Opinion ID: 1203285
Heading Depth: 1
Heading Rank: 3

Heading: The Creation of LG Philips Displays USA, Inc.

Text: In 2001, PENAC's parent company, the Netherlands-based Kobinklijke Philips Electronics N.V. (KPENV), in a transaction with Korea-based LG Electronics (LG), formed LG Philips Displays USA, Inc.(LGP). As part of the transaction, PENAC conveyed Philips Display's Ottawa facility, along with other assets and liabilities, to LGP, effective July 1, 2001. This conveyance included employee-related contract obligations and liabilities. According to defendants, as a result of KPENV's and LG's creation of LGP, Philips Display employees (including plaintiffs) who worked in Ottawa and Ann Arbor on the effective date of the sale immediately became employees of LGP. (Final Br. of Defs.-Appellees at 9-10.) LGP continued to operate the Ottawa facility, through the Ann Arbor office, with the same employees, CBA, and benefits plans. Defendants assert, however, that LGP employees left the PENAC-sponsored health insurance programs(s) that had applied to them during their employment with Philips Display, and were advised of that fact in writing both before and after the transaction. ( Id. at 10.) In all relevant aspects, the new health insurance plans resembled the Philips Display Plans. The plan documents stated that PENAC sponsored and administered the plan, though Warren T. Oates, Jr., Senior Assistant Secretary for PENAC, asserted that Philips PACE, an unincorporated office within PENAC, provided administrative services, for a fee, to LGP, and, under a Local Services Agreement, certain PENAC employees provided record-keeping services to LGP. (Oates Decl., J.A. at 150; Oates Supp. Decl., J.A. at 180 (These services included some record keeping, including enrollment forms in connection with retiree medical benefits provided by LGP.); see also, e.g., Grissmore Dep., J.A. at 647 ([W]hen we went into the joint venture July 1st, 2001, even though we used the same documents, we had our own separate plans.).) [5]