(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for
the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not have been summarized).
William and Roslyn Snyder v. American Association of Blood Banks, et al. (A-97-95)
Argued November 6, 1995 -- Decided June 4, 1996
POLLOCK, J., writing for a majority of the Court.
On August 23, 1984, William Snyder underwent open-heart surgery at St. Joseph's Hospital in
Paterson. Snyder learned in 1987 that he had contracted Acquired Immune Deficiency Syndrome (AIDS)
from a transfusion of blood that the Bergen County Blood Center (BCBC), a non-profit blood bank, had
provided to St. Joseph's. The BCBC is a member of the American Association of Blood Banks (AABB), an
association of blood banks and blood-banking professionals. This appeal addresses whether AABB owed a
duty of care to Snyder, and whether AABB is entitled to charitable immunity under N.J.S.A. 2A:53-7.
In 1984 there was no direct test to determine whether blood was infected with Human
Immunodeficiency Virus (HIV), the virus that causes AIDS. However, there were other means of making
that determination.
In February 1989, Snyder and his wife Roslyn (collectively Snyder) filed a complaint against St.
Joseph's, various physicians and other individuals, BCBC and AABB. Snyder asserted claims sounding in
strict liability, breach of warranty, negligence and consumer fraud. In the strict-liability claim, Snyder alleged
that he had been transfused with a defective blood product that could have been made safe through available
blood tests and donor-screening techniques. According to Snyder, AABB resisted implementation of those
testing techniques. Snyder further alleged that BCBC and AABB negligently had enhanced his risk of
contracting AIDS by failing to implement procedures to prevent HIV-infected donors from giving blood.
AABB denied Snyder's allegations and asserted the affirmative defense of charitable immunity.
Ultimately, all defendants other than AABB either settled or obtained dismissals. At trial, the focus
was on AABB's role in the blood-banking industry and the reasonableness of its response to increasing
evidence that blood or blood products could transmit AIDS. Evidence at trial demonstrated that in the early
1980's, AABB centers collected about half of the nation's blood supply and transfused about eighty percent
of the blood to patients. Its institutional members were mainly hospitals and non-profit blood centers.
During that time, AABB led the blood industry and established itself as the leader in setting blood-banking
standards. Moreover, AABB was active in lobbying on issues concerning the industry. At the state level, the
New Jersey Department of Health (DOH), when renewing blood-bank licenses accepted reports of AABB
inspections in lieu of its own inspections. The DOH also accepted AABB's standards for obtaining medical
histories and conducting physical examinations of the donors. Thus, the picture that emerged at trial was
that the AABB was a private, tax-exempt organization with substantial power over the operation of blood
banks, including BCBC.
Another important inquiry was whether AABB should have known in 1984 that blood and blood products could carry the HIV virus. The Centers for Disease Control (CDC) formed an AIDS Task Force that from 1982 to 1984 played a pivotal role in publicizing the threat of AIDS to the nation's blood supply. In 1982, the CDC postulated that the cause of the disease was an infectious agent such as a virus which bore a remarkable resemblance to the Hepatitis B Virus (HBV). HBV is transmittable perinatally, by sexual contact or through blood. Throughout 1982, evidence continued to accumulate that a blood-borne agent caused AIDS. At an emergency workshop in Atlanta on January 4, 1983, the Task Force presented disturbing information about the risk of transmission of AIDS through the blood supply. The Task Force recommended three methods to screen out high-risk donors: 1) direct questioning of prospective donors to
determine if they belong to high-risk groups; 2) detailed recording of medical histories of prospective donors
to determine any indications of early AIDS symptoms; and 3) the institution of surrogate testing of collected
blood. The Task Force also proposed three surrogate tests, which refer to identifying people at risk for
disease by testing for some symptom or characteristic manifested by a majority of people who have
contracted or are at a risk of contracting the disease. In the early 1980's, one available surrogate test for
HIV infected blood was that for the antibody to the Hepatitis B core antigen. At this meeting, AABB and
other blood-banking representatives strenuously disagreed with the CDC that blood could transmit AIDS.
AABB argued that: surrogate testing was unnecessary; that direct questioning was improper; and that
surrogate testing and direct questioning would be too costly and would lead to the rejection of too much
blood.
Throughout the early 1980's, despite the mounting evidence, AABB continued to refuse to require
surrogate testing or direct questioning of donors. That refusal, however, belied internal concerns within
AABB. By April 24, 1984, researchers had isolated the AIDS virus and had developed the ELISA test,
which screens for HIV.
At the conclusion of trial, the jury found that AABB had been negligent in not recommending
surrogate testing and that that negligence was a substantial factor in causing Snyder to contract HIV. The
jury determined that AABB was thirty percent liable for Snyder's injuries.
The Appellate Division affirmed, finding that AABB owed Snyder a duty of care. The Appellate
Division denied AABB's charitable immunity claim, reasoning that AABB was not organized exclusively for
religious charitable, education or hospital purposes as required under the statute. The Supreme Court
granted certification.
HELD: The American Association of Blood Banks is not immune from liability under the Tort Claims Act;
AABB owes a duty of ordinary care to persons receiving blood or blood products from its members;
and AABB breached its duty of care to Snyder. Moreover, AABB is not entitled to charitable
immunity.
1. Blood banks, hospitals and patients relied on AABB for the safety of the nation's blood supply; for years,
AABB dominated the establishment of standards for the blood-banking industry and exerted considerable
influence over the practice and procedure of its member banks, including BCBC; the risk that blood
transfusions could transmit AIDS was severe and was foreseeable; and by 1983, there was ample evidence
supporting the conclusion that blood transmitted the AIDS virus. Therefore, AABB knew, or should have
known, in 1984 of the risk of AIDS infection from blood transfusions. Thus, the record clearly establishes
that AABB owed Snyder a duty of care. Moreover, when balanced against the devastating risks from a
disease such as AIDS, the imposition of a duty to care on AABB does not offend the public policy favoring
open debate on controversial scientific issues. (pp. 31-38)
2. AABB represented its interest and those of its members, who had a substantial financial interest in the
regulation of the billion dollar blood-banking industry. Unlike a governmental agency, AABB was not
created by statute; does not act pursuant to government mandate; and is not accountable either to the public
or another branch of government. Therefore, the Court need not defer to AABB's decisions as it would a
governmental agency. Likewise, the Court rejects the dissent's contention that AABB should enjoy qualified
immunity, remaining liable only for a failure to act in good faith. Nothing other than AABB's own self-interest and bad judgment prevented it from recommending surrogate testing. The AABB was not directed
by law or mandate to subordinate its interests to those of the public. Moreover, its decisions were not subject
to public scrutiny and there were no strictures of procedural safeguards or governmental oversight.
Furthermore, AABB never argued that it was entitled to qualified immunity. Thus, a remand for a retrial
under a standard never urged by AABB would serve an injustice to Snyder. (pp. 38-48)
3. AABB is a private, tax-exempt association created to meet the needs of the blood-banking industry.
Merely because it has assumed regulatory authority over that industry does not transform it into a public
entity entitled to immunity under the Tort Claims Act. Moreover, AABB was not organized and solely
devoted to religious, charitable, educational or hospital purposes. Therefore, the charitable-immunity statute
is inapplicable. (pp. 48-51)
Judgment of the Appellate Division is AFFIRMED.
JUSTICE GARIBALDI, dissenting, is of the view that ordinary negligence is not the appropriate
standard of care to measure AABB's conduct. The dictates of public policy, specifically the
quasi-governmental nature of AABB in regulating blood banks, lead to the conclusion that AABB should be
entitled to qualified immunity, liable only for a failure to act in good faith.
CHIEF JUSTICE WILENTZ and JUSTICES HANDLER, O'HERN, STEIN and COLEMAN join in
JUSTICE POLLOCK's opinion. JUSTICE GARIBALDI filed a separate dissenting opinion.
SUPREME COURT OF NEW JERSEY
A-
97 September Term 1995
WILLIAM and ROSLYN SNYDER,
Plaintiffs-Respondents,
v.
AMERICAN ASSOCIATION OF BLOOD
BANKS,
Defendant-Appellant,
and
HAROUTUNE MEKHJIAN, M.D.,
Individually and HAROUTUNE
MEKHJIAN, M.D., P.C.; YOUNGICK
LEE, M.D.; WILMO OREJOLA, M.D.;
ANTHONY LOSARDO, M.D.; LEONARD
SAVINO, M.D.; JOHN DOE, M.D.;
a fictitious name; RICHARD ROE,
M.D.; a fictitious name; JOHN
ROE, M.D., a fictitious name;
JOHN SMITH, M.D., a fictitious
name; JOHN JONES, M.D, a
fictitious name; ST. JOSEPH'S
HOSPITAL; ST. JOSEPH'S BLOOD
BANK; BERGEN COMMUNITY BLOOD
CENTER, ANTHONY PASSARO,
LAWRENCE WILKINSON, W BLOOD
BANK, a fictitious name; Dr.
JOHN KALIAN; Y BLOOD BANK, a
fictitious name; Z BLOOD BANK,
a fictitious name; XYZ BLOOD
BANK, a fictitious name; JANE
DOE, a fictitious name; RICHARD
ROE, a fictitious name; JOSEPH
WILLIAMS, a fictitious name;
JOSEPH ROGERS, a fictitious
name; GREGORY SMITH, a
fictitious name; JOSEPH SMITH,
a fictitious name; JANE SMITH,
a fictitious name; and WILLIAM
SMITH, a fictitious name;
Individually and as agents,
employees and servants of
St. Joseph's Hospital,
Defendants.
Argued November 6, 1995 -- Decided June 4, 1996
On certification to the Superior Court,
Appellate Division, whose opinion is reported
at
282 N.J. Super. 23 (1995).
Edwin R. Matthews argued the cause for
appellant (Matthews, White, Giacumbo &
Fischer and Budd, Larner, Gross, Rosenbaum,
Greenberg & Sade, attorneys; Mr. Matthews,
Mark D. Larner and Donald P. Jacobs, on the
briefs).
George T. Baxter argued the cause for
respondents.
Charles W. Wigginton submitted a brief on
behalf of amicus curiae Association of Tissue
Banks (Maley, Williamson & Hayden, attorneys;
Mr. Wigginton and Burt A. Braverman, a member
of the District of Columbia bar, on the
brief).
William B. McGuire submitted a brief on
behalf of amicus curiae American Society of
Association Executives (Tompkins, McGuire &
Wachenfeld, attorneys).
Susan M. Sharko and Laura A. Wefing submitted
a brief on behalf of amicus curiae College of
American Pathologists (Shanley & Fisher,
attorneys).
The opinion of the Court was delivered by
POLLOCK, J.
Plaintiff William Snyder contracted Acquired Immune Deficiency Syndrome (AIDS) from a transfusion of blood that the Bergen Community Blood Center (BCBC), a non-profit blood bank, had provided to St. Joseph's Hospital. The BCBC is a member of defendant, the American Association of Blood Banks (AABB), an association of blood banks and blood-banking professionals. The
primary issue is whether the AABB owed a duty of care to Snyder.
A further issue is whether the AABB is entitled to charitable
immunity under N.J.S.A. 2A:53-7.
In the Law Division, a jury found the AABB thirty-percent
liable for Snyder's damages of $1,350,000, or $405,000. The
Appellate Division affirmed.
282 N.J. Super. 23 (1995). We
granted the AABB's petition for certification,
142 N.J. 517
(1995), and now affirm.
Under a nation-wide "look-back" program instituted that year, blood banks could determine whether a prospective donor who tested positive for HIV had donated blood before the development
of the ELISA test. As part of the "look-back" program sponsored
by the AABB, BCBC ascertained in 1986 that the donor of unit
29F0784 was HIV positive. That same year BCBC so informed St.
Joseph's Hospital. St. Joseph's, in turn, informed Snyder's
doctor, who notified him in 1987. Snyder, who was not otherwise
at risk, tested HIV positive. He has since contracted AIDS.
In February 1989, Snyder and his wife, Roslyn (collectively
referred to as "plaintiffs"), filed a complaint in the Law
Division against St. Joseph's, various physicians and other
individuals, BCBC, and the AABB (collectively described as
"defendants"). Plaintiffs asserted claims sounding in strict
liability, breach of warranty, negligence, and consumer fraud.
In the strict-liability claim, Snyder alleged that he had been
transfused with a defective blood product that could have been
made safe through available blood tests and donor-screening
techniques. According to the plaintiffs, the AABB, however,
resisted implementation of those tests and techniques. Snyder
further alleged that BCBC and the AABB negligently had enhanced
his risk of contracting AIDS by failing to implement procedures
to prevent HIV-infected donors from giving blood. The AABB
denied plaintiffs' essential allegations and asserted the
affirmative defense of charitable immunity.
In an earlier proceeding, the Law Division entered an order
allowing plaintiffs to proceed with their negligence claim
against the AABB. Further, the court ruled that plaintiffs were
not entitled to discovery of BCBC'S blood-donor records.
The Appellate Division agreed that plaintiffs could maintain
their negligence action. Snyder v. Mekhjian (Snyder I),
244 N.J.
Super. 281, 290-93 (1990). Overruling the trial court, the
Appellate Division allowed plaintiffs' discovery of the donor's
records. We affirmed.
125 N.J. 328 (1991).
Ultimately, all defendants other than the AABB either
settled or obtained dismissals. At the trial, the critical issue
was whether the AABB had breached a duty of care to Snyder.
Hence, the trial focused on the AABB's role in the blood-banking
industry and the reasonableness of its response to increasing
evidence that blood or blood products could transmit AIDS.
At the conclusion of an eight-week trial, the jury found that the AABB had been negligent in not recommending surrogate testing. Surrogate testing refers to identifying people at risk for a disease by testing for some symptom or characteristic manifested by a majority of people who have contracted or are at risk of contracting the disease. In the early 1980s, one
available surrogate test for HIV infected blood was that for the
antibody to the hepatitis B core antigen (the HBc antibody).
The jury further found that the AABB's negligence was a
substantial factor in causing Snyder to contract HIV. It also
found that the AABB was thirty
percent liable for plaintiffs'
injuries.
The Appellate Division affirmed. Writing for the court,
Judge Pressler stated that, on the interlocutory appeal, the
court had determined that the AABB owed Snyder a duty of care,
and that the law of the case precluded a different determination.
282 N.J. Super. at 43.
The Appellate Division explained that the "unique and
dominant role of the AABB in blood-banking and the extent of its
control over its institutional members" established the requisite
relationship between the AABB and blood-product recipients,
"whose safety is its avowed paramount concern." Id. at 43.
Considering the risk involved and the "public policy concerns
implicit in the blood-banking industry's methods of operation,"
the court determined that the "AABB is reasonably chargeable with
a duty of care owed to those recipients whose life and health
depend on the reasonableness and prudence of its actions." Id.
at 43-44.
On the charitable-immunity issue, the court reasoned that
"although [the AABB] is a non-profit corporation engaged in
necessary and useful services, [it] is not `organized exclusively
for religious, charitable, educational, or hospital purposes.'"
Id. at 41 (quoting N.J.S.A. 2A:53-7). Accordingly, the court
denied the AABB's claim of charitable immunity.
Central to the voluntary sector is the American Red Cross
with its blood banks, community and hospital blood centers, and
the AABB, which includes almost every blood bank in the United
States. These voluntary blood banks rely on public-spirited
donors for their blood supply. Voluntary blood banks commonly
separate donated blood into three components: plasma, platelets,
and red cells.
Dominating the commercial sector are manufacturers or
fractionators of plasma derivatives. In the early 1980s,
fractionators collected approximately eighty percent of plasma
from paid donors. The voluntary sector provided the remaining
twenty percent. Fractionators pool plasma from thousands of
donors and process it to produce large batches of plasma
derivatives, such as clotting factors for hemophiliacs. Each
batch contains enough clotting factor to treat thousands of
patients. Institute of Medicine, HIV and the Blood Supply: An
Analysis of Crisis Decisionmaking 15 (1995) (the IOM Report).
State and federal regulations apply to both sectors of the blood-banking industry. The Food and Drug Administration (FDA), an agency of the Public Health Service (PHS) in the United States Department of Health and Human Services (DHHS), inspects and licenses blood banks and other blood facilities. See 21 U.S.C.A. § 321(g)(1)(B) (broadly defining "drugs" to include "articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease," which includes blood and blood products); 21 U.S.C.A. §360(b) (requiring processing establishments, including blood banks, to register with the FDA); 42 U.S.C.A. § 262(c) to (d) (requiring inspection and licensing by the FDA (as delegated by secretary of DHHS) of blood or blood-product facilities that participate in interstate commerce); 21 C.F.R. 5.10(a)(1) and (5) (1995) (delegating to FDA authority
vested in the secretary, DHHS, and PHS in the Food, Drug and
Cosmetic Act (
21 U.S.C.A.
§§301-95) and in
42 U.S.C.A.
§§262
and 263);
21 C.F.R. 607.3(b) (1995) (defining blood as a drug).
In New Jersey, the Department of Health (DOH) discharges similar
responsibilities. See N.J.S.A. 26:2A-1 (authorizing DOH to
regulate collection, processing and distribution of blood). A
blood bank in New Jersey cannot operate without licenses from
both the FDA and DOH. 42 U.S.C.A §§ 262(a); N.J.S.A. 26:2A-4.
Against this background, we consider the role of the AABB.
According to the AABB's certificate of incorporation, the purpose
of the AABB is
to foster the exchange of ideas and
information relating to blood banks and blood
transfusion services[;] . . . to advance and
incorporate high standards of performance and
service by blood banks[;] . . . to function
as a clearing house for the exchange of blood
and blood credits . . . [and] to encourage
the development of blood banks through
education, public information and research.
The AABB describes itself as a "professional, non-profit, scientific and administrative association for individuals and institutions engaged in the many facets of blood and tissue banking, and transfusion and transplantation medicine." It is "the only organization devoted exclusively to blood banking and blood transfusion services." In the early 1980s, the AABB
centers collected about half of the nation's blood supply and
transfused eighty percent of the blood to patients. Its
institutional members were mainly hospitals and non-profit blood
centers.
According to the AABB's executive director, Joel Solomon,
the general purpose of the AABB is "to develop and recommend
standards on the practice of blood banking, to help promote the
public health, . . . and to conduct numerous programs for
communication and education among organization members and the
public at-large." The AABB discharges its educational mission by
conducting workshops and seminars, and by publishing books,
newsletters, pamphlets, and a peer-review journal, Transfusion.
Additionally, the AABB lobbies the United States Congress and
state legislatures and participates in federal and state
administrative rulemaking procedures.
Significantly, the AABB annually inspects and accredits
member institutions. It conditions accreditation on compliance
with standards published in its Standards for Blood Banks and
Transfusion Services and procedures outlined in its Technical
Manual. According to the annual report, AABB standards often
become FDA standards. As the AABB has declared, it "leads the
industry in setting policy and establishing standards of practice
for its member blood banks in excess of the FDA."
Both the state and federal government, as well as the blood-banking industry, generally accept AABB standards as
authoritative. Consequently, blood banks throughout the nation
rely on those standards. For example, BCBC relied on the AABB
standards in developing its own operating procedures. In the
words of Anthony Passaro, Executive Director of BCBC, the AABB's
standards in 1984 "were basically the Bible of the blood center."
AABB's inspections complement the annual inspection by the
FDA. If a blood bank loses its AABB accreditation but retains
its FDA and New Jersey licenses, it can continue to operate, but
only with significant practical problems. Hospitals and other
blood banks prefer to work with AABB accredited institutions.
The AABB also issues advisory recommendations and
guidelines. The BCBC, which had only a part-time medical
director, relied on the AABB for guidance in assuring the safety
of its blood supply. According to Dr. Wilkinson, the BCBC's
medical director, and Anthony Passaro, its executive director,
the BCBC in 1984 followed the AABB's recommendations on AIDS
screening. Furthermore, the BCBC would have followed any other
AABB recommendations. Dr. Wilkinson testified:
Q: If the A.A.B.B. had recommended that you
use a laboratory test for screening aids,
would you have done so?
A: Yes.
To the same effect, Mr. Passaro testified:
Q. Mr. Passaro: If the American
Association of Blood Banks had recommended
that you -- not you personally -- that the
Bergen County Community Blood Center do a
certain laboratory test for screening donors,
would it have been done at the Blood Center?
A. Yes.
In the early 1980s, the AABB led the blood industry. Dr.
George F. Grady, an expert in blood-banking procedures and
transfusion-related viruses, testified that the AABB had
established itself as the leader in setting blood-banking
standards. The AABB, moreover, was an active member of the FDA's
influential Blood Products Advisory Council and advised the FDA
on issues concerning the blood industry. In a recent study of
the FDA's response to the threat of AIDS, the Committee to Study
HIV Transmission Through Blood and Blood Products (the Committee)
of the Institute of Medicine found that "in the early 1980s, the
FDA appeared too reliant upon analyses provided by industry-based
members of the Blood Products Advisory Council." IOM Report,
supra, at 15.
Others also noted governmental deference to the AABB. Dr. Edgar Engleman, the director of the Stanford Blood Bank, testified that in 1984 the FDA took a passive role in developing
standards and guidelines, essentially deferring to the AABB in
determining the blood-banking industry's response to AIDS. Dr.
Thomas Asher, a microbiologist and blood expert who runs a
blood-products company, testified that "most state . . .
governments incorporate into their state regulations the AABB
standards, [which] are, in most cases, the state standards for
licensing."
At the state level, the DOH, when renewing blood-bank
licenses, accepted reports of AABB inspections in lieu of its own
inspections. N.J.A.C. 8:8-1.4(b) (May 21, 1984). DOH also
accepted AABB's standards for obtaining medical histories and
conducting physical examinations of donors. N.J.A.C. 8:8-5.2
(May 21, 1984).
Finally, in a December 1983 memorandum on potential blood-bank liability from transfusion-related AIDS, the AABB's general
counsel advised AABB members that "courts have frequently cited
AABB's standards as evidence of appropriate practice, and we
believe that the courts will give credence to the recommendations
made jointly by AABB and other blood banking organizations."
The picture that emerges is of a private, tax-exempt organization with substantial power over the operation of blood banks, including BCBC. That the blood banks would accept
direction from the AABB is understandable: it was their
organization. We turn next to the AABB's exercise of that power
during the early years of the AIDS crisis.
The CDC first sounded the alarm about AIDS. In 1981, in
response to a rapidly spreading and often fatal immunological
disorder among homosexual males, the CDC formed a group,
subsequently known as the AIDS Task Force. The Task Force
consisted of epidemiologists knowledgeable about hemophilia,
hepatitis, and sexually-transmitted diseases. From 1982 to 1984,
the Task Force played a pivotal role in publicizing the threat of
AIDS to the nation's blood supply.
The CDC's primary means of alerting the medical and
public-health communities of new diseases is through the
publication of the Morbidity and Mortality Weekly Report (MMWR).
Between June 1981 and July 1982, the CDC reported in the MMWR a
rapidly increasing number of cases, totaling 355, of previously
rare immunosuppression-related ailments among homosexual men and
intravenous drug users in New York, California, New Jersey, and
Florida. The disease, now known as AIDS, had an extremely high
mortality rate: forty percent of its victims had died. Data
indicated, moreover, that the longer a patient suffered from the
disease, the higher the mortality rate climbed. Initially, AIDS
occurred only in gay men. By June 1982, however, other groups
were at risk. Seventy-five percent of AIDS patients were gay
men, twenty percent were intravenous (IV) drug users, and five
percent were not readily classifiable.
The AIDS Task Force began to compile a composite description
of the disease. Health officials had learned that AIDS victims
exhibited persistently swollen lymph nodes long before the onset
of other symptoms. One common symptom was depressed T-lymphocyte
helper-to-suppressor ratios, an immunological abnormality that
reflects a reduced count of a certain lymphocyte, or white blood
cell. Another symptom was a low absolute lymphocyte count, which
indicates suppression of the immune system.
The two most prominent AIDS-associated diseases were
pneumocystis pneumonia and Kaposi's sarcoma. Before their
occurrence in AIDS patients, both pneumocystis pneumonia and
Kaposi's sarcoma had been extremely rare. Pneumocystis pneumonia
is a type of pneumonia that previously had occurred only in
severely immunosuppressed patients, such as those undergoing
cancer chemotherapy. Kaposi's sarcoma is a skin malignancy that
previously had appeared almost exclusively in elderly men. Other
AIDS-related ailments included a form of lymphatic cancer known
as non-Hodgkins lymphoma and tuberculosis.
Not all patients suffered from the same diseases. Some had
pneumocystis pneumonia; others, Kaposi's sarcoma; and still
others suffered from both. Almost all, however, displayed the
T-cell ratio abnormality and depressed lymphocyte counts. The
clustering of the symptoms among homosexual men and IV drug users
and the shared abnormality in white blood cell counts led the CDC
to conclude in 1982 that the evidence pointed to a single disease
with a common underlying factor.
Plaintiffs presented several expert witnesses who explained
the evolution of the discovery that blood and blood products
could carry the AIDS virus. Dr. Donald Francis, a virologist and
epidemiologist, served as director of the AIDS Task Force
laboratory in the early 1980s and as assistant director of the
CDC's hepatitis-B effort in the 1970s. He testified that in 1982
the CDC detected a pattern in the transmission of AIDS and in the
identification of the persons at risk. The pattern revealed that
early homosexual AIDS patients were infecting others through
sexual contact. Also apparent was an incubation period varying
from several months to several years. The CDC postulated in June
1982 that the cause of the disease was an infectious agent, such
as a virus.
According to Dr. Francis, the epidemiology of AIDS, which
affected primarily homosexuals and IV drug users, bore a
remarkable resemblance to that of hepatitis B. Hepatitis B is a
liver disease that is transmitted perinatally (from a mother to
her fetus) or by either sexual contact or blood. In an outbreak
of hepatitis B in the 1970s, the major high-risk populations were
homosexual men, IV drug users, and hemophiliacs. Because it
could be transmitted by blood, transfusion-related hepatitis B
had become a serious public-health concern, particularly to the
blood-banking industry.
Dr. Ernest Simon, an expert in blood-banking and transfusion medicine, as well as the deputy director of the FDA's blood division from 1976 to 1980, also testified. He stated that during the early 1980s, "[s]even to ten percent of individuals who were transfused . . . would [subsequently] show evidence of liver dysfunction probably related to transmissibility of viral
hepatitis." Members of the AIDS Task Force, noting the
epidemiological similarity between AIDS and hepatitis B, feared
that blood and blood products could carry AIDS.
On July 16, 1982, after three hemophiliacs had developed
AIDS, the CDC published a landmark report. According to Dr.
Francis, the report "brought much of our speculation about the
disease to . . . a conclusion about its transmissibility." The
three hemophiliacs, unlike the average AIDS patient, were
heterosexual men who did not use IV drugs. Furthermore, they did
not fit within the observed New York-California geographic
distribution of AIDS patients. They shared, however, one
potential risk: all three treated their hemophilia with the
blood product known as Factor VIII, a concentrated clotting
factor. The CDC focused on that factor.
In its July 16, 1982, report in the MMWR, the CDC concluded that "[a]lthough the cause of [AIDS] is unknown, the occurrence among the three hemophiliac cases suggests the possible transmission of an agent through blood products." Study of the Factor VIII manufacturing process led CDC researchers to believe that a virus caused AIDS. In producing Factor VIII, fractionators would filter out larger infectious agents, such as bacteria, to reduce the likelihood of contamination. The filters, however, could not trap smaller agents, such as viruses.
Dr. Francis explained that the realization that the infectious
agent was a virus that could be transmitted by blood "was a red
flag and concerned us greatly about the potential for blood-borne
transmission of other therapeutic blood products."
On July 27, 1982, the PHS held a national meeting of blood
and blood-product collectors to discuss the threat of AIDS. At
that meeting, members of the CDC Task Force reported their
findings to blood-industry organizations, including the AABB.
In September 1982, Dr. Edward N. Brandt, Jr., the assistant
secretary for health at DHHS, issued a directive incorporating
the conclusions of the July meeting. In that directive, Dr.
Brandt stated that
the recent occurrence of [pneumocystis
pneumonia] in three patients with hemophilia
raises the question whether the underlying
immunodeficiency seen in these patients has
the same etiology as among other groups with
[pneumocystis pneumonia]. There is need to
determine if certain blood products,
particularly Factor VIII, are risk factors
for AIDS.
Dr. Brandt instructed PHS agencies, including CDC, FDA, and the
National Institutes of Health (NIH), to increase their efforts to
combat AIDS and to focus on the threat to hemophiliacs from the
use of factor concentrate.
In November 1982, the CDC became concerned about the special
risk that AIDS posed to doctors, nurses, and other hospital
personnel who were exposed regularly to blood. Consequently, the
CDC alerted them that "hepatitis-B virus infections occur very
frequently among AIDS cases." The CDC warned that "[a]t present,
it appears prudent for hospital personnel to use the same
precautions when caring for" AIDS patients as when caring for
patients with hepatitis B.
Throughout 1982, evidence continued to accumulate that a
blood-borne agent caused AIDS. The CDC reported that, as with
the spread of the hepatitis virus among gay men, the AIDS virus
was transmitted sexually and by blood. Vaccination specialists
from the CDC, the FDA, and the NIH noted that the "epidemiology
of AIDS suggests an unidentified and uncharacterized blood-borne
agent as a possible cause of the underlying immunologic defect."
Moreover, the total number of AIDS cases was doubling every six
months. By December, the number of hemophiliacs diagnosed with
AIDS likewise had doubled.
Thus, by late 1982, the pattern for AIDS transmission was clear. Dr. Francis testified that some suspected but unconfirmed cases of transfusion-associated AIDS had surfaced in October and November 1982. On December 10, 1982, the CDC reported that an infant who at birth in March 1981 had received a number of
transfusions later developed AIDS-like symptoms. The infant's
parents did not belong to any known risk group. A donor of one
of the units later developed AIDS. The CDC noted that "several
features of the infant's illness resemble those seen among adults
with AIDS." It explained:
The etiology of AIDS remains unknown, but its
reported occurrence among homosexual men,
intravenous drug abusers, and persons with
hemophilia A suggests it may be caused by an
infectious agent transmitted sexually or
through exposure to blood or blood products.
If the infant's illness described in this
report is AIDS, its occurrence following
receipt of blood products from a known AIDS
case adds support to the infectious-agent
hypothesis.
If the platelet transfusion contained an
etiologic agent for AIDS, one must assume
that the agent can be present in the blood of
a donor before onset of symptomatic illness
and that the incubation period for such
illness can be relatively long.
Because of the long incubation period for AIDS, the Task Force
feared that the undiscovered cases greatly exceeded those that
had been reported.
One week later, the CDC reported four cases of AIDS in infants under the age of two whose mothers belonged to high-risk populations, but who had not received any blood transfusions. In an additional twelve suspected cases of infant AIDS, nine of the
mothers were IV drug users. The CDC reported that the children
could have been infected by the "[t]ransmission of an `AIDS
agent' from mother to child, either in utero or shortly after
birth." That possibility, according to Dr. Francis, "really
fill[ed] in all of the pieces of the puzzle of transmission here.
. . . The epidemiology of HIV now looked identical to hepatitis B
virus."
Members of the CDC AIDS Task Force developed a model of the
cause and transmission of AIDS. Dr. Francis explained:
[W]e're talking about an infectious, viral
agent, that was in the blood of individuals,
that had the same epidemiologic pattern of
sexual, blood-borne and perinatal . . .
transmission that hepatitis B virus had, that
destroyed a specific lymphocyte, specific
[white blood] cell in the immune system
. . . .
The person that would be likely to have this
virus . . . would be gay men and intravenous
drug users or their sexual contacts.
Foundation, the National Gay Task Force, and other organizations
attended the meeting. The AIDS Task Force was convinced that
AIDS was blood-transmissible, and that its epidemiology mirrored
that of hepatitis B, "involving the same high-risk groups and in
the same proportions."
The Task Force also presented disturbing information about
the risk of the transmission of AIDS in the blood supply. By
that time, the CDC had reported six cases of transfusion-associated AIDS. A study of 140 gay men with AIDS in San
Francisco revealed that at least ten had admitted donating blood
in previous years. Because the specific causative agent for AIDS
had not yet been identified, the Task Force asserted that persons
at high risk for AIDS should not donate blood.
The Task Force recommended three methods to screen out high-risk donors: (1) direct questioning of prospective donors to determine if they belonged to high-risk groups; (2) detailed recording of medical histories of prospective donors to determine any indications of early AIDS symptoms; and (3) institution of surrogate testing of collected blood. Together, these three methods would have prevented blood from high-risk donors from entering the blood supply. Specifically, surrogate testing would have complemented the other two methods by providing an objective
test of blood from high-risk donors who were symptom-free and
reluctant to admit to homosexual activity or IV drug use.
Consistent with that recommendation, the Task Force proposed
three surrogate tests: (1) the hepatitis-B core-antibody test
(core test), which tested for people who either had been or are
infected with hepatitis B; (2) the T-cell ratio test, which
tested for the specific immunological abnormality common in AIDS
patients; and (3) the absolute-lymphocyte test, which tested for
a reduced level of lymphocytes.
In 1982, Dr. Thomas Spira of the CDC Task Force conducted a
study of the effectiveness of various surrogate tests. He
concluded that the core test would identify a large majority of
people with or at risk of contracting AIDS. Of patients with
AIDS, the core test revealed that eighty-eight percent of gay
men, one-hundred percent of IV drug users, and eighty-seven
percent of Haitians tested positive for the hepatitis-B core
antibody. Seventy-nine percent of the control group of
homosexual and bisexual men not suffering from AIDS - the most
significant high-risk group - tested positive for hepatitis B.
This result was consistent with earlier studies indicating high
levels of hepatitis-B infection among gay men. M.T. Schreeder,
et al., Hepatitis B in Homosexual Men: Prevalence of Infection
and Factors Related to Transmission, 146 J. Infectious Diseases 8
(July 1982). Because hepatitis B was uncommon in the general
population, the Task Force estimated that five percent of the
remaining healthy male population would test positive. On
balance, the Task Force concluded that the core test was the most
promising.
At the January 4, 1983, meeting, the AABB and other
blood-banking representatives strenuously disagreed with the CDC.
Dr. Joseph Bove, chairman of the AABB Committee on Transfusion
Transmitted Disease, stated that he was unconvinced that blood
could transmit AIDS. He argued that surrogate testing was
unnecessary and that direct questioning was improper.
Dr. Francis rejoined that the AABB's response was
"remarkably obstructive." He recognized the response as
"basically an attempt to deny that there was a threat." The AABB
nonetheless persisted in arguing that surrogate testing and
direct questioning would be too costly and would lead to the
rejection of too much blood. Dr. Francis described the meeting:
[T]he reluctance and the inertia that we
at CDC faced with the blood banks in that
meeting was so . . . ridiculous and so
alarming that it got to the point of me
literally pounding on the table and shouting
to these individuals as to how many deaths
it's going to take before you will act.
And I was saying, do you need ten, do
you need twenty, do you need forty, when we
get to that level, then are you going to act?
This was a very heated meeting because
of this incredible counter balance of those
of us investigating the epidemic and seeing
the urgency of the situation . . . to put
the responsibility for action onto the blood
banks, because presumably, they were the only
ones that could act, that there -- the
imbalance of this urgency from us and the
obstruction, the negative response from them
was a most disturbing time, one of the most
disturbing times in my twenty years in public
health.
Following the meeting, the lines hardened. The AABB criticized both direct-donor questioning and surrogate-blood testing. In a joint statement of January 13, 1983, the AABB, the American Red Cross, and the Council of Community Blood Banks described the CDC data as "insufficient," "the evidence "inconclusive," and the possibility that blood transmitted AIDS as "still unproven." Still, as the CDC Task Force had urged, they recommended that their members take from donors detailed medical histories emphasizing early AIDS' symptoms. The joint statement continued, however, that the AABB and the others "[did] not advise routine implementation of any laboratory screening program for AIDS by blood banks at this time," even though "there are laboratory and clinical findings that are present in nearly all AIDS patients." Finally, the AABB and the other organizations rejected direct questioning of donors about sexual preference as ineffective and as an unjustifiable "invasion of
privacy." Confronted with escalating evidence that blood
transmitted the AIDS virus and that surrogate testing would
reveal the presence of the virus, the AABB became increasingly
intransigent.
Throughout 1983, the evidence continued to mount. On March
4, 1983, the PHS reported in MMWR that "the occurrence of AIDS
among IV drug users" supports a finding that "blood products or
blood appear responsible for AIDS among hemophilia patients."
The PHS recognized the need for, but did not recommend, surrogate
testing.
A month later, the AABB issued a set of standard operating
procedures that required only the distribution of AIDS
educational material to donors and continued medical history
screening. The AABB refused to require surrogate testing or
direct questioning of donors.
That refusal, like Dr. Bove's testimony at the January 4, 1983, CDC meeting, belied internal concerns within the AABB. In December 1982, Dr. Bove wrote an internal memo indicating a growing concern that AIDS could cause "major problems in the blood collecting sector." He continued that his "current best guess is that we are dealing with an infectious agent able to be spread by blood and blood products and that individuals who
receive large quantities of factor concentrate are at an
increased risk." In a January 1983 report, Dr. Bove noted that a
recently discovered transfusion-related AIDS case "increases the
probability that AIDS may be spread by blood." He recognized
that "there is little doubt in my mind that additional
transfusion related cases and additional cases in patients with
hemophilia will surface," and that the CDC was actively pursuing
more transfusion-related cases. Consequently, Dr. Bove advised
that
the most we can do in this situation is buy
time . . . [before the AABB] will be obliged
to review our current stance and probably
move in the same direction as the commercial
fractionators. By that I mean it will be
essential for us to take some active steps to
screen out donor populations who are at high
risk of AIDS.
Additionally, Dr. Bove expressed concern that "we do not want
anything that we do now to be interpreted by society (or by legal
authorities) as agreeing with the concept - as yet unproven
that AIDS can be spread by blood." Dr. Bove stressed that the
AABB must do "whatever is medically correct," but that "we may
have to do a little more, since we are accused of burying our
heads in the sand." Notwithstanding these qualifications, Dr.
Bove recognized that blood carries the AIDS virus and that the
AABB should actively screen high-risk donors.
In a report dated March 29, 1983, Dr. Bove noted increasing
pressure from the federal government and the CDC. He predicted
that the "next step on the horizon will probably be a request to
institute a mandatory screening of donor blood." Somewhat
ambivalently, Dr. Bove stated, however, "that the evidence
linking AIDS to blood transfusion is unconvincing." For whatever
reason, he and the AABB could not accept the fact that blood can
transmit the AIDS virus. Yet, in October 1983, in a memo to the
AABB Board of Directors, Dr. Bove warned the AABB board of
directors that a forthcoming article by Dr. James W. Curran and
others in the prestigious New England Journal of Medicine
documented eighteen cases of transfusion-related AIDS.
The plasma industry, which relies on paid donors, took a
much more cautious view. Whenever a plasma donor later developed
AIDS, the industry would withdraw all coagulation products made
from that donor's blood.
Consistent with that approach, the FDA, in a March 24, 1983, memorandum to licensed manufacturers of plasma derivatives, prohibited use of plasma "collected from donors suspected of being at increased risk of transmitting AIDS" from being used to produce "derivatives already known to have a risk of transmitting infectious diseases," such as the clotting factors used in treating hemophilia. Thus, the memorandum evidences the decision
of the federal government to exclude high-risk donors,
specifically sexually-active homosexuals. Existing regulations
already excluded IV drug users. In sum, the FDA's recommendation
reflected its growing concern about AIDS contamination of blood
and blood products.
Beginning in 1983, some blood banks began to institute
surrogate testing. In January 1983, Dr. Thomas Asher began
testing all blood for total lymphocyte count at his commercial
blood-fractionating facility. Seven months later, the Stanford
University Hospital blood bank instituted the T-cell ratio test.
Several northern California blood banks instituted the core test
in 1984. No AIDS cases resulted from blood tested at any of
these facilities. At a December 1983 meeting of the FDA's Blood
Products Advisory Committee, Dr. Edgar Engleman, director of the
Stanford blood bank, reported that the bank had rejected, on the
basis of T-cell test results, two high-risk donors who should
have self-excluded after reading the AIDS information materials,
but who elected to donate anyway.
Two influential reports published in early 1984 addressed transfusion-associated AIDS. Dr. Curran's article in the January 12, 1984, New England Journal of Medicine - the article about which Dr. Bove had alerted the AABB board of directors in October 1983 - concluded that AIDS could be transmitted through blood and
blood products. James W. Curran, et al., Acquired
Immunodeficiency Syndrome (AIDS) Associated with Transfusions,
310 New England Journal of Medicine 69, 73-74 (Jan. 12, 1984);
see Kozup v. Georgetown Univ.,
663 F. Supp. 1048, 1052 (D.D.C.
1987) (describing the article as the definitive statement that
AIDS was caused by blood-borne agent).
A subsequent article in the Annals of Internal Medicine,
another respected peer-review journal, quantified the risks
associated with blood transfusion and treatment of hemophilia.
The article stated:
Present evidence increasingly indicates that
the syndrome is caused by an agent that may
be transmitted through transfusions, but risk
to a person receiving blood is very small.
During 1983, 28 cases of transfusion-associated syndrome were diagnosed . . . in
the United States. Each year, more than 3
million persons receive transfusions in the
United States: thus for 1983, the crude
annual rate of reported cases of the syndrome
approximates 1 case per 100,000 recipients.
[James W. Curran and Llewelyn F. Barker, The
Acquired Immunodeficiency Syndrome Associated
with Transfusions: The Evolving Perspective,
100 Annals of Internal Medicine 298, 299
(Feb. 1984)].
The statistics for hemophiliacs were far more severe:
The 12 cases of [AIDS] diagnosed in 1983 among persons with hemophilia represent an
annual rate of 1 case per 1000 hemophiliacs
receiving antihemophilic concentrates. The
relatively high rate among hemophiliacs may
result from the method of concentrate
production: each hemophiliac is exposed
annually to several concentrate lots, each
containing plasma pooled from thousands of
donors.
On April 13, 1984, at a telephone conference of the FDA's
Blood Products Advisory Committee, the FDA announced the
following position:
The recent decision by several blood and
plasma organizations to use the anti-core
test was a voluntary decision on their part
with the recognition of the limitations of
the test and the lack of data to support the
premise that excluding anti-core positive
individuals from donor pools will have any
impact on the frequency with which donors are
later found to have developed AIDS.
At this point, it would seem reasonable to
continue voluntary and cooperative efforts
aimed at assessing the potential usefulness
of a variety of laboratory tests for their
predictive value in identifying individuals
who are in a pre-clinical stage of AIDS. On
the basis of the information available to
date, it is possible that screening tests
other than anti-core may ultimately prove to
be more predictive and generally useful in
improving the safety of blood and blood
products. It would therefore be unwise to
adopt anti-core testing to the exclusion of
other screening tests.
In July 1984, the Blood Products Advisory Committee's Hepatitis B Core Antibody Testing Study Group (study group)
reported its findings on the core test. The study group
consisted of eleven members representing the FDA, plasma
fractionators, and major blood-industry associations, including
the AABB. The majority of the study group, including the AABB,
rejected the core test. It contended that the core test would
lead to the rejection of too many healthy donors, was not
sufficiently specific, and cost too much. Further, the majority
contended that self-screening was working. A minority
recommended adoption of the core test. It asserted that
self-screening was not working and urged that the core test would
exclude sixty to eighty percent of high-risk donors. As a matter
of policy, the minority concluded that concerns about blood
safety outweighed concerns about a diminishing blood supply or
excessive costs.
On April 24, 1984, Secretary Margaret Heckler of the DHHS
announced that researchers had isolated the AIDS virus and had
developed a blood test for AIDS. She believed that the test, now
known as the ELISA test, would be available within six months.
In fact, the DHHS approved the ELISA test on March 4, 1985, seven
months after Snyder received his transfusion.
the AABB did not directly obtain, process, or transfuse the
infected platelets that caused Snyder to contract AIDS. Thus,
the AABB had no immediate connection with either the donor or
with Snyder.
The determination of the existence of a duty ultimately is a question of fairness and policy. Crawn v. Campo, 136 N.J. 494, 501 (1994); Dunphy v. Gregor, 136 N.J. 99, 108 (1994); Kelly v. Gwinnell, 96 N.J. 538, 544 (1984); Goldberg v. Housing Auth., 38 N.J. 578, 583 (1962). An important, although not dispositive consideration, is the foreseeability of injury to others from the defendant's conduct. Carter Lincoln-Mercury v. EMAR Group, 135 N.J. 182, 194 (1994). Also important are the nature of the risk posed by the defendant's conduct, the relationship of the parties, and the impact on the public of the imposition of a duty of care. Dunphy, supra, 136 N.J. at 108. The absence of a contractual or special relationship is not dispositive. Carter Lincoln-Mercury, supra, 135 N.J. at 195-97; see also Aronsohn v. Mandara, 98 N.J. 92, 105 (1984) (holding that lack of privity of contract between building contractor and third persons does not bar recovery for those injured by defendant's negligence); H. Rosenblum, Inc. v. Adler, 93 N.J. 324, 338-39 (1983) (holding that reasonably foreseeable consequences of auditor's negligent opinion about corporation's finances, not privity in contract,
define duty owed to persons foreseeably relying on auditor's
representations).
Blood banks, hospitals, and patients rely on the AABB for
the safety of the nation's blood supply. A patient contemplating
surgery cannot assure the safety of blood drawn from others. Of
necessity, patients rely on others, including the AABB, for that
assurance.
Society has not thrust on the AABB its responsibility for
the safety of blood and blood products. The AABB has sought and
cultivated that responsibility. For years, it has dominated the
establishment of standards for the blood-banking industry. To
illustrate, the AABB's January 1983 joint statement with the Red
Cross and Council of Community Blood Centers endorsed the
AABB-recommended screening measures as "prudent and appropriate."
In a March 31, 1983, AABB press release, Dr. Bove stated:
We would also like to assure the public that
the chance of anyone acquiring AIDS through a
blood transfusion is remote. . . . Every
precaution is being taken to assure that each
unit of blood transfused is the safest
possible.
By words and conduct, the AABB invited blood banks, hospitals, and patients to rely on the AABB's recommended procedures. The AABB set the standards for voluntary blood banks. At all
relevant times, it exerted considerable influence over the
practices and procedures over its member banks, including BCBC.
On behalf of itself and its member banks, the AABB lobbies
legislatures, participates in administrative proceedings, and
works with governmental health agencies in setting blood-banking
policy. In many respects, the AABB wrote the rules and set the
standards for voluntary blood banks.
We next examine the severity and foreseeability of the risk
that blood transfusions could spread the AIDS virus. The
severity of the risk of transfusion-related AIDS is a function of
the mortality rate and the infection rate. In 1984, the overall
mortality rate of AIDS was forty percent, but for those who had
AIDS for more than three years, the rate approached nearly 100%.
The infection rate was increasing exponentially. For example,
the CDC reported thirty-eight cases of transfusion-related AIDS
by December 1983, up from six cases reported in January of that
year. The CDC believed that as more people became infected with
AIDS, the risk to the blood supply also would increase. Thus,
the risk that blood transfusions could transmit AIDS was severe.
The risk also was foreseeable. Epidemiologists at the CDC
believed as early as 1982 that the AIDS virus could be
transmitted by blood and blood products. In January 1984, Dr.
Curran's article in the New England Journal of Medicine confirmed
that belief. Thus, before Snyder received his transfusion, the
AABB should have foreseen that a blood transfusion could transmit
AIDS.
We are unpersuaded by the AABB's argument that because the
evidence was inconclusive, it owed no duty to Snyder. The
foreseeability, not the conclusiveness, of harm suffices to give
rise to a duty of care. By 1983, ample evidence supported the
conclusion that blood transmitted the AIDS virus. In early 1984,
the AABB knew that AIDS was a rapidly spreading, fatal disease
and that apparently healthy donors could infect others. The AABB
also knew that blood and blood products probably could transmit
AIDS and that each infected blood donor could infect many donees.
Thus, the AABB knew, or should have known, in 1984 that the risk
of AIDS infection from blood transfusions was devastating. We
agree with the lower courts that the record establishes that the
AABB owed Snyder a duty of care.
The AABB claims that considerations of public policy and
fairness negate the imposition of a duty of care extending to
Snyder. Specifically, the AABB contends that it should not be
found liable for taking the "wrong side" of a debate involving
medical uncertainties and public policy. According to the AABB,
the imposition of liability violates its constitutionally-
protected right to participate in the political process. The
argument misses the mark.
The AABB relies on the Noerr-Pennington doctrine, which states generally that because of First Amendment considerations, commercial interests that lobby to influence government do not violate antitrust laws. California Motor Transp. Co. v. Trucking Unlimited, 404 U.S. 508, 510-11, 92 S. Ct. 609, 611-12, 30 L.