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Case Law Update: Product Liability in Bankruptcy

DiGuilio v. Goss International Corporation, No. 1-07-1584, (4-30-09) affirmed that a defendant corporation, which purchased the assets, but not liabilities, of bankrupt manufacturer of printing press, which allegedly was defective, causing plaintiff’s injuries, is entitled to summary judgment dismissing plaintiff’s product liability and negligence complaint; because bankruptcy judge approved sale as arms length transaction, pursuant to Section 363 of Bankruptcy Code, and plaintiff has not proved any exceptions to non liability of successor corporation. This case will have an effect on product liability cases.