In the case of Martin et al. v. Wilks et al., 1988, a group of white firefighters in Birmingham, Alabama sued the city claiming racial discrimination after they were passed over for promotions in favor of less-qualified black candidates. The city had previously been under a consent decree to correct past discriminatory practices against African Americans and was implementing an affirmative action plan as part of this agreement. The white firefighters argued that they were not party to this original lawsuit and therefore should not be bound by its outcome (the consent decree). The Supreme Court ruled in favor of the white firefighters, stating that non-parties to a lawsuit are generally not bound by its judgment or settlement unless they can be considered "in privity" with parties who did participate - meaning their interests were adequately represented by those parties during litigation. This decision sparked controversy because it potentially undermined efforts towards desegregation and equal opportunity employment through court-approved settlements.

In the dissenting opinion for Martin et al. v. Wilks et al., Justice Stevens argued that the majority's decision undermined principles of finality and repose, which are fundamental to judicial process. He contended that allowing parties who had not participated in a lawsuit to challenge its outcome years later would lead to uncertainty and instability in legal proceedings, as well as potential injustice for those who had relied on these outcomes. Furthermore, he criticized the majority's reliance on Rule 19 of Federal Rules of Civil Procedure (which deals with required joinder of parties), stating it was misapplied in this context since it is designed for situations where absent parties have an existing claim at the time litigation commences - not when they develop one after judgment has been rendered. The justice also expressed concerns about implications for civil rights law enforcement if non-parties could easily challenge consent decrees aimed at remedying discrimination.