News & Analysis as of

Successor Liability Employee Retirement Income Security Act (ERISA)

Tucker Arensberg, P.C.

Case Alert: Court Holds that “There is No Third Element for ERISA Successor Liability.”

Tucker Arensberg, P.C. on

Successor liability is a powerful collection tool for multiemployer plans under ERISA. It most commonly arises in the context of asset sales (although it is not limited to that situation)....more

Jackson Lewis P.C.

Don’t White-Knuckle Withdrawal Liability

Jackson Lewis P.C. on

It’s no secret that the statutory deck under ERISA is stacked heavily in favor of multiemployer pension plans (MEPPs) and against employers contributing to (or withdrawing from) Taft-Hartley trust funds....more

Littler

Second Circuit Finds No Successor Liability for ERISA Withdrawal Where Employer Did Not Acquire Unionized Facility or Employees

Littler on

On January 27, 2022, in New York State Teamsters Conference Pension and Retirement Fund v. C&S Wholesale Grocers, Inc., the Second Circuit joined the Third, Seventh, and Ninth Circuits in applying the doctrine of successor...more

Jackson Lewis P.C.

Successor Liability Claims Found Insufficient To Establish Federal Question Jurisdiction

Jackson Lewis P.C. on

As a general rule, an asset purchaser does not assume the seller’s liabilities, including its ERISA obligations. Courts, however, have formulated an exception to this general rule via the doctrine of successor liability. ...more

Jones Day

Assets May Be Sold in Bankruptcy Free and Clear of Successor Liability

Jones Day on

The ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to sell assets of the bankruptcy estate "free and clear" of "any interest" in the property asserted by a non-debtor is an important tool designed...more

Fisher Phillips

The “E” Is Not For Employer

Fisher Phillips on

When I speak with employers about the onerous obligations under ERISA and the court decisions that followed, I frequently tell them that the “E” in ERISA stands for “employee,” not employer. It’s good to keep this in mind...more

Bricker Graydon LLP

Sixth Circuit extends pension liability to asset purchaser’s family trust

Bricker Graydon LLP on

The Sixth U.S. Circuit Court of Appeals (Ohio, Kentucky, Tennessee and Michigan) recently expanded successor liability for an underfunded pension plan to an asset purchaser holding common control over assets purchased from...more

McGuireWoods LLP

Third Parties Face Pension Liability Under Controlled-Group and Successorship Theories

McGuireWoods LLP on

Pension funding obligations for Employee Retirement Income Security Act (ERISA) pension plans are not limited to the immediate employer and sponsor of the pension plan. A recent decision from the 6th U.S Circuit Court of...more

Seyfarth Shaw LLP

Suffering From Withdrawal Following An Acquisition: Private Equity Company Liable For Successor Withdrawal Liability

Seyfarth Shaw LLP on

Given the Ninth Circuit’s recent holding that successor withdrawal liability is governed by a constructive notice standard, private equity companies and other businesses seeking to acquire other enterprises should be...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ninth Circuit’s Expansion of Successor Liability May Make Asset Purchases More Costly

On June 1, 2018, the U.S. Court of Appeals for the Ninth Circuit ruled that an asset purchaser that was deemed a successor was liable to pay the seller’s withdrawal liability even though the purchaser did not have actual...more

Jackson Lewis P.C.

Multiemployer Pension Plans: Potential Successor Liability From Buyer’s Attempts To Continue Seller’s Business

Jackson Lewis P.C. on

The district court erred in finding a multiemployer pension plan did not show sufficient continuity of business operations to support imposing successor liability on an asset purchaser, the federal appeals court in Chicago...more

Epstein Becker & Green

Ninth Circuit Joins Seventh Circuit in Holding That Successor May Be Liable for Predecessor’s Withdrawal Liability

In Resilient Floor Covering Pension Trust Fund Board of Trustees v. Michael’s Floor Covering, Inc., 801 F.3d 1079 (9th Cir. Sept. 11, 2015), the U.S. Court of Appeals for the Ninth Circuit joined the Seventh Circuit in...more

Franczek P.C.

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

Franczek P.C. on

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

Dechert LLP

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

Dechert LLP on

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

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Dorsey & Whitney LLP

Monday Briefing

Dorsey & Whitney LLP on

Here’s your short-form Monday Briefing for the first week of October....more

Morgan Lewis

Asset Purchasers May Be Found Liable as “Successors”

Morgan Lewis on

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

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Proskauer - Employee Benefits & Executive...

Sixth Circuit Declines Deference to DOL and Enforces Venue Selection Clause

The Sixth Circuit recently held that a venue selection clause in an ERISA-governed pension plan was enforceable and, in so ruling, refused to give deference to the DOL’s contrary position. See Smith v. AEGON Cos. Pension...more

Genova Burns LLC

Employer Can Be Liable For Its Predecessor’s FLSA Violations

Genova Burns LLC on

The Third Circuit Court of Appeals recently held that an employer can be liable for its predecessor’s violations of the Fair Labor Standards Act. Thompson v. Real Estate Mortgage Network, No. 12-3828 (3d Cir. Apr. 4, 2014)....more

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