Lloyd’s wins judgment in death of nutritional supplement

A federal appeals court has upheld the dismissal of a lawsuit brought against Lloyd’s of London in the case of a man whose death was attributed to ingesting a dietary supplement banned by the Federal Drug Administration.

The FDA had already banned DMAA, an amphetamine derivative marketed in athletic performance and weight loss products, when Christopher Rosales purchased Noxipro, manufactured by Conroe, Texas-based CTD Labs LLC, which contained the substance, in May 2013, according to court documents in the Estate of Christopher Rosales and. Al.v. Some Lloyd’s Underwriters.

Mr Rosales was found unconscious in his bed and pronounced dead in June 2013, his death attributed to sudden cardiac arrest caused by his use of the product Noxipro, according to court documents.

In 2015, the estate and heirs of Mr. Rosales sued CTD for wrongful death and related claims. His insurer, Lloyd’s, refused cover because of a DMAA exclusion in his policy.

A settlement agreement was reached in which CTD accepted a stipulated judgment of $9 million and assigned to the estate its right to pursue claims against Lloyd’s, according to court documents.

The U.S. District Court in Las Vegas granted Lloyd’s motion to dismiss the case and was upheld by a three-judge appeals court panel.

Five causes of action in the estate’s lawsuit fail because the policy excludes the estate’s claims against CTD Labs, according to the appeals court ruling.

And the allegations in the fifth cause of action, “‘Unfair Insurance Business Practices,’ depend on the coverage excluded under the policy,” the decision states.

“The remaining allegation merely recites the text of Nevada’s unfair trade practices law,” the ruling reads, affirming the lower court’s decision.

Lloyd’s attorney, Chicago-based McCullough PC shareholder Thomas A Brusstar, said in a statement: “The Ninth Circuit has rightly focused on the simplest possible basis to uphold the dismissal below, to know a clear exclusion.”

The estate attorney did not respond to a request for comment.

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