In Re Diet Drugs (Phentermine, Fenfluramine, Dexfenfluramine) Products Liability Litigation, Lydia D. Gonzalez, Jo Ann Gorena, and Maria I. Smith, on Behalf of Themselves and the Certified Texas Gonzalez Class of All Other Similarly Situated Individuals and Class Counsel for the Certified Texas Gonzalez Class
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In re DIET DRUGS (Phentermine, Fenfluramine, Dexfenfluramine) Products Liability Litigation, Lydia D. Gonzalez, Jo Ann Gorena, and Maria I. Smith, on behalf of themselves and the certified Texas Gonzalez class of all other similarly situated individuals and class counsel for the certified Texas Gonzalez class, Appellants.
No. 00-1393.
United States Court of Appeals, Third Circuit.
Argued October 9, 2001.
Filed February 26, 2002.
COPYRIGHT MATERIAL OMITTED COPYRIGHT MATERIAL OMITTED COPYRIGHT MATERIAL OMITTED COPYRIGHT MATERIAL OMITTED John W. MacPete (Argued), Grand Prairie, TX, Keith M. Jensen, Fort Worth, TX, for Appellants.
Peter L. Zimroth (Argued), Arnold & Porter, New York, NY, Robert D. Rosenbaum, Arnold & Porter, Washington, DC, Michael T. Scott, Reed Smith, LLP, Philadelphia, PA, for Appellee, American Home Products Corporation.
Arnold Levin (Argued), Levin Fishbein Sedran & Berman, Philadelphia, PA, for Appellees, Brown Class Representative Plaintiffs.
Before: SCIRICA, GREENBERG and COWEN, Circuit Judges.
OPINION OF THE COURT
SCIRICA, Circuit Judge.
In this matter involving competing mass tort class actions in federal and state courts, we address an interlocutory appeal in a complex multidistrict federal class action comprising six million members from an order enjoining a mass opt out of a state class. We will affirm.
I.
The underlying case involves two drugs, both appetite suppressants, fenfluramine — marketed as "Pondimin" — and dexfenfluramine — marketed as "Redux." Both drugs were in great demand. Between 1995 and 1997, four million people took Pondimin and two million people took Redux. In 1997, data came to light suggesting a link between the drugs' use and valvular heart disease. In July 1997, the United States Food and Drug Administration issued a public health advisory alert. On September 15, 1997, American Home Products removed both drugs from the market. Subsequent clinical studies support the view the drugs may cause valvular heart damage.
Following the FDA's issuance of the public health warning, several lawsuits were filed. The number of lawsuits increased exponentially after American Home Products withdrew the diet drugs from the market. Approximately eighteen thousand individual lawsuits and over one hundred putative class actions were filed in federal and state courts around the country. American Home Products removed many of the state cases to federal courts, increasing the number of federal cases. In December 1997, the Judicial Panel for Multidistrict Litigation transferred all the federal actions to Judge Louis Bechtle in the United States District Court for the Eastern District of Pennsylvania, creating Multidistrict Litigation 1203 ("MDL 1203").
In April 1999, American Home Products began "global" settlement talks with plaintiffs in the federal action together with several plaintiffs in similar state class actions. The parties reached a tentative settlement agreement for a nationwide class in November 1999. Known as the "Brown class," the proposed class included all persons in the United States, as well as their representatives and dependents, who had ingested either or both of the diet drugs. The global settlement contemplated different kinds of relief, including medical care, medical screening, payments for injury, and refunds of the drugs' purchase price.
The purchase-price-relief provisions were separated into two sections, one for those who had taken the drugs for sixty days or less, the other for those who had taken the drugs for more than sixty days. Short term users were to be paid $30 per month's use of Pondimin, and $60 per month's use of Redux. Long term users would receive the same amounts per month, subject to a $500 cap and the availability of sufficient money in an overall settlement fund. Unlike short term users, long term users were entitled to other benefits, such as medical screening.
The District Court entered an order on November 23, 1999, conditionally certifying a nationwide settlement class and, concurrently, preliminarily approving the settlement. To opt out, a class member was to "sign and submit written notice to the Claims Administrator[s] with a copy to American Home Products, clearly manifesting the Class Member's intent to opt out of the Settlement." The opt-out period extended until March 23, 2000. The court scheduled a fairness hearing for May 1, 2000 on class certification and final settlement approval. On August 28, 2000, the District Court entered a final order certifying the class and approving the settlement.
In July 1997 — after the FDA warning, but before American Home Products withdrew the drugs from the market — appellants filed a putative class action in Texas state court, Gonzalez et al. v. Medeva Pharmaceuticals, Inc., et al. The Gonzalez case was one of the first cases filed and preceded the creation of MDL 1203 by several months. The proposed Gonzalez class, including all Texas purchasers of the two diet drugs, was a subset of what would become the Brown class. The Gonzalez action was limited insofar as it sought actual purchase-price recovery only, together with treble damages under the Texas Deceptive Trade Practices Act-Consumer Protection Act ("DTPA"), Tex. Bus. & Comm.Code, § 17.41 et seq.
The Gonzalez complaint did not allege a federal cause of action and the named parties were not diverse. Nonetheless, in January 1998, American Home Products removed the case to federal court shortly after MDL 1203 was created, contending federal diversity jurisdiction obtained. American Home Products asserted Medeva Pharmaceuticals, a non-diverse defendant, was fraudulently joined for the purpose of defeating diversity jurisdiction. Soon after removal to the United States District Court for the Southern District of Texas, the Gonzalez case was transferred to the Eastern District of Pennsylvania as a part of MDL 1203.
Shortly thereafter, the Gonzalez plaintiffs moved to remand the case back to Texas state court, contending Medeva Pharmaceuticals was a proper defendant. The Gonzalez plaintiffs also argued the amount-in-controversy requirement was not met, as purchase-price recovery would only amount to a few hundred or, perhaps, a few thousand dollars per plaintiff. Furthermore, they argued they would not be seeking statutory attorneys' fees under the ;Texas DTPA. As noted, on November 23, 1999, Judge Bechtle granted conditional certification of the Brown class and preliminary approval of the settlement. On February 15, 2000 — during the MDL 1203 opt-out period — the District Court granted the Gonzalez plaintiffs' motion for remand, finding that Medeva Pharmaceuticals was a proper defendant.
One month later, on March 14, 2000, the Gonzalez plaintiffs filed a new complaint, their "Fifth Amended Class Action Petition," in the District Court of Hidalgo County, Texas. They dropped their class claims against Medeva Pharmaceuticals and claimed entitlement to statutory attorneys' fees. Accordingly, American Home Products contends, the barriers to federal diversity jurisdiction were removed.
Less than a week later, on March 20, 2000, the Hidalgo County court held a hearing on certification of the Gonzalez class. On March 22, it certified the class, defined as "all persons who purchased dexfenfluramine (Redux) and/or fenfluramine (Pondimin) in Texas, who are solely seeking the recovery of the amounts to acquire same, as well as any statutory trebling which may result from the claims asserted under the Texas Deceptive Trade Practices Consumer Protection Act." The certification of the Gonzalez class occurred eight days before the end of the opt-out period for the Brown settlement. At this time, most members of the Gonzalez class were also members of the Brown class, except for those who had individually opted out.
On March 22, the same day as the entry of the Texas class certification order, the Gonzalez plaintiffs acted to erase this overlap, by moving, in Hidalgo County, for a court order opting out all of the unnamed members of the Gonzalez class from the Brown class. The Texas court scheduled a hearing for 9:00 a.m. the next morning. In response, American Home Products sought a temporary restraining order in the District Court for the Eastern District of Pennsylvania, the MDL court, seeking to prevent the Gonzalez class from implementing a mass opt out.
On March 23, hearings were held in both courts on their respective motions. In Texas, the Hidalgo County court held its hearing and the same day entered an order partially opting out the Gonzalez class from MDL 1203. The District Court for the Eastern District of Pennsylvania also issued an order that day, granting American Home Products's motion and entering a temporary restraining order directed against the relief sought at the Texas hearing. The federal order denied the effect of the sought-for opt out and ordered Gonzalez class counsel to refrain from pursuing the opt out. It was to remain in effect for ten days. A hearing was scheduled for March 29 "on whether to make the injunction permanent." The District Court's order was dated, "March 23, 2000 at 11:55 A.M." For what it is worth, the Hidalgo County court would later issue an order "clarifying" that its opt-out order had been issued before 11:55 Eastern Time.
The Texas opt-out order purported to opt out the Gonzalez class from MDL 1203 only partially:
[I]t is ... ORDERED, ADJUDGED AND DECREED that the unnamed members of the certified class in this case be [sic] are hereby opted-out of the proposed settlement in MDL 1203, solely to the effect that their purchase price recovery claims, and potential DTPA trebling of same, will be pursued in this case, accordingly, any and all of their other claims, including but not limited to, claims for medical screening, medical monitoring, personal injury, mental anguish and/or punitive damages are not effected [sic] by this order.1
Gonzalez v. Medeva Pharm., Inc., No. 4223-97B, at 3 (Tex.Dist.Ct. Mar. 23, 2000). The Texas court also ordered "that Class counsel shall take all other steps necessary, if any, to opt-out the entire certified class in this case from the proposed settlement in MDL 1203 to the extent, and only to the extent, set forth in the preceding paragraph." Id.
On March 28, American Home Products took further legal action. First, it filed a second notice of removal to the United States District Court for the Southern District of Texas, contending diversity jurisdiction obtained at that time. It also filed — together with lead counsel for the Brown class — a motion for a permanent injunction and declaration with respect to the Hidalgo County court's attempt to opt out the unnamed Texas plaintiffs.2
On March 29, the District Court held a hearing on American Home Products's motion for a permanent injunction and declaration. One of the Gonzalez class's attorney's, John W. MacPete, was admitted pro hac vice for the purpose of opposing the motion. At the hearing, Judge Bechtle announced his intention to enter the permanent order sought by American Home Products and Brown class counsel, stating the order of the Hidalgo County court would "interfere with this Court's jurisdiction and the administration of this case, as well as the right and obligation of this court to bring this proceeding to a final judgment." On April 6, 2000, the District Court issued a written order, PTO 12270 — the subject of this appeal.
PTO 1227, entitled "Permanent Injunction and Declaration Regarding Purported Class-Wide Opt-Outs," contains two main parts. The first is an injunction directed primarily at counsel for the Gonzalez class:
Counsel for the named plaintiffs in Gonzalez v. Medeva Pharmaceuticals, Inc., et al., originally filed in Hidalgo County, Texas ... and removed to the United States District Court for the Southern District of Texas on March 28, 2000, and all those acting in concert with them, are hereby permanently enjoined from taking any action to effect, secure, or issue notice of any purported class opt out, on behalf of the unnamed absent members of any class which may have been certified in Gonzalez, from the class action settlement which this Court has conditionally certified and preliminary [sic] approved....
PTO 1227, at 2.
The second part is declaratory in nature. It states, "Insofar as the Hidalgo County order purports to affect or determine the opt out status of any member of the MDL 1203 class it is null and void and of no effect." The District Court also stated, "The Hidalgo County's order is also null and void and of no effect insofar as it purports to authorize or effect a partial opt-out on behalf of any member of the MDL-1203 class." Id. at 2-3. This was because the Texas order "interfere[d] with [the District] Court's authority to determine the means and methods by which members of such class may elect to opt out of the MDL-1203 class." Id. at 2.
On April 26, 2000, the Gonzalez plaintiffs moved to remand Gonzalez back to state court a second time. The remand motion was considered in the federal District Court for the Southern District of Texas on May 3. That court declined to rule on the motion, referring it instead to Judge Bechtle, assuming Gonzalez would be referred to his court as part of MDL 1203. On May 12, the MDL panel transferred Gonzalez to the Eastern District of Pennsylvania. American Home Products contends the Gonzalez plaintiffs made no attempt, following transfer, to seek resolution of the remand motion by Judge Bechtle in the Eastern District of Pennsylvania. In any event, no action has been taken directly on the Gonzalez matter in federal court since its transfer in May 2000.
The day after they filed their motion to remand, the Gonzalez plaintiffs filed a notice of appeal of PTO 1227. Both American Home Products and Brown class representatives are appellees.
On August 28, 2000, Judge Bechtle issued a final order certifying the Brown class and approving the settlement.3 The Gonzalez case was, at that time, one of the cases consolidated under — and settled as part of — MDL 1203. Judge Bechtle also issued, concurrently, a blanket injunction against commencement or prosecution of parallel actions in other courts.
Appellants challenge PTO 1227 on several grounds. Their principal arguments address whether the District Court overstepped the limitations on its power with respect to state court actions. Appellants contend the District Court's order: (1) violates the limitations on federal courts enjoining state court proceedings under the Anti-Injunction Act; (2) fails to afford the Texas order full faith and credit; and (3) violates the Rooker-Feldman doctrine's prohibition on lower federal courts' reviewing state court decisions. Additionally, they challenge the District Court's personal jurisdiction over the Gonzalez plaintiffs and their counsel.4
II.
"Because there `exists a strong policy to conserve judicial time and resources,' we have held that `preliminary matters such as ... personal jurisdiction ... should be raised and disposed of before the court considers the merits or quasi-merits of a controversy.'" Bel-Ray Co. v. Chemrite (Pty) Ltd., 181 F.3d 435, 443 (3d Cir.1999) (quoting Wyrough & Loser, Inc. v. Pelmor Labs., Inc., 376 F.2d 543, 547 (3d Cir.1967)). Accordingly, we turn first to appellants' challenge to the District Court's in personam jurisdiction.5
Because the District Court enjoined counsel for the Gonzalez plaintiffs from pursuing the mass opt out, it must first have obtained personal jurisdiction over these attorneys. Appellants deny the court either had jurisdiction over members of the Gonzalez class or their attorneys.
Ordinarily, in personam jurisdiction depends on sufficient minimum contacts with the forum, "such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice." Int'l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (quotation omitted). The "minimum contacts" requirement is satisfied where a class member has received adequate notice of the action and has been afforded an opportunity — but has declined — to opt out of the lawsuit. Phillips Petroleum Co. v. Shutts, 472 U.S. 797, 811-12, 105 S.Ct. 2965, 86 L.Ed.2d 628 (1985); see also Carlough v. Amchem Prods., Inc., 10 F.3d 189, 201 (3d Cir.1993) ("[P]rior to notice and the opt out period, and absent minimum contacts with the Pennsylvania forum or consent to its jurisdiction, a federal injunction enjoining state action would violate due process."). The Court in Shutts also stated, "[T]he Due Process Clause of course requires that the named plaintiff at all times adequately represent the interests of the absent class members." 472 U.S. at 812, 105 S.Ct. 2965.
Appellants do not contest the adequacy of the notice sent to the unnamed class members in Texas. Because any remaining unnamed class members had not opted out of the Brown class, all unnamed Brown class members were subject to the jurisdiction of the District Court for purposes of MDL 1203, so long as they were adequately represented. The named Gonzalez plaintiffs had opted out of the Brown class, so they may not be properly deemed to have impliedly consented to jurisdiction under the Shutts rule. 472 U.S. at 812, 105 S.Ct. 2965; see also Carlough, 10 F.3d at 199 ("A plaintiff class member who is afforded an opportunity to opt out, but who fails to exercise that option, may be deemed to have consented to jurisdiction."). Regardless, the substantial majority of the Gonzalez class was subject to Shutts jurisdiction, assuming adequate representation.
Appellants contend, however, the members of the Gonzalez class were not adequately represented by the named Brown plaintiffs. They argue the interests of the Gonzalez plaintiffs — who are seeking only purchase—price recovery — are at odds with the interests of many of the Brown plaintiffs — a subset of whom seek recovery for injuries, including the possibility of future injuries. Appellants cite several cases in which settlements have been rejected for inadequate representation where there were competing subclasses. E.g., Ortiz v. Fibreboard Corp., 527 U.S. 815, 119 S.Ct. 2295, 144 L.Ed.2d 715 (1999) (finding impermissible conflict between plaintiffs exposed to asbestos during period manufacturer was fully insured, and those exposed later); Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 117 S.Ct. 2231, 138 L.Ed.2d 689 (1997). Appellants also contend the purchase-price relief contemplated by the settlement is substantially less than that sought in Gonzalez.
That various subclasses in the Brown class could find themselves in competition does not by itself establish an actual conflict undermining adequacy of representation. In its final certification order, the District Court made extensive findings supporting the opposite conclusion. In particular, it found (1) there were no trade-offs between the classes; (2) the benefits had been bargained for separately; and (3) there was no conflict between those seeking future benefits and those seeking them immediately. Appellants have challenged none of these findings. For this reason alone, there is no basis on which to find actual conflicts sufficient to establish that purchase-price-only plaintiffs were not adequately represented. Accordingly, the District Court had personal jurisdiction over all unnamed members of the Brown class, including those also members of the Gonzalez class. Because the District Court had personal jurisdiction over members of the Gonzalez class, it also had jurisdiction over attorneys purporting to represent, and act on behalf of, that class-a subset of the Brown class. Cf. Carlough, 10 F.3d at 201 (affirming finding of jurisdiction underlying injunction aimed at out-of-state class members and their attorneys and representatives).
Furthermore, the relief sought in Texas was squarely aimed at MDL 1203 and at the status of the Texas plaintiffs in that action. As such, the attorneys — and therefore, the named Gonzalez plaintiffs on whose behalf they acted — "should reasonably [have] anticipate[d] being haled into court there." World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980). Consequently, no "traditional notions of fair play and substantial justice" are offended by the District Court asserting jurisdiction over either these plaintiffs or their attorneys.
III.
Appellants' central arguments — those based on the Anti Injunction Act, the Full Faith and Credit Act, and the Rooker-Feldman doctrine — all address constraints on the District Court's authority to limit state court actions and their effects. But American Home Products maintains it is unnecessary to address these arguments because it had removed the case to federal court a second time before entry of PTO 1227, thereby dissolving any possible state-federal conflict.
American Home Products contends its filing of the removal notice immediately defeated the jurisdiction of the state court, placing it in the federal court.6 After removal, interlocutory orders of the state court are transformed into orders of the court to which the case is removed.7 Thus, they contend, the Hidalgo County court order purporting to opt Gonzalez class members out of the Brown class was, at the time of PTO 1227, an order of the federal court. And it remains so, as the Gonzalez case has not since been remanded. If there were a jurisdictional conflict, American Home Products contends, it was between two federal courts, not between a federal and a state court.
We do not believe resolution along these lines is so clear cut. PTO 1227 was essentially a reiteration of the District Court's original temporary restraining order, which had been issued before the second removal and was effective for a ten-day period. Removal, therefore, occurred during the effective period of the District Court's temporary restraining order blocking the effect of the Texas order — in the midst of a conflict between the federal and state courts. By filing a removal notice during the pendency of the temporary restraining order, American Home Products attempted to resolve a significant existing dispute involving difficult issues of federal and state authority. And it did so in the face of an existing-if potentially modifiable8 — ruling remanding the case for lack of subject matter jurisdiction.9
This case illustrates the remarkable extent to which lawsuits can be turned into procedural entanglements. One view of this may be that the actions taken here represent nothing more than astute lawyering. Another is that the legal jockeying employed by both sides exhibits a proclivity to attempt to manipulate the rules for immediate tactical advantage — a use at odds with the purposes of these rules, and one dissonant with the equitable nature of class action proceedings.
Rather than enter this tenebrous world of procedural machinations, we think it preferable to address the Gonzalez plaintiffs' main arguments. As we discuss, the District Court's order was an appropriate exercise of its authority regardless of the status of the Texas opt-out order.
IV.
a. Anti-Injunction Act/All Writs Act.
The District Court issued PTO 1227 under the All Writs Act, which provides "all courts established by Act of Congress may issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principles of law." 28 U.S.C. § 1651. The power granted by the All Writs Act is limited by the Anti-Injunction Act, 28 U.S.C. § 2283, which prohibits, with certain specified exceptions, injunctions by federal courts that have the effect of staying a state court proceeding. Appellants contend the District Court's order was prohibited by the Anti-Injunction Act. American Home Products and the Brown plaintiffs claim the injunction falls under one of the Act's exceptions. We hold the District Court's order was not barred by the Anti Injunction Act and was a valid exercise of its power under the All Writs Act.
The Anti-Injunction Act prohibits most injunctions "to stay proceedings in a State court." 28 U.S.C. § 2283.10 Insofar as PTO 1227 enjoined Gonzalez class counsel, and those working in concert, from pursuing the opt out contemplated by the Texas opt-out order, it operated to stay the proceedings in the Hidalgo County court, if only indirectly. An order directed at the parties and their representatives, but not at the court itself, does not remove it from the scope of the Anti-Injunction Act. "It is settled that the prohibition of § 2283 cannot be evaded by addressing the order to the parties...." Atl. Coast Line R.R. Co. v. Bhd. of Locomotive Eng'rs, 398 U.S. 281, 287, 90 S.Ct. 1739, 26 L.Ed.2d 234 (1970). Therefore, to the extent PTO 1227 had the effect of staying the Hidalgo County court's proceedings, it was prohibited by the Anti-Injunction Act, unless it fell within one of the Act's exceptions.
By its terms, the Anti-Injunction Act allows such injunctions "as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments." 28 U.S.C. § 2283. None of the parties suggests the injunction was expressly authorized by an act of Congress, or the injunction was aimed at protecting or effectuating a judgment of the District Court.11 Accordingly, the injunction evades the Act's restrictions only if it was "necessary in aid of its jurisdiction."
The exceptions in the Anti-Injunction Act are to be construed narrowly. "Any doubts as to the propriety of a federal injunction against state court proceedings should be resolved in favor of permitting the state courts to proceed in an orderly fashion to finally determine the controversy." Atl. Coast, 398 U.S. at 297, 90 S.Ct. 1739. These "exceptions are narrow and are not to be enlarged by loose statutory construction." Chick Kam Choo, 486 U.S. at 146, 108 S.Ct. 1684 (citation and alterations omitted); Prudential, 261 F.3d at 364.
In Atlantic Coast, the Court emphasized an order directed at a state court proceeding must be necessary in aid of jurisdiction — "it is not enough that the requested injunction is related to that jurisdiction." 398 U.S. at 295, 90 S.Ct. 1739. Acknowledging the language is nonetheless broad, the Court elaborated: an injunction is necessary in aid of a court's jurisdiction only if "some federal injunctive relief may be necessary to prevent a state court from so interfering with a federal court's consideration or disposition of a case as to seriously impair the federal court's flexibility and authority to decide that case." Id.
Without more, it may not be sufficient that prior resolution of a state court action will deprive a federal court of the opportunity to resolve the merits of a parallel action in federal court. "The traditional notion is that in personam actions in federal and state court may proceed concurrently, without interference from either court, and there is no evidence that the exception to § 2283 was intended to alter this balance." Vendo Co. v. Lektro-Vend Corp., 433 U.S. 623, 642, 97 S.Ct. 2881, 53 L.Ed.2d 1009 (1977) (plurality opinion). In ordinary actions in personam, "[e]ach court is free to proceed in its own way and in its own time, without reference to the proceedings in the other court. Whenever a judgment is rendered in one of the courts and pleaded in the other, the effect of that judgment is to be determined by the application of the principle of res adjudicata by the court in which the action is still pending...." Kline v. Burke Constr. Co., 260 U.S. 226, 230, 43 S.Ct. 79, 67 L.Ed. 226 (1922). Therefore, it may not be sufficient that state actions risk some measure of inconvenience or duplicative litigation. In re Baldwin-United Corp., 770 F.2d 328, 337 (2d Cir.1985). An injunction may issue, however, where "the state court action threatens to frustrate proceedings and disrupt the orderly resolution of the federal litigation." Winkler v. Eli Lilly & Co., 101 F.3d 1196, 1202 (7th Cir.1996). In other words, the state action must not simply threaten to reach judgment first, it must interfere with the federal court's own path to judgment.
Several factors are relevant to determine whether sufficient interference is threatened to justify an injunction otherwise prohibited by the Anti-Injunction Act. First, we look to the nature of the federal action to determine what kinds of state court interference would sufficiently impair the federal proceeding. Second, we assess the state court's actions, in order to determine whether they present a sufficient threat to the federal action. And finally, we consider principles of federalism and comity, for a primary aim of the Anti-Injunction Act is "to prevent needless friction between the state and federal courts." Okla. Packing Co. v. Okla. Gas & Elec. Co., 309 U.S. 4, 9, 60 S.Ct. 215, 84 L.Ed. 537 (1940).
We turn first to the nature of the federal action. While, as noted, the "necessary in aid of jurisdiction" exception does not ordinarily permit injunctions merely to prevent duplicative actions in personam, federal courts are permitted to stay later-initiated state court proceedings over the same res in actions in rem, because "the exercise by the state court of jurisdiction over the same res necessarily impairs, and may defeat, the jurisdiction of the federal court already attached." Kline, 260 U.S. at 229, 43 S.Ct. 79; see also In re Gen. Motors Corp. Pick-Up Truck Fuel Tank Prods. Liab. Litig., 134 F.3d 133, 145 (3d Cir.1998) ("GM Trucks II"). Federal courts may also issue such injunctions to protect exclusive federal jurisdiction of a case that has been removed from state court. GM Trucks II, 134 F.3d at 145.
We have recognized another category of federal cases for which state court actions present a special threat to the jurisdiction of the federal court. Under an appropriate set of facts, a federal court entertaining complex litigation, especially when it involves a substantial class of persons from multiple states, or represents a consolidation of cases from multiple districts, may appropriately enjoin state court proceedings in order to protect its jurisdiction. Carlough v. Amchem Prods., Inc., 10 F.3d 189, 202-04 (3d Cir.1993). Carlough involved a nationwide class of plaintiffs and several defendants — primarily manufacturers of asbestos-related products — and third-party defendants — primarily insurance providers. We found the complexity of the case to be a substantial factor in justifying the injunction imposed. Id. at 202-03.
Implicit in Carlough is the recognition that maintaining "the federal court's flexibility and authority to decide" such complex nationwide cases makes special demands on the court that may justify an injunction otherwise prohibited by the Anti-Injunction Act. Several other courts have concurred.12 See, e.g., Hanlon v. Chrysler Corp., 150 F.3d 1011 (9th Cir.1998); Winkler, 101 F.3d at 1203 ("[T]he Anti-Injunction Act does not bar courts with jurisdiction over complex multidistrict litigation from issuing injunctions to protect the integrity of their rulings."); Wesch v. Folsom, 6 F.3d 1465, 1470 (11th Cir.1993); Battle v. Liberty Nat'l Life Ins. Co., 877 F.2d 877, 882 (11th Cir.1989); Baldwin-United, Additional Information