Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Product Liability Law & StrategyFeaturesKickerLJN NewslettersNewsSections

Corporate Successorship: What You Don't Know Could Cost You

By Jennifer R. Devery and Rachel Gart

In today's increasingly complex and fluid corporate world, companies ' many of which are involved in product liability litigation ' are bought, sold and merge. Consequently, insurers are routinely presented with claims from companies with no apparent connection to the insured named in the policy. These heretofore unknown companies nevertheless claim to be corporate successors to the original insured, and demand coverage under the policy. However, as discussed below, a corporate successor's right to coverage under a predecessor's policy is not a foregone conclusion. Rather, the outcome depends heavily on the specific circumstances of the corporate transaction, along with the particular jurisdiction and state law under which the question is posed. Thus, to protect against paying claims in error, an insurer's first line of defense is awareness of the issues.

Identifying these issues typically involves two questions. The first has to do with the underlying tort law: Will a successor corporation be held liable or responsible for harms that can be traced back to the products or conduct of an original corporation? The second question relates to insurance law: Assuming the successor corporation is held liable or responsible for the original corporation's products or conduct, can the successor corporation collect under insurance policies issued to the original insured?

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

When Is a Repair Structural or Nonstructural Under a Commercial Lease? Image

A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."