 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Winsor v. Glasswerks PHX2/4/2003
's injury before that defendant can be held answerable in damages. Compensation is certainly an important goal of our tort law, but it does not override the premise that compensation must be made by one responsible for the tort."); Johnston, 830 P.2d at 1144 (noting authorities determining that "the exception is inconsistent with basic strict liability principles results in the imposition of liability without a corresponding duty [.]") (citations omitted); Domine v. Fulton Iron Works, 395 N.E.2d 19, 23 (Ill. Ct. App. 1979)("The corporate successor to the manufacturer of an allegedly defective product, who takes succession after the product has left the manufacturer's control, is clearly outside of the original producing and marketing chain.").
Accordingly, we agree that in considering the two exceptions " uch a profound change in tort law is appropriately the subject of legislation, not judicial fiat." Polius, 802 F.2d at 83.
(iv.) Our Present Rule Allows for Liability Against Certain Successor Corporations.
Another factor we consider in deferring to the legislature is that our present rule of liability for successor corporations allows for liability of successors under certain circumstances. In particular, where "the purchasing corporation is a mere continuation [or reincarnation] of the seller," Teeters, 172 Ariz. at 329, 836 P.2d at 1039, a successor will be liable. This is also consistent with the majority and Restatement rule which provides for successor liability when the purchase by the successor "results in the successor becoming a continuation of the predecessor." Restatement § 12(d).
Successor liability will also result in circumstances when "the transfer of assets to the purchaser is for the fraudulent purpose of escaping liability for the seller's debts." Teeters, 172 Ariz. at 329, 836 P.2d at 1039. Again, this is consistent with the majority and Restatement rule which provides for successor liability when the purchase "results from a fraudulent conveyance to escape liability for the debts where liabilities are the predecessor." Restatement § 12(b).
Both these considerations -- allowing for successor liability where there is a "mere continuation" or a transfer for the fraudulent purpose of avoiding predecessor liability -- are consistent with our supreme court's pronouncement in Torres v. Goodyear Tire & Rubber Co. as to corporate form. 163 Ariz. at 92-93, 786 P.2d at 943-44. In that products liability action, Goodyear's defense relied heavily on the separate corporate identities of its subsidiaries. The supreme court recognized the importance of corporate form, but would not allow it to be used for the questionable purpose of "allow multinational firms the freedom to compartmentalize strict liability by choosing organizational forms that will require actions for defective design of a product such as this to be brought in Luxembourg, those for defective manufacture in Great Britain, those for defective labeling in a third, and the like." Id. at 92, 786 P.2d at 943 (emphasis added). Our present rule from Teeters is consistent with Torres and affirmatively provides for successor liability when corporate form has inappropriately been used to escape liability. We note that in the matter at hand there is no allegation that the transfer of assets was done with the intent of depriving Winsor of his claim. Indeed, Winsor's claim did not rise until some two years after Glasswerks made the purchase. Thus, by leaving this matter to the legislature we do not impair a party's ability to seek redress when corporate form is being fraudulently used.
CONCLUSION
We decline the invitation to expand Arizona products
Page 1 2 3 4 5 6 7 8 9 Arizona Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|