Health Care Products, Inc. is a start-up Florida based pharmaceutical company. It is incorporated in Delaware, but its business offices, research department and production facilities are all located in Florida. Following Federal and State approvals for its new weight loss drug, Cal-Ban 3000, Health Care Products, Inc. began nationally marketing its new drug through newspaper advertisements
After seeing an advertisement for the weight loss drug, Cal -Ban 3000, in a North Carolina newspaper, the wife of the plaintiff Douglas Tart, a North Carolina resident, purchased the drug for her husband from an online retail store operated by defendant Prescott Pharmacies, Inc., a North Dakota corporation. No more than a week after the plaintiff’s beginning to take the drug had the plaintiff’s colon ruptured. Seeking remedies for his injury, allegedly as the direct result of his ingesting Cal-Ban 3000, the plaintiff filed suit in a North Carolina state court against defendant Prescott Pharmacies; Health Care Products, Inc., a Florida corporation and maker of Cal-Ban 3000; CKI Industries, the Florida corporation that markets Cal-Ban 3000; and other defendants. In response to the action, defendants Health Care Products and CKI questioned whether the due process clause of the Fourteenth Amendment precludes the North Carolina court from exercising jurisdiction in this case given that they were not legal residents of North Carolina. Defendant Prescott went further and questioned jurisdiction not only in North Carolina, but also in Florida, presumably if the plaintiff should choose to refile in Florida in the future.
Develop an IRAC for Judicial Requirement Issues only.