U.S. District Court Holds Foreign Parent Subject to Personal Jurisdiction for its Bankrupt U.S. Subsidiary's Unfunded Pension Liabilities

On March 14, 2012, the United States District Court for the District of Columbia in Pension Benefit Guaranty Corp. v. Asahi Tec Corp., held that a foreign parent corporation with few U.S. contacts was subject to the Court’s jurisdiction in a suit to collect unfunded pension liabilities of the foreign parent’s bankrupt U.S. subsidiary. The memorandum discusses the facts and holdings of the case, analyzes the District Court’s reasoning and discusses the broader implications the decision potentially could have on foreign corporations acquiring U.S. subsidiaries with underfunded defined benefit pension plans.