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Ninth Circuit Holds that Asset Sale Successor May be Liable for Predecessor Multiemployer Plan Withdrawal Liability without Assumption of Liability

The Ninth Circuit Federal Court of Appeals recently followed the Seventh Circuit?ÇÖs rule that a successor employer can be liable for a predecessor business?ÇÖs multiemployer pension plan withdrawal liability in an asset sale if the successor took over the business with notice of the liability. Generally, in an asset sale, a successor employer is liable for withdrawal liability if there is an express or implicit assumption of such liability in accordance with ERISA procedures. However, courts have imposed successor liability without an assumption where there is continuity of operations and notice of such liability. In Resilient Floor Covering Pension Trust Fund Board of Trustees v. Michael?ÇÖs Flooring Covering, Inc., the Ninth Circuit expanded upon the meaning of ?Ç£continuity of operations?Ç¥ and held that the most important factor in determining whether there is substantial continuity in the business operations is whether the successor has taken over the economically critical bulk of… Continue Reading

October 2015
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