Appeal from the Order of the Court of Common Pleas of Philadelphia County, Civil at No. 278, January Term, 1972.
James J. DeMarco, Philadelphia, for appellants.
Jerome A. Hoffman, Philadelphia, for appellees.
Cirillo,*fn* President Judge, and McEwen, and Montemuro, JJ.
[ 364 Pa. Super. Page 584]
This appeal lies from an Order granting appellees' motion for summary judgment.
The underlying cause of action finds its basis in the combination of the pension plans of the three companies whose (successive) corporate mergers produced what is now the Atlantic Richfield Co. (ARCO).
In January, 1966, Atlantic Refining Co. merged with Richfield Oil Corp., forming ARCO, and, at the same time combined the assets of the companies' employee pension plans into a single uniform plan. In July, 1969, the Atlantic Independent Union (AIU), pursuant to a collective bargaining agreement, ratified the new uniform plan. Also in 1969, Sinclair Oil Co. was added to the ARCO conglomerate and its pension fund too was incorporated into the ARCO uniform plan. This addition was approved by the union, again through collective bargaining procedures, in January 1970.
In January 1972, the first of two complaints in equity was filed, claiming that the assets of the original Atlantic Refining pension plan had been impaired or diluted by the consolidation.
[ 364 Pa. Super. Page 585]
This complaint, the Mitchum complaint,*fn1 was filed on behalf of the members of the Atlantic plan against ARCO and the plan trustees. A second suit, the Thompson complaint, was filed four months later in April, 1972 by AIU officers on behalf of the plaintiffs covered by the Mitchum complaint and, as well, the employees affected by the combination with the Sinclair Oil pension plan.
Both complaints alleged that the members of the Atlantic Refining Co. pension plan paid in more, proportionately, than the employees of Richfield or of Sinclair Oil, and that the intended result of the consolidation was to utilize the Atlantic plan assets to offset the shareholders liabilities to the Richfield plan. The Mitchum plaintiffs, a dissident faction of the AIU, then moved, successfully, to amend their pleading to incorporate an averment that the union officials who instituted the companion suit had conspired with Atlantic Refining Co. management to deprive employees of their pension rights.
On March 4, 1974, the trial court, in response to intervening motions, entered an order permitting: (1) the Mitchum plaintiffs to proceed as a class action; (2) a joinder of additional plaintiffs; and (3) joinder ...