Background
Pharmacies including Bloodworth Wholesale Drugs and Publix Super Markets face lawsuits alleging their role in the opioid epidemic. The plaintiffs seek billions in damages for healthcare and public safety costs. The pharmacies sought coverage under liability policies requiring insurers to defend and indemnify for damages because of bodily injury. Insurers refused, arguing the policies do not cover economic losses tracing to the epidemic. District courts granted summary judgment for the insurers, prompting appeals.
The court’s reasoning
The court reviewed the insurance contracts and found that the key dispute is whether the underlying lawsuits seek damages because of bodily injury. While the policies define bodily injury to include addiction and overdose, the causation link to the specific lawsuits is unclear under state law. The court noted that existing case law from other jurisdictions is split and that Georgia and Florida law lack clear controlling precedents on this specific issue. Citing principles of federalism and comity, the court concluded it was inappropriate to substitute its own intuition for the views of the state supreme courts on these novel questions.
What it means going forward
The certification pauses the litigation in the federal district courts pending answers from the state supreme courts. The outcome will determine whether insurers must defend and indemnify pharmacies for billions in opioid-related liabilities.