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Ely, Attorney
Category: Business Law
Satisfied Customers: 102162
Experience:  Counselor at Law.
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I was a principle in a company in calif. retired in 2006

Customer Question

i was a principle in a company in calif. retired in 2006 with a retirement package. part of the package was medical coverage for "life" for my wife and myself. the company was sold recently to a major corporation. the new corporation would not honor the terms of contract from the original company. the company still operates under the original name , but under the new ownership. do i have any legal rites of claim against either for the failure to honor the terms of the retirement package ?
Submitted: 1 year ago.
Category: Business Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information only for educational purposes only, and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. Without getting into the enforceability of the terms of the contract, the answer is yes.

What happened was that the corporation essentially stepped into the shoes of the old company. In buying the old company, the corporation inherited all the rights and duties of the old company. Thus they are bound by the terms of that contract signed with that old company, and a breach of contract action is possible here, arguably.

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