IN A RECENT ruling, the district court for the Northern District of Illinois held that the federal common law of successor liability applied to a “top hat” retirement plan that was governed by the Employee Retirement Income Security Act of 1974 (ERISA). See Brend v. Sames Corp., 2002 U.S. Dist. LEXIS 12648 (N.D. Ill. 2002). While the ruling was made in the context of a motion for summary judgment and thus a ruling on the merits of the case has yet to be made, the case represents an extension of the doctrine of successor liability which suggests it would apply to any plan subject to ERISA. As discussed later, the factual setting in this case makes the application of the successor liability doctrine, an equitable doctrine, somewhat troubling.
Background
