Successor Liability in New York: Suing an Acquiring Company for the Actions or Inactions of the Acquired Company

Our New York law office recently undertook a case in which we are alleging a company caused significant damage to the real property of our Client because of a tort by a defendant. However, the defendant company was acquired by another entity. In New York, the general rule is that a company that acquires on the “assets” of another is not liable for actions or inactions of this predecessor company. In many cases a acquirer shall merely purchase the assets of a company and not the company itself.  Thus, the company selling the assets shall continue as a company, often, without any assets or it shall windup it assets. This, often, leads to a situation in which this company may have outstanding liabilities that would have been recoverable, but for the sale of the assets of this company.   NY’s Successor Liability Rule In some cases, a plaintiff may sue the

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