{"ID":54705,"name":"Ortiz v. Fibreboard Corporation","href":"https:\/\/api.oyez.org\/cases\/1998\/97-1704","view_count":0,"docket_number":"97-1704","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Ortiz","second_party":"Fibreboard Corporation","timeline":[{"event":"Argued","dates":[913096800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/38176"},{"event":"Decided","dates":[930114000],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/38177"}],"lower_court":{"ID":10,"name":"United States Court of Appeals for the Fifth Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/10"},"facts_of_the_case":"\u003Cp\u003EAfter decades of litigation, Fibreboard Corporation and a group of plaintiffs\u0027 lawyers reached a \u0022Global Settlement Agreement\u0022 of its asbestos personal-injury liability. Subsequently, a group of named plaintiffs filed the present action in Federal District Court, seeking certification for settlement purposes of a mandatory class that comprised three certain groups. Intervening objectors argued that the absence of a \u0022limited fund\u0022 precluded Rule 23(b)(1)(B) certification. Rule 23(b)(1)(B) provides that \u0022an action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition: (1) the prosecution of separate actions by or against individual members of the class would create a risk of... (B) adjudications with respect to individual members of the class which would as a practical matter be dispositive of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests.\u0022 The court ruled that both the disputed insurance asset liquidated by the global settlement, and, alternatively, the sum of the value of Fibreboard plus the value of its insurance coverage, as measured by the insurance funds\u0027 settlement value, were relevant \u0022limited funds.\u0022 The Court of Appeals affirmed both the class certification and the adequacy of the settlement. The appellate court approved the class certification, under Rule 23(b)(1)(B), on a limited fund rationale based on the threat to other class members\u0027 ability to receive full payment from the manufacturer\u0027s limited assets.\u003C\/p\u003E\n","question":"\u003Cp\u003EIs a mandatory settlement class in asbestos personal injury litigation certifiable on limited fund theory under Rule 23(b)(1)(B) of Federal Rules of Civil Procedure?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003ENo. In a 7-2 opinion delivered by Justice David H. Souter, the Court held that \u0022applicants for contested certification [of a mandatory settlement class on a limited fund theory under Rule 23(b)(1)(B)] must show that the fund is limited by more than the agreement of the parties, and has been allocated to claimants belonging within the class by a process addressing any conflicting interests of class members.\u0022 \u0022The record on which the District Court rested its certification of the class for the purpose of the global settlement did not support the essential premises of mandatory limited fund actions. It failed to demonstrate that the fund was limited except by the agreement of the parties, and it showed exclusions from the class and allocations of assets at odds with the concept of limited fund treatment and the structural protections of Rule 23(a) explained in [Amchem Products, Inc. v. 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