Opinion ID: 374817
Heading Depth: 2
Heading Rank: 3

Heading: Express or Implied Assumption of Liability

Text: 26 Gee argues that a genuine issue of material fact exists whether HDN and Tennessee Gas Transmission expressly or impliedly assumed liability for Heyden's liability in the 1963 Plan of Reorganization. Giving Gee, as the non-moving party, all reasonable inferences from the record, we agree that Tenneco's documents raise a genuine issue here, and we reverse. 27 The Plan of Reorganization, submitted as Exhibit Two accompanying Tenneco's Motion for Summary Judgment, 6 contains a number of provisions pertaining to Heyden's preexisting liabilities and HDN's assumption of them. Paragraph 1.6 of the Plan embodied an agreement between the parties that all liabilities of Heyden were to be detailed in an attached Consolidated Balance Sheet, and that Heyden had incurred no liabilities which were not reflected in the balance sheet. 7 The balance sheet and other attachments to the Plan of Reorganization do not reflect any outstanding liability arising from the manufacture of Thorotrast. Tenneco argues that Paragraph 1.6 made HDN's assumption of liability expressly contingent upon the listing of such liability in the balance sheet, and that the Plan is susceptible to no other reasonable interpretation. 28 Paragraph 5.3 of the Plan, however, expresses HDN's assumption of liability in broader terms. That article reads: 29 Subject to the conditions set forth, from and after the Closing Date HDN shall assume and agrees to pay, perform and discharge all debts, obligations, contracts and liabilities of Heyden of any kind, character or description, whether accrued, absolute, contingent or otherwise (and whether or not reflected or reserved against on Heyden's Balance Sheet, books of account and records), all as the same shall exist at the Closing Date and any expenses thereafter incurred by Heyden in connection with its liquidation and dissolution and the redemption of its preferred stocks not elsewhere provided for herein; provided, however, that nothing contained in this paragraph shall relieve Heyden of its obligation under this Plan of Reorganization to distribute the shares of Tennessee common stock to the holders of Heyden's common stock in complete winding up and liquidation of Heyden. 8 (emphasis supplied) 30 It can be reasonably inferred from Paragraph 5.3 that HDN agreed to assume any and all liabilities of Heyden, regardless of the contents of the Consolidated Balance Sheet or other attachments. Paragraph 1.6 does not expressly limit HDN's assumption of liability, but merely affirms that all known liabilities were reflected on the balance sheet. We do not exclude the possibility that Tenneco's view of the Plan may prevail before the trier of fact. In reviewing a summary judgment, however, we have no choice but to reverse where we find the moving party's papers to be reasonably susceptible to conflicting interpretations. Accordingly, we reverse the grant of summary judgment on this issue and remand for further proceedings.