CHAPTER 8. LIMITED LIABILITY CONCERNING ASBESTOS RELATED CLAIMS
IC 34-31-8
Chapter 8. Limited Liability Concerning Asbestos Related Claims
IC 34-31-8-1
"Asbestos claim"
Sec. 1. As used in this chapter, "asbestos claim" means any claimfor damages, losses, indemnification, contribution, or other reliefconcerning asbestos, including:
(1) a claim relating to the health effects of exposure to asbestos,including:
(A) personal injury;
(B) death;
(C) mental injury;
(D) emotional injury;
(E) risk of disease or other injury; or
(F) the costs of medical monitoring or surveillance;
(2) a claim made by or on behalf of any person exposed toasbestos, including a claim of a:
(A) representative;
(B) spouse;
(C) parent;
(D) child; or
(E) other relative;
of a person exposed to asbestos; and
(3) a claim for damage or loss caused by the:
(A) installation;
(B) presence; or
(C) removal of asbestos.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-2
"Corporation"
Sec. 2. As used in this chapter, "corporation" means a corporationfor profit, including a domestic corporation organized under Indianalaw or a foreign corporation organized under the law of a jurisdictionother than Indiana.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-3
"Innocent successor corporation"
Sec. 3. (a) As used in this chapter, "innocent successorcorporation" means a corporation that:
(1) assumes;
(2) incurs;
(3) has assumed; or
(4) has incurred;
successor asbestos related liability and became a successorcorporation due to a merger or consolidation with anothercorporation before January 1, 1972.
(b) The term includes a corporation into which an innocent
successor corporation is at any time subsequently merged orconsolidated.
(c) The term does not include a corporation that, after a merger,a consolidation, or the exercise of control or the ownership of stockof the corporation before the merger or consolidation, continues inthe business of:
(1) mining asbestos;
(2) selling or distributing asbestos fibers; or
(3) manufacturing, distributing, removing, or installing asbestoscontaining products that are the same, or substantially the same,as those products previously manufactured, distributed,removed, or installed by the transferor corporation.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-4
"Successor asbestos related liability"
Sec. 4. As used in this chapter, "successor asbestos relatedliability" means any liability that is related to an asbestos claim thatwas assumed or incurred by a corporation as a result of:
(1) a merger or consolidation with another corporation;
(2) the plan of merger or consolidation related to the merger orconsolidation; or
(3) the exercise of control or the ownership of stock of thecorporation before the merger or consolidation.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-5
"Transferor corporation"
Sec. 5. As used in this chapter, "transferor corporation" means acorporation from which a successor asbestos related liability wasassumed or incurred.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-6
Liberal construction of chapter
Sec. 6. This chapter shall be construed liberally regardinginnocent successor corporations.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-7
Chapter application
Sec. 7. This chapter applies to a civil action asserting an asbestosclaim that is filed against an innocent successor corporation:
(1) after June 30, 2009; or
(2) before July 1, 2009, if trial has not commenced as of July 1,2009.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-8
Limited cumulative successor asbestos related liabilities Sec. 8. (a) Subject to subsections (c) and (d) and sections 10 and12 of this chapter, the cumulative successor asbestos relatedliabilities of an innocent successor corporation are limited to the fairmarket value of the total gross assets of the transferor corporation,determined as of the time of the merger or consolidation throughwhich the innocent successor corporation assumed or incurredsuccessor asbestos related liability.
(b) An innocent successor corporation is not responsible forsuccessor asbestos related liability in excess of the limitation setforth in subsection (a).
(c) For purposes of this section, if a transferor corporationassumed or incurred successor asbestos related liability in connectionwith a merger or consolidation with a prior transferor corporation,the fair market value of the total gross assets of the prior transferorcorporation determined as of the time of the earlier merger orconsolidation shall be substituted for the limitation set forth insubsection (a) to determine the limitation of liability of the innocentsuccessor corporation.
(d) Cumulative successor asbestos related liabilities includeliabilities that exist after the merger or consolidation of the innocentsuccessor corporation and the transferor corporation and that are paidor discharged by or on behalf of the:
(1) innocent successor corporation; or
(2) transferor corporation;
as part of a settlement or judgment in Indiana or another jurisdiction.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-9
Limitations application
Sec. 9. The limitations set forth in section 8 of this chapter applyto the successor asbestos related liability of an innocent successorcorporation and do not apply to:
(1) worker's compensation benefits paid by or on behalf of anemployer to an employee under IC 22-3 or a comparableworker's compensation law in another jurisdiction;
(2) a claim against a corporation that is not a successor asbestosrelated liability;
(3) any obligation under the federal National Labor RelationsAct (29 U.S.C. 151 et seq.); or
(4) a collective bargaining agreement.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-10
Establishment of fair market value of total gross assets oftransferor corporation
Sec. 10. An innocent successor corporation may establish the fairmarket value of the total gross assets, including intangible assets, ofa transferor corporation to determine limitations under section 8 ofthis chapter by any reasonable method, including:
(1) by reference to the going concern value of the assets; (2) by reference to the purchase price attributable to or paid forassets in an arms length transaction; or
(3) in the absence of other readily available information fromwhich the fair market value can be determined, by reference tothe value of the assets recorded on a balance sheet.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-11
Liability insurance
Sec. 11. (a) If the total gross assets of a transferor corporationinclude liability insurance issued to the transferor corporation, thischapter does not affect the applicability, terms, conditions, or limitsof the liability insurance.
(b) This chapter does not affect the rights and obligations of aninsurer, transferor, or successor under an insurance contract or anyrelated agreements, including:
(1) preenactment settlements resolving coverage relateddisputes; or
(2) contracts regarding the rights of an insurer to seek paymentfor applicable deductibles, retrospective premiums, self-insuredperiods, or periods as to which insurance is uncollectible orunavailable.
(c) A settlement of a dispute concerning liability insurancecoverage entered into by a:
(1) transferor corporation; or
(2) successor corporation;
with the insurers of a transferor corporation before July 1, 2009, isdeterminative of the total coverage of liability insurance to beincluded in the calculation of a transferor corporation's total grossassets under this chapter.
As added by P.L.134-2009, SEC.6.
IC 34-31-8-12
Adjustment of fair market value of the total gross assets of atransferor corporation
Sec. 12. (a) Except as provided in subsections (b) through (d), thesum determined as the fair market value of the total gross assets ofa transferor corporation as of the time of a merger or consolidationfor purposes of determining the limit on the cumulative successorasbestos related liabilities of an innocent successor corporation underthis chapter shall be adjusted annually at a rate equal to the sum ofthe following:
(1) The prime rate listed in the first edition of the Wall StreetJournal published for each calendar year since the merger orconsolidation. If the prime rate is not published in the firstedition of the Wall Street Journal, then a reasonabledetermination of the prime rate on the first day of the year maybe used.
(2) One percent (1%).
(b) The rate described in subsection (a) may not be compounded. (c) The adjustment of the fair market value of the total grossassets of the transferor corporation as of the time of the merger orconsolidation shall continue as described in subsection (a) until thedate as of which the adjusted value is first exceeded by thecumulative amounts of successor asbestos related liabilities paid orcommitted to be paid by or on behalf of:
(1) the innocent successor corporation;
(2) any predecessor corporation; and
(3) the transferor corporation;
after the time of the merger or consolidation.
(d) No adjustment of the fair market value of total gross assets ofa transferor corporation under this section shall be applied to anyliability insurance.
As added by P.L.134-2009, SEC.6.