12-559.01. Asbestos-related actions; successor corporation liability; applicability

255 words·~1 min read·/az/title-12/12-559-01

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. Except as provided in subsection B of this section, the cumulative successor asbestos-related liabilities of a successor corporation are limited to the fair market value of the total gross assets of the transferor determined as of the time of the merger or consolidation. The successor corporation does not have responsibility for successor asbestos-related liabilities in excess of this limitation.

B. If the transferor assumed or incurred successor asbestos-related liabilities in connection with a prior merger or consolidation with a prior transferor, the fair market value of the total assets of the prior transferor determined as of the time of the earlier merger or consolidation shall be substituted for the limitation under subsection A of this section to determine the limitation of liability of a successor corporation.

C. This section does not apply to any of the following:

1. Workers' compensation benefits paid by or on behalf of an employer to an employee pursuant to title 23, chapter 6 or a comparable workers' compensation law of another jurisdiction.

2. Any claim against a corporation that does not constitute a successor asbestos-related liability.

3. Any obligation under the national labor relations act or under any collective bargaining agreement.

4. A successor that, after a merger or consolidation, continued in the business of mining asbestos or in the business of selling or distributing asbestos fibers or in the business of manufacturing, distributing, removing or installing asbestos-containing products that were the same or substantially the same as those products previously manufactured, distributed, removed or installed by the transferor.