Summary of DN1 – Verified Complaint
Case No. 24-CV-1579, U.S. District Court for the District of Puerto Rico
Filed: December 18, 2024
Key Parties
Plaintiff:
- R.M.C. Orthopedic & Surgical, Inc. (“RMC”)
- Puerto Rico corporation (est. 1990)
- Exclusive stocking distributor of orthopedic implants/hardware/biologics in Puerto Rico and the U.S. Virgin Islands
Defendants:
- Stryker Corporation
- Michigan headquarters; acquired Wright Medical in 2020
- Wright Medical Technology Inc. and Wright Medical Group, Inc.
- Delaware/Tennessee entities, wholly owned Stryker subsidiaries
Core Facts Alleged
- Since 1991, RMC was the exclusive stocking distributor for Wright Medical products (orthopedic implants, extremities hardware, biologics, Tornier shoulder/upper-extremity lines) in Puerto Rico/USVI
- RMC took title to goods, maintained local inventory, promoted products, trained surgeons, and built the market for 32+ years through multiple corporate changes (Dow Corning Wright → Wright Medical → Wright Medical Group → Stryker acquisition in Nov. 2020)
- Formal written exclusive distribution agreement signed July 24, 2015
- RMC achieved strong, growing sales (record years in 2021–2022 even during COVID and despite hurricanes/earthquakes)
- Jan. 26, 2022: Stryker sent a 90-day termination notice (effective April 27, 2022) with no reason or just cause
- Termination did not comply with Section 14 of the 2015 agreement
- Despite the notice, Stryker continued shipping products until May 2023, then abruptly refused 15 pending orders worth $581,185.75
- RMC sent multiple extrajudicial demand letters (July & Aug. 2023) protesting the termination as discriminatory against the Puerto Rico market (while mainland U.S. distributors were not similarly affected)
- Result: RMC left with unsold inventory, loss of goodwill, and inability to supply orthopedic surgeons/patients needing revision surgeries
Legal Claims
- Breach of the 2015 Distributor Agreement
- Termination without complying with contractual notice/just-cause provisions
- Violation of Puerto Rico Law 75 (Dealers’ Contracts Act, 10 P.R. Laws Ann. §§ 278–278dd)
- Wrongful termination of an established dealer relationship without “just cause.”
- Law 75 protects local distributors and provides for damages including lost profits, goodwill, and inventory loss
- Injunctive Relief
- Preliminary injunction under Law 75’s provisional-remedy provision (§ 278b-1) to compel Stryker/Wright to resume supplying the full product line
Damages Sought (under Law 75)
- Lost profits: $2,100,000
- Goodwill: $1,600,000
- Unsold inventory: $1,200,000
- Total: at least $4,900,000 + costs, attorney’s fees, interest, and any other relief
Preliminary Injunctive Relief:
- Immediate order requiring defendants to resume supplying the Wright/Tornier/Stryker product lines so RMC can continue serving Puerto Rico orthopedic surgeons and patients (described as a public-health issue for revision surgeries)
Jury trial demanded.
