Mesothelioma and corporate mergers
Many cases in Texas have discussed the litigation of mesothelioma and asbestos-related physical injuries. For any actions filed after June 3, 2003, the successor asbestos-related liabilities for a corporation are limited to the fair market value (FMV) of the total gross assets of the transferor at the time of the consolidation or merger. The corporation has no responsibility for successor asbestos-related liabilities above this limitation. This is a very important law, as mesothelioma claims (please check our "Mesothelioma FAQ" section for more information) and their defense are very expensive.
The Texas Civil Practices and Remedies Code ("CPRC") defines an asbestos claim as follows:
"Asbestos claim" means any claim, wherever or whenever made, for losses, damages, contribution, indemnity, or other relief arising out of, based on, or in any way related to asbestos, including:
(1) property damage caused by the installation, presence, or removal of asbestos;
(2) the health effects of exposure to asbestos, including and claim for death or personal injury, mental or emotional injury, risk of disease or other injury, or the costs of medical monitoring or surveillance; and
(3) any claim made by or on behalf of any person exposed to asbestos, or a representative, spouse, parent, child, or other relative of the person.
A "successor" is a corporation which incurs or assumes, or has incurred or assumed, successor asbestos-related liabilities. A "transferor" is a corporation from which successor asbestos-related liabilities are or were incurred or assumed.
For purposes of the CPRC, a corporation can establish the FMV of total gross assets through any method reasonable under the circumstances, including by reference to the going concern value of the assets or to the purchase price attributable to or paid for the assets in a fair (arm’s length) transaction. If there is no readily available information through which the FMV may be determined, reference to the value of the assets recorded on a balance sheet is acceptable.
Our firm represents mesothelioma clients in Corpus Christi, Houston, Galveston, Brownsville, Laredo, and throughout Texas. Contact Galveston mesothelioma lawyer Scott Nelson if you need help with a mesothelioma claim.