Docket Number: 1567
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Docket Number: 1567 PENNSYLVANIA PHARMACEUTICAL ASSOCIATION, TIOGA DRUG COMPANY, VILLAGE PHARMACY, INC. d/b/a WYMAN PHARMACY, CHANE’S DRUG STORE, OST-REISS ENTERPRISES, INC. d/b/a PHILDELPHIA PHARMACY, 450 PHARMACY INC., LEHIGH APOTHECARY, INC., FORLENZA PHARMACY, FINO’S PHARMACY, AND LECH’S PHARMACY, individually and on behalf of all others similarly situated Christine S. Dutton, Esquire Victor P. Stabile, Esquire, VS. CLOSED COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF PUBLIC WELFARE John A. Kane, Chief Counsel Docket No. 1567 September 6, 1991 Complaint and filing fee filed by attorney for Plaintiff. Amount of Complaint: $1,000,000.00 September 13, 1991 Copy of Complaint forwarded to attorney for Defendant and Chief Deputy Attorney General. September 30, 1991 Acceptance of Service of Complaint received from Chief Deputy Attorney General. Receipt of same acknowledged by Chief Deputy Attorney General September 16, 1991. October 9, 1991 Joint Motion to Stay All Proceedings Pending Resolution of Related Federal Action filed by attorney for Defendant. Copy forwarded to attorney for Plaintiff (Victor P. Stabile, Esquire) by attorney for Defendant. CLOSEDOctober 17, 1991 The Board made the following Order: “AND NOW, this 17th day of October, 1991, upon consideration of the Joint Motion to Stay All Proceedings Pending Resolution of Related Federal Action, said Motion is hereby GRANTED. The above-captioned matter is hereby STAYED until there is final disposition or settlement in the case of Pennsylvania Pharmaceutical Association, et al. v. Robert P. Casey, et al., No. 1: VB-91-0378 in the United States District Court for the Middle District of Pennsylvania. Such stay shall be lifted by the Board of Claims at any time at the request of any party if such party decides, in its sole discretion, that a stay is no longer acceptable or advisable. The Defendant shall not have any obligation to respond to the Complaint until (30) days after receiving written notice form the Plaintiff’s that a response is required. The parties do not waive any rights, defenses, or objections by requesting this stay. Once the stay is lifted, this matter will proceed without prejudice to any Party.” Copies forwarded to attorneys for Plaintiff and attorney for Defendant. October 21, 1991 Acceptance of Service of Opinion and Order dated October 17, 1991 received from attorney for Plaintiff (Christine S. Dutton, Esquire). Receipt of same acknowledged by attorney for Plaintiff (Christine S. Dutton, Esquire) October 18, 1991. 2 Docket No. 1567 October 21, 1991 Acceptance of Service of Opinion and Order dated October 17, 1991 received from attorney for Plaintiff (Victor P. Stabile, Esquire). Receipt of same acknowledged by attorney for Plaintiff ( Victor P. Stabile, Esquire) October 18, 1991. October 23, 1991 Acceptance of Service of Opinion and Order dated October 17, 1991 received from attorney for Defendant. Receipt of same acknowledged by attorney for Defendant October 18, 1991. April 30, 1993 Proposed Order and Motion to be separately represented by Counsel and to Enter Appearance of Counsel on behalf of Brooks Drugs, Inc.; CVS Pharmacy/Peoples Drug; Drug Emporium; Fay’s Drug Stores; Kopp. Drug; Retired Persons Services; Revco; Rite Aid; Supermarkets General; Thrift Drug; Wal-Mart; Walgreen Company; and White Shield, Inc. filed by attorney for Additional Plaintiffs (Robert Hoffman, Esquire).CLOSED Copy forwarded to attorney for Plaintiff (Victor P. Stabile, Esquire) and attorney for Defendant (Thomas B. York, Chief of Litigation). April 30, 1993 Brief in Support of Motion to be separately represented by Counsel and to Enter Appearance of Counsel on behalf of Brooks Drugs, Inc.; CVS Pharmacy/Peoples Drug; Drug Emporium; Fay’s Drug Stores; Kopp. Drug; Retired Persons Services; Revco; Rite Aid; Supermarkets General; Thrift Drug; Wal-Mart; Walgreen Company; and White Shield, Inc. filed by attorney for Additional Plaintiffs (Robert Hoffman, Esquire). Copy forwarded to attorney for Plaintiff (Victor P. Stabile, Esquire) and attorney for Defendant (Thomas B. York, Chief of Litigation). May 6, 1993 Answer and New Matter filed by attorney for Defendant. Copy forwarded to attorney for Plaintiff (Victor P. Stabile, Esquire) by attorney for Defendant. 3 Docket No. 1567 May 24, 1993 Plaintiff’s Answer Opposing the Motion to be Separately Represented by Counsel and to Enter Appearance of Counsel and to Enter Appearance of Counsel on behalf of Brooks Drugs, Inc.; CVS Pharmacy/Peoples Drug; Drug Emporium; Fay’s Drug Stores; Kopp. Drug; Retired Persons Services; Revco; Rite Aid; Supermarkets General; Thrift Drug; Wal-Mart; Walgreen Company; and White Shield, Inc. filed by attorney for Plaintiff (Victor P. Stabile, Esquire). Copy forwarded to attorney for Additional Plaintiffs (Robert Hoffman, Esquire) and attorney for Defendant by attorney for Plaintiff (Victor P. Stabile, Esquire). May 26, 1993 Reply Brief In Support of Motion to be Separately Represented by Counsel and to Enter Appearance of Counsel on behalf of Brooks Drugs, Inc.; CVS Pharmacy/Peoples Drug; Drug Emporium; Fay’s Drug Stores; Kopp. Drug; Retired Persons Services; Revco; Rite Aid; Supermarkets General; Thrift Drug; Wal-Mart; Walgreen Company; and White Shield, Inc.CLOSED filed by attorney for Plaintiff (Victor P. Stabile, Esquire). Copy forwarded to attorney for Additional Plaintiffs (Robert Hoffman, Esquire) and attorney for Defendant by attorney for Plaintiff (Victor P. Stabile, Esquire). July 23, 1993 The Board rendered an Opinion and made the following Order: AND NOW, this 23rd day of July, 1993, it is ORDERED that a hearing on the class certification shall be held on July 30, 1993, at 10:00 a.m. Court Room No. 1, 707 Transportation and Safety Building, Harrisburg, Pennsylvania. All matters appertaining to this question shall be placed of record and a determination be made therewith.” Copies forwarded to attorney for Plaintiff and attorney for Defendant. July 28, 1993 Acceptance of Service of Opinion and Order dated July 23, 1993 received from attorney for Defendant. Receipt of same acknowledged by attorney for Defendant July 26, 1993. July 30, 1993 Class Certification hearing held this date, before Chief Administrative Judge, Fred C. Pace, in Board’s Courtroom No.1, 707 Transportation and Safety Building, Harrisburg, Pennsylvania, commencing at 10:00 a.m. Class certification hearing completed. 4 Docket No. 1567 July 30, 1993 The Board made the following Order: “AND NOW, this 30th day of July, 1993, in accordance with Pa. R.C.P. 1710 it is hereby ORDERED that: 1. CLASS CERTIFICATION: The above captioned action shall be maintained as a class action pursuant to Pa. R.C.P. 1701 et seq., on behalf of all pharmacies/pharmacists throughout the Commonwealth of Pennsylvania that participate in the Commonwealth’s Medical Assistance Program that provide prescription drug products to Pennsylvania’s medical assistants recipients. This class so certified shall be maintained with respect to the causes of action alleged in the Plaintiff’s complaint in the above matter to wit: all claims for damages allegedly resulting from the defendant’s promulgation of emergency regulations, effective January 11, 1991, which had the effect of reducing reimbursement for generic drugs to state pharmacies in violation of the Omnibus Budget Reconciliation Act of 1990, P.L. 101-508 (OBRA 90); all claims for damages allegedly arising out of the defendant’s promulgation of emergency regulations, effective January 11, 1991, which had the effect of reducing reimbursementCLOSED to pharmacies for generic drugs provided to Commonwealth medical assistance recipients, and’ any claims for damages allegedly resulting form the defendant’s failure to provide timely payments to pharmacies for the provision of prescription drugs to medical assistance recipients in violation of 42 U.S.C. §1396 (a) (37) and 42 C.F.R. §447.56. II. CLASS REPRESENTATIVE; CLASS COUNSEL. The above named plaintiff, Pennsylvania Pharmaceutical Association, is hereby designated as the class representative party for the class certified in paragraph 1 above. The law firm of Dilworth, Paxson, Kalish & Kauffman is designated as counsel for the above named class. III. INCLUSION OF CLASS MEMBERS. Every member of the class as so identified and certified in paragraph 1 above, shall be included in the class so certified, unless within 30 days of service of notice, as will be further ordered, the class member filed a written election to be excluded from the class and provides with such request, a statement of compelling reasons why the class member should not be included in the above class action. A further hearing shall be conducted to hear and rule upon any such requests for exclusion, if deemed necessary, by the representative party and counsel. The parties have stipulated that the requirement of an Opinion which should accompany this order may follow issuance of this Certified Order. Therefore, this Order will be entered with an Opinion in support thereof to follow. Counsel for the Class and for the Defendant shall submit Proposed Findings of Fact and Conclusions to the Board at their earliest convenience.” Copies hand-delivered to parties at time of hearing. 5 Docket No. 1567 August 4, 1993 By Order dated July 30, 1993, we certified a class of plaintiffs in the above captioned matter. Pursuant to Pa. R.C.P. 1712, we now enter this ORDER with respect to the notice to be given each member of the certified class as follows: IT IS HEREBY ORDERED THAT; 1. By agreement of the parties, the defendant shall cause to be mailed to each member of the class previously certified herein, a notice substantially in the form attached hereto as Exhibit “A”. The notice shall be made by the defendant, within 30 days of this Order, with two consecutive remittance advice mailings to all members of the certified class. It has been represented that to this Board and this Board has so found, that notice in this manner should reach every member of the class so certified and effected by this litigation.