Case Study: In Re Grumman

Law360, New York (March 26, 2012, 3:10 PM EDT) -- While many bankruptcy sale orders contain provisions purporting to absolve the purchaser of "successor liability" claims related to the purchased assets or business, a recent case from the U.S. Bankruptcy Court for the Southern District of New York is a reminder of the limits on the enforceability of these provisions — especially against claimants who did not receive notice of the sale order.

In In re Grumman Olson Industries Inc., the bankruptcy court permitted a tort claimant, injured by a product manufactured and sold by the...
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