Court: Buyer of Boiler Manufacturer Assumed Asbestos-Related Liabilities

ALBANY, N.Y. -- The New York Court of Appeals has affirmed a declaratory judgment that ruled a purchaser of a boiler manufacturer did assume the seller's liabilities, even if the tort claims arose after the sale. American Standard Inc. v. Oakfabco Inc., No. 44 (N.Y. Ct. App.).

In the April 6 opinion, New York's highest court addressed whether the buyer of a boiler business assumed the seller's liabilities for asbestos-related claims that arose after the acquisition.

American Standard Inc. sold Kewanee Boiler division to Kewanee Boiler Corp., now OakFabco Inc., in 1970. The language of the purchase agreement stipulated that …