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Expert Analysis

3rd Circ. Ruling Gives 363 Asset Purchasers More Security

Law360, New York (March 7, 2014, 12:23 PM EST) -- In In re Emoral Inc., 740 F.3d 875 (3d Cir. 2014), the United States Court of Appeals for the Third Circuit determined whether personal injury causes of action could be asserted by individual claimants against a third party on a state law "mere continuation" theory of successor liability, or if such causes of action were "generalized" in nature and property of the debtor's estate. The Court of Appeals found that such causes of action were property of the debtor's estate, thus prohibiting individual claimants from seeking restitution from the nondebtor party....

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