Keralink International, Inc. v. Geri-Care Pharmaceuticals Corporation, No. 21-2357 (4th Cir. 2023)
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Plaintiff KeraLink is a non-profit corporation with its headquarters in Baltimore, Maryland, and operated a network of eye banks in many states. KeraLink purchased from third-party vendors medical equipment and supplies, including “surgical packs” containing “eyewash” used to irrigate the eye tissue. KeraLink purchased the custom-designed surgical packs at issue here from defendant Stradis Healthcare, LLC (Stradis), which has its headquarters in Georgia.
At issue on appeal is whether the district court erred in awarding summary judgment to Plaintiff on its claim against two suppliers of contaminated eyewash used to remove donated eye tissue for future transplant.
The Fourth Circuit affirmed. The court explained that under the facts presented here, neither supplier was entitled to invoke the sealed container defense, an affirmative defense reserved for only certain types of sellers. Additionally, the economic loss rule barring liability for solely economic losses in a tort claim was inapplicable because KeraLink also sought damages for injury to property, namely, the recovered eye tissue rendered unusable by the contaminated eyewash. The court also held that the district court did not abuse its discretion under Maryland law in awarding the plaintiff prejudgment interest.
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