- 5 - and deducted during 1993.3 The remaining amounts were paid by the other claimants. As relevant, the plan provided the following regarding payment of plan expenses: All reasonable costs, charges and expenses incurred by the Trustee in connection with the administration of the Fund and all reasonable costs, charges and expenses incurred by the Plan Administrator in connection with the administration of the Plan (including fees for legal services rendered to the Trustee or Plan Administrator) may be paid by the Employer, but if not paid by the Employer when due, shall be paid from the fund. The plan provided that the trustees did not guarantee the trust fund against investment loss, and that the trustees would be indemnified by petitioner, as employer, for any liability to which they might be subjected while acting as trustees. On August 31, 1993, Prudential and the claimants entered into a settlement agreement calling for a cash payment by Prudential of $2,302,324.58. This amount was allocated among the claimants in accordance with a collection factor applicable to each claimant.4 The plan's collection factor was approximately 15 percent, and it received $347,588 of the settlement proceeds. The collection factors of Sklar, Greenstein, and Scheer totaled 3The total litigation costs incurred during 1993 were $239,714. 4The claimants' attorneys allocated the settlement proceeds in accordance with an assigned collection factor which purportedly reflected the strength of each claimant's case.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011