Recent Developments In Employee Benefits And Executive Compensation

Buyer (Of Assets) Beware?

A recent Third Circuit Court of Appeals opinion emphasizes how important it is to have an employee benefits ­attorney involved in the acquisition of a business. If a buyer purchases the stock of a business, the buyer obtains all of the assets and inherits all of the liabilities of that business, including any hidden liabilities. Therefore, many buyers choose to purchase assets and, sometimes, only liabilities that are specifically enumerated in the deal. In Einhorn v. M.L. Ruberton Construction Company (WL 182131), the Third Circuit Court of Appeals decided in a procedural case that a buyer of assets may be considered a successor in interest and, therefore, liable for the seller's delinquent contributions to a multiemployer defined benefit pension plan and a multiemployer health and welfare plan.