Lockheed Martin Corp. v. Retail Holdings, N.V. (Second Circuit)
The parties in this case disputed ownership of an overfunded pension plan originally created by The Singer Corporation. In the 1980s, Singer split its business into two entities, one focusing on sewing machines and furniture, the other focusing on aerospace technology. Retail Holdings, N.V. eventually acquired the sewing and furniture business, and our client, Lockheed Martin Corp., acquired the aerospace business. The district court concluded that the agreement splitting the two companies was ambiguous as to which company retained ownership of the pension plan and, based on Lockheed’s history of managing the plan, concluded that Lockheed retained ownership. The Second Circuit ultimately reversed.