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Judge Maddux Finds Purchaser Has No Corporate Successor Liability for the Asbestos Liabilities of Dissolved Industrial Insulation Contractor.

June 26, 2012

Judge Maddux granted our motion to dismiss hundreds of claims against Sprinkmann Insulation based on the lack of corporate successor liability for the torts of Sprinkmann Sons, whose assets had been purchased by our client. The Court flatly rejected the opinions of the plaintiffs’ expert that Sprinkmann Insulation, Inc. is a continuation or alter ego of Sprinkmann Sons Corp. of Illinois. This was an interesting attempt by the plaintiffs’ attorneys to reach the remaining insurance assets of the seller, a former asbestos insulation contractor, despite our earlier success in terminating litigation based on a corporate dissolution argument. If Judge Maddux had agreed with the plaintiffs, the effect of such a ruling would have been that the insurers of Sprinkmann Sons have unlimited asbestos liability and would be required to exhaust all policy limits, even though there was no bankruptcy of the insured.

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