Springer v. Nohl Electric Products Corp.
At issue was the rule that the company that purchases the assets of another is not responsible for the latter’s liabilities and the rule’s common-law exception when the parties use the transaction to fraudulently escape responsibility for those liabilities. Plaintiff, whose husband died from mesothelioma, sued Fire Brick Engineers Co. and Powers Holdings, Inc. alleging they were negligent in manufacturing or distributing the asbestos products to which Plaintiff’s husband was exposed. The complaint identified Powers Holdings as the successor to Fire Brick. Powers asserted that Plaintiff brought the action against the wrong entity because Powers was not liable for the torts of its predecessor corporations. The circuit court granted summary judgment for Powers. The court of appeals reversed and remanded for a determination of whether Powers should be held responsible for the liabilities of its predecessor company, concluding that the question of whether a transfer transaction was entered into fraudulent must be answered in the context of Wisconsin’s Uniform Fraudulent Transfer Act.. The Supreme Court reversed, holding that Powers was entitled to summary judgment because the Act does not govern the “fraudulent transaction” exception to the rule of successor non-liability. View "Springer v. Nohl Electric Products Corp." on Justia Law