By: Daily Record Staff//July 27, 2015
By: Daily Record Staff//July 27, 2015//
U.S. Court of Appeals for the Second Circuit
ERISA
Commonly Controlled Business – Withdrawal Liability
UFCW Local One Pension Fund v. Enivel Properties, LLC
14-3741-cv(L)
Judges Wesley, Livingston and Chin
Background: The plaintiffs commenced an action under the Employee Retirement Income Security Act seeking to recover withdrawal liability assessment of a business under common control with the defendant Enivel. The district court held that the defendant was not a “trade or business” and that withdrawal liability did not attach.
Ruling: The Second Circuit affirmed. The court held that a separate business organization cannot be held responsible for the liabilities of another commonly controlled entity under ERISA as amended by the Multiemployer Pension Plan Amendments Act.
Jeffrey S. Swyer, Barry S. Slevin, and Paul E. Knupp III of Slevin & Hart for the plaitniffs-appellants; Glenn E. Pezullo and William S. Levinson of Culley, Marks, Tanenbaum & Pezzulo for the defendant-appellee