In Fiduciary Litigation, VEBA Trust Assets Were ERISA Plan Assets Resource ty...

In Fiduciary Litigation, VEBA Trust Assets Were ERISA Plan Assets Resource ty...

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  1. CIVIL ACTION NO. 11-5275 (E.D. Pa. Apr 03, 2014)
    LANGLAIS V. PENNMONT BENEFIT SERVS., INC. (IN RE REAL VEBA TRUST)
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    McLaughlin

    MEMORANDUM
    McLaughlin, J.

    The petitioners in Langlais v. PennMont Benefit Services, Inc., No. 11-5275 (E.D. Pa.), have filed for relief from the automatic stay of proceedings against a debtor in bankruptcy in order to seek partial release of the supersedeas bond funds posted by the respondents.

    I. Background

    The Langlais petitioners are the beneficiaries of employee benefit plans administered by the Langlais respondents, who are debtors in the related bankruptcy proceedings listed above. In September 2010, the respondents denied the petitioners' claim for death benefits under an employee benefit plan administered by the respondents. In September 2011, the American Arbitration Association issued an award in favor of the petitioners and against all respondents for $3.8 million, plus attorneys' fees. On July 11, 2012, this Court confirmed the arbitration award, but only against respondent PennMont Benefit Services, Inc. ("PennMont") in its capacity as plan administrator and only as to the corpus of the REAL VEBA Trust; the Court also entered judgment in the petitioners' favor and against PennMont in the amount of $3,800,000.00, plus attorneys' fees and costs.

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