HB180 Alabama 2011 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Jack Williams
Republican
Session: Regular Session 2011
Title: Asbestos claims, damages of successor corporations limited to fair market value of total gross assets at time of merger or consolidation
Summary: HB180 caps a successor corporation's asbestos liability at the fair market value of the transferor's total gross assets at the merger date, with defined methods, annual increases, and specific exceptions.
What This Bill Does
If enacted, it limits how much money a successor can owe for asbestos claims to the FMV of the transferor's assets at the time of the merger or consolidation. It allows FMV to be established by going-concern value, purchase price, or balance-sheet value, and it includes intangible assets and the transferor's liability insurance in that value. The FMV amount increases each year by the prime rate plus 1% (not compounded) until paid liabilities exceed the adjusted FMV, with some exclusions for insurance adjustments. There are several carve-outs from the cap (such as workers' compensation, certain insurers, non-successors, and certain ongoing asbestos-related businesses), and the act does not apply to civil asbestos actions whose trial has not started by the effective date.

Who It Affects
Successor corporations that have assumed asbestos-related liabilities; their liability is limited to the FMV cap calculated at the merger/consolidation date, with defined methods and annual increases.
Asbestos claimants (plaintiffs) and the workers' compensation system, who are affected by how damages are calculated under the cap, the inclusion of insurance in FMV, and the stated exceptions and timing rules.

Key Provisions
Liability cap and FMV: The total asbestos-related liabilities of a successor are limited to the FMV of the transferor's total gross assets at the merger/consolidation date. FMV can be determined by going-concern value, arm's-length purchase price, or balance-sheet value, and must include intangible assets and the transferor's liability insurance; FMV increases annually by the prime rate plus 1% (not compounded) until liabilities paid exceed the adjusted FMV; insurance adjustments are not applied to this FMV.
Exceptions and scope: The act preserves certain carve-outs (e.g., workers' compensation, claims against non-successors, insurers, National Labor Relations Act obligations, and some ongoing asbestos-related business activities by the successor) and does not apply to civil asbestos actions where trial has not commenced as of the effective date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Civil Procedure