U.S. Labor Department lawsuits seek appointment of independent fiduciary for abandoned Dayton, Tennessee, profit-sharing plans

Archived News Release — Caution: Information may be out of date.

Atlanta - The U.S. Labor Department has filed complaints seeking to remove the plan fiduciary of the abandoned profit-sharing plans of Dayton Motor Express and Dayton Leasing of Dayton, Tennessee. The lawsuits, filed under the Employee Retirement Income Security Act, also ask the court to appoint an independent fiduciary to manage these plans.

“The law states that plans must be managed by employers or plan fiduciaries,” said Howard Marsh, director of the Employee Benefits Security Administration (EBSA) Atlanta Regional Office. “Our case is aimed at assuring that workers and their families have someone with authority to conclude plan business and distribute assets to eligible participants.”

The Dayton Motor Express plan currently has 32 participants and assets of approximately $2,161,249.

The Dayton Leasing plan currently has six participants and assets of approximately $217,894.

Filed in U.S. District Court in Chattanooga, Tennessee, the suits allege that Dayton Motor Express, Dayton Leasing and the companies’ president, Billy M. Welch, failed to terminate the profit-sharing plans and make distributions to participants when the companies ceased operations in 1994. The suits also charge that the companies failed to administer the plans and effectively abandoned them. As a result, participants have been unable to receive information about or gain access to their retirement accounts.

Employers and workers can reach the EBSA Atlanta Regional Office at 404.562.2156 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans.

In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Dayton Leasing; Civil Action No. 1:07-cv-00053)
(Chao v. Dayton Motor Express; Civil Action No. 1:07-cv-00054)

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Archived News Release — Caution: Information may be out of date.