Yesterday, the New York Court of Appeals granted leave to appeal in Semenetz v. Sherling & Walden, Inc. This case involves the issue whether a corporation that buys all of the predecessor corporation’s assets, including goodwill, trade names and inventory is subject to New York jurisdiction based upon the "product line" exception to the traditional successor corporate liability rule.   As the Third Department stated in its decision,  "a corporation which acquires the assets of another is [generally] not liable for the torts of its predecessor," with four exceptions that the Third Department concluded were not applicable.

This case will, no doubt, have a great impact in the corporate world.  New York Civil Law will keep you abreast of developments as they arise.

Disclaimer:  The firm for which I work is involved in this appeal.