MI HB4601

Limits successor corporation liability for asbestos-related claims to the fair market value of the transferor's total gross assets at the time of merger or consolidation, adjusted annually by 1% plus the adjusted prime rate.

Applies to corporations that became successors before January 1, 1972 or are successors to such corporations, with the limitation lasting until cumulative paid liabilities exceed the adjusted asset value.

Excludes from liability limitations workers' compensation claims, non-successor liabilities, collective bargaining obligations, and successors that continued the asbestos business after merger.

Permits fair market value determination through going concern value, arm's-length purchase prices, intangible assets, or balance sheet values, and includes liability insurance coverage in the asset calculation.

Effective immediately upon enactment on April 11, 2012, applying to asbestos actions filed after that date or pending actions not yet at trial.