By Daniel Wiessner A U.S. appeals court on Tuesday said a family trust created by the founder of auto parts maker Findlay Industries Inc before it collapsed in the wake of the financial crisis can be held liable for more than $30 million in unfunded pension liabilities owed to 11,000 former employees of the Ohio-based company.
A three-judge panel of the 6th U.S. Circuit Court of Appeals said that any trust or similar entity that leases property to a company with common ownership can be held liable for pension payments under the Employee Retirement Income Security Act of 1974. Every other federal appeals court to consider the issue has adopted the same standard, calling it the “categorical test.”
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