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Business Associations Keyed to Epstein, 5th Ed.
Franklin v. USX Corp.
Citation:
105 Cal. Rptr. 2d 11 (2001)Facts
During World War II, Western Pipe & Steel Shipyard (WPS) operated a shipyard in South San Francisco where Jeannette Franklin’s parents worked from 1942 to 1945. In December 1945, WPS’s assets were purchased by Consolidated Steel Corporation of California (Con Cal), which assumed all of WPS’s liabilities. In 1948, after a complex series of transactions, Con Cal sold its assets to a subsidiary of U.S. Steel (later renamed USX) for over $17 million in cash and other consideration. The purchase agreement explicitly stated that the buyer would not assume any liabilities except those specifically enumerated, which did not include contingent tort liabilities. After the sale, Con Cal changed its name to Consolidated Liquidating Corporation and dissolved in 1952. In 1996, Jeannette Franklin was diagnosed with peritoneal mesothelioma, which she claimed resulted from childhood exposure to asbestos brought home by her parents from the shipyard. The trial court found USX liable as the successor to WPS under theories of express assumption of liabilities, de facto merger, mere continuation, and product line succession.
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