Sklar, Greenstein & Scheer, P.C. - Page 5




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          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.                 




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