In re Krafft-Murphy Co., Inc.

Respondent was a former corporation that for several decade was involved in the business of plastering and spray insulating. Due to the nature of its business, Respondent had been subject to hundreds of asbestos-related tort suits. The corporation dissolved in 1999. Petitioners subsequently filed an action seeking the appointment of a receiver for Respondent based on the perceived existence of undistributed assets in the form of liability insurance coverage. After examining Delaware's corporate scheme of dissolution, the Court of Chancery granted Respondent's motion for summary judgment, holding (1) Respondent was not amenable to asbestos-related tort suits commenced more than ten years after its dissolution; and (2) consequently, under the circumstances, the insurance contracts were valueless, and therefore, the appointment of a receiver was unnecessary. View "In re Krafft-Murphy Co., Inc." on Justia Law