Marshall
Insurance & Prepaid Benefits Trusts v. Marshall
Opinion
lead Opinion
Takasugi, J.
MEMORANDUM
This matter having come before this court for trial on January 28, 1981 through January 30, 1981, and thereupon having been submitted, this court now issues this Memorandum in lieu of findings of fact and conclusions of law pursuant to Rule 55 of the Federal Rules of Civil Procedure.
BACKGROUND
In November 1975, plaintiff Insurance and Prepaid Benefits Trust (“IBT”) was formed by Mr. Thomas Wilkie with Mr. Wilkie as trustee. IBT was formed pursuant to state law which required such a trust to be formed as a condition to the issuance of a group insurance policy. Said group insurance policy was sold by Insurance Benefits, Inc. (“IBI”), a company wholly owned by Mr. Wilkie.
In 1977, the 1975 trust document was redrafted, resulting in the division of the single trust into five successor trusts established by five separate trust agreements. 1 Collectively, the five successor trusts are referred to as IBT. The new trust documents provide for a Benefit Committee to serve as trustees and supervise the operation of IBT. 2 By contract between IBT and IBI, IBI was retained as the contract administrator of IBT.