Franklin v. Usx Corporation

105 Cal. Rptr. 2d 11 (2001)

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Nature of the Case

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Facts

Jeannette (P), now deceased, and her husband, Darrel (P), filed an action for personal injury, premises liability and loss of consortium against D. P claims that she had contracted mesothelioma, an asbestos-caused cancer, as a result of childhood exposure to secondhand asbestos carried home by her parents, who worked at the Western Pipe & Steel Shipyard (WPS) in South San Francisco during World War II. Ps sued D as the successor in interest to WPS. In December 1945, the assets of WPS were purchased by Consolidated Steel Corporation for over $ 6.2 million in cash. In connection with the sale, Con Cal agreed to assume all of the liabilities, obligations, and commitments of WPS. On December 14, 1946, Con Cal entered into an agreement to sell certain assets to Columbia Steel. In August 1948, Columbia assigned its rights under the purchase agreement to a newly formed corporation and subsidiary of U.S. Steel, Consolidated Western Steel Corporation of Delaware (Con Del). On August 31, 1948, Con Cal sold the transfer assets to Con Del for almost $8.3 million in cash, plus additional consideration that brought the total purchase price to over $17 million. Con Del was later merged into U.S. Steel, which thereafter changed its name to D. After August 31, 1948, Con Cal changed its name to Consolidated Liquidating Corporation, which dissolved on February 29, 1952. The trial court concluded that D was the successor in interest to WPS, and was therefore liable for any damages caused. A jury returned a verdict against D in excess of $ 5 million. D appealed.