Legislative Fixes to Keep Pharmaceutical Companies in NJ
In recent years, New Jersey has — at times — been deemed a “Judicial Hell Hole” by the American Tort Reform Association. The expense of defending thousands of mass tort products liability cases in New Jersey, as well as other costs of doing business in New Jersey, have resulted in some pharmaceutical companies relocating out of state. To halt the trend of businesses leaving New Jersey, the legislature could consider the following three actions to incentivize New Jersey companies to remain in-state. Provide an absolute defense to pharmaceutical companies sued for a failure to warn claim if the warning was approved by the Food and Drug Administration (“FDA”). Michigan has adopted, MCL 600.2946(5), which, subject to two exceptions, establishes an absolute defense for drug manufacturers and sellers in a products liability action, where the drugs complied with FDA standards and labeling. In New Jersey, a bill similar to MCL has been introduced. While N.J.S. 2A:58C-4 of the New Jersey Products Liability Act (“NJPLA”) provides for a rebuttable presumption of adequacy with respect to a drug label where the drug is approved by the FDA, an absolute defense in these circumstances would be more appropriate. The pharmaceutical industry is among the most heavily regulated industries in the United States. The unique approval process required by law before...

