PREP Act Immunity Does Not Apply to Breach of Contract Claims – Judge Rules

Publish Date : 11/13/2024

The court denied AstraZeneca’s motion to dismiss a lawsuit filed by Brianne Dressen, who alleges she suffered severe side effects from AstraZeneca’s COVID-19 vaccine, administered during a clinical trial. Dressen’s claims include breach of contract and breach of the duty of good faith and fair dealing, arguing that AstraZeneca failed to cover her medical expenses as outlined in her informed consent form (ICF).

Key points include:

PREP Act Immunity: AstraZeneca argued the Public Readiness and Emergency Preparedness (PREP) Act, which limits liability for covered entities during public health emergencies, should bar Dressen’s claims. The court disagreed, ruling the PREP Act immunity does not cover breach of contract claims. The court reasoned a contract breach arises from a failure to perform a legal obligation, not directly from the countermeasure (the vaccine), and thus lacks the causal link necessary for PREP Act immunity.

Breach of Contract Claim: AstraZeneca argued Dressen’s claim should be reclassified under the Utah Product Liability Act with a shorter statute of limitations. The court rejected this, noting Dressen’s claim was based on contract terms, not a defective product. The economic loss rule, which restricts tort claims to contract-based remedies when duties stem from a contract, further supports Dressen’s position.

Breach of Duty of Good Faith: AstraZeneca challenged this claim as “meritless.” However, the court found Dressen plausibly alleged AstraZeneca’s delays harmed her right to the benefits of their agreement, stating that such a duty is inherent in contracts.

The court’s decision underscores the limited reach of PREP Act immunity and affirms breach of contract claims tied to vaccine side effects can proceed independently of product liability laws.

McSweeney / Langevin continues to investigate potential claims related to medical countermeasures discussed and allegedly covered by the PREP Act.