154 F.Supp. 141 (E.D.Pa. 1957), 24636, In re Embassy Restaurant, Inc.

Docket Nº:24636.
Citation:154 F.Supp. 141
Party Name:Matter of EMBASSY RESTAURANT, Inc., Bankrupt.
Case Date:June 28, 1957
Court:United States District Courts, 3th Circuit, Eastern District of Pennsylvania

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154 F.Supp. 141 (E.D.Pa. 1957)

Matter of EMBASSY RESTAURANT, Inc., Bankrupt.

No. 24636.

United States District Court E.D. Pennsylvania.

June 28, 1957

Nathan I. Miller, Philadelphia, Pa., for trustee.

Richard H. Markowitz, Philadelphia, Pa., for Local 111 and Local 301 Welfare Trust Funds.

Harold K. Wood, U.S. Atty., Philadelphia, Pa., Louis C. Bechtle, Asst. U.S. Atty., Philadelphia, Pa., for United States.

WELSH, District Judge.

This case is before the Court on a petition for review of the disallowance by the Referee in Bankruptcy of certain priority wage claims filed on behalf of the employees of the Bankrupt by the Trustee of the Employees' Welfare Fund of Local Union 111 and by the Trustee of the Employees' Welfare Fund of Local Union 301.

On May 21, 1951, Embassy Restaurant, Inc., entered into a collective bargaining agreement with Local Unions 111 and 301, recognizing said Unions as the sole and exclusive collective bargaining representatives of the employees in all negotiations as to all matters of collective bargaining thereafter to be conducted. Said agreement contained provisions relating to hours, wages, vacations, holidays, seniority and other conditions of employment. Another provision of said agreement related to sick leave with pay for seven days each year which could be accumulated if not used to a maximum of twenty-one days.

In a supplemental agreement, dated January 1, 1953, the Employer and Local Unions agreed to make the provision in the agreement pertaining to sick leave ineffective. In its stead the Employer agreed to contribute certain sums for each employee to a Welfare Plan, the funds to be maintained and utilized to

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promote life insurance, weekly sick benefits, hospital and surgical benefits and other benefits for the employees.

Subsequently, on July 1, 1956, a collective bargaining agreement was entered into between Greater Philadelphia Restaurant Operators, Inc., acting on behalf of Embassy Restaurant, Inc., and other restaurants, and Local Unions 111 and 301 which provided for contributions to the Welfare Trust Funds of Local Unions 111 and 301.

The foregoing provisions were in effect at the time of the instant bankruptcy.

The Welfare Plans are administered pursuant to a formal written agreement and declaration of trust. Each trust provides that employee shall mean any employee in the...

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