New Company Must Shoulder Experience, Liability of Preexisting Business

An Ohio appellate court upheld the transfer of the outstanding workers’ compensation liability of an older company to a newly formed company in the same line of business, finding the two were "essentially the same employer" for insurance purposes. Slats and Nails Pallets Inc. was a wood pallet manufacturing business operating in East Sparta. David Fioretto was the company’s sole shareholder. The company was formed to take up the activity of a previous pallet business operating at the same location but became insolvent and was subject to a forced sale by the ...