Franklin v. USX Corp.
California Court of Appeal
105 Cal. Rptr. 2d (2001)
The Franklins (plaintiffs) sued USX (defendant) alleging Mrs. Franklin developed asbestos-related cancer from childhood exposure via her parents' work at Western Pipe & Steel Shipyard (WPS). WPS's assets were bought in 1945 by Con Cal, which assumed WPS's liabilities; Con Cal then sold those assets years later for over $17,000,000 to Con Del, which eventually became USX through merger. The trial court found USX was WPS's successor in interest and liable for its torts, and a jury awarded the Franklins over $5,000,000; USX appealed the successor-liability finding.
Whether successor liability for personal injuries will be imposed on a corporation that paid adequate consideration for its predecessor's assets.