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Pension Benefit Guaranty Corp. v. Ouimet Corp.
Citation:
630 F.2d 4 (1980)Facts
Emil Ouimet owned and controlled a group of corporations involved in shoe manufacturing, including Ouimet Corporation, Ouimet Stay & Leather Company, Ouimet Welting Company, Wareham Trust, Avon Sole Company, and Tenn-ERO Corporation. Avon maintained a pension plan for its hourly workers since 1959, which was consistently underfunded. When Ouimet purchased Avon, the underfunding was $92,000, but by March 25, 1975, when Avon closed its doors, the underfunding had increased to $552,339.64. Avon and Tenn-ERO filed for bankruptcy, and Avon notified PBGC of its intent to terminate the pension plan. PBGC determined that the entire Ouimet Group should be considered employers who maintained the plan and sought to hold them jointly and severally liable for the pension plan deficit.
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