Werschkull

Plaintiffs, who are participants in an employees’ pension plan, brought this class action against defendant United California Bank (UCB), trustee of the plan, to obtain a judicial declaration that UCB’s 1962 amendment to the plan and its conduct pursuant to that amendment had resulted in a wrongful diversion of pension trust funds. It was also alleged that UCB had fraudulently concealed from plaintiffs the existence of the 1962 amendment and the wrongful actions taken pursuant to said amendment. In addition to declaratory relief, plaintiffs sought an accounting, the restoration of all wrongfully diverted pension trust funds, and a judicial decree for an increase in plaintiffs’ pensions or other suitable distribution of funds to plaintiffs. Plaintiffs also prayed for compensatory damages, attorney’s fees, and punitive damages based upon UCB’s fraudulent concealment of the facts.

Pursuant to the agreement of the parties and the pretrial conference order, the issues were trifurcated for trial. The first phase of the trial was held before the court, sitting without a jury. The issue to be decided at this phase of the trial was whether the 1962 amendment to the pension plan…