7th Circ. Ruling Poses Hurdle To Multiemployer Funds' Claims

Law360 (July 22, 2021, 3:00 PM EDT) -- A July 7 ruling from the U.S. Court of Appeals for the Seventh Circuit has potentially created a large loophole in multiemployer welfare and pension plans' ability to collect delinquent contributions from successor organizations or to impose withdrawal liability on successors.

Although the case, East Central Illinois Pipe Trades Health and Welfare Fund v. Prather Plumbing & Heating Inc.,[1] involved delinquent contributions rather than withdrawal liability, the court dismissed a claim involving delinquent contributions to multiemployer funds brought against an alleged successor entity based on a claimed absence of subject matter jurisdiction.

On first blush, the ruling seems to be contrary to...

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