International Ladies' Garment Workers' Union
Practice Area: Employee BenefitsBanyai v. Mazur, No. 00cv9806 (S.D.N.Y.)
Cohen Milstein Sellers & Toll PLLC represented a class of over 100,000 participants and beneficiaries of the ILGWU Death Benefit Fund. The lawsuit was filed against Jay Mazur, Ronald Alman and Edgar Romney (fiduciaries of the ILGWU Death Benefit Fund), the International Ladies’ Garment Workers’ Union (the “Union”), the ILGWU Death Benefit Fund (the “Fund”) and the 21st Century ILGWU Heritage Fund (the “Heritage Fund”). This action was entitled Banyai v. Mazur, No. 00cv9806 (S.D.N.Y.).
Summary of the Claims
The original Complaint alleged that the termination of the Fund had been unlawful and ineffective, and that the transfer of $77.5 million in assets of the Fund to the Union (of which $12.5 million was later transferred to the Heritage Fund) violated ERISA. The Complaint was later amended to allege that the governing documents of the Fund established it as “an irrevocable trust,” precluding the termination and transfer of assets challenged in the original Complaint.
History of the Litigation
In the course of the litigation, Class Counsel on behalf of plaintiffs successfully certified a Class, defeated a motion for summary judgment, conducted extensive discovery, and engaged in protracted settlement negotiations. On March 27, 2007, the court approved a partial settlement agreement with all Defendants other than the Heritage Fund, which provided for a benefit increase for beneficiaries of participant class members who have died or will die on or after December 1, 2002. A settlement agreement between the Plaintiffs and the Heritage Fund was approved by the court on December 4, 2008, which requires the payment of $6.1 million (net of expense) from the Heritage Fund into the ILGWU Death Benefit Fund. Implementation of the settlement agreements was held in abeyance pending an appeal which was dismissed on July 7, 2009. As a result of the settlement agreements, participants will receive a benefit increase of more than $900 with the possibility of larger increases in the future. Please note; however, that we anticipate that future increases under the settlement agreement will only apply to future deaths (i.e. if there is an additional increase calculated on the first anniversary of the settlement on July 7, 2010; we anticipate that the increase will only apply to deaths that occur sometime after July 7, 2010) although the effective date of any future increase will be determined by the trustee of the Fund. There is a seven year period following the effective date of July 7, 2009 where the benefits will be reevaluated on an annual basis, but any increases pursuant to the settlement agreement are dependent on the Fund’s assets and projected returns and projected liabilities as evaluated by an actuary. In addition, a class trustee has been appointed by the court to take office as one of the Fund’s trustees.
For More Information on the Case
If you have any questions regarding this action or the Settlement, please contact Cohen Milstein Sellers & Toll PLLC toll free at 1-888-685-0478.
If you have questions relating to the Fund including change of address or beneficiary, please contact:
Michael Hirsch
Amalgamated Life
333 Westchester Ave.
White Plains, NY 10604
Toll Free Number: 1-800-636-6159
Local Number: 914-367-5000