Second Circuit Rules That Employer Cannot Use Asset Sale Exception to Avoid Withdrawal Liability Because Purchaser Had No Obligation to Maintain Same Number of Employee Hours of Pay

In HOP Energy, LLC v. Local 553 Pension Fund, No. 10-3889-cv, the Second Circuit affirmed a district court’s ruling that Plaintiff HOP Energy, LLC (“HOP”) could not use ERISA’s asset sale exception to avoid $1.2 million in withdrawal liability, because the purchaser was permitted under the purchase agreement to reduce the number of employee hours of pay and, consequently, the purchaser’s pension fund contribution obligation.

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