Document: 527 U.S. 815119 S.Ct. 2295144 L.Ed.2d 715 SUPREME COURT OF THE UNITED STATES No. 97-1704 ESTEBAN ORTIZ, et al., Petitioners v. FIBREBOARD CORPORATION al. ON WRIT CERTIORARI TO APPEALS FOR FIFTH CIRCUIT [June 23, 1999] Justice Souter delivered the opinion of Court. 1 This case turns on conditions for certifying a mandatory settlement class limited fund theory under Federal Rule Civil Procedure 23(b)(1)(B). We hold that applicants contested certification this rationale must show is by more than agreement parties, and has been allocated to claimants belonging within process addressing any conflicting interests members. 2 * Like Amchem Products, Inc. Windsor, 521 591 (1997), action prompted elephantine mass asbestos cases, our discussion in will suffice how litigation defies customary judicial administration calls national legislation.1 In 1967, one first actions personal injury was filed United States District Court Eastern Texas against group manufacturers. App. Pet. Cert. 252a. 1970's 1980's, plaintiffs' lawyers throughout country, particularly East Texas, honed claims point almost mechanical regularity, improving forensic identification diseases caused asbestos, refining theories liability, often settling large inventories cases. See D. Hensler, W. Felstiner, M. Selvin, & P. Ebener, Asbestos Courts: The Challenge Mass Toxic Torts vii (1985); McGovern, Resolving Mature Tort Litigation, 69 B. U. L. Rev. 659, 660-661 (1989); see also 253a. 3 Respondent Fibreboard Corporation defendant 1967 action. Although it primarily timber company, from 1920's through 1971 company manufactured variety products containing mainly high-temperature industrial applications. As tide rose, found itself litigating two fronts. On one, plaintiffs were filing stream it, swelling 1980's 1990's thousands new compensatory damages each year. Id., at 265a; 1040a. second front, battling funds pay its tort claimants. From May, 1957, March, 1959, respondent Continental Casualty Company had provided with comprehensive general liability policy limits $1 million per occurrence, $500,000 claim, no aggregate limit. claimed Pacific Indemnity insured 1956 1957 similar policy. 267a-268a. Beginning 1979, locked coverage California state trial court, which 1990 held responsible indemnification as claim claimant exposed prior their policies' respective expiration dates. 268a-269a. decree required insurers full cost defense covered. Ibid. insurance companies appealed. 4 With filings continuing unabated, secure assets depleted, 1988 began practice "structured settlement," paying 40 percent figure up front balance contingent upon successful resolution dispute.2 By 1991, however, pace forced start cases entirely assignments rights Continental, initial payment. To reflect risk might prevail dispute, these assignment agreements generally carried about twice nominal amount earlier settlements. challenged Fibreboard's right make unilateral assignments, but 1992 court ruled dispute.3 5 Meanwhile, aftermath Judicial Center conference crisis, approached leading lawyers, offering discuss "global settlement" personal-injury liability. Early negotiations bore relatively little fruit, save December significant inventory pending claims. brought deferred obligations $1.2 billion, all victory over scope validity assignments. 6 February 1993, after lost both issues level, thus faced possibility practically unbounded too joined global negotiations. Because conditioned part guarantee "total peace," ensuring unknown future liabilities, talks focused feasibility action, binding potential giving none them choice opt out certified class. Negotiations continued spring summer difficulty actually simultaneously led an early August segregate settle some 45,000 claims, being substantially those firms negotiating settlement. amounts higher average, one-half due closing remainder either or success litigation. model other firms. 7 companies' appeal consolidated set be heard 27, parties motivating deadline, midnight before argument, coffee shop Tyler, negotiators finally agreed $1.535 billion key term "Global Settlement Agreement." $1.525 sum would come Pacific, proportion established case, while contribute $10 million, proceeds, 84a. identify unsettled present aside as-then unspecified resolve them, anticipating bulk excess left transferred Ahearn Corp., 162 F. R. 505, 517 (ED Tex. 1995). next day, hedge Global Agreement fail, counsel insisted condition dispute what came known "Trilateral provide eventually $2 defend winners, should fail win approval. 517, 521; 492a.4 8 September 9, agreed, named seeking purposes comprising three groups: persons exposure who not yet suit settled previous 27; dismissed such retained bring Fibreboard; "past, spouses, parents, children, relatives" members asbestos.5 did include presently "who and, cash payment negotiated value, Fibreboard, whose only sue development asbestos-related malignancy." 534a-535a. complaint pleaded justification certification, relied shared necessity sufficient compensation. 552a-569a. After obtained leave intervene party-defendants, provisionally granted enjoined commencement further separate members, appointed guardian ad litem review fairness re 90 F.3d 963, 972 (CA5 1996). 9 negotiated, exchange releases establish trust members' death Claimants compensation try trust. If attempts failed, have proceed mediation, arbitration, conference. Only exhausting could go trust, subject limit punitive prejudgment interest barred. Claims resolved without discharged years, judgments paid 5- 10-year period. contained spendthrift provisions conserve serious event shortfall given 973. 10 extensive campaign give notice allowed groups objectors, including petitioners here, intervene. 8-day hearing, approved "fair, adequate, reasonable," 23(e). Ahearn, D., 527. Satisfied requirements 23(a) met, id., 523-526,6 23(b)(1)(B),7 citing lose fare poorly assignment-settlement leaving 526. "allowance individual adjudications members," concluded, "would destroyed opportunity compromise creating fund, very risks addresses." response intervenors' objections absence "limited fund" precluded 23(b)(1)(B), although subdivision so restricted, if were, qualify. It "disputed asset liquidated Settlement," alternatively, "the value plus coverage," measured funds' relevant funds." 491a-492a. 11 appeal, Fifth Circuit affirmed adequacy supra.8 Agreeing Court's application 23(a), Appeals there commonality securing equitably distributing maximum possible funds, representative sufficiently typical sharing basing same legal remedial absent raise. 975-976. thought conflicts undermine counsel's representation. 976-982.9 based threat ability receive injuries assets." Ibid.10 cited expert testimony enormous liabilities costs likely equal exceed out, concluded even combining $235 Trilateral Agreement, unable valid five nine years. Judge Smith dissented, arguing among things majority skimped concerns, glossed problems commonality, typicality, representation, ignored number justiciability issues. 993-1026.11 12 Shortly thereafter, decided proceeded vacate Circuit's judgment remand consideration light decision. 1114 (1997). remand, again affirmed, brief curiam opinion, distinguishing grounds instant 23(b)(1)(B) rather (b)(3), allocate awards according nature claimant's injury. 134 668, 669-670 (1998). Again findings "incontestable" conclusion terms met. 670. acknowledged Amchem's admonition may unless are noted made supporting determinations. reiterating hisprevious argued specifically erred because creature itself. 671-674. 13 certiorari, 524 ___ (1998), now reverse. II 14 nub rationale, we reach issue, threshold matters. First, call nonjusticiable Article III, saying feigned initiated control "vast majority" "exposure-only" fact hence standing sue. Brief 44-50. Ordinarily, course, III sure own jurisdiction getting merits. Steel Co. Citizens For Better Environment, 523 83, 88-89 But are, they Amchem, "logically antecedent" U.S., 612, themselves pertain statutory standing, properly treated Co., supra, 92. Thus issue 23 first, "mindful [the Rule's] interpreted keeping constraints ... ." 612-613. 15 argue disregarded passing 13-22. agree reinstating affirmance decision, fell short attention explanation governing standards. Two aspects particular received detailed treatment Appeals. enquiry into typicality 524.12 Second, significantly, took steps outset ensure potentially easily identifiable categories protected provisional subclasses 23(c)(4), relying instead post-hoc hearing adequately represented. seen, points reappear when Appeals's accordingly turn directly that. 16 suits recognized various forms since earliest days English law, S. Yeazell, Medieval Group Litigation Modern Class Action (1987); Marcin, Searching Origin Action, Cath. 515, 517-524 (1973), recognize today developed exception formal rigidity necessary rule equity, Hazard, Gedid, Sowle, An Historical Analysis Binding Effect Suits, 146 Pa. 1849, 1859-1860 (1998) (hereinafter Sowle), well bill peace, equitable device multiple suits, Z. Chafee, Some Problems Equity 161-167, 200-203 (1950). equity mandated "all materially interested, defendants matter ought suit, however numerous be." West Randall, 29 Cas. 718, 721 (No. 17,424) (CC RI) (1820) (Story, J.). times unfairly deny recovery party exceptions, cover situations "where numerous, perceives, impossible court; where question interest, few benefit whole; form voluntary association public private purposes, fairly supposed represent whole 722; J. Story, Commentaries Pleadings §97 (J. Gould 10th rev. ed. 1892); Calvert, A Treatise Law Respecting Parties Suits 17-29 (1837) Equity). roots, modern emerged 1966 revision 23. drafting 23(b), Advisory Committee sought catalogue "functional" "those recurrent life patterns parties." Kaplan, Prefatory Note, C. Ind. Com. 497 (1969). 17 speaks "a vantage class, [from Committee] spied lawsuits conducted practical technical effect concluding well, impairing others protect interests." Continuing Work Committee: Amendments Rules (I), 81 Harv. 356, 388 (1967) Work). Thus, (read (c)(2)) provides withdraw, prosecution create risk" "adjudications respect dispositive impair impede Fed. Civ. Proc. 23(b)(1)(B).13 Classic examples impairment may, example, reorganize fraternal-benefit societies, see, e.g., Supreme Tribe Ben-Hur Cauble, 255 356 (1921); shareholders declare dividend otherwise "fix [their] rights," 388; charging breach indenture trustee fiduciary similarly affecting class" beneficiaries, requiring accounting procedure "to restore trust," Committee's Notes 28 U.S.C. App., p. 696 Adv. Comm. Notes). categories, character relief awarded entails adjudication member disposes of, affects, 18 Among traditional varieties encompassed involving presence property call[ed] distribution management," Moore Friedman, Practice 2240 (1938) (herein Friedman). One recurring type aggregating "claims insufficient satisfy claims." 697; cf. Newberg §4.09, 4-33 ("Classic" "include assets, bank account, liquidation sale, proceeds ship sale maritime accident others").14 Dickinson Burnham, 197 F.2d 973 (CA2), cert. denied, 344 875 (1952), illustrative tradition. Dickinson, investors hoping failing contributed $600,000, misused until nothing pool secret profits fraction original investment. charge subjecting constructive division subscribers demonstrated proportional member's percentage substantiated F.2d, 978.15 Second entire claimants, noting "[a]lthough contributors full, asserts suggests ordinary conspiracy defrauding. court's power disposition therefore absolute final." 980.16 describing represented, joinder impractical, satisfied would, matter, prejudice inadequate all. 19 Equity, bind imposition entailed. Guffanti National Surety 196 N. Y. 452, 458, E. 174, 176 (1909), money supply steamship tickets posted $15,000 bond law. He converted use collected 150 ticket purchasers, then adjudged bankrupt, absconded. defrauded purchasers sued surety behalf himself like him. Over defendant's objection, New York sustained considerations recoveries sought" pro rata distribution. E., 176. Sowle 1915 ("[Guffanti] explained debtor's less total creditors' permitted required; creditors (the parties) absentees) not"). Morrison Warren 174 Misc. 233, 234, 20 2d 26, 27 (Sup. Ct. Cty. 1940) (suit 400 beneficiaries following fire appropriate greatly exceeds insurance"); Graves, 211 Ala. 533, 534, 101 So. 190 (1924) stockholders "for situate join suit" alleged bonds result exhaustion penalties bonds, many remedy"). Ross Crary, Paige Ch. 416, 417-418 (N.Y. 1829), presents concept another incarnation. "[D]ivers legacies," 417, legatees executor decedent's estate. stated "there allegation deficiency account estate necessary," "direc[t] cause only" "stay proceedings others, interested decree." 417-418. legatee creditor bills situated clear pleadings available portion it.17 B 21 forming pedigree understood drafters common characteristics, despite circumstances arose. resemblance necessarily contention assumed least justify secede. 22 most distinctive characteristic totals aggregated satisfying definitely maximums, demonstrate inadequacy driving insufficiency, alone justified feast avoid later famine. See, Guffanti, 457, ("The penalty . just several embezzlements. Unless distributed having secured thereby, scramble precedence payment, favored, obtaining knowledge embezzlements"); So., primary adjustment apportionment full"). limitation necessity. devoted overwhelming 979-980 (rejecting challenge holder fund); Butterworth-Judson 269 504, 513 (1926) ("Here, debts, entitled priorities"). went lower priority holding back ensured best deal; better deal seriatim produced. 24 Third, identified themselves. assume comprise everyone single repeated facts, invoking recovery, source Each people represented Ross, comparable entitlement testator's will. Those representation solicitation subsequent defalcation investment, individuals entrusted purchases. hope limited, respectively, residuum profits, bond. Once classes identified, omitting anyone calculated recovery. Railroad Orr, Wall. 471, 474 (1873) (reciting "well settled" "that appears face ratable complainants, bill, complainants situation"). plaintiff appeared ("[I]t appear parties: seems be, he interested"); thus, creditors, Leigh Thomas, Ves. Sen. 312, 313, Eng. Rep. 201 (Ch. 1751) ("No doubt rest instance four estate, creditors"), asserted victims fraud, share bond.18 antecedents presented straightforward models treatment, simple providing fairness, Pomeroy Jurisprudence §407, 764 (4th 1918) ("[I]f discharge incline regard demands footing, payment").19 25 sum, reference "fund" ascertained limit, equitable, C 26 Committee, presumably Congress approving (b)(1)(B), characteristics cognizable subdivision. remains far treatment. While cannot details (b)(1)(B) here (and decide ultimate whether settlements multitudes related amenable treatment), good reasons treat presumptively necessary, merely sufficient, At least, burden rests proponent departure norm. true, text open lenient concept, covers historical fund. greater leniency departing model, likelihood abuse ways apparent apply criteria us. prudent therefore, presume devised actions, object stay close model. limiting construction finds support expressions understanding, minimizes conflict Enabling Act, avoids constitutional concerns raised especially seeks settlement-only begin with, looked cautiously creativity comparison 23(b)(3). committee crafted general, terms, formalism bedeviled 380-386, consciously retrospective intent codify pre-Rule 23(b)(1), forward-looking innovations Compare Meeting, Oct. 31-Nov. 2, 1963, Congressional Information Service Records Conference, 1935-1988, CI 7104-53, Meeting) (comments Reporter Prof. Benjamin Kaplan) (Rule 23(b)(3) represents growing law"); Member Albert Sacks) "an evolving area"). intended (b)(1) capture " 'standard' practice, 394. Consistent backward look (b)(1), commentators pointed contemplate codified used unliquidated rationale. Monaghan, Antisuit Injunctions Preclusion Against Absent Nonresident Members, 98 Colum. 1148, 1164 'framers' envision expansive interpretations No draftsmen contemplated that, torts, 'limited fund' emerge functional equivalent bankruptcy embracing 'funds' created "); Schwarzer, Actions: Order Out Chaos, 80 Cornell 837, 840 (1995) does readily fit situation volume them"); Marcus, They Can't Do That, Can They? Reform Via 858, 877 (1995). None Professor Kaplan explaining remotely approach described "mass accident" case. much amenability debates silent resolving 23(b)(1)(B).20 simply implausible concerned difficulties posed dealing 23(b)(3), 23(c)(2), uncritically versions lacking protections, 23(b)(1)(B).21 do not, ever Ticor Title Ins. Brown, 511 117, 121 (1994) (per curiam). surprising, take reason surprise presuming Rule's requirements. 30 Act underscores need caution. said reading can ignore Act's mandate "rules 'shall abridge, enlarge modify substantive right,' 613 (quoting § 2072(b)); Guaranty Trust York, 326 99, 105 (1945) ("In federal courts 'cognizance' diversity jurisdiction, never gave, nor State law denied law"). violated asserting Agreement's priorities abrogated govern 1652. 31-36. grapple difficult choice-of-law state-law questions petitioners' assertion, tension between action's Even acceptable kept tolerable preceding adoption. 31 Finally, needed adventurous doctrine avoidance jointly sound warning attempt followed obviously implicates Seventh Amendment jury members.22 Bernhard, 396 531 (1970), merger 1938, become "class obtain present." 541. nature, compromises consent. 32 important, damage implicate "principle Anglo-American jurisprudence bound personam designated service process," Hansberry Lee, 311 32, (1940), "our 'deep-rooted historic tradition his day court,' Martin Wilks, 490 755, 762 (1989) Wright, A. Miller, Cooper, §4449, 417 (1981)); Richards Jefferson County, 793, 798-799 (1996). '[w]e when, certain circumstances, person, party, someone party," special scheme exists expressly foreclosing successive nonlitigants, example probate," Martin, 762, n. (citations omitted), exception. 33 inherent day-in-court ideal magnified applied gathered Unlike objectors collectivism abstain. (which definition unidentifiable certified) regardless consent, or, express wish contrary.23 And procedural protections built during invoked adversarial setting, 620. 34 flag decade ago Phillips Petroleum Shutts, 472 797 (1985). Shutts small sums royalty payments suspended authority regulation. 800. notified first-class mail lawsuit. 33,000, 3,400 exercised right, 1,500 excluded notices delivered. 801. losing trial, defendant, Petroleum, out-of-state affirmative invoke International Shoe Washington, 310 (1945), progeny. 806-808. saw extinguishable "receive participate litigation," "at minimum [must] remove class." 812.24IV 35 record rested purpose essential premises actions. failed except showed exclusions allocations odds structural Amchem. 36 defect going feature uncritical adoption figures25 defining demonstrating inadequacy.26 When district certifies only, moment requires "heightene[d] attention," 620, justifications technically, effectively concludes proceeding final hearing. And, 23(e) substitute rigorous adherence "designed absentees," ibid., (b)(1)(B).27 agreement, evidence ascertain insufficiency challenge, Bendectin Products Liability 749 300, 306 (CA6 1984) ("[T]he fact-finding inquiry allow opponents exist"); Temple, 851 1269, 1272 (CA11 1988) ("Without finding net worth defendant's] suitors"); Dennis Greenman Securities 829 1539, 1546 1987) (discussing factual action). 37 already alluded facing huge numbers arising hurdle computation adding amounts, arguendo experience reliable determination probable total, apparently otherwise, way predict certainty." 528. Nothing conclusion, adequate demonstration element upper itself, showing possible. 38 comprised policies, F.3d, 982 (describing Agreement). exclusive insurance, then-current estimate conservative,28 independent proceedings. same, disputed insurance. 39 "limited" sense demonstrable render insolvent, policies falling total; calculation difficult, clear. Neither however. Instead, product unlimited discounted ultimately course step removed assumption here. Instead undertaking evaluation (and, later, Appeals), accepted representing victims, "[w]here disputed, value." 492a.29 always acceptable, skill arms-length bargaining, unhindered tugging ostensibly negotiation. indulged probably gigantic fees.30 certainly, mind bargaining patently 969-970, 971, (either occurred Agreement), 3; 119a-120a. great incentive survive arrangement unidentified Cf. Cramton, Individualized Justice, Torts, "Settlement Actions": Introduction, 811, 832 ("[S]ide suggest laboring impermissible preferred current clients class"). resulting favor was, indeed, egregious divergent injured S, 626-627 representatives 23(a)(4)). 41 know exactly valuation shown. revealed sound, considered timing; enough limits, projected insolvency indicated truly (Nothing record, supportable finding.) Or prospects shown, discount discount, probability precluding Throughout third question, right. objecting alike specific evidentiary conflicted counsel. 42 anticipated requirement There issues, inclusiveness distributions it. each, short. 43 excludes myriad causes foreseeable asbestos. includes filed, withdrawn prejudice, fails previously retaining "upon malignancy," time announcement "inventory" supposedly reaching settlement, 971. outside reservation uncertain, uncertainty significance settlement's exclusion estimated Guardian Ad Litem 53,000 95-40635 (CA5), Record, Tab 55, 72 (Report Litem). fair natural depleted dispositions still qualify aimed exclude involved, substantial whom represent, 321a (noting benchmark 186,000 Fibreboard). 44 Might forgiven shown outsiders ended benefits? academic us, speculate approved, Settlement. immediate 50 get (or resolved, turned Agreement); contrast, assured 3-year payout settled, whereas prospect mediation arbitration instituting slower limitations trust's protection. 8. discussed below, ostensible parity nonclass overcome failure protection interests. 45 likewise deficient. Fair older characteristically 22. unattainable covering proven arise, all, time, seek procedures treating differently 46 obvious divided holders (some latter physical born) homogeneous 23(c)(4)(B), eliminate 627 (class "structural assurance diverse affected"); Moore, T. Chorvat, Feinberg, Marmer, Solovy, Moore's §23.25[5][e], 23-149 (3d 1998) (an attorney serve counsel).31 currently injured, critical goal generous payments," "[t]hat tugs exposure-only ample, inflation-protected future." 626. employed contrary obligation entailed applicable 23(a)(4). 47 included 1959. date significant, year Pre-1959 valuable post-1959 1012-1013 (Smith, J., dissenting), consequence disparate end reclassification counsel, instances 48 answer say, makes allocation resources classes. 669-670. decides immediately deserve favorable speculative injuries, different indemnification. decision results certainly indemnified chosen. 49 Nor failures 0class weighty diminish deficiencies beneath recognition Representatives context 23(a)(4) requirement); 35-36 (citing, "Agent Orange" Product 996 1425, 1435-1436 (CA2 1993); 800 14, 18-19 1986)). argument variation position put forward proponents tried interests, O. 1996, 96-270, (arguing "achieving overriding concern [held] common"); predominance met settlement"). unavailing predecessor gave weight, 625-628, observing "[t]he benefits asbestos-exposed gain establishment grand-scale legislative consideration," "proposed cohesive warrant adjudication" focus "questions preexist 622-623.32 Here, trying rewrite 23; ignores subdivisions (a) (b) inequity pre-certification stage, quite independently postcertification (e) sense. swallow protective (b)(3).33. departs markedly provision smaller claims; notably, retain virtually worth. Given fatal Agreement. entirely, misleading raises, purporting time. 51 listed component allegedly inadequate) subsequently itself.34 irreconcilable denying withdrawal compromised, capped, delayed. nearly worth, hardly regime say "need designate class' [but that] recovered [be] fair." 52 mind, advantage transaction piecemeal litigation, referred case.35 saving estimating "hundreds millions," 529, conclude valued ibid. (Fibreboard's "is considerably savings Settlement"). saves gone pocket credit settlement? legitimate day. V 53 Our basis ground Breyer's dissent, difference dissenters follow adoption, free alter prescribed Act. Although, dissent notes, post, 18, revised adopted (somewhat cautiously) authorize understanding edge opt-out authorized 24-25. dispense safeguards traditionally. 54 Apart move standards direction weight "unusual fund['s] witching hour," 13, exercising discretion certification. belief (that sustain allowances exigencies proceeding) addresses (demonstrably intraclass dedication 9-19). 55 believes dispensed parties. discounts "relevant" negotiation, judging actual amount, negotiation produced 12. facts: (1) separate, backup insistence Agreement; (2) Insurers adamant agreement," principle "Fibreboard acceded to" announced "as price permitting reached 516. Under reliability excuse want event, says, crucial $30 $15 $20. crucial. Conflict-free $20 figure, receiving less. 56 argues mitigated decision) clock strike midnight, considering declared parallel theory. 57 retention loss putatively effort done. reargue Amchem: (b). 58 believe allowance exigency level scrutiny, economic temptations work unsettle line (b)(3). VI 59 applicability plan liquidate purported improper. avoiding recognizing paradigm. Assuming mandatory, equally unsatisfied negotiations, addressed subclasses. determined dispositive, error plaintiffs, funded fully review. settlements, together subclass afforded elements certified. 60 Appeals, accordingly, reversed, remanded consistent opinion. 61 ordered. NOTES 62 FN1SRC1. '[This] tale danger 1930s, inflicted millions Americans 1940s 1950s, toll 1960s, flood beginning 1970s. past data, latency period last long years diseases, expected. unknown. Predictions 200,000 disease deaths 2000 265,000 2015. 'The objectionable briefly summarized: dockets continue grow; delays routine; trials long; litigated over; victims' one; threatens distorts process; altogether.' 598 Report Conference Hoc 2-3 (Mar. 1991) Report)). 1991 called "federal legislation dispute-resolution scheme." (citing 3, 27-35 1991)). responded. 63 FN2SRC2. expired 1959 1996) dissenting). 64 FN3SRC3. 969, Andrus 614747-3 Ct., Alameda June 1, 1992)). appealed, infra, 8, appellate reversed. Corp. A059716 (Cal. 19, 1994)). 969 1. challenge) program, definitive ruling opposed 288a-290a. 65 FN4SRC4. accompanied Agreements. major codefendants, preserved codefendant 1996); approval constitute "settlement" Longshore Harbor Workers' Compensation 933(g), 521-522. 66 FN5SRC5. regarding defined follows: "(a) All representatives) 1993 exposed, indirectly (including spouse, household person), asbestos-containing bear (i) lawsuit injury, damage, entities omissions bears liability; (ii) "(b) products, nonmalignant malignancy; provided, "(c) past, children relatives paragraphs above, person has, paragraph above liability), liability)." 67 FN6SRC6. "Rule states actions: numerosity (a 'class [so large] impracticable'); ('questions class'); (3) (named parties' defenses 'are (4) (representatives 'will class')." 591, 68 FN7SRC7. "[a]n maintained prerequisites satisfied, addition: (B) FN8SRC8. essentially identical declaration reasonable. below affirmed. 974, 991-993. That 70 FN9SRC9. representatives, consider issue. 976, 10. Likewise, 23(a)'s requirement. 71 FN10SRC10. Abandoning alternative FN11SRC11. rehearing en banc, Smith, Judges, dissenting. 368, 369 73 FN12SRC12. meet demanding 623-624 possibility, 23(a). 74 FN13SRC13. contrast membership H. Conte, Actions §4.01, 4-6 1992) Newberg). "mandatory" 75 FN14SRC14. Indeed, reporter commented letter phrase 'impair interests' "redolent fund." Letter John Frank, Feb. 7, CI-6312-31, 2. fund-related involved creation preservation City County San Francisco Market Street 95 Cal. 648, 213 P.2d 780 suing inured whole. Another participants rights. Hartford Life Ibs, 237 662 (1915); Council Royal Arcanum Green, Barber, 245 (1917); Swormstedt, How. 288 (1854). size stake, determine operating rules participants. category analogous injunctions 76 FN15SRC15. usual allowing prove 978; 697 "action whole, groups, proof proportionate fund"). 77 FN16SRC16. demonstrates, precursor subset "hybrid" 1938 version §1.09, 1-25. categorized enforced class," dividing "(1) joint, common, secondary owner refuses enforce thereby becomes it; several, affect action; sought." (1938 ed., Supp. V). Friedman 2240; Cohn, Actions, Ill. 307, 317-318 (1937); Procedure: Raised Preliminary Draft, Geo. 551, 574 (1937). 78 FN17SRC17. bills, order master debts. §§547, 548 (I. Redfield 8th 1861). decree, incorporation admitted debt bill. Woodgate Field, Hare 211, 213, 88, 89 1842) admitted, liable debt. prejudiced Plaintiff's debt; fails"); Hallett Hallett, 15, (N. 1829) [in legatees' suit] abatement complainant's legacy, thereto, agreeable equity"). 79 FN18SRC18. Chafee explained, discussing "it multitude adjudicated rest. mince pie, satisfactorily carver counts table." Bills Peace Multiple Parties, 1297, 1311 (1932). FN19SRC19. typically place. 973, 978 1952); Terry President Directors Bank Cape Fear, 777, 782 WDNC 1884); Johnson Waters, 111 640, 674 (1884) (in correct master's office gainst decree"). specifies beyond urposes. Plaintiffs notify connection though disputed. Since satisfaction sufficiency FN20SRC20. extent explicitly resembling debate bringing degree replace old spurious category, Compare, Meeting 44-45. 51. compromise, 'mass accident' ordinarily questions, present, ways." 697. 393. 82 FN21SRC21. noted, moreover, class-action solely existence fund,' judgment, extending unaffected nonappearing debtor." 698. Bone, Personal Impersonal Litigative Forms: Reconceiving History Adjudicative Representation, 282 (1990) (historically automatically mechanism suit). liberality circumscribed transmogrified operation tortfeasor. FN22SRC22. provides: "In controversy shall twenty dollars, 83 FN23SRC23. back-end "opt out" dissatisfied exhaust mechanisms, $500,000, installments multimillion-dollar verdicts sometimes 1006, approximately dozen occasions, $500,000. 373a. 84 FN24SRC24. reiterated articulated members." 812 Hansberry, 42-43, 45). important caveat holding, examining attendant "wholly predominately judgments," 3. 85 FN25SRC25. plural reflects 86 FN26SRC26. differed somewhat articulating standard evaluate whether, fact, torts. Northern Dist. California, Dalkon Shield IUD 693 F.2d. 847, 852 (CA9 1982), sub nom. Robins Abed 459 1171 (1983) inescapably members), 100 726 (EDNY 1983), aff'd 818 145 1987), Fraticelli Dow Chemical 484 1004 (1988) (requiring "substantial probability-that preponderance mere possibility-that awarded, litigants defendants' assets"). 1984). formulation, stand, premature 87 FN27SRC27. Issacharoff, Conflicts, 805, 822 (1997) ("[I]n purports fait accompli, recourse futile objection 23(e)"). 88 FN28SRC28. investment banker "financially buyer" acquire costs. 377a, 492a. 1997, acquired $515 $85 dissenting); Coffee, Wars: Dilemma 1343, 1402 surge stock below). FN29SRC29. neither items, yielding using Either way, pay, obligations. FN30SRC30. strictly rational world, press pay. fee grasp, zeal client relax sooner claimant. 91 FN31SRC31. parallels 23(a)(4), drive influence propriety 23(b). 623, 18. concentrated "competency counsel." 626, General Telephone Southwest Falcon, 457 147, 157, (1982)); §23.25[3][a] (adequacy counsel). "named [until] reached," 483a; 92 FN32SRC32. observation 23(b)(3)'s enquiry, 622-623, capable 23(b)(1)(B)" 19. 93 FN33SRC33. overrode internal conflicts, respondents forth sustaining assert "failure file maintain disputes unitary basis-allowing prosecute separately-would 'significant risk[s]' disputes," "any resulted owed Respondents 23(b)(1)(B)). Whatever merits, foreclosed rehearsed tainted undone. (whose final), subclasses, address. 94 FN34SRC34. Bankruptcy Code, cf., Drexel Burnham Lambert Group, Inc., 960 285, 292 1992), de minimis contribution incentives engineer likelihood, significantly Code. note 1994, Pub. 103-394 §111(a), amended Code enable debtor Chapter reorganization toward channel 524(g), (h). FN35SRC35. advantages reducing compared (certifying "some putative costly perhaps, meritorious warranting prevent motivations diminishing eventual members"). 509; 282a annual ran, times, high reached), asset, to, than, factoring CONCURRING OPINION 96 Chief Rehnquist, Scalia Kennedy join, concurring. 97 dissenting highlights graphic detail massive impact courts. Post, 1-3. Were I devising system handling clean slate, approves near-heroic efforts bad situation. regime, transactional surely consume static devise adjudicating revised, correctly existing "elephantine cases," ante, cries solution. DISSENTING 99 Breyer, Stevens joins, involves billion. Court, 446 findings, distinctions drawn 505 (1995); 248a-468a. lawful. 668 1998). Appeals' does. Accordingly, dissent. 102 Four background underlie help explain reasonableness consequent lawfulness comprises "defies administration." Ante, workers 6-7 Report). Eight spoke "reached dimensions," threatening disaster proportions." every civil 80,000 filed; 10,000 Courts Cases Commenced Nature Suit, Administrative Office Statistics (Table C2-A) (Dec. 31, 1994-1998) AO Statistics). 103 average resolve. 10-11. Parker, experienced judge 3,000-member presided 448 died pending. Cimino Raymark Industries, 751 649, 651 1990). yet, Parker state, "thirty month, [still] six [due filings] 5,000 untouched cases" 652. His accelerate sample highly complex (133 days, 500 witnesses, half pages documents) closed 160 extrapolate proved fruitless. 151 297, 335 delay attorney's fees "transaction costs" unusually high, where, dollar cents, cents victims. 13. 104 kind courts, legislatures, creates problem. judiciary problem failure, caused, drafted statute. "calls legislation" unanswered, judges search aggressively ways, framework expense denial justice. have. written disparity appreciation magnitude problem," courts' "daily involvement litigation" infrequent appeals. Cimino, Supp., 651. 106 Fourth, her court. Unusually costs, delays, mean realistic alternative. designed address reasons, work. (discussing, relation judgments, "while technically matter"). 107 find raises referring, majority, court.' (citation omitted). exercise bit discretionary provides. Califano Yamasaki, 442 682, 703 (1979) ("[M]ost [are] committed court"); Reiter Sonotone 330, 345 (district "broad matters certification" actions). doing so, extremely reluctant overturn fact-specific circumstance-specific discretion, appeals Universal Camera NLRB, 340 474, 490-491 (1951) (Supreme rarely agency fact-finding). cautionary leads me majority. 108 us families) who, part, 1993. 321a; Statistics, Table C2-A (total 1998 252,994). precise 356a-357a, assessment 109 But, short-lived additional promised consisted issued Casualty, Indemnity. (i.e., covered claims), dollars; invalid, nothing. seemed near future. companies. negotiating, puts "unlimited coverage" perhaps worth) "discounted litigation." 33. 110 offered (who directly). head poised policies. meant speed certify non plaintiffs. entered wait did. (hence billions dollars), everything get; invalid nothing), stick 970 eight hearings, amounted fund," $1.77 willing value). findings. 518-519. "non opt-out" allows creates. types determinations historically factors circumstances. 976. contains payouts year, shortfall. permits wishes (albeit nonbinding arbitration), sets ceiling so. 112 violates (though discussion) my well. 113 consisting 6-7, 5. which, analogy pre-Rules 114 thinks I, contrary, think could. 115 falls language "risk" fall "substantially impair[ing]" "ability" indeed "risk." 116 Conceptually speaking, classic Suppose broker agrees invest $100. misuses money, customers $1,000, broker's left, $100 117 16-17 1952), investors' return funds); Warren, 1940), distribute beneficiaries). combines two, 118 Of difference. limited. meaning words policy, merits underlying beside point. 119 fluctuated Long Procedure, holders, insurance-company-administered IBS, 662, 672 (1915) (life administered court-ordered holders). 120 favor. (faced claims) holds oil send skyrocketing. Limitation takes possibilities. pursue conceptual further, concedes fund's "value risk." conditions, says "sufficient secede." 20. are: 122 Condition One: maximum, Ibid.; Part IV-A, ante. 123 Two: themselves." 21; IV-B, 124 Three: 20; IV-C, 125 turn. 126 view, satisfied. doubts "totals aggregated" "fund them," totaled did, namely, most. equaled upheld finding. 982. supported. 127 "significant soon wrote lose" coverage, i.e., "on [California] Coverage Case, program." 128 experts, Yale professor former judge, testified chance once matter. 974. surprising. (for $10,000 year) "per-person" "per-occurrence," May March arguably doing. 267a. (no copy) carry per-claim 1956-57. (say, 1948) 2002). away occurrence "one occurrence" '[a]ll emanating location.' tort-suit 129 value. "no-cash" companies) 40% 231a. difference, suggesting 50% cash, recovering worse against. 130 arrived ($1.535 billion) looking embodied taking (plus issue) setting approve 131 method determining sees wrong principle. "may negotiation." 34. 132 rejects reason. one. "arms-length bargaining" "[c]lass counsel" "great agreement" 45,000" partially dispute. 34-35 (emphasis added). 133 accept "arms-length" assumption, value) companies; engaged "arms-length." lead release Rather, anything. exhausted, totally Consequently, squeeze companies, rely participation "only limited." 28. found, (along worth), arose valueless. why "mandatory genuine vigorous dispute." 135 added case: "If coverage), 'impair[ment]' 'ability certification." disappear 136 reasonably Fibreboard) $2.2 roughly number. $30,000 $20,000 (e.g., count Aunt Agatha's fund?), ship, count, coal fuel, ship's cargo, not?). perfect valuation, lengthy study feasible unusual comes hour. Within weeks disappeared, empty sink, evaporate; important. legally sufficient. 4. 137 "claimants 21. inequities "egregious" 35-39. objectors' briefs, convinces clearly erroneous, seriously astray affirming them. 138 interest. 392a-430a. attorneys suffer "conflict." So negotiate soon, ever? Should unfamiliar history litigation? Where competent, knowledgeable, conflict-free attorneys? exist. Finding Fact ¶372 "no credible 'conflict-free' qualified negotiate" 428a. ¶317 adds viewed "crucial appoint experienced, skilled view window Case appeal." 401a. error? 139 emphasizes consisted, availability 35. split "class" reflected suggestion, Patrick Higginbotham, produce timely Higginbotham broken down combined "too complex." 316a-317a; 397a. benchmarks values, 316a-317a, happened. "appeared 38, ¶329 "used higher-than-average [inventory values] achieve possibly clients." 407a. 140 addition, overall reasonable." 500a-501a. ¶318 appointing attorneys-i.e., clients-would 'jeopardiz[ed] negotiations' "resulted either. 402a. 141 amply supports" 978. Does aside? rigid negotiations? be? Why law? rule, 142 Consider "equity" 38-40. "right" weigh disadvantages 39. "been attorneys" wanted, Appeal." ¶346 lists "avoiding disastrous Case," "maximizing contribution," "reducing transactions delays," "minimizing fees," "adopting" "procedures." 415a. Surely point" alludes 143 Findings ¶¶347-354 pre- post- significant. 415a-418a divide members" place claimants). ¶¶355-363 without, illnesses 419a-422a (explaining subgroups coincide diverge"). "did required." judgments. 144 majority's question. "whole "devoted theory, Is fatal? explanation. helps "inadequate [themselves] produced." 20-21. slight relaxation requirement, basic deal," condition's substantial, literal, satisfaction. 147 require trace contour ancient literal exactness. revisions, relies explanation, 24, 23: 148 "The reform shake abstract rebuild lines responsive dwelt matter-not, sure, prescribing procedures, confirming broad powers inviting initiative." 149 recognizes enter reduce granting "credit" relaxing whole-of-the-assets 44. occur absence. administering involve 15%. 362a. 15% 61% hundreds dollars savings-an employees, communities located remain working enterprise, slowly forcing spent witnesses. consequently compliance condition. difficulty, uphold determination, 152 raise reach. definitively. 153 instances, reluctance second-guess fact- 4; 629-630 (Breyer, concurring part). applies effect, attack conclusions to: 23(a)(2) 480a; 634-636 part); 23(a)(3) "typical" 480a-481a; "notice" pursuant Due Process Clause, 511a; 640-641 standing-related good-faith claiming injury-in-fact (even fear cancer medical monitoring), 252a; Coover Painless Dentist, 110, 286 1048 (1930). 154 arguments violates, Amendment, "trust suit," 15-16 (internal quotation marks citations omitted)). 986 (1985), Regardless, definitively now, caveat, respectfully

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