Applying State Pleading Standards, Texas Federal Judge Remands Royalty Dispute Against DePuy

DALLAS — A Texas federal judge has remanded a dispute over royalty payments for a medical device, finding the plaintiff failed to assert a plausible claim against the nondiverse defendant, therefore, that individual was improperly joined under Texas law.

In the Sept. 18 order, Judge Sam Lindsay of the U.S. District Court for the Northern District of Texas applied the more relaxed Texas “fair notice” pleading standards rather than the federal standard to determine whether the plaintiff’s allegations were sufficient to allege a claim under state law.

In 2002, DePuy and Texas citizen Dr. John Sazy executed a product development …