The South Carolina Supreme Court has issued a major decision in Tibbs v. Asbestos Corp. Limited, allowing continuation of claims seeking to hold Cape Intermediate Holdings Limited liable for sales of raw asbestos. This holding clears the way for the continuation of a trial whereby the court-appointed receiver is seeking to hold ESAB Corp. (NYSE: ESAB) responsible for asbestos liabilities through veil-piercing theories tied to Cape Intermediate Holdings.
“Cape Asbestos was responsible for almost all of the amphibole asbestos imported into the United States,” said Trey Branham of Dean Omar Branham Shirley, counsel for plaintiffs John A. Tibbs and his wife.
“If ESAB Corp. is found to be responsible for that, it is an existential problem for ESAB. This opinion allows the court-appointed receiver to move forward in proving that case.”
The opinion upheld a pre-judgment receivership designed to pursue assets and claims allegedly tied to Cape’s asbestos liabilities.
Read the full opinion from the South Carolina Supreme Court here.
The receiver is pursuing claims alleging ESAB and others are the alter ego of Cape, a company long tied to asbestos litigation. Cape sold more than 95% of the type of asbestos commonly used in industry and on U.S. Navy ships starting in the early 1950s through the late 1970s. Mesothelioma, the fatal cancer at the center of many asbestos lawsuits, is caused by asbestos exposure.
Beyond asbestos litigation itself, the opinion raises broader questions about litigation exposure for multinational corporations operating through layered international corporate structures, Mr. Branham said.
“This ruling sends a clear message: Foreign corporations cannot hide behind international corporate structures to avoid accountability in American courts,” he said. “This is a consequential decision not only for asbestos litigation but for any case involving multinational corporations attempting to place assets, affiliates or decision-makers beyond the reach of U.S. courts.”
The case is Tibbs v. Asbestos Corp. Limited in the South Carolina Supreme Court. ESAB is a publicly traded manufacturing and industrial company listed on the New York Stock Exchange under ticker ESAB.
About Dean Omar Branham Shirley
Dean Omar Branham Shirley, LLP, is a nationally recognized trial firm that handles cases across the country for individuals who have suffered catastrophic injuries or have died as a result of irresponsible conduct of others. For more information, please visit http://www.dobslegal.com
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