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Morgan Olson, LLC v. Frederico (In re Grumman Olson Industries, Inc.)

445 B.R. 243 (2011)

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Morgan Olson, LLC v. Frederico (In re Grumman Olson Industries, Inc.)

United States Bankruptcy Court for the Southern District of New York
445 B.R. 243 (2011)

Facts

Grumman Olson Industries, Inc. (Grumman), a manufacturer of truck parts, filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code. The bankruptcy court entered a sale order in which the buyer of Grumman’s assets was absolved of in personam liability for any claims arising before or as a result of the sale. In the ensuing sale, MS Truck Body Corp. purchased a significant portion of Grumman’s manufacturing assets. MS Truck Body was succeeded by Morgan Olson, LLC (Morgan) (plaintiff), which allegedly carried on Grumman’s business and benefited from its goodwill. Denise Frederico (defendant), a FedEx employee, suffered injury as a result of a defect in the FedEx truck she was driving. Denise and John Frederico (defendant) brought a state court action against Morgan, alleging that the truck had been manufactured by Grumman and that Morgan was liable as the company that continued Grumman’s product line. Morgan then commenced an adversary proceeding in the bankruptcy court, which retained jurisdiction to interpret and enforce the provisions of the sale order. Both sides moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Bernstein, J.)

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