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First Circuit Reverses Finding of Controlled Group Pension Liability
Morgan Lewis Dec. 12, 2019 "Notably, the First Circuit, in overruling the prior district court decision, did not go so far as to hold that companies' choice of organizational structures will be respected in all cases. Rather, it looked to an eight-factor test that had previously been adopted by the 1964 US Tax Court case Luna v. IRS Commissioner and held that, in this particular situation, most of the Luna factors pointed away from supporting a finding that a partnership-in-fact had been created." [Sun Capital Partners III, LP v. New England Teamsters & Trucking Industry Pension Fund, Nos. 16-1376, 19-1002 (1st Cir. Nov. 22, 2019)] |
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