Pavlovscak v. Lewis

168 F. Supp. 839, 43 L.R.R.M. (BNA) 2297, 1958 U.S. Dist. LEXIS 3143
CourtDistrict Court, W.D. Pennsylvania
DecidedDecember 15, 1958
DocketCiv. A. 16096
StatusPublished
Cited by8 cases

This text of 168 F. Supp. 839 (Pavlovscak v. Lewis) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pavlovscak v. Lewis, 168 F. Supp. 839, 43 L.R.R.M. (BNA) 2297, 1958 U.S. Dist. LEXIS 3143 (W.D. Pa. 1958).

Opinion

McILVAINE, District Judge.

The plaintiff filed this action to enforce payments of an alleged pension due him from defendants. Service was made by delivering a copy of the complaint to W. Phillips Palmer, Assistant Administrator and person in charge of an office located at 605 Empire Building in Pittsburgh, Pennsylvania. The return of the United States Marshal also indicates that this was the place of business of the United Mine Workers of America Welfare and Retirement Fund. It also appears that the plaintiff issued a writ of foreign attachment and that was served upon the United States Steel Corporation and the Pittsburgh Consolidation Coal Company. The defendants thereafter filed a motion to dismiss the complaint alleging improper service of process, lack of jurisdiction and venue, and moved to quash return of service of summons and to quash the writ of foreign attachment. This matter came on for hearing and the counsel for the plaintiff advised the Court that he was not seriously pressing the writ of foreign attachment feeling that the service on the defendants was good and that he was interested in obtaining a judgment against the defendants rather than the garnishee.

The principal ground on which the defendants rely is that service was not made in accordance with Rule 4, Federal Rules of Civil Procedure, 28 U.S.C.A., or pursuant to any rule or law of the United States or the Commonwealth of Pennsylvania. They further take the. position that the jurisdiction and venue are lacking because this suit directly involves the administration of a trust of movables, the situs of which is located outside the Commonwealth of Pennsylvania.

From the facts as stipulated between the parties, it appears that the United Mine Workers of America Welfare and Retirement Fund of 1950 (hereinafter referred to as the Fund) was created by written instrument known as National Bituminous Coal Wage Agreement of 1950, between certain bituminous coal operators and the United Mine Workers of America. The agreement created was executed in Washington, D. C., and the fund was created on March 5, 1950. It is administered by three trustees appointed by the parties to the agreement. The trustees are: John L. Lewis, a citizen of the State of Illinois; Josephine Roche, a citizen of the State of California; and Charles A. Owen, recently deceased, was a citizen of the State of Florida. The trustees held meetings at the Fund’s office in Washington, D. C. They held two emergency meetings in the State of Florida. The principal assets of the Fund are personal property. Numerous residents of the Commonwealth of Pennsylvania receive pensions from the pension fund and as of June 30, 1956, over 61,000 retired miners were receiving pensions. Remittances from the operators are made to the Fund’s office in Washington, D. C. There are numerous operators in Pennsylvania who make payments into this fund. Between March 5, 1950, and June 30, 1956, over $832,000,000 has been paid into the fund by the operators and over $365,000,000 has been used for the payment of pensions during that same period of time. The Fund has 441 employees for administration of the fund and there are *841 42 employees in two area medical locations in Pennsylvania. ' The Fund has filed 62 suits in this court for failure of operators to remit the royalty payments due.

It is obvious that Pennsylvania is one of the leading coal production states in the United States and necessarily large amounts of royalties are earned, owed, and regularly collected by the Fund in Pennsylvania. Auditors of the Fund come into 'Pennsylvania to examine and audit the books of the operators. At the time of filing this suit, the defendants maintained a listing in the Pittsburgh telephone directory under the name, United Mine Workers of America Welfare and Retirement Fund, Empire Building, Express 1-1860, and it was in the Empire Building where the United States Marshal served' W. Phillips Palmer. The Fund frequently sends examiners into Pennsylvania to examine books of operators. It appears that after the Marshal served Mr. Palmer, notice of this suit was immediately given to officials of the Fund in Washington, D. C., by Mr. Palmer.

When monies are received in Washington, D. C., they go into a general account and then on a basis of statistical analysis the funds are allocated to the pension fund and to the administrative fund or account. The individual served, Mr. Palmer, is paid out of funds put into the administrative account which in turn comes out of the general fund and the general funds are distributed either to the pension fund or the administrative' account. It also appears that no accounting of the Fund’s activities has been filed in any court of the United States or in any United States Court.

With these facts in mind, we must now turn to resolving the basic question of whether the defendants’ motion to dismiss is well taken or not. The plaintiff maintains that there is good service of process under the law of Pennsylvania. The defendant, on the other hand, says that it is a trust and only a trust and that it can only be amenable to the laws of the District of Columbia. Though it calls itself a trust, we are not convinced that it is a trust in the strict sense of that word. It does rely on some cases in other jurisdictions that would; so indicate. See Van Horn v. Lewis, D.C, 1948, 79 F.Supp. 541, 545; Cf. Hobbs v. Lewis, D.C.1958, 159 F.Supp. 282, But the courts of Pennsylvania have recently held that this so-called trust is not a trust in the normal sense, but is rather an unincorporated association. They were aware of the decisions holding that jurisdiction in cases such as this rested solely in the District of Columbia. They as we are were impressed by the thought that the convenience of thousands of miners throughout the land should be considered. The decision of this Court was withheld pending the Pennsylvania Court’s decision. The parties to this proceeding were in agreement that the Pennsylvania decision would have great weight with this Court. The Superior Court of Pennsylvania made its decision in Stampolis v. Lewis, 1958, 186 Pa.Super. 285, 142 A.2d 348. Allocatur was refused by the Supreme Court of Pennsylvania on August 19, 1958. Mr. Justice Stewart in a recent opinion in the United States Court of Appeals for the Sixth Circuit before his elevation to the Supreme Court lends support to this thinking when he indicated that while this fund is in some respects similar to charitable trusts, it is not a true charitable trust. Lewis v. Benedict Coal Corp., 6 Cir., 1958, 259 F.2d 346, 355.

This Court not only feels that the views expressed by the Superior Court in the Stampolis case are controlling on this Court as interpreting the law of Pennsylvania, but we feel that it is a sound decision. In that case, it is obvious that the Superior Court rejected the defendants’ argument that they are a trust and found that the defendants are an unincorporated association under the Pennsylvania Rules of Civil Procedure. An association means an unincorporated association conducting any business or any activity of any nature whether for profit or otherwise under a common name. Pa.R.Civ.P. 2151, 12 P.S.Appendix. It is *842

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Leonardis v. Local 282 Pension Trust Fund
391 F. Supp. 554 (E.D. New York, 1975)
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228 F. Supp. 725 (D. Colorado, 1964)
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Harper v. Lewis
186 F. Supp. 285 (District of Columbia, 1960)
Pavlovscak v. Lewis
274 F.2d 523 (Third Circuit, 1960)

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Bluebook (online)
168 F. Supp. 839, 43 L.R.R.M. (BNA) 2297, 1958 U.S. Dist. LEXIS 3143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pavlovscak-v-lewis-pawd-1958.