In re Telectronics Pacing Systems, Inc.
United States Court of Appeals for the Sixth Circuit
221 F.3d 870 (2000)
After defective pacemaker lead wires manufactured by TPLC (defendants), owned by Australian parents Pacific Dunlop and Nucleus, injured thousands of patients, the defendants and a court-appointed steering committee sought class certification and settlement under Rule 23(b)(1)(B) based on a purportedly limited fund of $78 million from TPLC and $10 million from Pacific Dunlop — even though evidence showed Pacific Dunlop and Nucleus had sufficient independent assets to pay all claims individually, a fact the district court didn't consider before certifying the class and approving the settlement, which released the parent companies from liability.
May a class be certified under Federal Rule of Civil Procedure 23(b)(1)(B) on the basis of a limited fund if the maximum amount available to pay the claims of class members exceeds the defendants' aggregate liability?