Pennsylvania law defines successor business entities and limits their asbestos-related liabilities based on the fair market value of the transferor’s assets at the time of merger or consolidation. The law specifies that successors are generally only responsible for liabilities up to this value unless an exception applies. It also clarifies liability calculations in cases involving prior mergers or consolidations.
A successor business entity is one that has merged or consolidated with a transferor and has assumed or incurred asbestos-related liabilities.
Liability is limited to the fair market value of the transferor’s gross assets at the time of the merger or consolidation, unless an exception applies.
Yes, if the transferor had previously assumed asbestos liabilities in an earlier merger, the liability is calculated based on the assets at that earlier time.
Liability is generally based on the assets at the time of each merger, with specific rules for prior mergers to determine the appropriate liability limit.