RulesofCivilProcedure.com Civil Procedure · Every State

§ 149.002.Applicability

Title 6. Miscellaneous Provisions · Chapter 149. Limitations in Civil Actions of Liabilities Relating to Certain Mergers or Consolidations · Last amended 2003 · Last verified August 29, 2026

In one sentenceSection 149.002 applies the cap to successors that became successors before May 13, 1968, and lists eight categories it does not touch.

Full Text of § 149.002

Text sizeJump to: (a) (b)

(a)The limitations in Section 149.003 shall apply to a domestic corporation or a foreign corporation that has had a certificate of authority to transact business in this state or has done business in this state and that is a successor which became a successor prior to May 13, 1968, or which is any of that successor corporation's successors, but in the latter case only to the extent of the limitation of liability applied under Section 149.003(b) and subject also to the limitations found in this chapter, including those in Subsection (b).
(b)The limitations in Section 149.003 shall not apply to:
(1)workers' compensation benefits paid by or on behalf of an employer to an employee under the Texas Workers' Compensation Act, Subtitle A, Title 5, Labor Code, or a comparable workers' compensation law of another jurisdiction;
(2)any claim against a corporation that does not constitute a successor asbestos-related liability;
(3)an insurance corporation, as that term is used in the Insurance Code;
(4)any obligations under the National Labor Relations Act (29 U.S.C. Section 151 et seq.), as amended, or under any collective bargaining agreement;
(5)a successor that, after a merger or consolidation, continued in the business of mining asbestos or in the business of selling or distributing asbestos fibers or in the business of manufacturing, distributing, removing, or installing asbestos- containing products which were the same or substantially the same as those products previously manufactured, distributed, removed, or installed by the transferor;
(6)a contractual obligation existing as of the effective date of this chapter that was entered into with claimants or potential claimants or their counsel and which resolves asbestos claims or potential asbestos claims;
(7)any claim made against the estate of a debtor in a bankruptcy proceeding commenced prior to April 1, 2003, under the United States Bankruptcy Code (11 U.S.C. Section 101 et seq.) by or against such debtor, or against a bankruptcy trust established under 11 U.S.C. Section 524(g) or similar provisions of the United States Code in such a bankruptcy proceeding commenced prior to such date; or
(8)a successor asbestos-related liability arising from a claim brought under Chapter 95, a common law claim for premises liability, or a cause of action for premises liability, as applicable, but only if the successor owned or controlled the premise or premises at issue after the merger or consolidation.
End

Plain-English Summary

An applicability provision with a historical cut-off and a long exclusion list.

Subsection (a) applies the limitations to a domestic or foreign corporation that has had a certificate of authority or done business in Texas and became a successor prior to May 13, 1968 — or is one of that successor’s own successors, in which case only to the extent of the limitation applied under the prior-transferor rule.

The 1968 date is the heart of the chapter. It confines the cap to mergers completed before asbestos liability was widely understood, when a corporation acquiring another had no way to price the risk it was taking on.

A merger after that date is outside the chapter entirely, on the reasoning that the acquirer could have known.

Subsection (b) lists eight exclusions, and they mark where the Legislature declined to protect successors:

Workers’ compensation benefits; any claim not constituting a successor asbestos-related liability; an insurance corporation; obligations under the National Labor Relations Act or a collective bargaining agreement; a successor that continued in the asbestos business after the merger; a contractual obligation existing at the chapter’s effective date resolving asbestos claims; claims in bankruptcy proceedings commenced before April 1, 2003 or against a section 524(g) trust; and premises liability claims, including under the independent contractor chapter, where the successor owned or controlled the premises after the merger.

The fifth and eighth are the principled ones. A successor that kept mining, selling or installing asbestos is liable for its own conduct, not an inherited liability — and so is one whose own premises exposed people after the merger.

Frequently Asked Questions

Which mergers does the cap cover?

Those where the corporation became a successor before May 13, 1968, when asbestos liability was not yet widely understood.

Does it protect a company that stayed in the asbestos business?

No. A successor that continued mining, selling, distributing, manufacturing, removing or installing asbestos products is excluded.

Does it cover premises liability?

Not where the successor owned or controlled the premises after the merger.

Does it affect workers’ compensation?

No. Workers’ compensation benefits are excluded from the limitations.

Amendment History

  • Added by Acts 2003, 78th Leg., ch. 204, Sec. 17.01, eff. June 11, 2003.
Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source