Successor Company Could be Liable for Pension Payments
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Successor Company Could be Liable for Pension Payments

A pension fund sued to recover unpaid pension payments required under a collective bargaining agreement between a union and a company from which the defendant had purchased its assets.  The plaintiff alleged the successor company was owned by the son of the owner, consequently it was liable for unpaid pension payments under theories of successor liability and alter-ego. The successor company had acquired customers of the company, hired its employees and completed jobs started by it. Reversing the district court’s ruling that the two companies were too distinct to impose liability for unpaid pension payments under either theory, the appellate court pointed to a triable issue that on the day a $196,940.73 judgment regarding the pension payments had been entered against the company, the successor company had registered as a Missouri LLC and began work on jobs originally given to the company using its employees, including the new owner’s father. Consequently the court surmised the finder of fact could conclude both common ownership and control between both entities.

McCleskey v CWG Plastering LLC