DOL v. Custom Patio Rooms Inc.

Date of Action: Aug. 5, 2013

Name of Defendant: Custom Patio Rooms Inc.

Allegations: In 1996, Custom Patio Rooms Inc., a Pittsburgh, Pa.,-based company, established the Custom Patio Rooms Inc. profit sharing 401(k) plan for certain employees.  In 2003, the company established the Custom Patio Rooms Inc. union employee 401(k) plan for certain other employees. An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found that the plans had not been terminated nor the assets distributed to all of the participants and beneficiaries when the company ceased operations in or about 2009. As of July 15, 2013, the profit sharing plan had 22 participants and $155,745 in assets and the union plan had eight participants and $12,875 in assets.  

Resolution: A complaint was filed in federal court against the company by the Department of Labor on January 15, 2013.  Through this action, the department sought the removal of the company as a fiduciary with respect to the plans and appointment of an independent fiduciary with full authority to terminate the plans and distribute the assets to the participants and beneficiaries.  After the company failed to defend the case, the department moved on July 29, 2013, for a default judgment.  United States Magistrate Judge Robert C. Mitchell granted the department’s motion on August 5, 2013, appointing Metro Benefits Inc. as an independent fiduciary.

Court: United States District Court for the Western District of Pennsylvania

Docket Number: 2:13-cv-77-RCM 

U.S. Department of Labor materials are accessible at www.dol.gov.  The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.