Carlough v. Amchem Products, Inc.

10 F.3d 189, 1993 U.S. App. LEXIS 31166, 1993 WL 492511
Court of Appeals for the Third Circuit·Decided December 1, 1993·No. No. 93-1482·Published·Cited by 77 cases

Opinion

OPINION OF THE COURT

MANSMANN, Circuit Judge.

The appellants, the “Gore plaintiffs”, are absent members of a purported federal plaintiff class in an action brought pursuant to. Federal Rule of Civil Procedure 23(b)(3) for asbestos-related tort damages in the United States District Court for the Eastern District of Pennsylvania. Simultaneously with the federal class action, but prior to the establishment of an opt out period in the federal suit, the Gore plaintiffs initiated a class action in the State Circuit Court of Monongalia County, West Virginia, against the same defendants named in the federal class action. The federal district court issued a preliminary injunction pursuant to the Anti-Injunction Act and the All-Writs Act, enjoining the Gore plaintiffs from prosecuting their state claims on the ground that the injunction was “necessary in aid” of the federal court’s jurisdiction. The Gore plaintiffs appeal that injunction.

[194]*194The Gore' plaintiffs first asserted that the injunction was not binding on them because it purported to be effective outside of the jurisdictional reach of the federal district court. Essentially, the Gore plaintiffs claimed that unresolved jurisdictional challenges to the federal district court’s subject matter jurisdiction in the action sub judice deprived the district court of authority to issue the injunction. The Gore plaintiffs further claimed, among other things, that the district court failed to observe the basic requisite of obtaining personal jurisdiction over the absent class members whom it purported to bind under the injunction. The injunction was issued prior to notice to the Gore plaintiffs of the commencement of the federal class action, prior to the establishment of the “opt out” period, without the Gore plaintiffs’ consent to the jurisdiction of the federal court, and without some of the Gore plaintiffs having minimum contacts with the Eastern District of Pennsylvania. These claims have since been vitiated by a belated October 6, 1993 order of the district court finding that it indeed had subject matter jurisdiction over the Carlough action, and an even more belated October 27, 1993, order of the district court approving notice to be disseminated to the Carlough class. Nevertheless, we find that the Gore appeal continues to be viable because the question remains whether the injunction, which is still operative over the pending Gore action in the state court, is permitted under the “necessary in aid” exception to the interdicts of the Anti-Injunction Act, 28 U.S.C. § 2283, and the All Writs Act, 28 U.S.C. § 1651.

The appellees, numerous asbestos producers jointly represented by the Center For Claims Resolution (the “CCR”) and named as defendants in both actions, assert that the district court may consider the merits of the proposed settlement agreement filed simultaneously with the federal class action complaint before the state court entertains the Gore plaintiffs’ request for declaratory judgment, when such a declaration allegedly would threaten to undermine the district court’s oversight of the settlement. Thus they argue that the injunction must continue to be maintained in aid of the district court’s jurisdiction. Prior to the elimination of the Gore appellants’ jurisdictional challenges, the CCR defendants had asserted that because the federal class action was going to afford the Gore plaintiffs an opportunity to “opt out,” the Gore plaintiffs were required to await the establishment and commencement of the “opt out” period and to exercise that option before prosecuting their related state action. The future, but certain, opportunity to “opt out,” they argued, dispelled any concerns of comity and federalism.

In light of the district court’s resolution of the serious challenges to its jurisdiction, our holding will turn on the application of the “necessary in aid of jurisdiction” exception to the Anti-Injunction and All-Writs Acts. We will also address the issues vitiated by the district court’s October 6 and October 27, 1993 opinions because of their currency in our developing class action jurisprudence.

I.

A.

On January 15, 1993, a class action complaint pursuant to Fed.R. of Civ.P. 23(b)(3), an answer and a stipulation of settlement were simultaneously filed in the United States District Court for the Eastern District of Pennsylvania. The complaint was brought on behalf of Edward M. Carlough and other named plaintiffs1 representing the putative class consisting of

(a) All persons ... who have been exposed in the United States ..., either occupationally or through the occupational exposure of a spouse or household member, to asbestos or to asbestos-containing products for which one or more of the Defendants may 'bear legal liability and who, as of January 15, 1993, reside in the United States ..., and who have not, as of January 15, 1993, filed a lawsuit for asbestos-related personal injury, or damage, or [195]*195death in any state or federal court against the Defendant(s)....
(b) All spouses, parents, children, and other relatives ... of the class members ... who have not, as of January 15, 1993, filed a lawsuit for the asbestos-related personal injury, or damage, or death of a class member ... in any state or federal court against the Defendant(s)-

The “Carlough plaintiffs” seek recovery for asbestos-related personal injury caused by the exposure of members of the putative class to the asbestos and asbestos-containing products of the defendants, who are miners, manufacturers, distributors, and suppliers of asbestos or asbestos-containing products, and their predecessors-in-interest, jointly represented by the Center For Claims Resolution.2 Upon the joint motions of the named plaintiffs and the CCR members, the district court issued a conditional class certification order for the class defined in the complaint for purposes of settlement on January 29, 1993. The certification order further indicated that notice to absent class members would be given as to the pendency of the federal class action and of their rights to exclude themselves from the class.

On March 1, 1993, the district court issued a Rule to Show Cause and ordered a preliminary hearing on whether the action should be finally certified as a Rule 23(b)(3) class and whether the settlement was “fair, adequate and reasonable.” The parties were directed to file with the Clerk memoranda of law and any other documents in support of their respective positions no later than March 19, 1993. Among the various motions and objections filed in response to the Rule to Show Cause were challenges to the district court’s subject matter jurisdiction under Article III of the United States Constitution and under the federal diversity statute, 28 U.S.C. § 1332, as well as challenges to the district court’s personal jurisdiction over the parties.3

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Carlough v. Amchem Products, Inc., 10 F.3d 189, 1993 U.S. App. LEXIS 31166, 1993 WL 492511 (3d Cir. 1993).

10 F.3d 189 (Carlough v. Amchem Products, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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