IN RE: CVS Opioid Insurance Litigation

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

IN RE: CVS OPIOID ) Consol. C.A. No. N22C-02-045
INSURANCE LITIGATION ) PRW CCLD

Submitted: August 16, 2024
Decided: August 20, 2024

MEMORANDUM OPINION AND ORDER

Upon Insurers’ Motion for Partial Summary Judgment
GRANTED

Upon CVS’s Motion For Partial Summary Judgment
DENIED

Garrett B. Moritz, Esquire, and R. Garret Rice, Esquire, ROSS ARONSTAM & MORITZ
LLP, Wilmington, Delaware; Michael S. Shuster, Esquire (argued), Daniel M.
Sullivan, Esquire, Blair E. Kaminsky, Esquire, and Daniel M. Horowitz, Esquire,
HOLWELL SHUSTER & GOLDBERG LLP, New York, New York, Attorneys for ACE
Property and Casualty Insurance Company, Federal Insurance Company,
Indemnity Insurance Company of North America, Vigilant Insurance Company, and
Westchester Fire Insurance Company.

Robert J. Katzenstein, Esquire, and Julie M. O’Dell, Esquire, SMITH KATZENSTEIN
& JENKINS LLP, Wilmington Delaware; Christopher J. St. Jeanos, Esquire, WILLKIE
FARR & GALLAGHER LLP, New York, New York, Attorneys for American Home
Assurance Company, Lexington Insurance Company, National Union Fire
Insurance Company of Pittsburgh, P.A., and New Hampshire Insurance Company.

Bruce W. McCullough, Esquire, BODELL BOVÉ, LLC, Wilmington, Delaware; Karen
M. Dixon, Esquire, SKARZYNSKI MARICK & BLACK LLP, Chicago, Illinois, Attorneys
for American Zurich Insurance Company, Zurich American Insurance Company,
and American Guarantee & Liability Insurance Company.

Joseph B. Cicero, Esquire, CHIPMAN BROWN CICERO & COLE, LLP, Wilmington,
Delaware; Adam H. Fleischer, Esquire, R. Patrick Bedell, Esquire, and Allyson C.
Spacht, Esquire, BATESCAREY LLP, Chicago, Illinois, Attorneys for Great American
Alliance Insurance Company, Great American Insurance Company of New York,
Great American Insurance Company, and Tamarack American, Inc.

Louis J. Rizzo, Jr., Esquire, REGER RIZZO & DARNALL LLP, Wilmington, Delaware;
Monica T. Sullivan, Esquire, Matthew J. Fink, Esquire, Leena Soni, Esquire, and
Stephanie M. Flowers, Esquire, NICOLAIDES FINK THORPE MICHAELIDES SULLIVAN
LLP, Chicago, Illinois, Attorneys for Endurance American Insurance Company, and
North American Capacity Insurance Company.

Sean J. Bellew, Esquire, BELLEW LLC, Wilmington, Delaware; Michael A. Kotula,
Esquire, RIVKIN RADLER LLP, Attorneys for Allianz Insurance Company, Fireman’s
Fund Insurance Company, Interstate Indemnity Company, and National Surety
Company.

Loren R. Barron, Esquire, WEBER GALLAGHER, Wilmington, Delaware, Attorney for
Gemini Insurance Company, and Berkley National Insurance Company.

Wade A. Adams, III, Esquire, LAW OFFICES OF WADE A. ADAMS, III, Newark,
Delaware; Bryce L. Friedman, Esquire, and Matthew C. Penny, Esquire, SIMPSON
THACHER & BARTLETT LLP, New York, New York, Attorneys for Discover Property
and Casualty Company, St. Paul Fire and Marine Insurance Company, Gulf
Underwriters Insurance Company, United States Fidelity and Guaranty Company,
and The Travelers Indemnity Company.

Thad J. Bracegirdle, Esquire, Sarah T. Andrade, Esquire, and Emily L. Skaug,
Esquire, BAYARD, P.A., Wilmington, Delaware; Edward B. Parks, II, Esquire, and
Sara Hunkler, Esquire, RUGGERI PARKS WEINBERG LLP, Washington, D.C.,
Attorneys for First State Insurance Company, and Twin City Fire Insurance
Company.

Kevin. J. Connors, Esquire, MARSHALL DENNEHEY WARNER COLMAN & GOGGIN
P.C., Wilmington, Delaware; Cheryl P. Vollweiler, Esquire, SKARZYNSKI MARICK &
BLACK LLP, New York, New York, Attorneys for AXIS Insurance Company.

Philip Trainer, Jr., Esquire, and Marie M. Degnan, Esquire, ASHBY & GEDDES,
Wilmington, Delaware; Robert A. Kole, Esquire, and Caroline M. Trusty, Esquire,
CHOATE, HALL & STEWART LLP, Boston, Massachusetts, Attorneys for Liberty
Insurance Underwriters, Inc., Liberty International Underwriters, and The Ohio
Casualty Insurance Company.

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Marc S. Casarino, Esquire, KENNEDYS CMK LLP, Wilmington, Delaware;
Christopher R. Carroll, Esquire, Jillian D. Dennehy, Esquire, and Joshua S.
Wirtshafter, Esquire, KENNEDYS CMK LLP, Basking Ridge, New Jersey, Attorneys
for TIG Insurance Company.

Robert K. Beste, Esquire, SMITH KATZENSTEIN & JENKINS LLP, Wilmington
Delaware; Keith Moskowitz, Esquire, DENTONS US LLP, Chicago, Illinois; Kathryn
Guinn, Esquire, DENTONS US LLP, Denver, Colorado; Deborah J. Campbell,
Esquire, DENTONS US LLP, St. Louis, Missouri, Attorneys for XL Insurance
America, Inc., Greenwich Insurance Company, and The Continental Insurance
Company.

David J. Baldwin, Esquire, Peter C. McGivney, Esquire, and Zachary J. Schnapp,
Esquire, BERGER HARRIS LLP, Wilmington, Delaware; Jeffrey L. Schulman, Esquire
(argued), BLANK ROME LLP, New York, New York, Attorneys for CVS Health
Corporation.

WALLACE, J.

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In 2022, the Delaware Supreme Court in ACE American Insurance Co. v. Rite

Aid Corp. (“Rite Aid”) held that claims seeking generalized economic damages to

redress the opioid crisis were not claims seeking “damages because of bodily

injury.”1 Like retail pharmacy giant Rite Aid, CVS was facing thousands of lawsuits

related to the opioid crisis (the “Opioid Lawsuits”). In August 2023, this Court

applied the Rite Aid decision to CVS’s request for relief with regards to its insurance

claims in defending against the Opioid Lawsuits (the “2023 Decision”).2 Following

the 2023 Decision, the parties agreed that there was no coverage for 2,151 Opioid

Lawsuits.3

The parties now ask the Court to determine whether coverage applies to the

remaining Opioid Lawsuits that the parties have been unable to resolve. 62 of the

Opioid Lawsuits come from governmental entities, and the other 156 from non-

governmental entities, including third-party payors and hospitals.4 The Court

focuses on the exemplar lawsuits presented by the parties and addresses the parties’

arguments in support of their motions for summary judgment. For the reasons

described below, CVS’s motion for partial summary judgment is DENIED. The

1
270 A.3d 239, 241 (Del. 2022).
2
In re CVS Opioid Ins. Litig., 301 A.3d 1194 (Del. Super. Ct. 2023), as corrected (Sept. 14,
2023).
3
D.I. 395.
4
Insurers’ Motion for Partial Summary Judgment on Remaining Government Lawsuits and
Non-Government Entity Lawsuits (“Insurers’ Motion”) at 2 (D.I. 403).
Insurers’ motion for partial summary judgment is GRANTED.

I. FACTUAL AND PROCEDURAL BACKGROUND

The procedural and factual background of this action is already described in

the 2023 Decision. The Court refers the reader to that decision for a more fulsome

summary of the relevant policy provisions and background.

In short, parties across the United States have filed thousands of lawsuits

against opioid manufacturers, distributors, and retailers, including CVS.5 After

resolving and settling the Opioid Lawsuits, CVS sought indemnification from

various insurance companies (the “Insurers”) under the insurance agreements CVS

had entered into with the Insurers (the “Policies”).6 Under the Policies, CVS is

entitled to coverage for claims that seek “damages because of bodily injury or

property damage,” including “damages claimed by any person or organization for

care, loss of services or death resulting at any time from the ‘bodily injury.’”7

In Rite Aid, the Supreme Court interpreted nearly identical language as that in

the Policies. It held that coverage for damages because of personal injury was only

available to: (a) the person injured; (b) a person recovering on behalf of the person

injured; or, (c) people or organizations that treated the person injured or deceased,

5
In re CVS Opioid Ins. Litig., 301 A.3d at 1199.
6
Id.
7
Id. at 1204-5.

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who demonstrate the existence of and cause of the injuries.8 With respect to category

(c), the organization “must show that it treated an individual with an injury, how

much that treatment cost, and that the injury was caused by the insured.”9 The

alleged damages must “depend on proof of bodily injuries” and cannot be for

general, non-derivative economic loss.10

The Supreme Court held that merely alleging a “causal connection between

[ ] counties’ economic damages and the injuries to their citizens from the opioid

epidemic” did not transform claims seeking redress for the opioid epidemic into

claims for personal injury.11 Opioid Lawsuits must allege “more than some linkage

between the personal injury and damages to recover ‘because of’ personal injury:

namely, bodily injury to the plaintiff, and damages sought because of that specific

bodily injury.”12 The individual physical injury must be “the basis of the claims,”

“independently proven, and shown to be caused by the insured.”13 Though the duty

to defend is broad, merely alleging “facts that support the economic claims” does

not excuse the threshold requirement that the claims allege “damages because of

8
Rite Aid, 270 A.3d at 247.
9
Id. at 252.
10
Id. at 250, 254.
11
Id. at 241.
12
Id. at 250.
13
Id. at 250-51.

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bodily injury.”14 Eligible claims must seek “damages for personal injury,” not “non-

derivative economic loss.”15

The 2023 Decision applied the reasoning in Rite Aid to two Opioid Lawsuits

that served as bellwether cases in multidistrict litigation (the “Track One Suits”), as

well as seven additional exemplar lawsuits that included lawsuits brought by

counties in Ohio and New York, as well as the Cherokee Nation, the City of

Philadelphia and State of Florida (“Additional Representative Suits”).16 The Court

found that the Insurers had no duty to indemnify or defend those lawsuits because

those governmental entities did not allege “damages because of ‘bodily injury’ or

‘property damage.’”17

Thereafter, the parties filed the instant cross-motions for summary judgment

on the remaining Opioid Lawsuits that the parties were unable to resolve.

II. STANDARD OF REVIEW

The Court “cannot grant any party’s motion for summary judgment under

Delaware Superior Court Civil Rule 56 unless no genuine issue of material fact

exists and that party is entitled to judgment as a matter of law.”18 The Court must

14
Id. at 251.
15
Id. at 250.
16
In re CVS Opioid Ins. Litig., 301 A.3d at 1212-14.
17
Id. at 1214, 1217.
18
IDT Corp. v. U.S. Specialty Ins. Co., 2019 WL 413692, at *5 (Del. Super. Ct. Jan. 31,
2019) (citing Del. Super. Ct. Civ. R. 56).

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construe the record “in the light most favorable to the non-moving party.”19 If the

record reveals that material facts are in dispute, then summary judgment will be

denied.20

The filing of cross-motions for summary judgment doesn’t act per se as a

concession that there are no genuine factual disputes.21 Rather, when cross-motions

are filed, the Court evaluates each motion separately to determine whether genuine

issues of material fact remain.22 Because the Court may only grant a motion for

summary judgment to one of the parties when there is no disputed issue of material

fact and that party is entitled to judgment as a matter of law.23

III. DISCUSSION

A. CVS’S MOTION

CVS seeks a declaration that the remaining Opioid Lawsuits at issue allege

“damages because of bodily injury and property damage.” In its motion, CVS

categorizes the remaining Opioid Lawsuits at issue into three groups—the Medical

19
Merrill v. Crothall–Am., Inc., 606 A.2d 96, 99 (Del. 1992).
20
IDT Corp., 2019 WL 413694, at *5.
21
United Vanguard Fund, Inc. v. TakeCare, Inc., 693 A.2d 1076, 1079 (Del. 1997).
22
Motors Liquidation Co. DIP Lenders Tr. v. Allianz Ins. Co., 2017 WL 2495417, at *5 (Del.
Super. Ct. June 19, 2017), aff’d sub nom., Motors Liquidation Co. DIP Lenders Tr. v. Allstate Ins.
Co., 191 A.3d 1109 (Del. 2018).
23
Fasciana v. Elec. Data Sys. Corp., 829 A.2d 160, 167 (Del. Ch. 2003).

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Provider Lawsuits,24 the Municipal Lawsuits,25 and the Third-Party Payor

Lawsuits.26 The Court addresses each.27

1. The Medical Provider Lawsuits Do Not Allege Damages Because of
Bodily Injury.

As with the other groups, CVS insists the Medical Provider Lawsuits fall

under category (c) above—people or organizations that treated the person injured or

deceased, who demonstrate the existence of and cause of the injuries. If so, under

Rite Aid, the plaintiff “must show that it treated an individual with an injury, how

much that treatment cost, and that the injury was caused by the insured.”28 The

alleged damages must “depend on proof of bodily injuries” and could not be for

24
Opening Brief in Support of CVS’s Motion for Partial Summary Judgment (“CVS Motion”),
Ex. B (Dall. Cnty. Hosp. Dist., et al. v. Amneal Pharms., LLC, No. DC-19-18635 (Tex. Dist. Ct.
originally filed Nov. 20, 2019), Ex. C (Hosp. Dist. No. 1 of the Parish of Avoyelles, La., d/b/a
Bunkie Gen. Hosp. v. Actavis LLC, No. 1:20-op-45098 (N.D. Ohio Mar. 9, 2020), Ex. D (Bristol
Bay Area Health Corp. v. Purdue Pharma L.P., No. 3:19-cv-00305 (D. Ala. Dec. 2, 2019), Ex. E
(Lester E. Cox Med. Ctrs. v. Amneal Pharms., LLC, No. 231-CC00459 (Mo. Cir. Ct. Apr. 14, 2020),
Ex. F (Bon Secours Health Sys., Inc. v. Purdue Pharma L.P., No. 1:18-op-45821 (N.D. Ohio July
12, 2018), Ex. G (Fayetteville Ark. Hosp. Co. v. Amneal Pharms., LLC, No. 72CV-20-156 (Wash.
Cir. Ct. Jan. 14, 2020) (D.I. 405).
25
CVS Motion, Ex. H (Cnty. of Fresno v. AmeriSourceBergen Drug Corp., No. 1:18-at-341 (E.D.
Cal. May 9, 2018); see also Cnty. of Nev. v. AmeriSourceBergen Drug Corp., No. 2:18-cv-01152
(E.D. Cal. May 9, 2018); City of San Jose v. AmeriSourceBergen Drug Corp., No. 5:19 cv-04529
(N.D. Cal. Aug. 2, 2019).
26
CVS Motion, Ex. I (S. Tier Bldg. Trades Benefit Plan v. Purdue Pharma L.P., No. 1:20 op-
45239 (W.D.N.Y. July 30, 2020).
27
CVS also moved on a category called the “Estate Suits,” but the parties have reached a
resolution on those lawsuits.
28
Rite Aid, 270 A.3d at 252.

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general, non-derivative economic loss.29

A review of the Medical Provider Lawsuits shows that they do not allege

“damages because of bodily injury.” The Court cannot find any allegations of

individualized bodily injury, or claims based on the cost of treating any one specific

individual’s injury. CVS highlights allegations in the Medical Provider Lawsuits

that the underlying plaintiffs incurred costs because of “uncompensated” care due to

CVS’s alleged role in distribution and sale of opioids.30 But those allegations are

generalized and are not based on any one specific individual’s injury, including the

complaints that allege “special injury.”31 A further review of these complaints reveal

29
Id. at 250, 254.
30
CVS Motion at 13.
31
See id., Ex. B ¶ 1071 (“Plaintiffs have incurred costs by providing uncompensated care for
patients suffering from opioid related conditions”), Ex. C ¶ 743 (“[H]ospitals have and continue
to incur millions of dollars in damages for the costs of uncompensated care resulting from the
unlawful marketing, distribution and sale of opioids”), Ex. D ¶ 14 (seeking damages for the costs
of providing medical and therapeutic care; treatment costs for patients suffering from opioid
addiction or disease, overdose, or death; and counseling, treatment, and rehabilitation services),
Ex. E ¶ 59 (“Plaintiffs have incurred and continues to incur operational costs related to the time
and expenses in diagnosing, testing, and otherwise attempting to treat these individuals”), ¶ 533
(“As a proximate result of Marketing and Supply Chain Defendants’ conduct, Marketing and
Supply Chain Defendants have caused Plaintiffs’ injury related to the diagnosis and treatment of
opioid-related conditions. Plaintiffs have incurred massive costs by providing uncompensated care
as a result of opioid-related conditions.”), Ex. F ¶ 7 (“Plaintiffs have incurred substantial
expenditures, for which they have not received compensation or reimbursement, in connection
with their provision of care to individuals who have been impacted by the opioid epidemic being
perpetuated by the Defendants”), Ex. G ¶ 57 (“Additionally, individuals with opioid dependence
have presented and continue to present themselves to Plaintiffs claiming to have illnesses and
medical problems in an effort to obtain opioids. Plaintiffs have incurred and continues to incur
operational costs related to the time and expenses in diagnosing, testing, and otherwise attempting
to treat these individuals.”), ¶ 807 (“As a proximate result of Marketing and Supply Chain
Defendants’ conduct, Marketing and Supply Chain Defendants have caused Plaintiffs’ injury
related to the diagnosis and treatment of opioid-related conditions. Plaintiffs have incurred massive
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that the claims are in fact seeking recompense for generalized, economic losses for

the opioid epidemic.32 Under Rite Aid and the 2023 Decision, those Opioid Lawsuits

do not allege “damages because of bodily injury.”

2. The Municipal Lawsuits Do Not Allege Damages Because of Property
Damage.33

CVS argues that the Municipal Lawsuits Allege “damages because of . . .

property damage,” because there are allegations of damages in the form of needed

repairs to infrastructure, including jail facilities, court systems and hospital and

treatment facilities.34 In the 2023 Decision, the Court held that:

[t]he rationale in Rite Aid concerning the requirement to assert claims
that seek recovery of damages because of bodily injury is the same
when it comes to property damage. In Rite Aid the Supreme Court held
that “[t]here must be more than some linkage between the personal
injury and damages to recover ‘because of’ personal injury.” Here,
“bodily injury” and “property damage” appear side-by-side in the
Policies, and there is no reason why claims based on property damage

costs by providing uncompensated care as a result of opioid-related conditions.”).
32
See, e.g., CVS Motion, Ex. G. ¶ 881 (“Defendants’ misconduct alleged in this case does not
concern a discrete event or discrete emergent of the sort a hospital would reasonably expect to
occur and is not part of the normal and expected costs of a hospital’s healthcare services.”), Ex. D.
¶ 21 (“The diversion of funding to address a public health crisis like the opioid epidemic . . can
have devasting impacts . . .”), Ex. C ¶ 800 (“Plaintiff brings this civil action to recover monetary
losses that have been incurred as a direct and proximate result of Defendants’ false, deceptive and
unfair marketing of prescription opioids.”), Ex. F ¶ 233 (“This diversion and the epidemic are
direct causes of foreseeable harm to the Plaintiff.”).
33
One of CVS’s arguments is that the Rite Aid decision created a fourth category of potential
groups that seek damages because of bodily injury, specifically, counties who run public hospitals
who seek to “recover their actual, demonstrated costs of treating bodily injuries caused by opioid
overprescription.” CVS Motion at 1. This is a distortion of the Court’s holding in Rite Aid that
elaborates on potential claims that could be brought under category (c).
34
CVS Motion at 15.

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require less of a causal relationship than that required for claims
because of bodily injury. Just as the individual physical injury must be
“the basis of the claims,” so must the property damage be the basis of
claims for loss because of “property damage.”35

Just as with the generalized allegations relating to bodily injury in the Medical

Provider Lawsuits, the allegations with regards to property damages are not based

on any damage to a specific piece of property. Instead, they broadly describe how

the opioid crisis strained healthcare systems and eroded the quality of underlying

municipal infrastructure such as jails and treatment facilities. For these reasons,

these Opioid Lawsuits do not seek “damages because of . . . property damage.”

3. The Third-Party Payor Lawsuits

The Third-Party Payor Lawsuits consist of health insurance companies and

welfare benefit plan providers. CVS argues that these entities seek to “recover the

actual costs incurred for opioid addiction treatment for their members and

beneficiaries.”36 Yet without naming any specific members or beneficiaries, CVS

highlights allegations that merely state that costs for opioid addiction treatment were

“significant,” and details the forms in which the increased social spending

materialized—“excessive opioid prescriptions, substance abuse treatment services,

ambulatory services, emergency department services, and inpatient hospital

35
In re CVS Opioid Ins. Litig., 301 A.3d at 1216.
36
CVS Motion at 25.

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services.”37 The lack of individualized allegations reveals that these Third-Party

Payor Lawsuits are indistinguishable from the rest of the Opioid Lawsuits that seek

aggregate economic costs. While the Third-Party Payor Lawsuits seek damages

related to the injuries of others, these Lawsuits do no more than merely allege “facts

that support economic claims,” not “damages because of bodily injury.”38

37
Id. at 25-26.
38
Rite Aid, 270 A.3d at 250. CVS makes a recycled argument already addressed and rejected in
Rite Aid that the damages the Third-Party Payor Lawsuits seek are the same as that of a mother
whose damages include the costs she incurred on her son’s medical care, as described in the
Seventh Circuit Decision Cinncinati Ins. Co. v. H.D. Smith, L.L.C., 829 F.3d 771, 773 (7th Cir.
2016). See Rite Aid, 270 A.3d at 253. Furthermore, CVS makes an undeveloped argument in its
reply that the removal of the phrase “sustained by a person” from certain of the Policies’ definition
of bodily injury “incontrovertibl[ly]” meant that the inclusion of the phrase was central to Rite Aid
and the 2023 Decision and a broadening of legal coverage. CVS’s Reply Brief in Further Support
of Its Motion for Partial Summary Judgment at 11 (D.I. 417). It then cites cases from other
jurisdiction that included the phrase and therefore concludes, without explanation, that its
exclusion in certain of the Policies compels a finding of coverage. First, CVS misconstrues the
holdings in Rite Aid and the 2023 Decision. The language cited by CVS doesn’t modify the
requirement that damages must be “for” or “because of” “bodily injury,” which is language in all
the Policies. Second, CVS has waived this argument by failing to properly develop it in its opening
brief, merely citing to the language in the fact section, choosing not to raise it until its reply brief,
and then, there, failing to develop its argument. See CVS Motion at 5; Franklin Balance Sheet
Inv. Fund v. Crowley, 2006 WL 3095952, at *4 (Del. Ch. Oct. 19, 2006) (explaining that, “under
the briefing rules, a party is obliged in its motion and opening brief to set forth all of the grounds,
authorities and arguments supporting its motion” and “should not hold matters in reserve for reply
briefs,” which “should consist of material necessary to respond to the answering brief”); In re
Mobilactive Media, LLC, 2013 WL 297950, at *12 (Del. Ch. Jan. 25, 2013) (“[I]ssues adverted to
in a perfunctory manner, unaccompanied by some effort at developed argumentation, are deemed
waived. . . . It is not enough merely to mention a possible argument in the most skeletal way,
leaving the court to do counsel’s work. . . . Judges are not expected to be mindreaders.
Consequently, a litigant has an obligation to spell out its arguments squarely and distinctly, or else
forever hold its peace.”) (citation omitted).

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B. INSURERS’ MOTION

The Insurers seek a declaration that they have no duty to defend or indemnify

CVS for the remaining Opioid Lawsuits at issue. As the movant, the Insurers have

the burden to show that no genuine issue of material fact exists that the remaining

Opioid Lawsuits do not seek “damages because of ‘bodily injury’ or ‘property

damage.’” If that burden is met, then CVS must show there is a genuine issue for

trial. The parties have cross-moved on the same issue; though with little overlap,

each side has selected different exemplar lawsuits for the Court to examine. The

Court therefore addresses each of the exemplar lawsuits raised in the Insurers’

Motion independently and asks the reader to excuse the duplicative reasoning.

Whereas CVS categorizes its exemplar lawsuits under three categories, Insurers

divide theirs into two—Governmental Lawsuits and Non-Governmental Lawsuits.

The Court addresses each.

1. Governmental Lawsuits

The Insurers contend that the Governmental Lawsuits are “materially

indistinguishable” from the “Track One and Additional Representative Suits”

covered in the 2023 Decision.39 Specifically, the lawsuits do not seek recovery for

individualized injury or property damage, but instead “seek to recover for budgetary

39
Insurers’ Motion at 4.

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spending in response to the opioid crisis.”40

The Court has reviewed the allegations in each of the exemplar complaints

and agrees. It has not found a single allegation tying the allegations against CVS to

a particular person’s injury or individual property’s damage. This glaring omission

is reflective of the underlying nature of these complaints—that they are seeking

generalized economic losses, and therefore not “damages because of ‘bodily injury’

or ‘property damage.’” To be sure, the burden on the Insurers is to essentially prove

a negative—that is, upon a review of the allegations in each of these lengthy

lawsuits, show that no genuine issue of material fact exists that the allegations in the

lawsuits do not seek individualized damages. Though a tedious exercise and a high

burden, the Insurers’ have shown—and this Court’s review of the exemplar lawsuits

confirms—that no such genuine issue of material fact exists. In response CVS has

not—as it must—raised any genuine issue of material fact. CVS instead raises a

variety of arguments already rejected (here and above) and identifies no allegation

of individualized injury.

The Insurers offer three exemplar Governmental Lawsuits.41 Two lawsuits

40
Id.
41
Insurers’ Motion, Ex. 3 (County of Fresno v. Amerisourcebergen Drug Corp., 1:18-op-45644
(N.D. Ohio) (“Fresno”), Ex. 4 (Clinch County Hospital Authority v. Amerisourcebergen Drug
Corp., 1:18-op-45453-DAP (N.D. Ohio) (“Clinch”), Ex. 5 (County of Beaver v. CVS Health Corp.,
et al., 2022-11132 (Pa. Ct. Com. Pl. Del. Cnty.) (“Beaver County”). Beaver County was
commenced via writ of summons and no complaint was filed. See Insurers’ Motion Ex. 5.
Nonetheless, it was part of a coordinated action in which Delaware County, PA v. Purdue Pharma,
L.P., et al. was the bellwether case (“Delaware County”). CV-2017-008095 (Pa. Ct. Com. Pl. Del.
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state word-for-word that the:

Plaintiff brings this civil action to eliminate the hazard to public health
and safety caused by the opioid epidemic, to abate the nuisance caused
thereby, and to recoup monies that have been spent, or will be spent,
because of Defendants’ false, deceptive and unfair marketing and/or
unlawful diversion of prescription opioids.42

The third lawsuit states the materially same message:

This case arises from the worst man-made epidemic in modern medical
history—the misuse, abuse, and over-prescription of opioids. The
opioid crisis arose from pharmaceutical manufacturers’ deliberately
deceptive marketing strategy . . . Manufacturers and distributers alike
acted without regard for the lives that would be trammeled in pursuit of
profit . . . Plaintiff has filed this suit to bring the devasting march of this
epidemic to a halt.43

The type of damages the Governmental Lawsuits seek is evident—economic

damages for the generalized harm caused by CVS’s role in contributing to the opioid

crisis.44 Indeed, among the relatively scant county-specific damages alleged in the

voluminous complaints, the Court discovers no specific, individualized injury, but

instead an array of opioid-related statistics and increased levels of budgetary

Cnty.), See Insurers’ Motion, Ex. 17. CVS disputes that there is any connection between Beaver
County and Delaware County, notwithstanding that the lawsuits share common questions of fact.
It then provides no additional explanation why no such connection exists. In light of CVS’s failure
to adequately distinguish Beaver County and Delaware County, for purposes of evaluating Beaver
County, the Court refers to the allegations in Delaware County.
42
Clinch ¶ 1; Fresno ¶ 1.
43
Delaware County ¶¶ 1-2, 23.
44
See, e.g., Fresno ¶¶ 341, 458; Clinch ¶¶ 474; Delaware County ¶¶ 876.

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spending.45

2. Non-Governmental Lawsuits

The Insurers contend that the Non-Governmental Lawsuits indisputably

indicate that (a) CVS contributed to the public health crisis by over-distributing and

dispensing prescription opioids and (b) that the recovery sought was for “budgetary

impact without connecting CVS’s conduct to any particular individual’s bodily

injury or damage to any specific property.”46 Just so.

The Insurers offer five exemplar Non-Governmental Lawsuits.47 Two of the

exemplar Non-Governmental Lawsuits come from an insurance fund and employee

benefit fund that provided health benefits (“Third-Party Payor Lawsuits”),48 and the

remaining three come from hospital systems, or entities operating hospital systems

(“Hospital Lawsuits”).49

The Third-Party Payor Lawsuits’ theory of relief is that CVS’s unlawful

45
See, e.g., Delaware County ¶¶ 772-90, 901; Clinch ¶¶ 55-61; Fresno ¶¶ 68-84, 779-795.
46
Insurers’ Motion at 5.
47
Id., Ex. 8 (Louisiana Assessors’ Insurance Fund v. Amerisourcebergen Drug Corp., 1:18-op-
46223 (N.D. Ohio) (“Louisiana Assessors”) (initial complaint), Exs. 9 (“Lousiana Assessors
Supplemented Complaint”) 10 (“Louisiana Assessors Additional Supplemented Complaint”); id.,
Ex. 11 (Laborers Local 235 Welfare Fund v. Purdue Pharma L.P. et al., 1:19-op45792 (N.D. Ohio)
(“Laborers Welfare Fund”); id., Ex. 12 (Bon Secours Health System, Inc. v. Actavis, 1:18-op-45819
(N.D. Ohio) (“Bon Secours”), Ex. 13 (Bon Secours supplemented complaint); id., Ex. 14 (Family
Practice Clinic of Booneville, Inc. v. Actavis, 1:18-op-45390 (N.D. Ohio) (“Booneville”), Ex. 15
(Booneville supplemented complaint); id., Ex. 16 (Eastern Maine Medical Center v. Teva
Pharmaceuticals USA, Inc., CV21333 (Me. Super. Ct. Cumberland Cnty.) (“Eastern Maine”).
48
See Louisiana Assessors and Laborers Welfare Fund.
49
See Bon Secours, Booneville, and Eastern Maine.

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conduct contributed to the opioid epidemic, causing the plaintiffs to pay more in

health benefits.50 The specific damages the Third-Party Payor Lawsuits allege are

increased prescription drug purchases for its members as well as opioid addiction

treatment and other related medical care.51 None of these lawsuits, however, “show

that it treated an individual with an injury, how much that treatment cost, and that

the injury was caused by the insured.”52 Instead, the lawsuits rely on generalized

economic harm caused to its members in the form of increased prescription

purchases and related opioid addiction treatment.

The Hospital Lawsuits fare no better. Those Lawsuits assert claims against

distributors like CVS for their misconduct in causing damages in the form of

“unreimbursed and/or uncompensated” and increased medical care related to opioid

misuse.53 As indicated by the lack of individualized allegations of damage, these

plaintiffs seek damages for the aggregate financial strain placed on their health

systems as a result of the opioid epidemic.

As with all the Governmental Lawsuits, the Non-Governmental Lawsuits do

not direct their allegations to “an individual injury [or damage to individual property]

50
See, e.g., Lousiana Assessors Additional Supplemented Complaint § IV.C; Laborers Welfare
Fund ¶¶ 9, 11-12.
51
See, e.g., Lousiana Assessors Additional Supplemented Complaint ¶¶ 7, 841-62; see Laborers
Welfare Fund ¶¶ 772-790.
52
270 A.3d at 252.
53
Bon Secours ¶¶ 8, 236-252; Booneville ¶¶ 55-59, 244-253; Eastern Maine ¶¶ 20, 607.

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but to a public health crisis.”54

2. CVS Does Not Raise a Genuine Issue of Material Fact In Opposition
to the Insurers’ Motion

In opposition to the Insurers’ motion, CVS relies on a series of arguments that

had already been considered and rejected by this Court and the Supreme Court.

CVS argues that the Insurers misstate Delaware’s duty to defend by requiring

allegations of specific individual or injuries. Yet, Rite Aid addressed this argument

head-on. While the duty to defend is broad, the Court must determine “whether the

allegations of the complaint, when read as a whole, assert ‘a risk within the coverage

of the policy.’”55 Accordingly, “just facts that support economic loss claims” do not

give rise to claims for personal injury.56 The lack of individualized injury only goes

to show that these governmental entities are not asserting “a personal injury claim

or one for derivative loss, but rather a direct claim for its own aggregate economic

injury.”57 The Insurers, therefore, are not misstating Delaware’s broad duty to

defend for insurance disputes.

Moreover, CVS’s argument that focuses on the identity of the plaintiff as a

public hospital does not resolve the underlying requirement that the lawsuits

54
In re CVS Opioid Ins. Litig., 301 A.3d at 1207.
55
Rite Aid, 270 A.3d at 251 (citation omitted).
56
Id.; see also id. at 252 (“If the complaint does not allege damages covered by the insurance
policy, the insurer has no duty to defend.”).
57
Id. at 253.

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themselves must still seek “damages because of ‘bodily injury’ or ‘property

damage.’” While Rite Aid held that organizations that directly care for or treat

injured persons may be within the classes of plaintiffs covered by the policies’

insurance, Rite Aid did not hold that membership in such a permitted plaintiff-class

inexorably qualifies lawsuits that seek recovery for non-derivative economic loss

into claims for personal injury. Furthermore, the only allegations CVS identifies as

purportedly showing the requisite damages are in fact generalized damages in the

form of increased social and budgetary spending.58

Finally, CVS argues that the Insurers are not entitled to a declaration regarding

their indemnity duties. This Court already held in the 2023 Opinion that “the

development of allegations illustrating the extent of the opioid crisis will not change

the fact that the plaintiffs in these underlying complaints have asserted claims for

general, economic losses to respond to the opioid epidemic, not personal injury

claims.”59 This holding applies equally to the current Opioid Lawsuits based on the

nature of the allegations raised therein. Though CVS points to language in a

settlement agreement with CVS that provides for resolution of alleged harms and

provision of opioid remediation, such harms and opioid remediation do not

transform the Opioid Lawsuits into claims for personal injury. CVS has therefore

58
See Clinch ¶¶ 9; Fresno ¶¶ 10, 458-59.
59
In re CVS Opioid Ins. Litig., 301 A.3d at 1217.

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failed to show any genuine issue of material fact that the Governmental Lawsuits

and Non-Governmental Lawsuits do not allege damages because of “bodily injury

or property damage.”

Accordingly, there is no duty to defend or indemnify the Governmental and

Non-Governmental Lawsuits.

IV. CONCLUSION

For the reasons stated above, the Insurers’ Motion for Partial Summary

Judgment is GRANTED, and CVS’s Motion for Partial Summary Judgment is also

DENIED.

IT IS SO ORDERED.

/s/ Paul R. Wallace

Paul R. Wallace, Judge

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