In the case of Phillips Petroleum Co. v. Shutts et al., 1984, the U.S. Supreme Court ruled that a state court could exercise jurisdiction over an out-of-state defendant in a class action lawsuit if there was no substantial burden on the defendant and if due process rights were respected. The case involved Kansas residents who owned land where Phillips Petroleum had drilling operations, and they sued for interest on royalties that were delayed or suspended by Phillips Petroleum. The plaintiffs included all royalty owners across America without their consent but allowed them to opt-out upon notification of the suit, which is known as "opt-out" class action procedure. The Supreme Court held that this did not violate due process rights because each plaintiff was notified via mail about the lawsuit and given an opportunity to opt out; thus ensuring fair representation even though most plaintiffs weren't from Kansas (the forum state). However, it also ruled against applying Kansas law uniformly to all claims since interests varied significantly among states regarding oil/gas leases & contracts - hence violating Due Process Clause & Full Faith Credit Clause respectively.

In the dissenting opinion for Phillips Petroleum Co. v. Shutts et al., Justice Stevens argued that the majority's decision was an overreach of federal power and a violation of states' rights to govern their own affairs, particularly in matters related to property law. He contended that Kansas had no jurisdiction over claims involving land located outside its borders, as each state has unique laws governing such issues. Furthermore, he disagreed with the majority's assertion that due process required every member of a class action lawsuit to be notified individually about potential judgments against them; instead, he believed this requirement should only apply when plaintiffs were seeking damages on behalf of absent parties who hadn't opted into the suit themselves. Finally, Justice Stevens expressed concern about how this ruling could potentially lead to forum shopping by plaintiffs looking for favorable jurisdictions.