California Appeals Court: USX Not Liable for Exposure at Predecessor's Shipyard

SAN FRANCISCO - A jury award of nearly $6.5 million may be in jeopardy after a California Court of Appeal ruled that the liable defendant did not inherit its predecessor's liability when it purchased the company more than 50 years ago. Franklin v. USX Corp., No. A091473 (Calif. Ct. App., 1st Dist.).

The appeals court ruled March 6 that the sales agreement USX Corp. signed in the late 1940s unambiguously provided that the buyer was not assuming the seller's liabilities. As a result, the court ruled, USX could not be held liable for injuries allegedly caused by exposure to asbestos-containing …