Salcedo v. Cyprus Amax Minerals Company

Appellate Court of Illinois·Decided July 10, 2026·No. 1-24-2199·Published

Opinion

2026 IL App (1st) 242199

Nos. 1-24-2199 & 1-24-2273 (consolidated)

Opinion filed July 10, 2026 Sixth Division

IN THE

APPELLATE COURT OF ILLINOIS FIRST DISTRICT

STEPHANIE SALCEDO, Individually and as ) Administrator of the Estate of Theresa M. Garcia, ) Deceased, )

)

Plaintiff-Appellee, )

)

v. )

)

CYPRUS AMAX MINERALS COMPANY, ) Individually, d/b/a and as Successor-in-Interest to ) Sierra Talc Company, United Sierra Division of ) Cyprus Mines, Cyprus Industrial Minerals )

Appeal from the Circuit Court Company, Amoco Minerals Company, Cyprus )

of Cook County.

Georesearch Co., American Talc Company, ) Metropolitan Talc Company, Inc., Charles ) Mathieu, Inc., Imperial Products Co., Resources )

No. 20 L 004505

Processors, Inc. and Windsor Minerals, Inc.; ) CYPRUS MINES CORPORATION, ) Individually, d/b/a and Successor to Sierra Talc )

The Honorable

Company, United Sierra Division of Cyprus )

Patrick J. Sherlock,

Mines, Amoco Minerals Co., Cyprus Industrial )

Judge, presiding.

Minerals Co., and Cyprus Georesearch Co., a ) Wholly-Owned Subsidiary of Cyprus Mines Corporation and Successor to Charles Mathieu Inc., d/b/a Charles Mathieu & Co. and Chas. Mathieu Inc., American Talc Company Inc., Metropolitan Talc Company Inc., Imperial Products Co. Inc., and Resource Processors, Inc.; JANSSEN PHARMACEUTICALS, INC., Individually and as Successor-in-Interest to Johnson & Johnson Subsidiaries Named Johnson & Johnson Consumer Inc., Both Prior to and After Its 2021 Restructurings and Colloquially Known as “Old JJCI” and “New JJCI”;

JOHNSON & JOHNSON; JOHNSON & JOHNSON HOLDCO (NA), INC., f/k/a Johnson & Johnson Consumer Inc., Individually and as Successor-in-Interest to Johnson & Johnson Subsidiary “Old JJCI”; KENVUE INC., Individually and as Successor-In-Interest to Johnson & Johnson Consumer Inc.; LTL MANAGEMENT LLC; and REVLON, INC.

Defendants

(Johnson & Johnson; Johnson & Johnson Holdco (NA), Inc.; and Kenvue Inc.,

Defendants-Appellants).

JUSTICE HYMAN delivered the judgment of the court, with opinion. Justice Pucinski concurred in the judgment and opinion. Justice Gamrath concurred in part and dissented in part, with opinion.

OPINION

¶1 Theresa Garcia initiated litigation against Johnson & Johnson, alleging that its baby powder, which she used for nearly five decades, contained asbestos and caused her to develop mesothelioma, a rare and incurable cancer. Following Garcia’s death, her daughter, Stephanie Salcedo, as administrator of Garcia’s estate, pursued both survival and wrongful death claims.

¶2 After Salcedo sued, Johnson & Johnson created two new companies, Johnson & Johnson Holdco (NA) Inc. and LTL Management, LLC, to isolate its growing talc liability claims (Holdco and LTL, respectively). Holdco received the company’s assets, and LTL received the company’s liabilities, including talc claims. Johnson & Johnson also spun off its consumer health care products, including baby powder, into a third new company, Kenvue Inc. (Kenvue). Collectively, we refer to these defendants are referred to as “Johnson & Johnson.”

¶3 After a four-week trial, the jury returned a verdict for Salcedo, awarding $45 million for her and her siblings, including $30 million for Garcia’s claim brought under the Survival Act (755 ILCS 5/27-6 (West 2024)). The jury found Johnson & Johnson and Holdco each liable for 15% and Kenvue liable for 70%. In response to special interrogatories, the jury determined that Holdco and Kenvue were successors-in-interest to Johnson & Johnson, finding they were mere continuations of the company and continued to sell goods in the same product line.

¶4 The trial court entered judgment on the jury’s verdict and denied Johnson & Johnson’s motion for judgment notwithstanding the verdict, a new trial, or remittitur. The trial court later awarded Salcedo $2,657,835.92 in prejudgment interest. Johnson & Johnson appealed both orders separately, and we consolidated the appeals.

¶5 Johnson & Johnson contends it is entitled to (i) a remittitur of $30 million on the grounds that Illinois does not recognize damages for Garcia’s claim brought under the Survival Act, (ii) reversal or a new trial due to evidentiary rulings on three witnesses, which denied it a fair trial, and (iii) judgment notwithstanding the verdict, asserting that Kenvue and Holdco should not have been found liable under successor liability principles. Additionally, Johnson & Johnson challenges the constitutionality of the statute mandating prejudgment interest in personal injury and wrongful death cases (735 ILCS 5/2-1303(c) (West 2024)).

¶6 We affirm. The trial court correctly instructed the jury on damages for Garcia’s claim brought under the Survival Act and successor liability, and its evidentiary rulings did not deprive Johnson & Johnson of a fair trial. The injury at issue is not Garcia’s death itself but the injury she experienced before death. Further, section 2-1303(c) is constitutional.

¶7 Background

¶8 Theresa Garcia was diagnosed with mesothelioma in January 2020 when she was 52 years old. Garcia sued Johnson & Johnson and others, alleging they were negligent in selling talc- based products containing asbestos. After Garcia died in July 2020, the complaint was amended to allow her daughter, Stephanie Salcedo, as administrator of her mother’s estate, to bring claims under the Survival Act (755 ILCS 5/27-6 (West 2024)) and the Wrongful Death Act (740 ILCS 180/1 et seq. (West 2024)). The second amended complaint alleged wrongful death, successor liability, fraudulent misrepresentation, willful and wanton misconduct, strict liability, and breach of implied warranties.

¶9 Johnson & Johnson’s Restructuring

¶ 10 Facing rising talc litigation claims, Johnson & Johnson undertook a complex, multi-step corporate restructuring referred to as a “divisional merger” or a “Texas Two Step.” A Texas corporation can split into multiple successor corporations and divide its assets and liabilities among its successors as it sees fit. Tex. Bus. Orgs. Code Ann. § 10.001(a) (West 2015); Tex. Bus. Orgs. Code Ann. § 10.003 (West 2006). After the split, a creditor can generally only recover from the entity assigned its debt. Tex. Bus. Orgs. Code Ann. § 10.008(a)(3), (4) (West 2015). The successor company is not liable for its predecessor’s tort liabilities unless it expressly assumes liability. Id. § 10.008(a)(4)

¶ 11 Before the divisional merger, Johnson & Johnson Consumer, Inc. (Old JJCI), a New Jersey corporation and a subsidiary of Johnson & Johnson, manufactured Johnson & Johnson’s baby powder and was responsible for accompanying liability. Old JCCI’s parent company, Janssen Pharmaceuticals, Inc., also a New Jersey corporation, created Chenango Zero LLC, a Texas limited liability company. Old JCCI merged into Chenango Zero, effectively becoming a Texas company. Chenango Zero was then divided into Chenango One LLC and Chenango Two LLC.

Chenango One assumed Old JJCI’s talc liabilities and was renamed LTL Management, LLC. Chenango Two became known as Holdco and assumed Old JJCI’s assets. LTL and Holdco are incorporated in New Jersey. The divisional merger agreement provided that the transaction would be “governed by and construed in accordance with the laws of the State of Texas.”

¶ 12 Shortly after its creation, LTL filed for Chapter 11 bankruptcy, obtaining a stay of all talc litigation. The bankruptcy court denied the talc litigants’ motion to dismiss, but the Third Circuit reversed, holding that LTL had $61.5 billion in assets and could “comfortably” meet its future liabilities. In re LTL Management, LLC, 64 F.4th 84, 108 (3rd Cir. 2023). Hours later, LTL filed for bankruptcy again after reaching a settlement agreement with numerous talc claimants. The bankruptcy court, however, dismissed the case, and the Third Circuit affirmed. In re LTL Management LLC, Nos. 23-2971, 23-2972, 2024 WL 3540467 (3rd Cir. July 25, 2024).

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