Crutchfield v. Marine Power Engine Co.

KAUGER, J.;

¶1 The first impression issue presented is whether Marine Power Holding, L.L.C. (MP Holding), a successor company once-removed from Marine Power Engine, Inc. (MP Engine), is liable for a judgment taken against MP Engine. As a general rule, when one company sells or otherwise transfers all its assets to another company, the successor is not liable for the debts and liabilities of the seller. There are exceptions to the rule. In Pulis v. United States Elec. Tool Co., 1977 OK 36, ¶ 5, 561 P.2d 68, we delineated the exceptions as being applicable when:

1) an agreement exists to assume…