Daily Services LLC, an employment agency in Columbus, Ohio, owes nearly $3.5 million in unpaid workers’ compensation premiums to the Ohio Bureau of Workers’ Compensation, according to a ruling last week by the Ohio Supreme Court.

The court found the Columbus, Ohio-based firm “wholly succeeded” another firm, I-Force LLC, which owed the money. Both firms were owned by Ryan Mason; I-Force owed $3.5 million in unpaid premiums for the second half of 2008 when it closed in 2009.

During an audit of Daily Services, the Ohio Bureau of Workers’ Compensation ruled that Daily Services was the “successor-in-interest” to I-Force and responsible for paying the money. The bureau found I-Force’s permanent employees, leases and contracts were transferred to Daily Services the weekend before I-Force ceased doing business. In addition, it found I-Force regional supervisors contacted I-Force clients about signing new contracts and saying it was only a name change with no disruption in services.

Justice Sharon Kennedy wrote the dissent in the 4-3 ruling citing testimony that Daily Services captured only 34.7% of I-Force’s payroll and information that Daily Services took on 30% of I-Force’s customers. Because it did not receive all of I-Force’s customers, it did not “wholly” succeed the company, according to the dissent.

However, Kennedy wrote that the bureau could still pursue other means to get the money I-Force owed.

“This does not mean that I-Force can evade its liability under workers’ compensation law,” Kennedy wrote in the dissent. “However, rather than taking the shortcut of invoicing a separate corporate entity that received none of I-Force’s corporate assets other than the right to use the I-Force name, the BWC has to pursue other remedies to recoup the unpaid premiums from I-Force (or its owner, if it can pierce the corporate veil).”