Legal Question in Business Law in California

C corp lawsuit and pension fund protection

If a C corporation is sued and loses, can the winning party go after funds in the Corporation's pension fund?


Asked on 6/02/08, 2:04 pm

2 Answers from Attorneys

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: C corp lawsuit and pension fund protection

Unless the funds were placed in a separate not-ownership account, of a irrevocable trust, then, yes. Contact me direcly for some options.

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Answered on 6/02/08, 2:16 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: C corp lawsuit and pension fund protection

Corporate pension funds are normally in a separately-administered irrevocable trust, and cannot be tapped by the corporation's creditors. It is possible that some corporations have unwisely, and probably illegally, left money that should be in a pension fund commingled with other corporate funds, or continue to park the funds where they are still available for the corporation to use for other purposes at its whim. Such funds could be gone after successfully by judgment creditors.

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Answered on 6/02/08, 3:32 pm


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