7th Circ. Vacates Plumbing ERISA Ruling For Jurisdiction

Law360 (July 7, 2021, 7:44 PM EDT) -- The Seventh Circuit on Wednesday vacated a lower court's decision clearing a newly-formed plumbing company of a previous entity's judgment under the Employee Retirement Income Security Act, saying the case never belonged in federal court in the first place.

Two ERISA-covered employee benefit funds, the East Central Illinois Pipe Trades Health and Welfare Fund and the Plumbers & Steamfitters U.A. Locals 63/353 Pension Fund, had filed a federal lawsuit to hold Prather Plumbing & Heating Inc. liable for an ERISA judgment. They claimed Prather stepped into a predecessor family company's obligations and that the federal common law doctrine of successor liability...

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