Robinson v. Crown Cork & Seal Co., Inc.

335 S.W.3d 126, 54 Tex. Sup. Ct. J. 71, 2010 Tex. LEXIS 796, 2010 WL 4144587
CourtTexas Supreme Court
DecidedOctober 22, 2010
Docket06-0714
StatusPublished
Cited by122 cases

This text of 335 S.W.3d 126 (Robinson v. Crown Cork & Seal Co., Inc.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robinson v. Crown Cork & Seal Co., Inc., 335 S.W.3d 126, 54 Tex. Sup. Ct. J. 71, 2010 Tex. LEXIS 796, 2010 WL 4144587 (Tex. 2010).

Opinions

Justice HECHT

delivered the opinion of the Court,

in which Chief Justice JEFFERSON, Justice MEDINA, Justice GREEN, Justice WILLETT, and Justice LEHRMANN joined.

The issue we address in this case is whether a statute that limits certain corporations’ successor liability for personal injury claims of asbestos exposure violates the prohibition against retroactive laws [129]*129contained in article I, section 16 of the Texas Constitution1 as applied to a pending action. We hold that it does, and therefore reverse the judgment of the court of appeals2 and remand the ease to the trial court.

I

In 2002, petitioner Barbara Robinson (“Robinson”) and her husband, John, Texas residents, filed suit alleging that John, age 68, had contracted mesothelioma from workplace exposure to asbestos products. As often happens, John had used several such products over the course of his life, and the Robinsons sued twenty-one defendants, including respondent Crown Cork & Seal Co., alleging that they were all jointly and severally liable. With respect to Crown, the Robinsons claimed that during John’s service in the United States Navy from 1956 to 1976, he worked with asbestos insulation manufactured by the Mundet Cork Corporation, and that when Crown and Mundet merged, Crown succeeded to Mundet’s liabilities.

Crown has never itself engaged in the manufacture or sale of asbestos products.3 It manufactures metal bottle-caps, known in the industry as “crowns”, and other packaging for consumer goods. Crown and its affiliates have over 20,000 employees around the world, about 1,000 of whom work in Texas at facilities in Conroe, Sugar Land, and Abilene. In 2009, the parent company reported $1,193 billion gross profit on $7,938 billion net sales.4

In November 1963, Crown’s predecessor, a New York corporation with the same name, which was then the nation’s largest manufacturer of crowns, acquired a majority of the stock in Mundet, another New York corporation, which besides insulation, also manufactured crowns. Within ninety days, in February 1964, Mundet sold all its assets related to its insulation business. Two years later, in February 1966, the companies merged. In 1989, Crown’s predecessor was reincorporated as Crown, a Pennsylvania corporation.

Crown acknowledges that under New York and Pennsylvania law, it succeeded to Mundet’s liabilities, which, as pertaining to Mundet’s asbestos business, have been hefty. Over the years, Crown has been named in thousands of lawsuits claiming damages from exposure to asbestos manufactured by Mundet. While Crown acquired Mundet for only about $7 million, by May 2003 Crown had paid over $413 million in settlements, and Crown’s parent company estimated in its 2003 Annual Report that payments could reach $239 million more.5 Mundet’s aggregate insurance [130]*130coverage totaled $8,683 million.6

At first, Crown did not contest its successor liability to the Robinsons for any compensatory damages; consequently, the trial court granted the Robinsons’ motion for partial summary judgment on that issue. But about the same time, the Texas Legislature enacted Chapter 149 of the Texas Civil Practice and Remedies Code, which limits certain corporations’ successor liability for asbestos claims.7 Chapter 149 applies (with exceptions not relevant here) to “a domestic corporation or a foreign corporation that has ... done business in this state and that is a successor which became a successor prior to May 18, 1968”8 — a date by which, the Legislature appears to have thought, the dangers of asbestos should have been commonly known.9 For a covered corporation (again with some exceptions not relevant here), “the cumulative successor asbestos-related liabilities ... are limited to the fair market value of the total gross assets of the trans-feror determined as of the time of the merger or consolidation”,10 including “the aggregate coverage under any applicable liability insurance that was issued to the transferor ... collectable to cover successor asbestos-related liabilities”.11 This cap does not apply to a successor that continued in the asbestos business after the consolidation or merger.12 By restricting application of the cap to a corporation that had never engaged in selling asbestos products itself and had succeeded to an[131]*131other’s liability for asbestos claims at a time when the extent of that liability was not fully appreciated, the supporters of Chapter 149 intended to protect only what they called the “innocent successor”.

Chapter 149 contains a choice-of-law provision, making it applicable, “to the fullest extent permissible under the United States Constitution, ... to the issue of successor asbestos-related liabilities” in Texas courts.13 Furthermore, the Legislature made Chapter 149 applicable to all actions:

(1) commenced on or after the effective date of this Act; or
(2) pending on that effective date and in which the trial, or any new trial or retrial following motion, appeal, or otherwise, begins on or after that effective date.14

Because the Act of which Chapter 149 was part, House Bill 4, passed by more than a two-thirds vote in both the House and Senate,15 it took effect immediately on approval by the Governor,16 which occurred on June 11, 2003.

House Bill 4 was massive tort reform legislation, of which Chapter 149 was a very small piece — two pages of a 52-page bill.17 Chapter 149 was not included in the bill as filed but was added when the bill came to the House floor by an amendment offered by the bill’s sponsor. When asked which manufacturers “in particular” would be protected, the sponsor replied that he was “advised that there’s one in Texas, Crown Cork and Seal”.18 Although House debate on the whole bill took days, debate on Chapter 149 lasted just over an hour.19 Four unfriendly amendments,20 one of [132]*132which would have made Chapter 149 inapplicable to “successor asbestos-related liabilities that were assumed or incurred before [its] effective date”,21 all failed by wide margins. In the Senate, Chapter 149 was significantly revised but drew only one brief comment in that chamber, this observation by the committee chair as hearings commenced: “This, members, is the Crown Cork and Seal asbestos issue. What we have put in this bill is what I understand to be an agreed arrangement between all of the parties in this matter.”22

No legislative findings or statement of purpose accompanied Chapter 149. But after the conference committee report on House Bill 4 was adopted in the House, the sponsor inserted a “statement of legislative intent” in the House Journal, which did not mention Crown and explained the policy basis for Chapter 149 as follows:

A corporation is currently liable up to its total value for all injuries it causes.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hogan v. Southern Methodist Univ
74 F.4th 371 (Fifth Circuit, 2023)
Martin Cruz v. the State of Texas
Court of Appeals of Texas, 2023
Fire Protc Svc v. Survitec
18 F.4th 802 (Fifth Circuit, 2021)

Cite This Page — Counsel Stack

Bluebook (online)
335 S.W.3d 126, 54 Tex. Sup. Ct. J. 71, 2010 Tex. LEXIS 796, 2010 WL 4144587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robinson-v-crown-cork-seal-co-inc-tex-2010.