Edward Bintz, Douglas Pelley and Gregory Hughes
To explain the implications of a March 2016 US District Court decision in Sun Capital concerning two private equity funds’ joint and several liability for the withdrawal from a…
Abstract
Purpose
To explain the implications of a March 2016 US District Court decision in Sun Capital concerning two private equity funds’ joint and several liability for the withdrawal from a multiemployer pension plan by a bankrupt portfolio company.
Design/methodology/approach
Explains controlled group liability under Title IV of ERISA, strategies employed by private equity funds to avoid such liability, two earlier stages of the Sun Capital litigation, and the rationale for the current court decision. Makes observations.
Findings
The court held that two private equity funds were jointly and severally liable under Title IV of ERISA for multiemployer pension plan withdrawal liability incurred by a bankrupt portfolio company that was jointly owned by the funds based on the novel (and troubling) rationale that a “partnership in fact” existed between the funds, despite neither fund separately owning a sufficient percentage of the portfolio company to be exposed to joint and several liability under Title IV’s controlled group rules. The decision is disturbing because it marks a significant change in the law; it upsets longstanding strategies used by funds and other investors to insulate themselves from ERISA liabilities.
Originality/value
Expert analysis from experienced employee benefits and compensation lawyers.
Details
Keywords
Steven P. Camicia and Sylvia Read
In a qualitative study, 50 pre-service teachers were partnered with 50 elementary students to write each other in dialogue journals responding to texts on public issues. Based…
Abstract
In a qualitative study, 50 pre-service teachers were partnered with 50 elementary students to write each other in dialogue journals responding to texts on public issues. Based upon our analysis of the journals, written reflections from pre-service teachers, and interviews with the elementary teachers in the project, three findings emerged: student motivation for reading and writing increased, both types of students gained perspective consciousness, and elementary teachers found meaningful ways to integrate social studies with language arts. These findings suggest multiple avenues for future research surrounding dialogue journals, student engagement with public issues texts, and teacher education.