What This Statute Says
Asbestos claims sometimes arise four or more decades after the relevant corporate merger. Without an inflation adjustment, the original cap would lose value over time. This section adjusts the cap annually based on the prime rate plus a fixed component.
A. Except as provided in subsections B, C and D of this section, the fair market value of total gross assets at the time of the merger or consolidation shall increase annually at a rate equal to the sum of the following:
A.R.S. § 12-559.3When This Statute Comes Into Play
This adjustment matters when:
- A long-latency asbestos claim is brought decades after the relevant merger.
- A successor corporation calculates its remaining cap exposure for accounting or settlement purposes.
- A court must determine the current dollar value of the cap as of a particular claim's resolution.
What This Means for Arizona Families
The annual adjustment in this section is one of the reasons asbestos plaintiffs still find meaningful recovery from successor corporations even when the underlying merger happened thirty or forty years ago. The cap grows with time, ensuring that today's dollar values reflect the original asset base in real terms.
For families pursuing asbestos claims tied to long-ago corporate transactions, this section ensures that the cap defense does not become a backdoor to artificially small recoveries. Our FAQ on starting probate after death in Arizona covers the related administration steps. An Arizona probate attorney working with an asbestos specialist can calculate the current adjusted cap value and project how it will look at trial. Pairing the wrongful death claim with any special needs trust structure for surviving family members preserves both the inflation-adjusted recovery and any ongoing public benefits eligibility for those affected by the asbestos disease in the family.