Newell v. Atrium Medical Corp.

Maine resident Robert Newell (plaintiff) had hernia surgery at a Maine hospital. The surgeon used C-QUR mesh, a product designed and sold by New Hampshire-based Atrium Medical Corporation (Atrium) (defendant). The mesh caused Newell to develop a severe infection. Newell sued Atrium in federal district court in New Hampshire, claiming that, contrary to Atrium’s assertions, the mesh was not safe and effective for permanent implantation during hernia repairs. Newell asserted seven claims: (1) negligence, (2) strict liability for design defect, (3) strict liability for manufacturing defect, (4) strict liability for failure to warn, (5) breach of express warranty, (6) breach of implied warranties of merchantability, and (7) violation of consumer-protection laws. Atrium moved to dismiss claims five through seven, arguing that because Newell was a Maine resident and the surgery occurred in Maine, Maine law governed Newell’s claims, and it did not support the warranty and consumer-protection claims. Specifically, Atrium argued that, unlike New Hampshire’s consumer-protection law, Maine’s consumer-protection law did not apply to non-consumer transactions. Newell argued that dépeçage required the district court to make a choice-of-law determination for each claim individually and, because Atrium only specifically identified a conflict between Maine and New Hampshire law regarding consumer protection, New Hampshire law should apply to all other claims. Atrium countered that dépeçage should not apply because the claims were inextricably intertwined, counseling in favor of applying one state’s laws to all claims. The district court considered the parties’ arguments.