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Trustees of University of Pennsylvania v. St. Jude Children's Research Hospital

Citations: 940 F. Supp. 2d 233; 2013 U.S. Dist. LEXIS 52750; 2013 WL 1499518Docket: Civil Action No. 12-4122

Court: District Court, E.D. Pennsylvania; April 12, 2013; Federal District Court

Narrative Opinion Summary

This case involves a dispute between St. Jude Children’s Research Hospital and the Trustees of the University of Pennsylvania over alleged tortious interference with contractual relations. The conflict centers on two Materials Transfer Agreements (MTAs) related to cancer immunotherapy research. The University accused St. Jude of interfering with its prospective business relationship with Novartis by engaging in litigious activities. St. Jude countered that its actions were protected under the Noerr-Pennington doctrine, which provides immunity for petitioning activities, including litigation, unless they are deemed a sham. A key issue was whether St. Jude’s lawsuit was objectively baseless and filed with improper motives, as this would negate the Noerr-Pennington immunity. The court also addressed a choice of law issue, ultimately applying Pennsylvania law to the tortious interference claim. The court granted St. Jude's motion to dismiss the University's tortious interference claim, finding that St. Jude's litigation was not a sham and thus protected under the Noerr-Pennington doctrine. The case exemplifies the complexities of applying the Noerr-Pennington doctrine to state tort claims outside of antitrust contexts and the importance of establishing whether litigation is a sham to determine immunity.

Legal Issues Addressed

Choice of Law in Tort Claims

Application: The court determined Pennsylvania law to govern the tortious interference claim, as there was no significant conflict with Tennessee law, and Pennsylvania had the most significant interest in the dispute.

Reasoning: Both states aim to differentiate between permissible business practices and those outside societal norms, suggesting that there is no significant conflict between Tennessee and Pennsylvania law regarding these torts.

Noerr-Pennington Doctrine and its Applicability

Application: St. Jude claimed that the University of Pennsylvania's tortious interference claims were barred under the Noerr-Pennington doctrine, which protects petitioning activities, including litigation, unless deemed a sham.

Reasoning: St. Jude asserts that the University’s claims are barred by the Noerr-Pennington doctrine, which shields parties from liability for petitioning the government, including through litigation.

Sham Litigation Exception to Noerr-Pennington

Application: The court considered whether St. Jude's actions constituted sham litigation, which would negate Noerr-Pennington immunity, focusing on whether the lawsuit was objectively baseless and filed with improper motives.

Reasoning: The definition of 'sham' litigation, as outlined by the Supreme Court, requires that a suit be objectively baseless, meaning no reasonable litigant could expect success.

Tortious Interference with Contractual Relations under Pennsylvania Law

Application: The University of Pennsylvania alleged St. Jude interfered with its prospective business relationships, necessitating analysis under Pennsylvania law, which requires lack of privilege or justification among other elements.

Reasoning: Similarly, Pennsylvania law recognizes a tort for intentional interference with prospective contractual relations, requiring: (1) a prospective relationship, (2) intent to harm by preventing this relationship, (3) lack of privilege or justification by the defendant, and (4) actual damages.