Opinion ID: 1964947
Heading Depth: 1
Heading Rank: 6

Heading: Responsibility of Successor-in-Interest

Text: LTV claims that, as the second employer of Mozena, it is not liable for any of Mozena's hearing loss that occurred before it merged with J & L in 1974. The basis for LTV's argument is that, by eliminating the last injurious exposure rule for hearing loss injuries, Section 306(c)(8)(vi) of Act 1 made each employer responsible for the specific percentage of hearing loss it caused. LTV's entire argument rests on two questionable premises: (1) it did not start to employ Mozena until 1974 and (2) Mozena sustained a substantial amount of his hearing loss before 1974. [15] We agree with LTV and the Commonwealth Court that, for determining responsible parties for work-related hearing loss, Section 306(c)(8)(vi) has replaced the last injurious exposure rule with specific loss liability. Consequently, where there has been more than one employer, an employer may present evidence of the percentage of hearing impairment it caused to limit its responsibility for paying benefits. Section 306(c)(8)(vi) requires an employer to establish hearing impairment caused by a previous employer, or by nonoccupational factors, at or prior to the time of employment. This also generates a baseline for the new employer to calculate any future hearing loss. LTV had a full and fair opportunity to present evidence of its corporate history. A senior attorney, Mark Katz, testified about the mergers that culminated in the creation of LTV Steel Company. Finding Katz's testimony to be credible, the WCJ found that LTV Corporation completed its stock purchase of J & L by November of 1974. Katz testified that when LTV acquired J & L, LTV assumed all of the decision-making powers at the Aliquippa plant but continued to operate the facility under the J & L name, with the addition of the LTV name. In 1978, LTV acquired Youngstown. In 1981, LTV merged J & L with Youngstown, with J & L as the surviving company. In 1984, LTV purchased Republic and merged it into J & L, with Republic being the surviving entity. LTV then changed the name of Republic to LTV Steel Company. Katz conceded on cross-examination that, as the successor-in-interest of J & L, LTV assumed all of J & L's assets, as well as all of its liabilities, including workers' compensation claims existing at the time of the 1974 merger. LTV became responsible for paying all claims that arose before 1974. From Katz's testimony, the WCJ determined that LTV was the only employer responsible for the injuries suffered by Mozena. It is well established law in the Commonwealth that when corporations merge the surviving corporation succeeds to both the rights and liabilities of the constituent corporation. 15 Pa.C.S. § 1929; Berks County Trust Co. v. Kotzen, 326 Pa. 541, 192 A. 638, 639 (1937); Childers v. Power Line Equipment Rentals, Inc., 452 Pa.Super. 94, 681 A.2d 201, 212 (1996), alloc. denied, 547 Pa. 735, 690 A.2d 236 (1997). If we allowed a surviving company to deny responsibility for hearing loss caused by its predecessor, we would be sanctioning corporate restructuring as a means of escaping liability. We agree with the Commonwealth Court that such a result would not advance the humanitarian objectives of the Act. Thus, the Commonwealth Court committed no error of law in finding that there was substantial evidence for the WCJ to conclude that LTV was the sole employer of Mozena. [16] We will not disturb a determination by the WCJ based on substantial and competent evidence.