Seventh Circuit Rules in Favor of Pension Plan in Withdrawal Liability Case
Our firm was pleased to earn a favorable decision from the Seventh Circuit in Tsareff v. ManWeb Services, Inc. In that case, the Court found that successor liability's notice requirement may be satisfied by notice of contingent liabilities. The Seventh Circuit maintained that, in the absence of this new rule, a 'liability loophole' would exist: because withdrawal liability is ascertainable only after withdrawal occurs, plan sponsors would be foreclosed from imposing successor liability on asset purchasers if the seller's withdrawal occurred after the asset sale but would be able to do so (under Seventh Circuit precedent) if the seller's withdrawal occurred before the asset sale." [Tsareff v. ManWeb Services, Inc., No. 14-1618 (7th Cir. July 27, 2015)].