Doctor Fred L. Pasternack v. Laboratory Corporation of America Holdings
Plaintiff Fred Pasternack, an airline pilot, sued LabCorp and ChoicePoint for negligence and fraud related to an alleged 'refusal to test' during a random drug screening. Pasternack claimed LabCorp's employee failed to follow 'shy bladder' procedures and inform him of the consequences of leaving, leading to the revocation of his airman certificates by the FAA. He also alleged fraud based on the employee's false statements to FAA investigators which the FAA relied upon. The New York Court of Appeals was asked to answer two certified questions from the Second Circuit: (1) whether federal drug testing regulations create a duty of care for labs under New York negligence law, and (2) whether third-party reliance can satisfy the reliance element of a New York fraud claim. The Court answered both questions in the negative, holding that only regulations implicating scientific integrity create a duty of care, and third-party reliance is insufficient for a fraud claim under New York law.