Purchaser in Corporate Buyout Can Escape Contractual Liability for Comp Claims

A federal appellate court ruled that a corporation that bought out a paper company was not liable for the company's active workers’ compensation claims. Case: Weyerhaeuser Co. v. Domtar Corp., No. 16-4159, 01/18/2018, unpublished. Facts: The Weyerhaeuser Co. sold its fine paper business to the Domtar Corp. in 2007 for $3.3 billion. Shortly thereafter, a dispute arose over which of the two companies was liable for paying the ongoing workers compensation claims of former Weyerhaeuser employees who had stopped working before the sale closed. In September 2008, representativ...