Supreme Ct Refuses to Revive Asbestos Class Settlement

Thursday, July 15th, 1999 Liability Litigation

In two separate decisions that could have wide-ranging effects on product-liability litigation, the U.S. Supreme Court ruled to overturn class-action settlements in suits against asbestos manufacturers by people who claimed asbestos-related health problems. In Esteban Ortiz vs. Fibreboard Corp., the justices ruled 7-2 to overturn a $1.5 billion settlement. The decision outlined the court‘s opinion that a company cannot limit the amount it is willing to pay and that people in the class action with conflicting interests must have separate lawyers. Limited-fund class-action settlements have become popular arrangements for companies faced with potentially large settlements because they limit the company‘s liabilities.

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http://www.claimsmag.com/Issues/July99/supreme.asp

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