Semenetz v. Sherling & Walden, Inc.
Court of Appeals of New York
851 N.E.2d 1170 (2006)
After young Sean Semenetz was injured by a sawmill manufactured by S&W Edger Works, Edger Works sold most of its assets to Sawmills & Edgers (defendant) under a contract expressly stating Sawmills did not assume Edger Works's liabilities, and Sawmills continued selling Edger Works's sawmill products while Edger Works itself changed its name to Sherling & Walden (also a defendant). Sean's mother Bridget Semenetz (plaintiff) sued Sawmills for products liability, and while the trial court found Sawmills liable for continuing Edger Works's product output, the appellate court reversed; Semenetz appealed.
Whether a corporation that purchases another corporation's assets is liable for the seller's torts if the purchaser continues the output of the seller's products.