A convenient synthesis of tricyclic β-lactams by chemo- and diastereoselective intramolecular CH insertion of metal carbenes generated by dirhodium(II) tetraacetate catalyzed decomposition of α-diazoamides 1a-c is reported. In the case of reagent 1b, in the presence of the (+)-menthyl
chiral auxiliary, the β-lactam is obtained with 76% e.e