Markovsky, J. v. Crown Cork & Seal Co.

107 A.3d 749, 2014 Pa. Super. 282, 2014 Pa. Super. LEXIS 4569, 2014 WL 7243146
CourtSuperior Court of Pennsylvania
DecidedDecember 22, 2014
Docket2755 EDA 2013
StatusPublished
Cited by12 cases

This text of 107 A.3d 749 (Markovsky, J. v. Crown Cork & Seal Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Markovsky, J. v. Crown Cork & Seal Co., 107 A.3d 749, 2014 Pa. Super. 282, 2014 Pa. Super. LEXIS 4569, 2014 WL 7243146 (Pa. Ct. App. 2014).

Opinion

OPINION BY'

STABILE, J.:

Appellant James C. Markovsky, Executor of the Estate of James Markovsky, deceased, appeals from the September 11, 2013 order of the Court of Common Pleas *752 of Philadelphia County, which granted summary judgment in favor of Appellee Crown Cork & Seal Co. 1 For the reasons set forth below, we affirm.

I. BACKGROUND

On October 6, 2011, Appellant James Markovsky, now deceased, filed a complaint against, inter alia, Appellee alleging he contracted mesothelioma “caused by exposure to the asbestos products of Mun-det,” Appellee’s predecessor-in-interest. Complaint, 10/06/11, at ¶¶ lOad, 18. Specifically, Appellant alleged “he was exposed to asbestos fiber or asbestos products manufactured, sold, distributed, or otherwise placed'into the stream of commerce by [Appellee].” Id. at ¶ 11.

On June 25, 2013, Appellee moved for summary judgment against Appellant on the basis of, inter alia, 15 Pa.C.S.A. § 1929.1 (Section 1929.1), Act of December 17, 2001, P.L. 904, No. 101 (Act 101 of 2001 or Act 101), which in part provides:

(a) Limitation on successor asbestos-related liabilities.—
(1) Except as further limited in paragraph (2), the cumulative successor asbestos-related liabilities of a domestic business corporation that was incorporated in this Commonwealth prior to May 1, 2001, shall be limited to the fair market value of the total assets of the transferor determined as of the time of the merger or consolidation, and such corporation shall have no responsibility for successor asbestos-related liabilities in excess of such limitation.
(2) If the transferor had assumed or incurred successor asbestos-related liabilities in connection with a prior merger or consolidation with a prior transferor, then the fair market value of the total assets of the prior transferor, determined as of the time of such earlier merger or consolidation, shall be substituted for the limitation set forth in paragraph (1) for purposes of determining the limitation of liability of a domestic business corporation."
(d) Application.—
(1) The limitations set forth in subsections (a) and (b) shall apply to mergers or consolidations effected under the laws of this Commonwealth or another jurisdiction consummated prior to May 1, 2001.
(2) The limitations set forth in subsections (a) and (b) shall apply to all asbestos claims, including existing asbestos claims, and all litigation, including existing litigation, and shall apply to successors of a domestic business corporation to which this section applies.
(3) The limitations set forth in subsections (a) and (b) shall not apply to workers’ compensation benefits paid by or on behalf of an employer to an employee pursuant to the act of June 2, 1915 (P.L. 736, No. 338), known as the Workers’ Compensation Act, or comparable workers’ compensation law of another jurisdiction.
(4) The limitations set forth in subsections (a) and (b) shall not apply to any claim against a domestic business corporation that does not constitute a successor asbestos-related liability.
(5) This section shall not apply to an insurance corporation as defined in section 3102 (relating to definitions).
(6) The limitations set forth in subsections (a) and (b) shall not apply to any *753 obligations arising under the National Labor Relations Act (49 Stat. 449, 29 U.S.C. § 151 et seq.) or under any collective bargaining agreement.
(e) Definitions. — As used in this section, the following words and phrases shall have the meanings given to them in this subsection:
“Successor asbestos-related liabilities.” Any liabilities, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated or due or to become due, related in any way to asbestos claims, that were assumed or incurred by a domestic business corporation or foreign business corporation as a result of or in connection with a merger or consolidation, or the plan of merger or consolidation related thereto, with or into another domestic business corporation or foreign business corporation effected under the laws of this Commonwealth or another jurisdiction or which are related in any way to asbestos claims based on the exercise of control or the ownership of stock of such corporation prior to such merger or consolidation. The term shall also include liabilities which, after the time of the merger or consolidation as to which the fair market value of total assets is determined for purposes of subsections (a) and (b), were or are paid or otherwise discharged, or committed to be paid or otherwise discharged, by or on behalf of the corporation, or by or on behalf of a transferor, in connection with settle-, ments, judgments or other discharges in this Commonwealth or another jurisdiction.
“Transferor.” A domestic business corporation or foreign business corporation from which successor asbestos-related.liabilities are assumed or incurred.

15 Pa.C.S.A. § 1929.1(a),(d) and (e).

In Johnson v. Am. Standard, 966 A.2d 573 (Pa.Super.2009), in explaining the purpose of Section 1929.1, this Court remarked:

[Section 1929.1] limits the asbestos-related liability of Pennsylvania corporations when that liability arises from a merger or consolidation. In general, [Section 1929.1] caps the successor corporation’s asbestos-related liability at the fair market value of the prior company as of the time of the merger or consolidation....

Id. at 576 (cited only for background purposes), rov'd on other grounds, 607 Pa. 492, 8 A.3d 318 (2010).

On July 12, 2013, Appellant filed a response to Appellee’s summary judgment motion. In its response, Appellant argued, inter alia, that Section 1929.1 was unconstitutional because it violated Article III, Section 32 of the Pennsylvania Constitution, the dormant Commerce Clause under the United States Constitution, and the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution. 2 Additionally, Appellant argued the manner in which legislation containing Section 1929.1 was enacted was constitutionally flawed. Specifically, Appellant challenged the legislation on the basis of Article III, Sections 1 (original purpose) and 3 (single subject) of the Pennsylvania Constitution.

On July 17, 2013, Appellee filed a reply to Appellant’s response to the summary judgment motion, specifically contesting *754 Appellant’s constitutional arguments.

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107 A.3d 749, 2014 Pa. Super. 282, 2014 Pa. Super. LEXIS 4569, 2014 WL 7243146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/markovsky-j-v-crown-cork-seal-co-pasuperct-2014.