subject: Which Company Is Liable For The DePuy Failure: Johnson & Johnson or DePuy? [print this page] Which Company Is Liable For The DePuy Failure: Johnson & Johnson or DePuy?
Hip replacement lawsuits filed against DePuy and Johnson & Johnson claim that both companies are negligent for the defective hip implants that have been the subject of a sweeping hip replacement recall. Johnson & Johnson has been named as a defendant in some of these suits because it is the parent company of DePuy. Complaints from patients and orthopedic surgeons about the devices were submitted as early as 2005. Yet, DePuy and J&J waited until 2010 to issue the recallwell after more than 93,000 patients around the world had the device implanted. Both the DePuy ASR Hip Resurfacing System and the ASR XL Acetabular System have been recalled after patients reported pain, difficulty walking, eroded and broken bones, metal poisoning, tumors and other serious health issues. Implant recipients face the prospect of needing a second surgery to remove the defective implant and replace it with another device.
So Which Company Is More Responsible?
While it is not to your disadvantage to file hip replacement lawsuits against both companies, DePuy Orthopaedics is the more responsible party. The reason doesn't have much to do with product liability law so much as corporate law. Johnson & Johnson is the parent company while DePuy is the subsidiary. The parent-subsidiary relationship means the parent owns the subsidiary in the same way that shareholders own stock in a company that's traded on a stock exchange. Shareholders have multiple powers over the companies they own, such as electing the board of directors, who then select the company officers (CEOs, CFOs, etc.).
You may ask, "Why would it be worthwhile for Johnson & Johnson to own a separate company? Why not just integrate its functions into the parent company's?" It may be more efficient to have the subsidiary operate largely independently of the parent, and a separate board of directors, elected by Johnson & Johnson's corporate officers, would be able to run the company as such. Much more importantly, though, is that stockholders have a special privilege: limited liability. Limited liability means that a company's stockholders cannot be held responsible for legal damages the company causes. In other words, shareholders are immune to lawsuits due to their company's acts. There are a few exceptions to this rule, but whether any apply to Johnson & Johnson cannot be seen at this time. Consequently, it is unlikely that Johnson & Johnson can be held for DePuy's defective implants.
If you have a DePuy ASR System implanted in your hip, you've likely heard from DePuy and J&J about the recall and their offer to pay for the costs of doctor visits, tests and procedures associated with the recall. You should contact a hip replacement lawyer from the Rottenstein Law Group instead of signing any documentation that could prevent you from seeking damages in a hip replacement lawsuit. Since DePuy and J&J have already betrayed your trust and put your health at risk, would you rather trust their attorneys to protect your interests or a lawyer of your own?
