Explore the legal battle between a buyer and a seller’s union in this M&A case. Learn about the dispute, key legal arguments, and the importance of due diligence in asset purchases. September 4, 2019 M&A Stories Introduction: In this ongoing…
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Buyer Prevails in Successor Liability Dispute with Union After Asset Purchase
Posted in actual knowledge, constructive knowledge, successor liability, union liabilities Tagged with: asset purchase agreement, BAC Local Union 15 Welfare Fund v. Williams Restoration Company, Business asset sale, Buyer and seller union, Buyer's intent, Due Diligence in Acquisitions, Employee health insurance, Federal common law, Legal action in Kansas federal district court, M&A legal case, Successor liability dispute, Union contract, unpaid union contributions
Buyer’s purchase price may triple post-closing because of underfunded union pension plan
Seller was a wire-forming company. A collective bargaining agreement with the union representing its workforce obligated Seller to contribute to a multiemployer pension plan on behalf of the employees. In September 2013, after Seller determined that it could not stay…
Court finds that buyer of a California union skilled nursing facility had no constructive knowledge of seller’s multi-employer pension plan withdrawal liability
This is a follow up to a discussion of an earlier June court decision involving the same business buyer. http://www.mk-law.com/wpblog/buyer-of-a-california-union-skilled-nursing-facility-faces-multi-employer-pension-plan-withdrawal-liability-if-buyer-had-constructive-knowledge-of-the-potential-liability/ Buyer purchased a 99-bed skilled nursing facility located Santa Clarita, California from Seller through an asset purchase agreement that closed…
Court says asset buyer of business can sue seller for failure to disclose its union contract obligation
In this post-closing lawsuit, Unions comprised four jointly-managed multiemployer employee benefit plans. Seller was a Nebraska corporation which performed waterproofing, concrete and masonry restoration, and roofing services in Nebraska and the Midwest. Buyer was also a Nebraska corporation, performing commercial…
Buyer of a California union skilled nursing facility faces multi-employer pension plan withdrawal liability if buyer had constructive knowledge of the potential liability
Buyer purchased a 99-bed skilled nursing facility located Santa Clarita, California from Seller through an asset purchase agreement that closed on January 5, 2015. After the closing Buyer was sued by a multi-employer pension plan (union pension plan) for Seller’s…
Court finds that buyer of assets of a business with union employees is not alter ego of seller
This case is about a suit filed by a labor union to collect supplemental union dues from the buyer of the assets of a landscaping business which had union employees. The seller had been in business since 1988. Its sole…
Posted in alter ego, union liabilities
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