Pichon v. Asbestos
52 So. 3d 240
La. Ct. App.2010Background
- Plaintiffs (surviving spouse and children) sued multiple defendants, including Detroit Diesel Corporation (DDC), for mesothelioma and lung cancer from Mr. Pichon's asbestos exposure during Halter Marine employment (1955–2004); Mr. Pichon died in 2006.
- DDC moved for summary judgment arguing no liability for pre-1988 exposure because DDC did not exist then and had never manufactured asbestos-containing products; also argued no post-1988 exposure since it did not manufacture asbestos.
- The trial court denied DDC's first summary judgment motion for discovery reasons, then granted it after renewed briefing, concluding no liability under either pre- or post-1988 theories.
- DDC was formed on January 1, 1988 as a joint venture and purchased certain assets of GM's Detroit Diesel-Allison Division; a Sales Agreement stated GM would indemnify DDC and that DDC would not assume GM liabilities.
- Plaintiffs argued successor liability under the continuation theory despite the written agreement; the court found no evidence that DDC purchased all Detroit Diesel-Allison Division assets and thus rejected successor liability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Pre-1988 exposure successor liability viability | Pichon successor liability applies as continuation of GM division. | DDC did not assume liabilities; did not purchase all assets; no continuation. | No successor liability; summary judgment proper. |
| Post-1988 exposure and direct liability | Pichon exposed to DDC asbestos-containing products after 1988. | DDC never manufactured or sold asbestos; no genuine issue of material fact. | No genuine issue; summary judgment proper. |
Key Cases Cited
- Golden State Bottling Co. v. National Labor Relations Board, 414 U.S. 168 (1973) (general successor liability rule and exceptions upon asset sales)
- Bourque v. Lehmann Lathe, Inc., 476 So.2d 1125 (La.App. 3 Cir. 1985) (continuation exception requires all assets purchased)
- Hollowell v. Orleans Regional Hospital LLC, 217 F.3d 379 (5th Cir. 2000) (eight factors for determining mere continuation)