Teamster Beat

by | Jul 23, 2015 | News

ibtWhen IBT Local 726 dissolved in 2008, it left behind a 15-year lease agreement with intent to buy after 5 years in the hands of the real estate developer that purchased and developed the property at the union’s request. Local 726 transferred its entire membership, assets and liabilities (minus the lease agreement) to newly chartered IBT Local 700. Local 700 then informed the developer, who was left with an empty building unable to resell or re-let, that since it was different than Local 726, Local 700 was not responsible for the financial commitment made to the developer. They were wrong. Cook County Circuit Court Judge Raymond Mitchell “became the first Illinois court to apply the doctrine of ‘corporate successor liability’ to unincorporated labor unions.” Local 700 must pay $1,996,853 to the landlord in damages, plus legal fees and costs under the lease.

INK Newsletter

APPROACHABILITY MINUTE

GET OUR RETENTION TOOLKIT

PUBLICATIONS

Archives

Categories