Sullivan v. Running Waters Irrigation, Inc.

Dist. Ct. did not err in finding that two corporations that were established contemporaneously with debtor corporation’s closing were subject to successor liability under ERISA for purposes of payment of past due pension fund debt incurred by debtor corporation, where said corporations were substituted for debtor corporation under Rule 25(c) motion that was granted without hearing. Record showed that: (1) owner of substituted corporations was also official in debtor corporation and had notice of instant pension fund debt; (2) one substituted corporation hired five of six former employees of debtor corporation; (3) all three corporations operated out of owner’s home; and (4) there was continuity of business operations, where substituted corporations provided essentially same services to customers of debtor corporation. Fact that Dist. Ct. did not conduct evidentiary hearing prior to granting Rule 25(c) motion did not require different result.