4 Successor Liability Pitfalls Manufacturers Should Avoid

Law360, New York (August 25, 2015, 10:53 AM EDT) -- The Seventh Circuit's recent decision in Thornton v. M7 Aerospace LP highlights how companies can become responsible for unplanned, unexpected and far-reaching tort liabilities through seemingly innocent conduct.[1] Although the Court of Appeals ultimately rejected the plaintiffs' arguments and affirmed summary judgment in favor of the two defendants, the case shines a spotlight on two important bases for tort liability: (1) successor liability for a corporate predecessor's tortious conduct and (2) the voluntary undertaking doctrine. Thornton thus provides a blueprint for how companies can better control, predict and limit their liabilities in situations when they might not think they are subject to suit....

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