(Mid-America Pension Rights Project): 7th Circuit orders closer scrutiny in union pension fund suit

Via The Indiana Lawyer

By Dave Stafford

A federal judge in Indianapolis has been ordered to take a closer look at whether a successor company can be held liable for money allegedly taken from a union pension benefit fund.

The 7th Circuit Court of Appeals remanded for a second time a ruling in favor of Indianapolis-based ManWeb Services, Inc., the defendant in a suit brought by the Indiana Electrical Workers Pension Benefit Fund. The pension fund claims ManWeb’s predecessor, known as Freije, withdrew from the pension fund and owes a liability of $661,978.

The union sued ManWeb as a successor in interest, but District Senior Judge Sarah Evans Barker granted summary judgment in favor of ManWeb, concluding the fund had not shown sufficient continuity of service to support successor liability.

Read the full article.

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