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Moriarty Ex Rel. Union No. 727 v. Hills Funeral

N.D. Ill.March 21, 2000No. 98 C 773Cited 4 times
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Case Details

Judge(s)
Shadur
Status — whether other courts must follow this ruling
Published
Procedural Posture — the stage the case had reached
summary judgment

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Outcome

Moriarty, as trustee of union pension and health/welfare funds, prevailed on summary judgment against Hills Funeral Home, Ltd. under the successorship doctrine, establishing that the successor corporation is liable for the predecessor's unpaid ERISA contributions.

What This Ruling Means

# Moriarty v. Hills Funeral Home: Court Ruling Summary **What Happened** Moriarty, representing a union's pension and health insurance funds, sued Hills Funeral Home, Ltd. over unpaid contributions. When a company changes ownership or structure, questions arise about who pays outstanding debts to worker benefit funds. Hills Funeral Home argued it shouldn't be responsible for money owed by the previous company. **What the Court Decided** The court ruled in Moriarty's favor, determining that the new company (successor corporation) is legally responsible for paying the pension and health insurance contributions the old company owed. The judge granted summary judgment, meaning the evidence was so clear that no trial was needed. **Why This Matters for Workers** This ruling protects workers' retirement and health benefits when companies change hands. It prevents employers from escaping their obligations to worker pension and health funds simply by restructuring or selling the business. Workers can rely on these benefits continuing to be funded even if company ownership changes.

This summary was generated to explain the ruling in plain English and is not legal advice.

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