Laura Plumlee v. Pfizer, Inc. ( 2016 )


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  •                                                                            FILED
    NOT FOR PUBLICATION
    NOV 09 2016
    UNITED STATES COURT OF APPEALS                      MOLLY C. DWYER, CLERK
    U.S. COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    LAURA A. PLUMLEE, an individual on               No.   14-16924
    behalf of herself and all other persons
    similarly situated,                              D.C. No. 5:13-cv-00414-LHK
    Plaintiff-Appellant,
    MEMORANDUM*
    v.
    PFIZER, INC., a New York corporation,
    Defendant-Appellee.
    Appeal from the United States District Court
    for the Northern District of California
    Lucy H. Koh, District Judge, Presiding
    Submitted October 17, 2016**
    San Francisco, California
    Before: THOMAS, Chief Judge, and BEA and IKUTA, Circuit Judges.
    *
    This disposition is not appropriate for publication and is not precedent
    except as provided by Ninth Circuit Rule 36-3.
    **
    The panel unanimously concludes this case is suitable for decision
    without oral argument. See Fed. R. App. P. 34(a)(2).
    Plaintiff Laura Plumlee appeals the dismissal with prejudice of her First
    Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). We
    have jurisdiction pursuant to 28 U.S.C. § 1291, and we affirm.
    The district court dismissed Plumlee’s First Amended Complaint with
    prejudice because her claims were time-barred under the three- and four-year
    statutes of limitations applicable to her claims. On appeal, Plumlee alleges that she
    did not learn of Pfizer’s alleged misrepresentations concerning Zoloft’s efficacy
    until May 2012, and that her delayed discovery of Pfizer’s alleged
    misrepresentations extends the statute of limitations applicable to her claims under
    the “discovery rule.” Under California law, the discovery rule delays accrual of
    claims only when a plaintiff has no reason to suspect wrongdoing and can not
    discover his or her claims with reasonable diligence. See, e.g., Norgart v. Upjohn
    Co., 
    981 P.2d 79
    , 88–89 (Cal. 1999).
    The discovery rule does not extend the statutes of limitations applicable to
    Plumlee’s otherwise time-barred claims. Plumlee alleged that she stopped taking
    Zoloft’s generic equivalent in June 2008 because she believed it was ineffective for
    treating her depression, contrary to Pfizer’s representations. The district court did
    not err in determining that Plumlee therefore had “reason to suspect an injury and
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    some wrongful cause” such that she had inquiry notice by June 2008. See Fox v.
    Ethicon Endo-Surgery, Inc., 
    110 P.3d 914
    , 917, 920 (Cal. 2005).
    Plumlee did not sue Pfizer until January 2013, more than four years after she
    had reason to suspect wrongdoing on Pfizer’s part. Therefore, to delay accrual of
    her otherwise time-barred claims under the discovery rule, Plumlee needed to
    allege that she exercised reasonable diligence to discover the factual bases for her
    claims within the three- and four-year limitations periods beginning in June 2008
    and that she was unable to discover the factual bases for her claims, despite her
    reasonable diligence. See Grisham v. Philip Morris U.S.A., Inc., 
    151 P.3d 1151
    ,
    1159 (Cal. 2007) (“[A] plaintiff whose complaint shows on its face that his claim
    would be barred without the benefit of the discovery rule must specifically plead
    facts to show (1) the time and manner of discovery and (2) the inability to have
    made earlier discovery despite reasonable diligence.” (internal quotations and
    citations omitted)). Although Plumlee alleged the “time and manner of discovery”
    of the factual bases of her claims—Plumlee alleged she first discovered the bases
    for her claims when she watched a 60 Minutes rerun discussing Zoloft’s alleged
    ineffectiveness in May 2012—Plumlee failed to allege any facts that she was
    unable to discover the factual bases of her claims earlier despite exercising
    reasonable diligence. 
    Id. In fact,
    Plumlee failed to allege any facts that she
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    exercised any diligence at all to discover the factual bases of her claims between
    June 2008 and May 2012.1 Under the discovery rule, Plumlee’s failure to allege
    any facts that she exercised reasonable diligence between June 2008 and May
    2012, or that she was unable to discover the factual bases for her claims between
    June 2008 and May 2012 despite exercising reasonable diligence, constitutes a
    sufficient basis for affirming the district court’s dismissal with prejudice of her
    First Amended Complaint. 
    Id. On appeal,
    Plumlee argues that even had she exercised reasonable diligence
    to discover the factual bases of her claims during the applicable limitations periods,
    she would not have discovered any information concerning Zoloft’s alleged
    ineffectiveness because no information criticizing Zoloft’s efficacy existed to
    which a reasonably diligent consumer would have been exposed. However, the
    district court took judicial notice of an extensive record of documents—all publicly
    available during the relevant limitations periods—which discussed Pfizer’s
    unpublished clinical trials and the allegation that Zoloft was no more effective than
    a placebo. The district court did not err in taking judicial notice of these
    1
    Of course, had Plumlee filed an action any time during the remainder of
    May 2012, she well might have timely commenced an action for the claims with
    four-year statutes of limitations. However, Plumlee failed to do so, and instead
    waited to file her action until January 2013.
    4
    documents. See Von Saher v. Norton Simon Museum of Art at Pasadena, 
    592 F.3d 954
    , 960 (9th Cir. 2010) (holding that a court may take judicial notice of
    publications to establish what was in the public realm at the time); Seven Arts
    Filmed Entm’t Ltd. v. Content Media Corp. PLC, 
    733 F.3d 1251
    , 1254 (9th Cir.
    2013) (stating that, although courts are required to accept as true well-pleaded
    allegations of material fact, courts are not “required to accept as true allegations
    that contradict . . . matters properly subject to judicial notice . . .” (quoting Daniels-
    Hall v. Nat’l Educ. Ass’n, 
    629 F.3d 992
    , 998 (9th Cir. 2010))). The judicially
    noticed documents either identified Zoloft specifically or referred to
    antidepressants generally, just as the 60 Minutes segment that Plumlee alleges to
    have imparted notice did. Therefore, the district court properly rejected Plumlee’s
    allegation that no information questioning Zoloft’s efficacy existed within the
    three- and four-year limitations periods beginning in June 2008 to which a
    reasonably diligent consumer would have been exposed. Seven Arts Filmed Entm’t
    
    Ltd., 733 F.3d at 1254
    .
    Because Plumlee’s individual claims are time-barred, she cannot serve as a
    class representative. See Lierboe v. State Farm Mut. Auto. Ins. Co., 
    350 F.3d 1018
    ,
    1022 (9th Cir. 2003).
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    The district court also did not abuse its discretion in dismissing Plumlee’s
    claims with prejudice. A district court does not abuse its discretion when it denies
    leave to amend because the plaintiff “did not propose any new facts or legal
    theories for an amended complaint and therefore gave the [c]ourt no basis to allow
    an amendment.” See Gardner v. Martino, 
    563 F.3d 981
    , 991 (9th Cir. 2009). The
    district court warned Plumlee that failure to cure the deficiencies in her original
    complaint would result in a dismissal with prejudice. In her First Amended
    Complaint, Plumlee again failed to plead any facts establishing that she exercised
    reasonable diligence to discover the factual bases of her claims during the
    applicable limitations periods, or that she would be able to cure this deficiency
    with additional facts. Therefore, we conclude that the district court did not abuse
    its discretion in dismissing Plumlee’s First Amended Complaint with prejudice.
    AFFIRMED.
    6