De Melo v. Lederle Laboratories

Lederle Laboratories (Lederle) (defendant), a New York corporation, made the drug Myambutol (drug) in the United States. Lederle was licensed to do business in Minnesota, but its business activities were conducted primarily in New York. Cyanamid Quimica de Brasil (CQB), a Brazilian corporation and wholly owned subsidiary of Lederle’s parent corporation, made Myambutol in Brazil. In the United States, patients were warned that the drug might cause permanent vision loss. In Brazil, patients were warned of possible temporary—not permanent—vision loss. Cleonilde Nunes de Melo (de Melo) (plaintiff), a Brazilian citizen, used the drug in Brazil and suffered permanent blindness. De Melo sued Lederle in federal district court in Minnesota. Lederle moved to dismiss the complaint, arguing forum non conveniens. The district court heard conflicting evidence concerning Brazilian law but concluded that although Brazil does not provide for punitive damages or pain and suffering, it allows recovery of lost wages, indirect losses, and double medical expenses. The court also found that although Lederle’s business records were in the United States, de Melo’s medical records and CQB’s business records were in Brazil. After balancing the relevant interests, the court ordered the dismissal of the action, conditioned on Lederle’s agreement to accept service of process in Brazil and to make available in a Brazilian lawsuit any necessary documents or witnesses. De Melo appealed the dismissal.