Victoria Looper v. Cook Incorporated
Citation20 F.4th 387
Date Filed2021-12-16
Docket20-3103
JudgeHamilton
Cited33 times
StatusPublished
Full Opinion (html_with_citations)
In the
United States Court of Appeals
For the Seventh Circuit
____________________
No. 20-3103
VICTORIA LOOPER,
Plaintiff-Appellant,
v.
COOK INCORPORATED, et al.,
Defendants-Appellees.
____________________
No. 20-3104
SAMMIE LAMBERT,
Plaintiff-Appellant,
v.
COOK INCORPORATED, et al.,
Defendants-Appellees.
____________________
Appeals from the United States District Court for the
Southern District of Indiana, Indianapolis Division.
Nos. 1:16-cv-03510 & 1:19-cv-02561 ā Richard L. Young, Judge.
____________________
ARGUED SEPTEMBER 9, 2021 ā DECIDED DECEMBER 16, 2021
____________________
2 Nos. 20-3103 & 20-3104
Before KANNE, HAMILTON, and ST. EVE, Circuit Judges.
HAMILTON, Circuit Judge. These two consolidated appeals
raise issues about how the common practice of ādirect ļ¬lingā
in multidistrict litigation may aļ¬ect the choice of law in indi-
vidual cases within the larger MDL. The Judicial Panel on
Multidistrict Litigation asked Judge Richard L. Young of the
Southern District of Indiana to oversee a multidistrict litiga-
tion docket to coordinate discovery and other pretrial pro-
ceedings in thousands of medical product-liability suits
against Cook Incorporated and related entities alleging that
Cookās inferior vena cava (IVC) ļ¬lters were defective. See 28
U.S.C. § 1407.
The court and the parties agreed in practice to a procedure
by which new plaintiļ¬s could join the MDL by ļ¬ling directly
in the Southern District of Indiana rather than ļ¬ling in their
home districts and waiting for the judiciaryās administrative
machinery to transfer their cases to the MDL in the Southern
District of Indiana. As we explain below, the choice between
such direct ļ¬ling and waiting for a transfer may aļ¬ect the
choice of law in the case, among other legal issues.
In these appeals, plaintiļ¬s Victoria Looper and Sammie
Lambert ļ¬led their lawsuits directly in the MDL court in In-
diana rather than ļ¬ling in the states where they lived and had
the IVC ļ¬lters implanted and then waiting for their cases to
be ātaggedā and transferred by the Judicial Panel on Multi-
district Litigation. Cook moved to dismiss both cases based
on Indianaās two-year statute of limitations for personal in-
jury actions. Looperās and Lambertās home states (South Car-
olina and Mississippi) have three-year statutes. If the South
Carolina and Mississippi statutes apply, their cases were
timely. If the Indiana statute governs, as Cook argues and the
Nos. 20-3103 & 20-3104 3
district court held, Looper and Lambert ļ¬led their cases too
late.
The appeals raise questions that have broad implications
for MDL courts that endorse direct ļ¬ling for the sake of eļ¬-
ciency. The dispute here shows the need for care and clarity
up front in adopting direct ļ¬ling. In these appeals, however,
we do not need to reach sweeping conclusions on the subject.
The unusual course of events in the district courtāon this is-
sue, ļ¬rst Cook and then the district court changed course 180
degrees in the midst of the MDLāshowed that Cook implic-
itly consented to using choice-of-law rules for these plaintiļ¬s
as if they had ļ¬led in their home states. The district court
might well have discretion to allow Cook to change positions
prospectively, but it was not fair to allow Cook to change po-
sitions retroactively to dismiss these plaintiļ¬sā cases that had
been timely ļ¬led under what the district court had accurately
called the ālaw of the case.ā We therefore reverse the judg-
ments in favor of Cook in these two appeals and remand for
further proceedings in the district court.
To explain our decision, we ļ¬rst lay out the governing le-
gal principles for choice of law in diversity-jurisdiction cases
that are transferred, and then the basics of multidistrict litiga-
tion and the practice of direct ļ¬ling. We then turn to the unu-
sual course of relevant events that persuades us that Cook
consented to using home-state choice-of-law principles for
these cases ļ¬led directly in the MDL venue.
I. Legal Standards
A. General Choice-of-Law Rules
We start with ļ¬rst principles. Absent the partiesā consent
to a diļ¬erent approach, a federal court exercising its diversity
4 Nos. 20-3103 & 20-3104
jurisdiction over state-law claims ordinarily applies the
choice-of-law rules of the state in which it sits. Klaxon Co. v.
Stentor Electric Manufacturing Co., 313 U.S. 487, 496(1941). When a district court with proper venue transfers a civil case to another district court, the transferee court will apply the choice-of-law rules of the state where the transferor court sits. Van Dusen v. Barrack,376 U.S. 612, 639
(1964) (āA change of venue under [28 U.S.C. § 1404
(a)] generally should be, with respect to state law, but a change of courtrooms.ā). We review de novo a district courtās choice of law. Auto-Owners Insurance Co. v. Websolv Computing, Inc.,580 F.3d 543, 546
(7th Cir. 2009).
B. Choice of Law in MDLs
The path a diversity-jurisdiction case takes to join a multi-
district litigation can aļ¬ect which stateās choice-of-law princi-
ples govern the dispute. Take so-called ātag-alongā actions.
There, a plaintiļ¬ ļ¬les a case that shares a common question of
fact with the cases that are already part of the multidistrict
litigation, but ļ¬les in a district other than the MDL court. After
the Judicial Panel on Multidistrict Litigation is notiļ¬ed of the
case, the Panel then ātagsā it as part of the MDL and transfers
it to the transferee judge for all pretrial proceedings, barring
any successful objections. See 28 U.S.C. § 1407(a) & (c); An- drew D. Bradt, The Shortest Distance: Direct Filing and Choice of Law in Multidistrict Litigation,88 Notre Dame L. Rev. 759
, 795 (2012). Importantly, a tagged case preserves the choice-of-law rules of its originating jurisdiction. Chang v. Baxter Healthcare Corp.,599 F.3d 728, 732
(7th Cir. 2010) (collecting cases apply-
ing Klaxon and Van Dusen in MDLs).
A diļ¬erent path for plaintiļ¬s may be to ļ¬le directly in the
MDL court. Over more than ļ¬fty years of multidistrict litiga-
tion under § 1407, federal courts have worked with parties
Nos. 20-3103 & 20-3104 5
and their counsel to develop āspecialized procedures to man-
age the pretrial proceedings in the related cases.ā Bell v. Publix
Super Markets, Inc., 982 F.3d 468, 488 (7th Cir. 2020); see also Abbe R. Gluck, Unorthodox Civil Procedure: Modern Multidis- trict Litigation's Place in the Textbook Understandings of Proce- dure,165 U. Pa. L. Rev. 1669
, 1672, 1688ā93 (2017) (noting that 39 percent of all open civil cases on federal dockets are in MDLs, and analyzing custom-tailored procedures often used in MDLs); Bradt, 88 Notre Dame L. Rev. at 788ā89; Eldon E. Fallon et al., Bellwether Trials in Multidistrict Litigation,82 Tul. L. Rev. 2323
, 2328 (2008).
A direct-ļ¬ling order is one such procedure. Direct ļ¬ling
eliminates the need for plaintiļ¬s to ļ¬le their cases in their
home jurisdictions (or other valid forums apart from the MDL
court) and then wait for their cases to be tagged and later
transferred to the MDL transferee court. Instead, once the
transferee judge institutes direct ļ¬lingātypically through an
agreed case management orderāplaintiļ¬s can ļ¬le directly in
the MDL court, avoiding the delays in the tag-along process.
Direct ļ¬ling can be a useful tool in managing multidistrict
litigation because it āeliminates the judicial ineļ¬ciency that
results from two separate clerkās oļ¬ces having to docket and
maintain the same case and three separate courts (the trans-
feror court, the MDL Panel, and the transferee court) having
to preside over the same matter.ā Fallon, 82 Tul. L. Rev. at
2356; see also id. at 2355 (ā[I]t has become increasingly more
time-consuming and expensive for an individual case to ļ¬nd
its way into a transferee court.ā). These advantages can bene-
ļ¬t all parties and the courts. See Bradt, 88 Notre Dame L. Rev.
at 764 (āDefendants prefer centralizing all of the cases, and
plaintiļ¬s prefer skipping the transfer step, while preserving
6 Nos. 20-3103 & 20-3104
their prerogative to return to a more convenient forum if and
when pretrial proceedings conclude.ā).
Direct ļ¬ling can bring its own complications and potential
pitfalls, however. The procedure can aļ¬ect personal jurisdic-
tion, venue, and choice of law. Section 1407 does not expressly
authorize transferee courts to override otherwise applicable
law, as shown in Lexecon Inc. v. Milberg Weiss Bershad Hynes &
Lerach, where the Supreme Court rejected a favorite tool of
many MDL transferee courts by holding that a transferee
court does not have the power to order a case transferred to
itself for purposes of trial. 523 U.S. 26, 28(1998); see also Larry Kramer, Choice of Law in Complex Litigation,71 N.Y.U. L. Rev. 547
, 552ā53 (1996) (Klaxon and Van Dusen constrain choice of
law in federal courts both inside and outside MDLs and other
complex cases).
Yet despite the limits on a transferee courtās coercive pow-
ers, the issues aļ¬ected by direct ļ¬lingāpersonal jurisdiction,
venue, and choice of lawāare waivable. The partiesā consent
to the procedure and agreement on its consequences should
remove the risk of later objections. See, e.g., In re Vioxx Prod-
ucts Liability Litigation, 478 F. Supp. 2d 897, 903 (E.D. La. 2007)
(after securing defendantās consent that it āwill not assert any
objection of improper venueā to cases that would be properly
included in the MDL, transferee judge explained that āa plain-
tiļ¬ may now ļ¬le any such complaint against [the defendant]
directly in the [MDL court], rather than in a federal district
court aļ¬ording proper venueā).
C. The Dobbs Rule
Our focus here is on the choice of law when direct ļ¬ling is
used. One possible but highly formalistic answer is the
Nos. 20-3103 & 20-3104 7
straightforward application of Klaxon and Van Dusen to say
that use of direct ļ¬ling means that the MDL court should ap-
ply choice-of-law rules for its own state because that is where
the case was actually ļ¬led. In MDL litigation, however, dis-
trict courts have often applied a diļ¬erent approach, treating a
direct-ļ¬led case as if it had been ļ¬led in the plaintiļ¬ās origi-
nating state and applying that stateās choice-of-law rules. We
and other circuits have endorsed that approach, and thatās the
approach ļ¬rst advocated by Cook and adopted by the district
court in this MDL.
A good place to start is the Yasmin & Yaz MDL, where
Judge Herndon (a veteran MDL judge) tackled this question.
He concluded that, rather than applying the Klaxon/Van Dusen
rule mechanically based on the MDL venue where direct ļ¬l-
ing occurred, āthe better approachā was to ātreat foreign di-
rect ļ¬led cases as if they were transferred from a judicial dis-
trict sitting in the state where the case originated.ā In re Yasmin
& Yaz (Drospirenone) Marketing, Sales Practices & Products Lia-
bility Litigation, 2011 WL 1375011, at *5ā6 (S.D. Ill. Apr. 12,
2011) (choice of law for attorney-client privilege and work-
product doctrine). Judge Herndon had issued a direct-ļ¬ling
order that provided direct ļ¬ling would not aļ¬ect the choice
of law that otherwise would apply, and he concluded that the
administrative convenience of direct ļ¬ling should not change
applicable choice-of-law rules.
Two years later, another veteran MDL judge took the same
approach in In re Watson Fentanyl Patch Products Liability Liti-
gation, 977 F. Supp. 2d 885, 888(N.D. Ill. 2013). Judge Kennelly declined to apply the MDL forum stateās choice-of-law prin- ciples to decide which stateās law should govern the process of approving a settlement in a wrongful-death case. He wrote 8 Nos. 20-3103 & 20-3104 that āit would not make a great deal of senseā to apply the law of āan artiļ¬cial forum created for purposes of conven- ience and eļ¬ciencyā that otherwise had no connection to the proceedings.Id.
The direct-ļ¬ling order apparently had not ad-
dressed choice of law directly because the procedure was in-
tended for only a small number of cases that had already been
settled in principle.
Another version of this choice-of-law issue then reached
this court in Dobbs v. DePuy Orthopedics, Inc., 842 F.3d 1045
(7th Cir. 2016). Plaintiļ¬ Dobbs had hired an attorney on a con-
tingent-fee basis for his products-liability suit as part of a mul-
tidistrict litigation. Since the multidistrict litigation was al-
ready in progress and had a direct-ļ¬ling order, Dobbs elected
to ļ¬le directly in the MDL court rather than his originating
jurisdiction. Dobbs later ļ¬red his attorney after the attorney
recommended that he accept a settlement oļ¬er. Dobbs later
changed his mind and, acting pro se, accepted the settlement.
At that point, his former attorney sued Dobbs on a quantum
meruit theory. The district court agreed with the lawyer and
awarded him a fee that amounted to the full contingent fee.
Dobbs appealed, and a threshold issue was whether the
laws of the MDL court or the originating state applied to the
award of attorney fees. In deciding that issue, we recognized
that Klaxon typically controlled in federal diversity cases ap-
plying state law and that Van Dusen would control in a case
transferred from another proper federal venue. However,
Dobbs had ļ¬led his claim in the MDL court only because the
āmultidistrict litigation was already in progress there,ā and
Dobbs identiļ¬ed an originating forum in his complaint that
āwas the appropriate venue absent the multidistrict litiga-
tion.ā Id.at 1048ā49. This evidence āadvise[d] treating the Nos. 20-3103 & 20-3104 9 [originating forum] as the original venue.āId. at 1049
. We heeded this advice and applied the choice-of-law rules of the originating forum, not those of the MDL forum. In doing so, we expressly adopted the approach of these leading district court cases: āIn fact, district courts in our circuit have taken [this] approach: foreign cases ļ¬led directly in a district court as a part of ongoing multidistrict litigation are treated as hav- ing originated outside of that district. We ratify that approach here and apply [the originating stateās] choice-of-law rules.āId.,
citing Watson Fentanyl Patch, 977 F. Supp. 2d at 888ā89 and Yasmin & Yaz,2011 WL 1375011
, at *5.
Dobbs did not create a new rule but ratiļ¬ed the pragmatic
approach adopted by Judges Herndon and Kennelly, among
others. On this issue, Dobbs also followed a Sixth Circuit opin-
ion that had taken the same approach. In Wahl v. General Elec-
tric Co., 786 F.3d 491(6th Cir. 2015), plaintiļ¬ Wahl had joined a multidistrict litigation against General Electric for injuries she sustained allegedly from a GE contrast agent used in med- ical imaging. Pursuant to a direct-ļ¬ling order, Wahl ļ¬led her case directly in the MDL court rather than where she received the contrast agent. The defendant argued that the originating stateās choice-of-law rules applied to Wahlās claim, while Wahl argued that the MDL forumās choice-of-law rules ap- plied. The Sixth Circuit sided with the defendant: āDirect-ļ¬led MDL suits that are then transferred to a more convenient fo- rum for trial are an exception to the ordinaryā choice-of-law rules.Id. at 496
. In the alternative, āevery district court receiv- ing a direct-ļ¬led MDL suit would be bound to apply the choice of law principles of the MDL forum. In eļ¬ect, the acci- dent of bureaucratic convenience would elevate the law of the 10 Nos. 20-3103 & 20-3104 MDL forum.āId.
Such an alternative regime would have se- vere negative consequences, the court said: āAny beneļ¬t in ef- ļ¬ciency from combining similar litigations for pretrial mo- tions would pale in comparison to the complications of apply- ing the substantive law of the venue in which the MDL panel happened to convene cases from around the country.āId. at 499
. Thus, for directly ļ¬led cases in an MDL, the Sixth Circuit
adopted the rule that we later ratiļ¬ed in Dobbs.
This treatment of choice of law in direct-ļ¬led cases seems
common. Among MDL courts, the āweight of authorityā re-
ļ¬ects a rule akin to Dobbs. Id.at 497ā98 (collecting cases), see also Wahl v. General Electric Co.,983 F. Supp. 2d 937
, 943 & n.11 (M.D. Tenn. 2013) (collecting cases and explaining that courts applying contrary approach did so āwith little or no analy- sisā). Circuits that have addressed this question since Dobbs likewise have not departed from this common practice. See In re Bair Hugger Forced Air Warming Devices Products Liability Lit- igation,999 F.3d 534
, 538 (8th Cir. 2021) (āBecause claims in MDL cases often wind up in the MDL forum through an āac- cident of bureaucratic convenience,ā this court and others have concluded in many instances that the substantive law of the forum the individual complaint was or would have been brought in should govern, rather than the law of the MDL fo- rum.ā (citation omitted)); In re DePuy Orthopaedics, Inc.,870 F.3d 345, 348
(5th Cir. 2017) (āCases that are directly ļ¬led in an MDL court are treated āas if they were transferred from a judicial district sitting in the state where the case origi- nated.āā), quoting Yasmin & Yaz,2011 WL 1375011
, at *6; Tim- othy v. Boston Scientiļ¬c Corp.,665 F. Appāx 295, 296
(4th Cir.
2016) (per curiam) (in direct-ļ¬led case, the originating juris-
dictionās āchoice of law principles controll[ed] because the ac-
tions forming the basis of the lawsuit occurred thereā).
Nos. 20-3103 & 20-3104 11
Under the Dobbs approach, which was urged by Cook and
adopted by the district court at earlier stages of this MDL, ap-
pellants Looper and Lambert both ļ¬led their cases within the
applicable statutes of limitations. Cook does not challenge
Dobbs as incorrectly decided on its own terms, but it seeks to
distinguish it so that it should not apply to these cases. Cook
argues that Dobbs should not apply here because (1) the MDL
venue was itself always a proper venue for these cases inde-
pendent of the MDL, and (2) there was in fact no direct-ļ¬ling
order. As Cook sees the issue, at least in these two appeals,
this case diļ¬ers from Dobbs, Yasmin & Yaz, Watson Fentanyl
Patch, and Wahl because the Southern District of Indiana
would have been a proper venue for these cases regardless of
the MDL or its bureaucratic needs, including the convenience
of direct ļ¬ling. Cook thus contends there is no need to depart
from what the Sixth Circuit called the āmechanical applica-
tion of the transferor-transferee rule articulated in Van
Dusen.ā Wahl, 786 F.3d at 498.
Cook raises substantial questions regarding how Dobbs in-
teracts with Klaxon and Van Dusen, particularly if the parties
have not consented to a speciļ¬c approach to choice of law in
directly ļ¬led cases. Would it still make sense to apply Dobbs
when the plaintiļ¬ could have ļ¬led her case in the MDL venue
even if the multidistrict litigation did not exist? Does it matter
whether the plaintiļ¬ or the defendant seeks to invoke the
choice-of-law rules of the MDL venue? Does it matter whether
the direct-ļ¬ling order expressly addresses the issue of choice
of law? Dobbs did not address these questions, but our opin-
ion also did not impose or imply the limits that Cook would
have us apply here. The other cases we have cited adopting
this approach also did not address this speciļ¬c variation on
the broader problem. Still, Lexecon stands as a stark reminder
12 Nos. 20-3103 & 20-3104
that practices that MDL transferee judges adopt for sound,
practical reasons are not always legally permissible, at least
without the partiesā consent.
Without clear advance guidance from a transferee judge
and consent from the parties about how the MDL court
should decide choice-of-law issues in directly ļ¬led cases,
there are substantial risks of confusion and unfairness. To
avoid potential surprises and harsh outcomes, we must sayā
from our institutional perch as Monday-morning quarter-
backsāthat transferee judges should consider securing ex-
press, written agreements to which statesā choice-of-law prin-
ciples will govern directly ļ¬led cases before permitting direct
ļ¬ling. 1
II. Implied Consent on Choice of Law
In these cases, we decline to address the more general
question of whether Dobbs is limited as Cook argues it should
be. Instead, several features of the record as a whole persuade
us that Cook at least implicitly, but clearly, consented to the
application of originating state choice-of-law rules to directly
1Direct-filing orders often do not discuss choice-of-law issues, so it is
not apparent that the mere existence of such an order would establish the
necessary consent to a departure from Klaxon and Van Dusen. See Bradt,
88 Notre Dame L. Rev. at 764 (āThe orders courts have adopted often say
nothing about the choice-of-law implications of direct filing, and when
they do, they usually say that direct filing will have āno effectā on the ap-
plicable law.ā). For instance, the Yasmin & Yaz direct-filing order said that
it would ānot impact the choice of law that otherwise would apply to the
direct filed actions.ā 2011 WL 1375011, at *5. Read in isolation, that lan-
guage does not signal clearly whether the direct-filing order meant that
Klaxon or the law of a plaintiffās originating jurisdiction should control,
though we assume the baseline was the choice of law that would have
applied if the cases had been filed in their originating jurisdictions.
Nos. 20-3103 & 20-3104 13
ļ¬led cases. That evidence includes the provisions for so-called
short form complaints, earlier litigation over the same issue in
other cases in the MDL where Cook convinced the district
court to take the approach opposite to its position here, and
case management orders reļ¬ecting the importance and value
of direct ļ¬ling. If Cook wants to revoke that consent prospec-
tively, consistently across the whole MDL and as to statutes
of limitations and other issues, it should address that request
to the MDL court, but it should do so without overreaching to
apply such a revocation retroactively to deem cases untimely
based on its new understanding of the law.
A. The Short Form Complaint
Appellants Looper and Lambert and thousands of other
patients have alleged that they received defective IVC ļ¬lters
manufactured by Cook. After the Judicial Panel on Multidis-
trict Litigation established this MDL in the Southern District
of Indiana, the parties swiftly drafted and the court approved
a Case Management Plan. The order called for use of a āShort
Form Complaintā in so-called ādirect ļ¬ling.ā Plaintiļ¬s could
use this complaint form to ļ¬le directly in the MDL court ra-
ther than ļ¬ling in the federal courts in their home jurisdictions
and waiting for their cases to be tagged and transferred to the
MDL court for pretrial proceedings. Relevant to these ap-
peals, the short form complaint included a line for a plaintiļ¬
to designate the āDistrict Court and Division in which venue
would be proper absent direct ļ¬ling.ā There are two apparent
reasons to include this language: to identify (1) where trial
should be held after pretrial proceedings are wrapped up,
and (2) which stateās choice-of-law rules govern the dispute.
And those two reasons are closely related. It would be very
odd to transfer a case back to a district in an originating state
14 Nos. 20-3103 & 20-3104
for application of the substantive law of the MDL courtās
state. 2
B. Cook Argues for the Law of the Originating Jurisdictions
To determine the purpose of the āoriginating jurisdictionā
line in the short form complaint for this MDL, we need not
look further than Cookās own prior arguments in at least
seven individual cases. In moving for judgment on the plead-
ings for a set of six Cook IVC ļ¬lter cases based on statutes of
repose, Cook cited this line in the short form complaint as
identifying the district courts whose choice-of-law rules ap-
plied. The set of six cases is known as the Sales-Orr cases, after
one of the plaintiļ¬s. In a combined motion aimed at those
cases, Cook wrote: āthe plaintiļ¬sā Short Form Complaints
demonstrate that their claims āoriginatedā in their respective
home states of Georgia, Tennessee, and Texas, and those
statesā choice-of-law rules apply.ā Cook Defs.ā Mem. in Sup-
port of Motion for Judgment on the Pleadings Based on Stat-
utes of Repose, at 3, ECF No. 4186 (Mar. 27, 2017). In other
words, Cook asserted that the applicable statutes of limita-
tions and/or repose in direct-ļ¬led cases should be those of the
originating jurisdictions.
That was not the ļ¬rst time Cook had advanced that choice
of law approach in this MDL. In the Valerie Graham case, Cook
ļ¬led a motion to dismiss a case on statute-of-limitations
2 We pause to clarify one shortcut in our analysis. Van Dusen calls for
the transferee court to apply the choice-of-law rules of the transferring
court, which may or may not call for applying that stateās substantive law.
376 U.S. at 639. In these cases, however, we do not dig into the details of
those stateās choice-of-law doctrines. All parties agree that the respective
choice-of-law rules for South Carolina, Mississippi, and Indiana would
call for applying the forum stateās statute of limitations.
Nos. 20-3103 & 20-3104 15
grounds on February 2, 2016. Cook argued for the district
court to adopt the Yasmin & Yaz rule later ratiļ¬ed by Dobbs.
Critically, the originating stateās law in the Valerie Graham case
beneļ¬ted Cook, whereas here itās the other way around. Cook
wrote at the time:
When a case based on diversity is part of an
MDL and is directly ļ¬led in the MDL forum as
the result of a direct ļ¬ling order, courts have
found that the ābetter approach is to treat for-
eign direct ļ¬led cases [i.e., cases originating out-
side of this Courtās judicial district but ļ¬led di-
rectly into the MDL] as if they were transferred
from a judicial district sitting in the state where
the case originated.ā In re Yasmin, 2011 U.S. Dist.
LEXIS 39820, at *15, *18 (S.D. Ill. April 11,
2011.).⦠Accordingly, Kansas is the originating
state and Kansas choice-of-law provisions ap-
ply.
Cook Defs.ā Br. in Support of Motion for Summary Judgment,
at 5ā6, ECF No. 1051 (Feb. 2, 2016) (alteration in original).
If asking the district court to apply a certain rule to a case
is not āconsentingā to that rule, then we are not sure what
would be. Then, more than a year later, as noted, Cook reiter-
ated its arguments for (and thus consent to) the Dobbs rule. In
the six Sales-Orr cases, using almost exactly the same lan-
guage it used in Graham, Cook again invoked the Dobbs rule
for statutes of repose. The court agreed with Cook:
This motion addresses those Plaintiļ¬s, whose
cases originated outside of this courtās judicial
district but were directly ļ¬led in this MDL
16 Nos. 20-3103 & 20-3104
forum (āforeign direct ļ¬led casesā), pursuant to
the courtās direct ļ¬ling order. The speciļ¬c issue
raised in the present motion is whether the
court should apply the choice-of-law rules of
the MDL forum (Indiana) or the choice-of-law
rules of the state where the case would have
been brought had it not been part of this MDL.
In 2011, the Southern District of Illinois ad-
dressed this issue and held that āthe [better] ap-
proach is to treat foreign direct ļ¬led cases as if
they were transferred from the judicial district
sitting in the state where the case originated.ā
The court adopts this approach ā¦.
Entry on Motion for Judgment on the Pleadings Based on the
Statute of Repose, at 3, ECF No. 4918 (May 31, 2017) (empha-
sis added), citing Yasmin & Yaz, 2011 WL 1375011, at *6. Under
that approach to Looperās and Lambertās cases, their claims
were timely.
A plaintiļ¬ may tailor her litigation strategy to the current
state of play in the MDL and should not have a trap sprung
on her based on a retroactive change of the ground rules. Even
if the district court was or remains inclined to allow Cook to
revoke its implicit consent and to change its position on the
choice-of-law question for directly ļ¬led cases, such a change
should not be applied retroactively to cases where corrective
action was no longer possible in response to Cookās and the
district courtās change in position.
C. Case Management Orders
Case management orders provide additional evidence of
the prevailing practice here that was consistent with Dobbs. As
Nos. 20-3103 & 20-3104 17
the MDL progressed, the district judge issued various case
management orders. These orders governed deposition pro-
tocols, amendments to the case management plan, and many
other topics. The orders also provide further evidence as to
the state of play in this MDL and the partiesā understanding
of its ground rules, including Cookās implicit consent to ap-
plying choice-of-law rules from properly identiļ¬ed originat-
ing jurisdictions for direct-ļ¬led cases.
For instance, in at least two orders, the court referred to
ādirect ļ¬ling.ā Case Management Order #3 explained: āAs to
cases directly ļ¬led in the Southern District after the entry of
this Order and the entry of an order in MDL 2570 permitting
direct ļ¬ling, the Short Form Complaints will not name the Ad-
ditional Cook Entities.ā ECF No. 353 at 2. And Case Manage-
ment Order #5 explained that its guidance applied to ā(1) all
cases transferred to this court by the Judicial Panel on Multi-
district Litigation, including those cases identiļ¬ed in the orig-
inal Transfer Order and those subsequently transferred as
tag-along actions; and (2) all cases directly ļ¬led in or removed
to this MDL.ā ECF No. 355 at 1.
As these orders, the short form complaints, and Cookās
earlier brieļ¬ng in Sales-Orr and Graham indicated, the court
and the parties simply proceeded as if direct ļ¬ling were per-
missible and as if a direct-ļ¬ling order were on the books. A
plaintiļ¬ās lawyer who looked at these orders could reasona-
bly conclude that direct ļ¬ling, pursuant to a direct-ļ¬ling or-
der, was proper and welcome in this MDL. And if she looked
further into the MDLās docket, she would have found Cookās
successful arguments for applying choice-of-law rules from
originating jurisdictions in directly ļ¬led cases. Roughly six
thousand plaintiļ¬s took advantage of direct ļ¬ling.
18 Nos. 20-3103 & 20-3104
D. Cookās Counterarguments
The unfairness of Cookās switching from one rule to its op-
posite within this MDL is self-evident, at least as applied to
these plaintiļ¬s. In trying to justify this about-face, Cook raises
several arguments that we ļ¬nd unpersuasive.
First, Cook argues that it can take inconsistent positions in
the diļ¬erent cases because individual cases in multidistrict lit-
igations retain their āseparate identities.ā Appelleesā Br. 51,
quoting Gelboim v. Bank of America Corp., 574 U.S. 405, 413 (2015). That can certainly be true for many purposes, such as requiring separate individual judgments and appeal rights, as in Gelboim itself. 574 U.S. at 413 n.3; see also Bell v. Publix Super Markets, Inc.,982 F.3d 468
, 489ā90 (7th Cir. 2020); In re Refrig- erant Compressors Antitrust Litigation,731 F.3d 586
, 590ā92 (6th
Cir. 2013). But given the common ground among the cases
that justiļ¬es the use of the MDL process in the ļ¬rst place, it is
not realistic or fair to allow a party to use such formalities to
have the transferee MDL court justify a retroactive 180-degree
turn on a decisive procedural issue after establishing what the
court itself called the ālaw of the case,ā referring to the MDL
as a whole. ECF No. 12931 at 4.
Second, Cook argues that even if it consented to using the
short form complaints and their structure, it did not consent
to their contents. Cook writes: āin agreeing to the form of the
short-complaint, Cook did not agree to the substance of any
of the allegations that would be made in that short-form com-
plaint or, for that matter, the legal implications those allega-
tions would have.ā Appelleesā Br. 46 (emphasis omitted). The
argument addresses a strawman. No one is arguing that Cook
admitted the allegations in these plaintiļ¬sā short form com-
plaints. The key points are (a) that one of two evident
Nos. 20-3103 & 20-3104 19
purposes for identifying originating jurisdictions is to deter-
mine choice-of-law rules, and (b) that Cook itself persuaded
the district court to use those identiļ¬cations for exactly that
purpose.
Third, Cook relies on the absence of an actual direct-ļ¬ling
order, saying that it changed its position only after discover-
ing that absence. We are not convinced, given the actions of
the parties and the court as if such an order had been in place
at the times relevant to Looper and Lambert.3
Cook urges us to ignore its prior arguments because it was
merely āmistaken.ā A mistake in a few cases, as Cook puts it,
should not āadd up to a stipulation to deviateā from Klaxon.
Appelleesā Br. 48. We appreciate the point, perhaps in going
forward, but in our view, such a mistake in giving implicit
consent to the Dobbs treatment of choice of law could not jus-
tify a retroactive correction to spring a trap on these plaintiļ¬s
3 The surprising discovery came in addressing whether the parties
had preserved their so-called āLexecon rightsā in direct-filed cases. Years
after Cook successfully argued in the Graham and Sales-Orr cases that di-
rect-filed cases should be governed by the choice-of-law rules and statutes
of limitations of their originating jurisdictions, the MDL proceeded to the
bellwether trial stage. A dispute arose over where the trials would take
place. In Lexecon, the Supreme Court held that in MDL cases that were
tagged and transferred, the parties retained their rights to insist on re-
transfer back to their originating jurisdictions for trial once pretrial pro-
ceedings concluded in the MDL court. 523 U.S. at 28. Parties can consent
to having the MDL court retain such cases for trial, but without consent,
the right to re-transfer remains. Since there was no direct-filing order in
this MDL, the district judge concluded that the parties in direct-filed cases
had not preserved their Lexecon rights, thus allowing the MDL court to
preside over the trials. ECF No. 11131 at 2. We express no views here on
that issue, which may present considerations quite different from the stat-
ute-of-limitations defenses in these appeals.
20 Nos. 20-3103 & 20-3104
who acted consistently with Cookās and the district courtās
earlier position.
In the ļ¬rst place, it is not at all clear to us that Cookās ear-
lier position was incorrect. It was consistent with the weight
of authority in MDL cases using direct ļ¬ling, including our
opinion in Dobbs. We understand Cookās arguments for im-
posing new limits on the Dobbs rule, but those new limits are
at least contestable. Cookās rationale for limiting Dobbs, Yas-
min & Yaz, and the other direct-ļ¬ling MDL cases has been re-
verse-engineered to ļ¬t Cookās interests in the two appeals be-
fore us. Thatās neither unusual nor blameworthy, but Cook is
asking us to impose limits that those opinions did not invite.
Moreover, it asks us to do so based on a theory that bears no
relationship to the actual behavior of Cook, the MDL plain-
tiļ¬s, and the district court here. Despite the absence of a for-
mal direct-ļ¬ling order in this MDL, everyone acted for years
as if one were in place.
With respect to Cookās claim that its earlier victories in the
Sales-Orr and Graham cases were based on mistakes, Cook had
every incentive when it ļ¬rst made these arguments about the
choice of applicable statutes of limitations to discover
whether a direct-ļ¬ling order existed. Cook was more than ca-
pable of determining this fact if it had any doubts. In our
view, Cookānot Looper and Lambertābore the risk of its
mistake when it made and won with these prior arguments,
establishing a prevailing practice in how the MDL court
treated directly ļ¬led cases. We do not see a valid reason for
holding Cookās claimed mistake against these two appellants.
Since the MDL progressed as if a direct-ļ¬ling order had
been on the books, the parties were entitled to adapt their lit-
igation approaches with this fact in mind. The situation seems
Nos. 20-3103 & 20-3104 21
comparable to us to that contemplated by Federal Rule of
Civil Procedure 15(b)(2), which provides that an issue tried by
the partiesā express or implied consent must be treated as if it
had been raised in the pleadings. In addition, at relevant times
here, the law oļ¬ered strong support for the view that foreign
direct-ļ¬led cases are governed by their originating statesā
choice of law rules. Again, Cookās own actions in the MDL
show that it conformed its own behavior to this understand-
ing. Cook consented to this treatment of direct-ļ¬led casesā
indeed, welcomed itāuntil it no longer beneļ¬ted Cook, lead-
ing to the about-face against Looper and Lambert and these
appeals. That unfair reversal of course should not stand. We
know of no prior multidistrict litigation that allowed one
party to withdraw its consentāretroactivelyāto the treat-
ment of direct-ļ¬led cases halfway through the MDL, spring-
ing a trap shut on parties who complied with the law of the
case. We decline to be the ļ¬rst to do so without giving the tar-
geted parties an opportunity to take remedial actions.
E. Judicial Estoppel?
Much of what we have said echoes the grounds for the
doctrine of judicial estoppel: a party succeeds on one legal po-
sition and later tries to reverse its position on the same issue.
In some ways, Cookās about-face looks like an example of a
party playing fast and loose with the courtsāthe type of be-
havior that judicial estoppel is designed to protect against.
E.g., New Hampshire v. Maine, 532 U.S. 742, 749ā50 (2001) (ju- dicial estoppel āprotect[s] the integrity of the judicial processā by āāprohibiting parties from deliberately changing positions according to the exigencies of the momentāā) (citations omit- ted); see also Davis v. Wakelee,156 U.S. 680, 689
(1895)
(ā[W]here a party assumes a certain position in a legal
22 Nos. 20-3103 & 20-3104
proceeding, and succeeds in maintaining that position, he
may not thereafter, simply because his interests have
changed, assume a contrary position, especially if it be to the
prejudice of the party who has acquiesced in the position for-
merly taken by him.ā). Looper (but not Lambert) thus raised
judicial estoppel as an alternative ground for reversal.
We do not necessarily reject application of judicial estop-
pel here, but we think the better course is to rely on the strong
evidence of Cookās implied but clear consent to use of choice-
of-law rules from originating jurisdictions in direct-ļ¬led cases
like these two. Use of judicial estoppel here may have broader
and unforeseen consequences in this or other MDL cases, so
we adopt this more cautious, case-speciļ¬c approach. For ex-
ample, judicial estoppel does not permit a party to change her
position prospectively, whereas consent can be revoked for
future cases when it would not unfairly prejudice parties who
conformed their approach to the opposing partyās earlier ap-
proach. It is possible that an expansive use of judicial estoppel
could unduly complicate the work of MDL courts and the par-
ties before them in complex cases like this one.
In addition, while we think the evidence of Cookās consent
to using choice-of-law rules from originating jurisdictions is
unmistakable here, we would review a decision on judicial es-
toppel for an abuse of discretion. See In re KnightāCelotex, LLC,
695 F.3d 714, 721(7th Cir. 2012) (a decision to impose judicial estoppel is a āmatter of equitable judgment and discretion,ā which we review for an abuse of discretion). Judge Youngās written order on the question of judicial estoppel was cryptic, referring to the āunique circumstances of this case.ā Entry on Oct. 25, 2019 Hearing on Cookās Renewed Omnibus Motion for Summary Judgment on Statute of Limitations, at 1, ECF Nos. 20-3103 & 20-3104 23 No. 12256 (Oct. 19, 2019). In the hearing in Looperās and Lam- bertās cases, he said that he did not believe that Cook had de- liberately misled him, and rather that its 180-degree reversal had been the product of a mistake. A court considering an is- sue of judicial estoppel may consider the diļ¬erence between informed and mistaken choices. See In re Cassidy,892 F.2d 637, 642
(7th Cir. 1990) (judicial estoppel should not be imposed
when the former position was the product of a mistake).
* * *
Our decision should not be read too broadly. Finding con-
sent within the speciļ¬c facts of this case does not mean that
consent will exist in every case where direct ļ¬ling is used, and
Cook points out signiļ¬cant tension between Klaxon and Dobbs
if the Dobbs rule is applied without a partyās consent to it.
More generally, for future reference we urge transferee judges
to use written orders to ensure clear consent from parties
about how they will manage choice-of-law, personal jurisdic-
tion, and venue issues in directly ļ¬led cases. See Vioxx, 478 F.
Supp. 2d at 903. The court thus secures consent for parties to ļ¬le in the MDL forum, opening a second door for new ļ¬lings and creating judicial eļ¬ciencies in the process without creat- ing new uncertainties and disputes. To sum up, under the choice-of-law rules to which Cook consented, Looperās and Lambertās cases are governed by the law of their originating jurisdictions and are timely. Accord- ingly, the judgments of the district court are REVERSED and these two cases are REMANDED to the district court for fur- ther proceedings consistent with this opinion.