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CCH® UNEMPLOYMENT INSURANCE — 9/19/14

Ohio court upholds rate determination for company that was successor in interest

After an asset purchase agreement, a company retained most of the prior company’s employees and operated from the same address. The review commission based its rate determination on evidence that the prior company transferred all of the property integral to its business to the new company, thereby establishing the new company as a successor in interest by operation of law. The court rejected for lack of specific evidence the company’s argument that it was not a successor in interest by operation of law because the prior company did not transfer its works in progress accounts receivable or funds payable to the seller for work relating to customer transactions which had not closed by the effective date. Thus, the lower court’s opinion that the company was a successor in interest was affirmed (Resource Title National Agency, Inc. v. ODJFS, Ohio Ct. of App., Tenth District, No. 14AP-39, August 7, 2014).