C&S Wholesale Grocers obtains summary judgment win in withdrawal liability case

Client(s) C&S Wholesale Grocers, Inc.

In a case of first impression in the courts within the Second Circuit, Jones Day represented C&S Wholesale Grocers, Inc. in obtaining summary judgment against a $64 million withdrawal liability claim brought against it by the NY State Teamsters Pension Fund. The pension fund sought to tag C&S under a successor employer theory with the withdrawal liability triggered by the Penn Traffic Corporation, which in 2010 liquidated in bankruptcy. In ruling on cross motions for summary judgment, the court found that none of the relevant factors under the substantial continuity doctrine to determine successor liability were satisfied, and dismissed the complaint.

NY State Teamsters Conf. Pens. & Retirement Fund v. C&S Wholesale Grocers, Inc., 5:16-cv-00084 (2nd Cir., Mar. 18, 2020)