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PORTER v. TEAMSTERS HEALTH

July 1, 1970

James Porter et al., Plaintiffs
v.
Teamsters Health, Welfare And Life Insurance Funds Of Philadelphia And Vicinity et al., Defendants


Body, D. J.


The opinion of the court was delivered by: BODY

BODY, D. J..

 These two class actions concern The Teamsters Health and Welfare Fund of Philadelphia and Vicinity and The Teamsters Pension Trust Fund of Philadelphia and Vicinity. Plaintiffs are members of different Teamster-affiliated Locals and beneficiaries under the plans; the trustees and the fund entities are the named defendants.

 The trust funds here involved are typical of those frequently established by employers and unions for the benefit of employee union members. Their terms provide that participating employers shall contribute to each fund a fixed amount per week for each employee on their respective payrolls. As is customary, the trustees are charged with administering the funds and paying claims in accordance with an established schedule of benefits.

 Trust fund benefits are payable to beneficiaries only in the event and to the extent that their respective employers have contributed to the fund.

 In essence the two complaints allege the following:

 
(1) The defendants have failed to provide an annual statement of the exact amount of overdue employer contributions and to account for their non-collection;
 
(2) The defendants have refused to allow plaintiffs to inspect the records of the funds and to supply them with requested information relating to the status and collection of overdue employer contributions;
 
(3) Defendants have combined and conspired to divert monies of the funds to the personal use of the trustees, their associates and various delinquent employers;
 
(4) The funds have been administered otherwise than in the best interests of the beneficiaries;
 
(5) Defendant trustees have received unlawful compensation for their services;
 
(6) Defendants have willfully made false and misleading statements about the funds.

 By way of relief, plaintiffs seek the appointment of an auditor, an accounting, and injunctive relief directed to the institution of proceedings to collect overdue contributions.

┬áDefendants have moved to dismiss, asserting that this Court lacks subject matter jurisdiction. Plaintiffs allege that jurisdiction exists under Section 302 of the Taft-Hartley Act of 1947, as amended, 29 U.S.C. ┬ž 186 and the Disclosure of ...


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