Bush Administration Use Rule-Making Authority to Limit Lawsuits
May 15th, 2008In its final days, the Bush administration is quietly going about making it hard for consumers to sue corporations. Since 2005, the Washington Post reports, lawsuit limits have been mentioned in at least 51 rules proposed or adopted by bureaucratic agencies, and relating to everything from medical products, to railroads. At least 41 of these rules came from the FDA.
Bush has always been an ardent proponent for restrictions on lawsuits, but hasn’t been able to make much headway as President. A hostile Congress doesn’t help. Now it appears that bureaucratic agencies are using the government’s rule-making authority to impose lawsuit restrictions. The agencies are inserting language into rules indicating that the rules pre-empt state laws allowing consumer lawsuits.
There hasn’t been a hue and cry over this, because this isn’t an all out effort by the administration to impose restriction on lawsuits. That step could have resulted in plenty of criticism from consumer advocates, and any such bill would have been sure to meet hostile Democrats in the House. The administration is therefore going about it quietly without a fuss, and rules imposing restrictions in lawsuits have begun to find their way into rules regulating a number of products and services.
Drug labeling and packaging is one such area where the rules have been imposed, and the impact of this rule will be debated in a high profile setting in coming weeks. Hollywood actor Dennis Quaid is to appear before a congressional committee. Quaid and his wife are suing a maker of the blood thinner heparin. Their newborn twins were injected with a massive overdose of the blood thinner while in the hospital. The Quaids say the manufacturer of the heparin was negligent in packaging the bottles of varying dosages in the exact same kind of vial with blue backgrounds. The company that manufactured the heparin, however, claims that since the FDA approved the labeling and packaging of the heparin, it cannot be held liable now for any civil lawsuit that claims money.
Consumer advocates are up in arms against this use of rule-making authority to impose restrictions on customer’s right to sue.
Another high profile case that will come before the Supreme Court involves a drug maker who will try to overturn a $6.8 million award against it. In that case, a woman who had anti-nausea medicine injected into her arm had to have her arm amputated, and successfully sued the company. The company however is defiant, claiming that since the FDA approved the warning label on the drug, it cannot be held liable.
It’s no secret that the FDA’s preemption preamble has resulted in drug companies wining a spate of recent lawsuits. Judges who were inclined to rule for customers against industry previously have shown a tendency to rule for the FDA.