Jackson v. NJ Manufacturers Ins. Co.

400 A.2d 81, 166 N.J. Super. 448
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 5, 1979
StatusPublished
Cited by38 cases

This text of 400 A.2d 81 (Jackson v. NJ Manufacturers Ins. Co.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. NJ Manufacturers Ins. Co., 400 A.2d 81, 166 N.J. Super. 448 (N.J. Ct. App. 1979).

Opinion

166 N.J. Super. 448 (1979)
400 A.2d 81

MARGARET JACKSON AND LARRY JACKSON, PLAINTIFF-APPELLANTS,
v.
NEW JERSEY MANUFACTURERS INSURANCE COMPANY, P.E. ALBERT & SON, FORMERLY L. ALBERT & SON, BELLANCA CORPORATION, FORMERLY BELLANCA AIRCRAFT CORPORATION, AND OLSON BROTHERS, INC., DEFENDANTS-RESPONDENTS.

Superior Court of New Jersey, Appellate Division.

Argued October 17, 1978.
Decided March 5, 1979.

*451 Before Judges LORA, MICHELS and LARNER.

Mr. Arthur M. Shara argued the cause for appellants.

Mr. Richard N. Catenacci argued the cause for respondent New Jersey Manufacturers Insurance Company (Messrs. *452 McElroy, Connell, Foley & Geiser, attorneys; Mr. William T. McElroy, of counsel and on the brief).

Mr. Daniel J. Keenan argued the cause for respondent P.E. Albert & Son.

Mr. Richard A. Levao argued the cause for respondent Bellanca Corporation and Olson Brothers, Inc. (Messrs. Shanley & Fisher, attorneys).

The opinion of the court was delivered by MICHELS, J.A.D.

Plaintiffs appeal from (1) a summary judgment in favor of defendant P.E. Albert & Son; (2) judgments of involuntary dismissal entered at the conclusion of their proofs in favor of defendants New Jersey Manufacturers Insurance Company (Manufacturers), Bellanca Corporation (Bellanca) and Olson Brothers, Inc. (Olson),[1] and (3) an order denying their motion for a new trial.

On or about October 25, 1973, Larry Jackson (hereinafter referred to as plaintiff) sustained a severe crushing injury to his hand while operating a rubber sheeting mill during the course of his employment with Waldon Roberts Rubber Company (Roberts). The rubber sheeting mill was manufactured and installed in the Roberts plant in Newark, New Jersey, by L. Albert & Son sometime in 1931 — more than 42 years before the accident. Plaintiff instituted this action against defendants P.E. Albert & Son, Bellanca, Olson and Manufacturers seeking to recover damages for the personal injuries he sustained in the accident. His wife sued per quod. He claimed that at the time of the accident the mill should have been equipped with a point-of-operation guard and sought to impose tort liability upon P.E. Albert & Son, *453 Bellanca and Olson, as successors to L. Albert & Son, the manufacturer of the mill, on the theory that they failed to warn Roberts of "new, updated or improved safeguards desirable or required on equipment [the mill] in the field," and of the inherent danger and potential risks of the rubber mill as of 1973. Specifically, plaintiff claimed that L. Albert & Son as the manufacturer and installer of the mill, and these defendants, as its successors, should have known that point-of-operation safeguards were required to be on the mill at the time of the accident, and that they had a duty and ample opportunity prior to the accident to advise Roberts to install such safeguards. Plaintiff also contended that Manufacturers, as the workers' compensation insurance carrier for Roberts, was negligent in inspecting the rubber mill and in failing to notify Roberts of the hazardous condition of said mill and to require it to correct the condition and up-date the mill with effective point of operation safeguards.

Prior to trial the judge granted P.E. Albert & Son's motion for summary judgment on the ground that it was not a successor to L. Albert & Son and, therefore, was not liable for the tortious conduct, if any, of L. Albert & Son in connection with the manufacture and installation of the rubber mill. Thereafter, the matter was tried on the claims against Manufacturers, Bellanca and Olson. At the conclusion of plaintiff's proofs on liability, judgments of involuntary dismissal were granted in favor of each of these remaining defendants. The judge essentially held that plaintiff failed to prove a prima facie case of negligence against Manufacturers in that he did not show that Roberts relied upon Manufacturers' inspection of the plant and equipment, including the mill, in maintaining the equipment and proving for the safety of its employees. Additionally, the judge held that plaintiff failed to prove that either Bellanca or Olson violated any standard of care in regard to the manufacture and installation of the rubber mill and therefore did not prove a prima facie case against them. Plaintiff's motion for a new trial was denied, and this appeal followed.

*454 I.

Summary Judgment in Favor of P.E. Albert & Son

Plaintiff challenges the propriety of the grant of summary judgment in favor of P.E. Albert & Son. He claims that P.E. Albert & Son was formerly known as and is a successor to L. Albert & Son, and, therefore, is liable for the latter's tortious conduct, specifically its alleged failure to notify Roberts prior to the accident that point-of-operation safeguards should be installed on the rubber mill.

It is firmly established under our practice that a motion for summary judgment will be granted where the pleadings and affidavits or certifications do not show the existence of a genuine issue of material fact requiring disposition by a plenary trial. R. 4:46-2; Ruvolo v. American Cas. Co., 39 N.J. 490, 499 (1963); Judson v. Peoples Bank & Trust Co. of Westfield, 17 N.J. 67, 73-75 (1954); Miller v. U.S. Fid. & Guar. Co., 127 N.J. Super. 37, 40-41 (App. Div. 1974). Here, the pleadings and certifications submitted in connection with the motion established that there was no genuine issue of material fact as to P.E. Albert & Son's status, and therefore summary judgment was appropriate for the disposition of the claim against it. See Miller v. U.S. Fid. & Guar. Co., supra.

The principle is well settled that where one company sells or otherwise transfers all of its assets to another company the latter is not liable for the debts and liabilities of the transferor, including those arising out of the latter's tortious conduct, except where (1) the purchaser expressly or impliedly agrees to assume such debts and liabilities; (2) the transaction amounts to a consolidation or merger of the seller and purchaser; (3) the purchasing corporation is merely a continuance of the selling corporation, or (4) the transaction is entered into fraudulently in order to escape liability for such debts. McKee v. Harris-Seybold Co., 109 N.J. Super. 555, 561-562 (Law Div. 1970), aff'd o.b. 118 N.J. Super. 480 (App. Div. 1972). See also, Wilson v. *455 Fare Well Corp., 140 N.J. Super. 476, 484 (Law Div. 1976); Jackson v. Diamond T. Trucking Co., 100 N.J. Super. 186, 192 (Law Div. 1968); Menacho v. Adamson United Co., 420 F. Supp. 128 (D.N.J. 1976); 19 Am. Jur.2d, Corporations, § 1546 at 922-924 (1965); 15 Fletcher, Cyclopedia of the Law of Private Corporations (rev. perm. ed. 1973), § 7122 at 187.

The uncontroverted proofs show that in 1906 Louis Albert and Israel H. Albert formed a partnership under the name of L. Albert & Son. Thereafter, on or about October 1, 1943, Philip E. Albert, a son of Israel H. Albert, became a partner in L. Albert & Son. In 1944 Israel H. Albert died. Sidney Albert, another son of Israel H. Albert, who also had earlier been made a partner in the firm, bought the entire interest of all of the other partners in 1955, including Philip E.

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400 A.2d 81, 166 N.J. Super. 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-nj-manufacturers-ins-co-njsuperctappdiv-1979.