527 U.S. 815 (1999)
Ortiz v. Fibreboard Corp.
Does a proposed class settlement qualify as a 'limited fund' class action under Rule 23(b)(1)(B) when the settlement fails to demonstrate a truly limited fund and lacks adequate representation of plaintiffs?
Under Rule 23(b)(1)(B) of the Federal Rules of Civil Procedure, a class action may be certified when prosecuting separate actions would create a risk of impairing or impeding the interests of other members of the class because a finite or limited fund is inadequate to satisfy all judgments.
The Supreme Court held that the proposed settlement did not meet the requirements for a limited fund class action under Rule 23(b)(1)(B), as it failed to demonstrate a truly limited fund and did not provide adequate representation for all class members.
Ortiz v. Fibreboard Corp. serves as a pivotal reference for future asbestos litigation and other mass torts, enforcing strict adherence to Rule 23 requirements to safeguard against inadequate settlements. It reinforces the notion that class actions cannot be employed merely as a vehicle for expediency in mass settlements, ensuring fairness and due process for all class members.