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Brown v. Ticor Title Insurance
Court of Appeals for the Ninth Circuit (1992) | 982 F.2d 386
TL;DR: Absent class members in a prior mandatory class action were not barred by res judicata from later suing for damages. The court held that due process requires an opportunity to opt out when monetary claims are at stake, even if the prior action also included injunctive relief.
Legal Significance: This case establishes that a judgment in a mandatory (b)(1) or (b)(2) class action cannot preclude subsequent damage claims by absent class members who were not given an opportunity to opt out, reinforcing the due process requirements articulated in *Phillips Petroleum Co. v. Shutts*.