Georgine v. Amchem Products, Inc.

83 F.3d 610
CourtCourt of Appeals for the Third Circuit
DecidedMay 10, 1996
Docket94-1925, 94-1927 to 94-1932, 94-1960, 94-1968, 94-2009 to 94-2013, 94-2066 to 94-2068, 94-2085 and 95-1705
StatusUnknown
Cited by6 cases

This text of 83 F.3d 610 (Georgine v. Amchem Products, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgine v. Amchem Products, Inc., 83 F.3d 610 (3d Cir. 1996).

Opinions

[617]*617OPINION OF THE COURT

BECKER, Circuit Judge.

Every decade presents a few great cases that force the judicial system to choose between forging a solution to a major social problem on the one hand, and preserving its institutional values on the other. This is such a case. It is a class action that seeks to settle the claims of between 250,000 and 2,000,000 individuals who have been exposed to asbestos products against the twenty companies known as the Center for Claims Resolution (CCR).1 Most notably, the settlement would extinguish asbestos-related causes of action of exposed individuals who currently suffer no physical ailments, but who may, in the future, develop possibly fatal asbestos-related disease. These “futures claims” of “exposure-only” plaintiffs would be extinguished even though they have not yet accrued.

The settlement, memorialized in a 106 page document, was not crafted overnight. Indeed, more than a case, this is a saga, reflecting the efforts of creative lawyers and an extremely able district judge to deal with the asbestos litigation explosion. Asbestos litigation has burdened the dockets of many state and federal courts, and has particularly challenged the capacity of the federal judicial system. The resolution posed in this settlement is arguably a brilliant partial solution to the scourge of asbestos that has heretofore defied global management in any venue.

However, against the need for effective resolution of the asbestos crisis, we must balance the integrity of the judicial system. Scholars have complained that the use of class actions to resolve mass toxic torts, particularly those involving futures claims, improperly involves the judiciary in the crafting of legislative solutions to vexing social problems. These criticisms are not merely abstract; they are levied in terms of the fun-daments of the federal judicial polity: jurisdiction, justiciability, notice, and the requirements of Federal Rule of Civil Procedure 23.

This opinion addresses appeals of the district court’s September 22, 1994, preliminary injunction, which prohibits members of the so-called Georgine class from pursuing asbestos-related personal injury claims in any other court pending the issuance of a final order in this ease. The appellants (“objectors”) are three groups of individuals with aligned interests who challenge the district court’s injunction: the “Windsor Group”; the New Jersey “White Lung Group”; and the “Car-gile Group” (mesothelioma victims from California). The objectors challenge the district court’s jurisdiction (both personal and subject matter) over the underlying class action, the justiciability of the case, the adequacy of class notice, and the propriety of class certification under Federal Rule of Civil Procedure 23.

Although we have serious doubts as to the existence of the requisite jurisdictional amount, justiciability, adequacy of notice, and personal jurisdiction over absent class members, we will, for reasons explained below, pass over these difficult issues and limit our discussion to the class certification issues. We conclude that this class meets neither the 23(a) requirements of typicality and adequacy of representation, nor the 23(b)(3) requirements of predominance and superiority. In In re General Motors Corp. Pick-Up Truck Fuel Tank Products Liability Litigation, 55 F.3d 768 (3d Cir.) [Hereinafter GM Trucks ], cert. denied sub nom. General Motors Corp. v. French, — U.S. -, 116 S.Ct. 88, 133 L.Ed.2d 45 (1995), we held that, for settlement classes, the 23(a) requirements must be applied as if the case were going to be litigated. We now hold that, because the 23(b)(3) requirements protect the same interests in fairness and efficiency as the 23(a) require[618]*618ments, and because “[t]here is no language in [Rule 23] that can be read to authorize separate, liberalized criteria for settlement classes,” id. at 799, the 23(b)(3) criteria must also be applied as if the case were to be litigated. While the better policy may be to alter the class certification inquiry to take settlement into account, the current Rule 23 does not permit such an exception.

Examined as a litigation class, this case, is so much larger and more complex than all other class actions on record that it cannot conceivably satisfy Rule 23. Initially, each individual plaintiffs claim raises radically different factual and legal issues from those of other plaintiffs. These differences, when exponentially magnified by choice of law considerations, eclipse any common issues in this case. In such circumstances, the predominance requirement of Rule 23(b) cannot be met. Furthermore, this amalgamation of factually and legally different plaintiffs creates problematic conflicts of interest, which thwart fulfillment of the typicality and adequacy of representation requirements of Rule 23(a). Primarily, the interests of the exposure only plaintiffs are at odds with those of the presently injured: the former have an interest in preserving as large a fund as possible while the latter seek to maximize front-end benefits.

This class also fails Rule 23(b)’s superiority prong. Even utilizing the management techniques pioneered by the Federal Judicial Center, we do not see how an action of this magnitude and complexity could practically be tried as a litigation class. This problem, when combined with the serious fairness concerns caused by the inclusion of futures claims, make it impossible to conclude that this class action is superior to alternative means of adjudication.

For the reasons we have preliminarily outlined, and which we will now explain in depth, we will vacate the district court’s order certifying the plaintiff class and remand with directions to decertify the class and vacate the injunction. We recognize that our decision undermines the partial solution to the asbestos litigation crisis. However, in doing so, we avoid a serious rend in the garment of the federal judiciary that would result from the Court, even with the noblest motives, exercising power that it lacks. We thus leave legislative solutions to legislative channels.

I. BACKGROUND FACTS AND PROCEDURAL HISTORY

Reciting the background facts and procedural history of this case could consume pages by the dozen. This history is, however, already well known. It has been chronicled in the opinion of the district court, see Georgine v. Amchem Prods., Inc., 157 F.R.D. 246, 254-67 (E.D.Pa.1994); in the Cornell Law Review, see Symposium, Mass Tories: Serving Up Just Desserts, 80 Cornell L.Rev. 811 (1995); and has even surfaced on the Continuing Legal Education (CLE) circuit, see Legal Intelligencer (Philadelphia), Jan 31,1996, at 34 (announcing a CLE Course on the “Lessons of Georgine”).2 In short, the asbestos law world knows this case backwards and forwards. We shall, therefore, set forth only the essentials.

A. The Genesis of the Case

This case arises against the background of an asbestos litigation crisis:

[This] is a tale of danger known in the 1930s, exposure inflicted upon millions of Americans in the 1940s and 1950s, injuries that began to take their toll in the 1960s, and a flood of lawsuits beginning in the 1970s.

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Admiral Insurance Company Affiliated Fm Insurance Company Aiu Insurance Company Allianz Insurance Company Allianz Underwriters Insurance Company, Individually and as Successor to Allianz Underwriters, Inc. Allstate Insurance Company, as Successor to Northbrook Excess and Surplus Insurance Company American Bankers Insurance Company of Florida American Centennial Insurance Company American Home Assurance Company American Motorists Insurance Company American Re-Insurance Company Appalachian Insurance Company of Providence Argonaut Insurance Company Atlanta International Insurance Company Caisse Industrielle D'AssurAnce Mutuelle C.E. Heath Compensation and Liability Insurance Company as Successor to Employers' Surplus Line Insurance Company Centennial Insurance Company Central National Insurance Company of Omaha Chicago Insurance Company City Insurance Company Colonia Versicherung Aktiengesellschaft Columbia Casualty Company Commercial Union Insurance Company, as Successor to Columbia Casualty Company, Employers Commercial Union Insurance Company, Employers Commercial Union Insurance Company of America, and Employers' Liability Assurance Corporation Limited Compagnie Europeenne De Reassurances the Constitution State Insurance Company Continental Casualty Company Employers Mutual Casualty Company Evanston Insurance Company Executive Re Indemnity Inc., as Successor to American Excess Insurance Company Federal Insurance Company General Reinsurance Corporation Gibraltar Casualty Company Government Employees Insurance Company Granite State Insurance Company Highlands Insurance Company the Home Indemnity Company the Home Insurance Company Houston General Insurance Company Hudson Insurance Company Insurance Company of the State of Pennsylvania Interstate Fire & Casualty Company Jefferson Insurance Company of New York Landmark Insurance Company La Preservatrice Fonciere Tiard, Individually and as Successor to La Fonciere Assurances Transports Accidents and La Preservatrice Le Secours Lexington Insurance Company Lilloise D'assurances, as Sucessor to Lilloise D'AssurAnces Et De Reassurances Lumbermens Mutual Casualty Company Maryland Casualty Company Michigan Mutual Insurance Company Mutuelle Generale Francaise National American Insurance Company of California, as Successor to the Stuyvesant Insurance Company National Union Fire Insurance Company of Pittsburgh, Pa Northbrook Indemnity Company North Star Reinsurance Corporation Old Republic Insurance Company Pennsylvania Manufacturers' Association Insurance Company the Protective National Insurance Company of Omaha Prudential Reinsurance Company Puritan Insurance Company, Individually and as Successor to the Manhattan Fire and Marine Insurance Company Ranger Insurance Company Republic Insurance Company Safeco Insurance Company of America Safety National Casualty Corporation, as Successor to Safety Mutual Casualty Corporation St. Paul Fire and Marine Insurance Company, Individually and as Successor to Birmingham Fire Insurance Company St. Paul Guardian Insurance Company Stonewall Insurance Company Steonewall Surplus Lines Insurance Company Sun Alliance and London Insurance Plc Tokio Marine & Fire Insurance Company, Limited the Travelers Indemnity Company the Travelers Insurance Company Unigard Security Insurance Company, as Successor to Unigard Mutual Insurance Company Union Des Assurances De Paris Yosemite Insurance Company Eurinco Allegemeine Versicherungs, A.G. F & M Insurance Company, Ltd. La Concorde Lexington Insurance Company, Ltd. L'Union Atlantique S.A. D'AssurAnces N v. Rotterdamse Assurantiekas Per Mees & Zoonen National Continental Insurance Company as Successor to American Star Insurance Company Newfoundland American Insurance Co., Ltd. New Hampshire Insurance Company, Ltd. Phoenix Assurance Reliance Insurance Company Sirius (Uk) Insurance Company, Plc Trident General Insurance Company Great American Insurance Company American Empire Surplus Lines Insurance Company, as Authorized Agent on Behalf of Transport Indemnity Company. George Windsor Constance Windsor, Michael Windsor and Karen Windsor, in Nos. 94-1925, 94-2009. White Lung Association of New Jersey, National Asbestos Victims Legal Action Organizing Committee, the Oil, Chemical, and Atomic Workers International Union, the Skilled Trades Association, Myles O'malley, Marta Figueroa, Robert Fiore, Roh Maher, and Lynn Maher, (In Her Own Behalf and as Next Friend for Her Minor Children, Jessica Marie Maher, Jamie Marion Maher, and Jennifer Megan Maher), in Nos. 94-1927, 94-1968. Richard R. Preston, Sr. And Louis C. Anderson, in Nos. 94-1928, 94-2013. Albert and Margaret Hertler, in No. 94-1929. Richard E. Blanchard, D.D.S., Jack S. Boston, James L. Anderson, Personal Representative of Robert L. Anderson and Harrison O. McLeod in Nos. 94-1930, 94-2066. Iona Cunningham, as Representative of the Estate of Charles Cunningham, and Twila Sneed, in Nos. 94-1931, 94-2010. Aileen Cargile, Betty Francom, John Wong, John Soteriou, Harold Hans Emmerich and Thomas Corey, in Nos. 94-1932, 94-2012. William J. Golt, Sr. And Phyllis Golt, in Nos. 94-1960, 94-2011. Joe and Lynne Dominguez, in No. 94-2067. Kathryn Toy, Individually, and as Representative of the Estate of Edward Toy, in Nos. 94-2068. John Paul Smith, in No. 94-2085. Casimir Balonis, Margaret Balonis and Shepard A. Hoffman, in No. 95-1705.
83 F.3d 610 (Third Circuit, 1996)

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Bluebook (online)
83 F.3d 610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgine-v-amchem-products-inc-ca3-1996.