8th Circ. Keeps Peabody On The Hook For Retiree Benefits
By Kathryn Brenzel
Law360, New York (August 21, 2013, 5:09 PM EDT) -- The Eighth Circuit on Wednesday said that Peabody Holding Co. LLC should foot the bill for benefits for some 3,100 retirees it assumed from Patriot Coal Corp., reversing a bankruptcy court's determination that because Patriot shed certain health care costs, its former parent company was also free from obligations.
At the center of the June appeal is an “amicable divorce gone awry,” or a dispute over certain terms of Peabody's separation from Patriot, specifically retiree benefits, according to Wednesday's decision. Retiree health care has been something...