Successor Liability

News & Analysis as of

The NLRB Confuses with Ruling on Successorship Doctrine in Cases Where Worker Retention Laws Apply

When one company acquires another company with a unionized workforce, some key questions almost inevitably emerge: will the acquiring company be bound by the acquired company’s collective bargaining obligations and union...more

Employment Flash - October 2015

SEC Adopts CEO Pay Ratio Rule - The U.S. Securities and Exchange Commission (SEC) recently adopted a final rule requiring public companies to disclose the ratio of annual pay of their chief executive to median annual pay...more

Recent Seventh Circuit Decision Finds That Multiemployer Pension Withdrawal Liability Can Automatically Transfer to Asset...

In a recent decision that has important implications for purchasers of assets that come with a multiemployer union pension plan, the U.S. Court of Appeals for the Seventh Circuit held in Tsareff v. ManWeb Services, Inc., 794...more

The Meritas Guide To Employment Law On A Business Sale In Europe, Middle East And Africa - April 2015: France

1. DO EMPLOYEES AUTOMATICALLY TRANSFER TO THE BUYER WHEN A BUSINESS IS SOLD? Article L. 1224-1 of the French Labour Code states that “following a change to the employer’s legal status, in particular by succession, sale,...more

Global Private Equity Newsletter - Fall 2015 Edition: Buyer Beware – Court Lowers Hurdle to Make Claim for Withdrawal Liability...

In Tsareff v. ManWeb Services, Inc., the U.S. Court of Appeals for the Seventh Circuit held that an asset purchaser’s pre-closing knowledge of a seller’s potential multiemployer plan withdrawal liability could be sufficient...more

The Meritas Guide To Employment Law On A Business Sale In Europe, Middle East And Africa - April 2015: Czech Republic

1. DO EMPLOYEES AUTOMATICALLY TRANSFER TO THE BUYER WHEN A BUSINESS IS SOLD? In accordance with the Czech Labour Code, it is only permissable to change the rights and duties owed under an employment relationship by...more

The Ninth Circuit Hammers Out A New Successorship Liability Test Under The MPPAA

The Ninth Circuit, in Resilient Floor Covering Pension Trust Fund Board of Trustees v. Michael’s Floor Covering, Inc., Case No. 12-17675 (9th Cir. Sept. 11, 2015), joined the Seventh Circuit in finding that an asset...more

Seventh Circuit Continues to Apply Federal Successor Liability Doctrine to Multiemployer Pension Plan Withdrawal Liability

Regarding multiemployer pension plans, the U.S. Court of Appeals for the Seventh Circuit has long held that a purchaser can incur withdrawal liability in an asset transaction because of the federal successor liability...more

Better Late Than Never: The California Supreme Court Reverses Itself, Holding That Corporate Policyholders May Assign Insurance...

Asset purchase and sale transactions are a preferred structure for many corporate deals. For a variety of reasons, it may be prudent for businesses or product lines to be transferred through these transactions, and an asset...more

More Withdrawal Liability for Unsuspecting Business Owners

I recently blogged about a Seventh Circuit Court of Appeals decision that tagged a buyer of the assets of a company contributing to a multiemployer plan with withdrawal liability that the seller had not paid. A recent Ninth...more

NJ Appellate Division Reiterates Requirement That Arbitration Agreements Must Be Clear and Unambiguous To Be Enforceable

In two unrelated yet similar cases, the Superior Court of New Jersey, Appellate Division reiterated the requirements that arbitration provisions in employment agreements must be unambiguous, written in clear language, and...more

Asset Purchasers May Be Found Liable as “Successors”

Recent court decisions suggest that parties engaged in corporate asset sale transactions involving potential multiemployer pension plan liability should give extra consideration to the structure and terms of their...more

Mergers & Acquisitions Glossary

This Glossary contains many of the important terms and definitions used in the M&A world. The Glossary is not exhaustive, however. Like most areas of the law, M&A is a highly complex subject that involves several legal and...more

Is An Asset Purchaser Liable For Seller’s Withdrawal Liability?

Many asset buyers believe that, as long as they do not agree to ERISA Section 4204’s sale of assets exception to withdrawal liability, they will acquire the seller’s assets free and clear of any prior contribution history and...more

High Court Holds That Liability For Series Of FOS Complaints Did Not Transfer By Way Of Part VII FSMA Business Transfer Scheme

The court considered whether liability for a series of Financial Ombudsman Service (FOS) complaints had been transferred by way of an insurance business transfer scheme under Part VII of the Financial Services and Markets Act...more

Could Your Employees Be Eligible for FMLA Leave on Their First Day of Work? The Answer Could Be Yes

It would be easy for employers to assume that they need not worry about an employee’s eligibility for Family and Medical Leave Act (“FMLA”) leave until at least one year has passed since the employee began working for the...more

June 2015: Insurance Litigation Update

New York’s First Judicial Department Splits from Other Courts and Applies Common Interest Privilege to Communications Not in Anticipation of Litigation. Last December, the Appellate Division of the Supreme Court of New York,...more

The Foreign Corrupt Practices Act: At a Glance


Successor Liability for Discrimination Claims

Since most businesses are organized in a corporate form, the typical defendant in an employment discrimination lawsuit is a corporation. If a corporate defendant is dissolved during the course of the lawsuit and has few or...more

Licensed Insurance Companies Exempt from Maryland Income Tax

Are insurers licensed to do business in Maryland subject to state income tax on profits derived from sources other than insurance policy premiums? That was the question before the Maryland Tax Court in National Indemnity...more

A Look at the Friendly Foreclosure Option

When a debtor defaults on a loan secured by personal property, the secured lender has several options for repayment. One option is to sell the collateral securing the debt pursuant to Article 9 of the Uniform Commercial Code...more

Judge Protects GM Against Most, But Not All, Ignition Switch Claims

Judge Robert Gerber ruled last week that General Motors LLC (“New GM”), the entity formed in 2009 to acquire the assets of General Motors Corporation (“Old GM”), is shielded from a substantial portion of the lawsuits based on...more

Reminder for N.Y. Employers: Significant Labor Law Amendments Take Effect February 27

As we previously reported, the New York State Legislature last June passed a Bill, intended to revitalize the Wage Theft Prevention Act (WTPA), that proposed significant changes to the state’s labor laws. Among other things,...more

Illinois Court Finds Duty to Defend Underlying Toxic Tort Claims

In its recent decision in Ill. Tool Works Inc. v. Travelers Cas. & Sur. Co., 2015 IL App (1st) 132350 (Ill. App. Ct. 1st Dist. 2015), the Appellate Court of Illinois, First District, had occasion to consider whether an...more

Oil Price Decline: Positioning for Turnaround or Sale

As a reaction to the dramatic oil price volatility, many energy companies plan to streamline operations by reducing work force and shedding assets. Those who do so face tightening credit and decline in asset value that may...more

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