Date: 08-25-1999

Case Style: Peter G. Apple v. Steven L. Apple

Case Number: 97-CV-0594(Sc)

Judge: Curtin

Court: United States District Court, Western District of New York

Plaintiff's Attorney: Diane C. Zarlock of Damon & Morey, L.L.P., Buffalo, New York

Defendant's Attorney: James W. Gresens and Patricia Gillen of Gresens & Gillen, L.L.P., Buffalo, New York, for defendants Steven L. Apple, Apple Rubber Products, Inc., and Apple Rubber Products, Inc., Profit Sharing Plan; Gregory P. Photiadis of Duke, Holzman, Yaeger & Photiadis, L.L.P., Buffalo, New York, for defendant Mary L. Apple

Description: Employee Retirement Income Security Act - E.R.I.S.A. - Breach of Fiduciary Duty - Peter and Mary Apple were married and founded Apple Rubber Products, Inc.. Peter and Mary later divorced and control of the company eventually resided with Mary and their son Steven Apple. Peter retained interest in the pension plan. Peter filed a lawsuit against Steven and Mary when his application for approval of a cash distribution of $1,375,000.00 in his 401K plan was denied by Steven, the trustee of the plan, on the basis that Steven felt Peter suffered from mental impairment and incompetence from a mental disorder. Peter alleged that defendants were in violation of the Employee Retirement Income Security Act ("ERISA"), 29 USC secs. 1001 et seq., for failing to give him the benefits to which he was entitled and for breach of fiduciary duty and failure to disclose information to him as required by law. He also alleged state law claims for defamation, libel, and slander for defamatory statements, for interference with contract, and for tortious interference with prospective economic benefit. The parties reached a settlement, under which Steven authorized the Plan to transfer the account to Peter under a rollover and Peter agreed to dismiss the ERISA claims with prejudice and the other claims without prejudice. The parties then proceeded to district court on the issue of Peter's entitlement to attorney's fees from all parties except Mary Apple.

Outcome: Plaintiff's Verdict - The court awarded plaintiff $25,656.00 for attorney's fees and $1,081.72 for costs and disbursements.

Plaintiff's Experts: Unknown

Defendant's Experts: Unknown

Comments: Reported at 66 F.Supp.2d 465 (W.D.N.Y. 1999). Reported by C.H.