upon the conduct of bishops, archbishops, and Holy See personnel while supervising allegedly abusive clergy satisfy all four requirements of the tortious act exception:  this conduct served as a substantial cause of the alleged abuse; the conduct occurred in the United States; the conduct was within the scope of employment; and these individuals were, according to the pleadings, Holy See employees.

Id. at *17.

The court then went count-by-count, delineating what claims were cognizable under the FSIA.

1.  International Law of Human Rights -- The claim failed as to the actual promulgation of the 1962 Policy because it occurred abroad, but survived "as it pertains to the conduct of [the Holy See's] employees who, pursuant to the 1962 Policy, violated the terms of the relevant international laws through their tortious supervisory conduct over the allegedly abusive clergy."  Id. at *18.

2.  Negligence -- Claims of negligence against the Holy See for its own conduct (including negligent hiring) did not survive, but claims of  "failure to warn" and "failure to report" premised on the conduct of Holy See employees in the United States did survive.

3.  Breach of Fiduciary Duty -- This claim only survived for the actions of supervisory employees occurring in the United States.

4.  Tort of Outrage/Intentional Infliction of Emotional Distress -- The claim failed as it pertained to the promulgation of the 1962 Policy and as to the priests' abusive conduct, which did not occur within the scope of their employment.  The claim survived, however, as to the conduct of supervisory employees in the United States who abided by the 1962 Policy. 

It is difficult to predict O'Bryan's ultimate impact on mass tort litigation against the Catholic Church in the United States.  The defendant can be expected to seek rehearing en banc and/or a writ of certiorari from the US Supreme Court.  This case also has serious statute of limitations problems, and it seems unlikely that a court considering class certification really could conclude that the predominance and superiority requirements of Rule 23(b)(3) could be satisfied in a case where the sexual abuse at issue for just the named plaintiffs spans from the 1920s to the 1970s.  Individual issues clearly would predominate.  And yet, O'Bryan stands as a roadmap for how to plead a claim against the Vatican itself, even if only in an individual action.