Gilliam v. Hi-Temp Products Inc.

677 N.W.2d 856

260 Mich. App. 98

Lovall GILLIAM and Kansas Gilliam, Plaintiffs-Appellees, v. HI-TEMP PRODUCTS INC., Defendant-Appellant, and A Best Products Co., Adience Inc., A. J. Baxter Co., Allen Bradley Co. Inc., Alliance Machine Co., Allis Chalmers Product Liability Trust, Amchem Products Inc., A. P. Green Refractories Co., Argus Supply Co., Armstrong World Ind. Inc. Asbestos Claims Mgmt. Corp., Bw/Ip International Inc., Chicago Firebrick Co., Coon Devisser Co., Corhart Refractories Co., Crown Cork & Seal Co., Detrex Corp., Dresser Industries, Durabla Manufacturing Co., Durametallic Corp., Dynamic Seals Inc., Eaton Corp., F B Wright Co., Flexitallic Gasket Co. Inc., Foseco Inc, Freeport Brick Co., Furon Co., Gaf Corp., Garlock Inc., General Electric Co., General Refractories Co., Georgia Pacific Corp., Goodyear Tire & Rubber Co., Goulds Pumps Inc., Hercules Chemical Corp., Imo Industries Inc., Ingersoll-Rand Co., Itt Industries Inc, Kaiser Aluminum & Chemical, K & C Supply Inc., Kennedy Hydraulics, Manitowac Cranes Inc., Mcgraw Edison Co., Midland Ross Corp., Mobil Oil Corp., Morgan Engineering System, North American Refract Co., Owens Corning Inc., Plibrico Co., Quigley Co. Inc., Radiator Specialty Co., Rapid-American Corp., Rex/Roto Corp., Ric-Wil Inc., Rome Cable Corp., Rust International Inc., Sealite Inc., Siemens Corp., Southern Urethane & Packing, Standard Fuel Engineering, Stockham Valve & Fittings, Thiem Corp., United States Gypsum Co., Walworth Co., Westinghouse Electric Co., Witco Corp., York Rubber Co., and Michigan Medical Counsel, Defendants.

Charles R. Mullett and Phylliss Mullett, Plaintiffs-Appellees, and Michigan Medical Participants, Intervening Plaintiff, v. Hi-Temp Products Inc f/k/a Asbestos Specialties Co., Defendant-Appellant, and Acme Insulations Inc., Alexander Stafford Corp, Allis Chalmers Product Liability Trust, Amchem Products Inc f/k/a Benjamine Foster Co., A. P. Green Industries Inc f/k/a A. P. Green Refractories Co., Asbestos Claims Mgmt. Corp. f/k/a National Gypsum Co., Atlas Turner f/k/a Atlas Asbestos Co., Austin Co., Bay City Hardware Co., Goodrich Corp., Bw/Ip International Inc., Carborundum Co., Cement Asbestos Products Co. f/k/a Capco Pipe Co., Chemprene Inc., Chicago Firebrick Co., Coltec Industries Inc. f/k/a Colt Industries, Crane Co. f/k/a Crane Delaware Co., Crown Cork & Seal Co., Durabla Manufacturing Co., Durametallic Corp, Duro Supply Co., Edward Vogt Valve Co., Excelsior Inc., Flexitallic Gasket Co. Inc., Foster Wheeler Corp., Gaf Corp., Garlock Inc., General Electric Co., General Refractories Co., Goulds Pumps Inc., Harrison Piping Supply Co., Hollinger & Co., Ingersoll-Rand Co., Itt Industries Inc, Jennison Hardware Co., Lunkenheimer Co., Marlo Sealing Co. Inc., Martin Fluid Power Co., Northern Boiler & Mechanical, Parker-Hannifin Corp., Plibrico Co., Radiator Specialty Co., Rapid-American Corp, Riley Stoker Corp., Rockwell International Corp., Sealite Inc., Southern Urethane & Packing, Stockham Valve & Fittings, Sure Seal Products Co., United States Gypsum Co., Wickes Lumber Co., Witco Corp., Yarway Corp. f/k/a Yarmall Waring Corp., Allied Signal Inc., American Standard Inc., A. O. Smith, Borg Warner Corp., Brown Boveri Electric Inc., Carver Pump Co., Chicago Blower Corp., Coon Devisser Co., David Brown Union Pumps Co. f/k/a Union Steam Pump Co., Detroit Pump & Mfg, Dresser Industries, Dynamic Seals Inc., Eaton Corp., Faulkner Construction Co., Fel-Pro Inc., Furmanite American Inc., Furon Co., a/k/a Sepco Corp., Greene Tweed & Co., Hercules Chemical Corp., Honeywell Inc., Imo Industries Inc., Kaiser Aluminum & Chemical, Metropolitan Life Ins., Midland Ross Corp., Peerless Pumps, Pneumo Abex Corp., Standard Fuel Engineering, United States Mineral Prod., Westinghouse Electric Co., Witco Corp., and York Rubber Co., Defendants.

Mary G. Nelson, Personal Representative of the Estate of William E. Nelson, Plaintiff-Appellee, and Richard R Malone, Intervening Plaintiff, v. Hi-Temp Products Inc., Defendant-Appellant, and Alexander Stafford Corp., Allis Chalmers Product Liability Trust, American Radiator & Standard, American Standard Inc, A. P. Green Industries Inc., Arthur J Peacock & Co., Awmco Inc., Behler Young Co., Goodrich Corp. a/k/a B F Goodrich, Bigelow Liptak Corp., Bw/Ip International Inc., Chicago Blower Corp., Chicago Firebrick Co., Cleaver Brooks Co., Collins & Aikman, Coltec Industries Inc., Consumers Energy Co., Crown Cork & Seal Co., Daubert Chemical Co., Detrex Corp., Detroit Edison, Detroit Stoker Co., Dow Chemical Co., Dresser Industries, Durabla Manufacturing Co., Durametallic Corp., Duro Supply Co., Elof Hannson Inc., Evert Asbestos, Federal Mogul Corp., Ford Motor Co., Garlock Inc., General Electric Co., General Motors Corp, General Refractories Co., Goodyear Tire & Rubber Co., Goulds Pumps Inc., Greene Tweed & Co., Hollinger & Co., Hunter Hughes Inc, Imo Industries Inc., Ingersoll-Rand Co., Jay L. Angel Inc., J. O. Galloup Co., Kaiser Aluminum & Chemical, Lansing Board Of Water & Light, Melrath Gasket Inc., Metropolitan Life Ins., Midland Ross Corp., North American Refract Co., Northern Boiler & Mechanical, Parker-Hannifin Corp., Pfizer Inc., Plibrico Co., Quigley Co. Inc., Rapid-American Corp., Rex/Roto Corp., Richard Klinger Inc., Riley Stoker Corp., Rust International Inc., Sealite Inc., Southern Urethane & Packing, Standard Fuel Engineering, Townsend & Bottum Inc, United States Mineral Prod., Westinghouse Electric Co. and Witco Corp., Defendants.

Theodore N. Tompkins and Sharon Tompkins, Plaintiffs-Appellees, v. Hi-Temp Products Inc. a/k/a Asbestos Specialties Co., Defendant-Appellant, and A Best Products Co., Acme Insulations Inc., A. J. Baxter Co, Alexander Stafford Corp., Allis Chalmers Product Liability Trust, Amchem Products Inc. a/k/a Benjamine Foster Co., American Standard Inc, A. O. Smith, A. P. Green Industries Inc. a/k/a Green Refractories Co., Asbestos Claims Mgmt. Corp., Atlas Turner a/k/a Asbestos Co., Awmco Inc. a/k/a Asbestos Wood Mfg., Bay City Hardware Co., Beazer East Inc., Behler Young Co., B. F. Goodrich Co., Bigelow Liptak Corp., Bond Supply Co., Bw/Ip International Inc., Carborundum Co., Chicago Firebrick Co., Copes Vulcan Inc, Crane Co. a/k/a Crane Delaware Co., Detroit Pump & Mfg., Dresser Industries, Durabla Manufacturing Co., Durametallic Corp., Duro Supply Co., Dynamic Seals Inc., Ecolaire Inc., Edward Vogt Valve Co., Evert Asbestos, Federal Mogul Corp., Fisher Controls International, Flexitallic Gasket Co. Inc., Flintkote Co., Foster Wheeler Corp., Furmanite American Inc., Gaf Corp., Gage Co., Garlock Inc., General Electric Co., General Refractories Co., Goodyear Tire & Rubber Co., Goulds Pumps Inc., Greene Tweed & Co., Harrison Piping Supply Co, Hercules Chemical Corp, Hollinger & Co., Hunter Hughes Inc, Imo Industries Inc., Ingersoll-Rand Co., Itt Industries Inc., Jay L. Angel Inc., Jennison Hardware Co., J. O. Galloup Co., J. P. Stevens & Co. Inc., Kaiser Aluminum & Chemical, Lamons Metal Gasket Co., Marlo Sealing Co. Inc., Metropolitan Life Ins., Mobil Oil Corp., National Varnish Co., North American Refract Co, Northern Boiler & Mechanical, Owens-Illinois, Parker-Hannifin Corp., Plibrico Co., Quigley Co. Inc., Radiator Specialty Co., Rapid-American Corp., Richard Klinger Inc., Ric-Wil Inc., Riley Stoker Corp., Robertson Ceco Corp., Rockwell International Corp., Schad Boiler Setting Company d/b/a Schad Refractory Construction, Sealite Inc., Service Products Inc., Southern Urethane & Packing, Standard Fuel Engineering, Stockham Valve & Fittings, Sure Seal Products Co., David Brown Union Pump Co., Townsend & Bottum Inc., Turner & Newall PLC, United Conveyor Corp., United States Gypsum Co., Wickes Lumber Co., William Powell Co., Witco Corp., Yarway Corp. a/k/a Yarmall Waring Corp., and York Rubber Co., Defendants.

Docket Nos. 238102, 238224, 238341, 238375.

Court of Appeals of Michigan.

Submitted November 18, 2003, at Lansing.

Decided December 18, 2003, at 9:05 a.m.

Released for Publication March 5, 2004.

Goldberg, Persky, Jennings & White, P.C. (by James J. Bedortha and Lane A. Clack), Saginaw, for the appellees.

Plunkett & Cooney, P.C. (by Jeffrey C. Gerish), Bloomfield Hills, for the appellant.

Before: WHITBECK, C.J., and MARK J. CAVANAGH and MARKEY, JJ.

MARKEY, J.

In each of these consolidated appeals, defendant Hi-Temp Products, Inc., appeals by leave granted the trial court's order denying its motion for summary disposition. Hi-Temp argues that plaintiffs' claims of asbestos-related personal injury are barred by MCL 450.1842a¹ because they were filed beyond the one-year period allowed for the filing of claims after Hi-Temp published notice of its dissolution. We agree and reverse.

I. Summary of Facts and Proceedings

Hi-Temp sold asbestos products. Many individuals have claimed that their exposure to Hi-Temp's products caused asbestos-related diseases. They have sued Hi-Temp frequently and continuously since the mid-1980s. In 1992, Hi-Temp ceased active business operations. Its sole shareholder resolved on October 8, 1993, that Hi-Temp be dissolved and its assets distributed. On October 14, 1993, Hi-Temp filed a certificate of dissolution pursuant to subsection 831(b). The Bureau of Corporations and Securities stamped the certificate filed on October 25, 1993, thereby making the dissolution effective. Subsection 131(3); subsection 804(7); Freeman v. Hi Temp Products, Inc., 229 Mich.App. 92, 580 N.W.2d 918 (1998). Hi-Temp averred that it made a "complete distribution of its corporate assets" by selling its inventory and equipment, collecting its receivables, paying bills, and making provisions for the payment of its outstanding liabilities. It is undisputed that Hi-Temp made a final distribution of assets in the amount of $9,571.99. But it is also undisputed that from 1978 through 1985 Citizens Insurance Company provided Hi-Temp with products-liability insurance coverage, and that the...