HomeMy WebLinkAbout04-2628RICHARD VARMECKY,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
RITE AID CORPORATION; :
RITE AID PENSION PLAN, NORTHERN : CIVIL ACTION - LAW
TRUST COMPANY, Trustee; : JURY TRIAL DEMANDED
RITE AID 401(K) PLAN, NORTHERN TRUST :
COMPANY, Trustee; :
RITE AID 40t(K) DISTRIBUTION :
EMPLOYEES SAVINGS PLAN, NORTHERN :
TRUST COMPANY, Trustee; :
RITE AID CORPORATION 401(K) PLAN FOR :
COLLECTIVELY BARGAINED ASSOCIATES, :
NORTHERN TRUST COMPANY, Trustee; :
RITE AID CORPORATION COMPANY STOCK:
FUND, LASALLE NATIONAL BANK, Trustee, :
Defendants
NOTICE TO DEFEND AND CLAIM RIGHTS
You have been sued in Court. If you wish to defend against the claims set forth in
the following papers, you must take action within twenty (20) days after this Complaint
and notice are served, by entering a written appearance personally or by attorney and filing
in writing with the Court your defenses or objections to the claims set forth against you.
You are warned that if you fail to do so, the case may proceed without you and a judgment
may be entered against you by the Court without further notice for any money claimed in
the Complaint or for any other claim or relief requested by the Plaintiff. You may lose
money or property or other rights important to you.
RICHARD VARMECKY,
Plaintiff
RITE AID CORPORATION;
RITE AID PENSION PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID 401(K) PLAN, NORTHERN TRUST
COMPANY, Trustee;
RITE AID 401(K) DISTRIBUTION
EMPLOYEES SAVINGS PLAN, NORTHERN
TRUST COMPANY, Trustee; :
RITE AID CORPORATION 401(K) PLAN FOR :
COLLECTIVELY BARGAINED ASSOCIATES, :
NORTHERN TRUST COMPANY, Trustee; :
RITE AID CORPORATION COMPANY STOCK:
FUND, LASALLE NATIONAL BANK, Trustee, :
Defendants
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: NO.
:
:
: CIVIL ACTION - LAW
: JURY TRIAL DEMANDED
:
..
:
COMPLAINT
AND NOW, comes the Plaintiff, Richard Varmecky, by his attorney, Lawrence J.
Neary who respectfully represents as follows:
1. Plaintiff, Richard Varmecky, is an adult individual residing at 2428 Toffree
Drive, Harrisburg, Dauphin County, Pennsylvania 17112.
2. Defendant, Rite Aid Corporation, is a Delaware corporation, authorized to do
business in Pennsylvania with its corporate headquarters located at 30 Hunter Lane, Camp
Hill, Cumberland County, Pennsylvania 17011.
3. Defendant, Rite Aid Pension Plan, is a defined benefit pension plan
sponsored by the Rite Aid Corporation with Northern Trust Company of 50 South LaSalle
Street, Chicago, illinois 60675 designated as Plan Trustee effective April 1, 2003.
4. Defendant, Rite Aid 401 (k) Plan, is a defined contribution plan sponsored by
the Rite Aid Corporation with Northern Trust Company of 50 South LaSalle Street,
Chicago, Illinois 60675, designated as Plan Trustee effective April 1, 2003.
5. Defendant, Rite Aid 401(k) Distribution Employees Savings Plan is a
defined contribution plan sponsored by the Rite Aid Corporation with Northern Trust
Company of 50 South LaSalle Street, Chicago, Illinois 60675, as Plan Trustee effective
April 1, 2003.
6. Defendant, Rite Aid Corporation 401(k) Plan for Collectively Bargained
Associates, is a defined contribution plan sponsored by the Rite Aid Corporation with
Northern Trust Company of 50 South LaSalle Street, Chicago, Illinois 60675 designated
as Plan Trustee effective April 1, 2003.
7. Defendant, Rite Aid Corporation Company Stock Fund, is a defined
contribution plan sponsored by the Rite Aid Corporation with LaSalle Bank National
Association of 135 S. LaSalle Street, Chicago, Illinois 60603, designated as Plan Trustee
effective May 29, 2003.
8. At all times relevant hereto, Plaintiff was an appointed trustee of the
Defendant's Company sponsored 401 (k) Plans more specifically identified as follows:
Rite Aid Pension Plan
Rite Aid 401(k) Plan
Rite Aid 401(k) Distribution Employees Savings Plan
Rite Aid Corporation 401(k) Plan for Collectively Bargained Associates
Rite Aid Corporation Company Stock Fund
2
9. For the period from June 28, 2002 through April 1,2003 and May 29, 2003,
Plaintiff was the sole remaining named trustee of said Plans as a result of the
removal/withdrawal of the other previously designated trustees and Plaintiff performed all
of the duties and requirements of a Trustee until notified of his replacement as trustee by
correspondence dated July 14, 2003, a copy of which is attached hereto and marked
Exhibit A.
10. Said Plans provide in their establishing documents that the Plans' Trustees
shall be paid "reasonable compensation" for their services as a trustee for the Plans and
said compensation shall be paid from the respective Trust Funds or by the employer, the
Rite Aid Corporation, all of which are named Defendants herein.
11. For the period from June 28, 2002 through July 14, 2003, the Plaintiff
had advised the Defendant, Rite Aid Corporation, as the Plan sponsor for said Plans that
compensation was expected for his services rendered as trustee for the various Plans and
that he would resign from said position once a replacement trustee had been selected and
designated.
12. The Plaintiff was replaced as the trustee for the Rite Aid Pension Plan, Rite
Aid 401(k) Plan, Rite Aid Corporation Distribution Employees Savings Plan and the Rite
Aid Corporation 401 (k) Plan for Collectively Bargained Associates on April 1,2003 and the
Rite Aid Corporation Company Stock Plan on May 29, 2003.
3
13. The fee for the services rendered by the Plaintiff by and on behalf of the
Plans above mentioned, based on industry practice for said services, is $246,772.64 plus
accrued interest for non payment in a timely manner and said amount represents the
reasonable value of said services to the Defendants.
14. Demand has been made for payment which remains unsatisfied.
WHIEREFORE, Plaintiff demands judgment against the above named Defendants
in the amount of $246,772.64 plus interest and costs of suit.
Date: ~ /'7/~ ~-/
Respectfully Subm~.L~
,~tt'orney for Plair~ff
108 - 112 Walnut Street
Harrisburg PA 17101-1609
(717) 238-4798
(717) 238-4793 - Fax
Pa. I.D. No. 25827
4
VERIFICATION
I verify that the statements made in the attached Complaint are true and correct.
I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.
Section 4904 relating to unsworn falsification to authorities.
Date:
Richard Varm/e/cky J
RITE AID Corporation
July 14, 2003
· MAILING ADDRESS
P.O. Box 3165
Harrisburg, PA 17105
· GENERAL OFFICE
30 Hunter Lane
Camp Hill, PA 17011
· 1-800 RITEAID®
Mr. Richard Varmecky
2428 Toftree Drive
Harrisburg, PA 17112-6010
Re: Implementation of Plan Trustee Change
Dear Rich:
This letter summarizes the recent changes made with respect to plan trustee changes.
Northern Trust Company was engaged as trustee and investment manager for the defined
benefit pension plan as well as the defined contribution plans as of April 1, 2003 except
for the company stock fund in the 401(k) plans. LaSalle Bank National Association is the
trustee for the Rite Aid Corporation company stock fund as of May 29, 2003 for The Rite
Aid 401(k) Plan and the Rite Aid 401(k) Distribution Employee Savings Plan.
Northern Trust is trustee/investment manager for the following plans:
· Rite Aid Pension Plan
· The Rite Aid 401 (k) Plan
· Rite Aid 40I(k) Distribution Employees. Savings Plan --
· Rite Aid Corporation 401(k) Plan for Collectively Bargained Associates
As we discussed, your signature is required on the Schedule P as trustee for the 2002 plan
year Form 5500 filings. Additionally your signature will be required on the Schedule P
for the 2003 plan year filings [or the period of time during which you were trustee before
Northern and LaSalle became trustees.
Chuck Carlsen, Director Retirement Benefits, will contact you soon to coordinate the
delivery of the full audit reports to you and to your attorney for review.
Sincerely,
RITE AID CORPORATION
Theresa G. Nichols~CEBS
Vice President, Benefits
EXHIBIT
SHERIFF'S RETURN - REGULAR
CASE NO: 2004-02628 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
VARMECKY RICHARD
VS
RITE AID CORPORATION ET AL
JASON VIOHAL Sheriff or Deputy Sheriff of
Cumberland County, Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT & NOTICE was served upon
RITE AID CORPORATION
DEFENDANT , at 1630:00 HOURS,
at 30 HUNTER LANE
CAMP HILL, PA 17011
MELANIE ANDREWS, PARALEGAL, ADULT
a true and attested copy of COMPLAINT & NOTICE
on the 14th day of June
by handing to
IN CHARGE
the
, 2004
together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs:
Docketing 18.00
Service 10.35
Affidavit .00
Surcharge 10.00
.00
38.35
Sworn and Subscribed to before
me this ~%t~ day of
.~ · ~2~7' A.D.
' Prothonotary
So Answers:
R. Thomas Kline
0s/15/ 004
LAWRENCE NEARY
ty Sheriff
RICHARD VARMECKY,
Plaintiff
RITE AID CORPORATION;
RITE AID PENSION PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID 401(K) PLAN, NORTHERN TRUST
COMPANY, Trustee;
RITE AID 401(K) DISTRIBUTION
EMPLOYEES SAVINGS PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID CORPORATION 401(K) PLAN FOR
COLLECTIVELY BARGAINED ASSOCIATES,
NORTHERN TRUST COMPANY, Trustee;
RITE AID CORPORATION COMPANY STOCK
FUND, LASALLE NATIONAL BANK, Trustee,
Defendants
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 04-2628 Civil Term
CIVIL ACTION - LAW
JURY TRIAl. DEMANDED
AFFIDAVIT OF SERVICE!
STATE OF PENNSYLVANIA
COUNTY OF DAUPHIN
:
: SS.
.
AND NOW, this 24th day of June, 2004, personally appeared before me, a Notary
Public in and for the State and County aforementioned, Lawrence J. Neary, Esquire, who,
being duly sworn according to law, deposes and says that a copy of the Complaint was
served on Defendants, Rite Aid Pension Plan, Rite Aid 401(k) Plan, Rite Aid 401(k)
Distribution Employees Savings Plan, Rite Aid Corporation 401(k) Plan for Collectively
Bargained Associates, on Northern Trust Company, the designated Plan Trustee, on June
17, 2004 by certified mail no. 70000600002831490435 as evidenced by the attached
receipt card. (~.~ ~/~,
La~/~fce J.,~.~y.'Es-quire/
Sworn to and subscribed
before me this 24th
day of June, 2004.
m
Postage
Certified Fee
Return Receipt Fee
)Endorsement Required)
Total Postage & Fees
.I~.o. Kghern .~r~t Company ..........
_5O._S...La. Sa.llm Street ................
~cago, IL 60675
· Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery is desired.
· Print your name and address on the mve¢~l~
so that we can return the card to you. .t
· Attach this card to the back of the mailpiel~,
or on the front if space permits. ~
Northern Trust Company
50 S LaSalle Street
Chicago, IL 60675
A, Received by (P/ease Pdnt Clearly) B. Date of Deitve~y
D. Is delivery address different from item 17 [] Yes
If YES. enter delivery address below: [] No
3. Service Type
Certified Mail Express Mail
[]
Registered [] Return Receipt for Merch~ndlee
[] Insured Mail [~] C.O.D.
4. Restricted Delivery? (Exb~a Fee) [] Yes
2. Article NL~nper (Copy from service label)
7000 0600 0028 3149 0435
PS Form 3811, July 1999 Domestic Return Receipt 102595-9~-M-1789
RICHARD VARMECKY,
Plaintiff
RITE AID CORPORATION;
RITE AID PENSION PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID 401(K) PLAN, NORTHERN TRUST
COMPANY, Trustee;
RITE AID 401(K) DISTRIBUTION
EMPLOYEES SAVINGS PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID CORPORATION 401(K) PLAN FOR
COLLECTIVELY BARGAINED ASSOCIATES,
NORTHERN TRUST COMPANY, Trustee;
RITE AID CORPORATION COMPANY STOCK
FUND, LASALLE NATIONAL BANK, Trustee,
Defendants
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 04-2628 Civil Term
CIVIL ACTION - LAW
JURY TRIAl[_ DEMANDED
AFFIDAVIT OF SERVICE"
STATE OF PENNSYLVANIA
COUNTY OF DAUPHIN
:
: SS.
:
Sworn to and subscribed
before me this 24t"
day of June, 2004.
AND NOW, this 24th day of June, 2004, personally appeared before me, a Notary
Public in and for the State and County aforementioned, Lawrence J. Neary, Esquire, who,
being duly sworn according to law, deposes and says that a copy of the Complaint was
served on Defendant, Rite Aid Corporation Company Stock Fund, on LaSalle National
Bank, the designated Plan Trustee, on June 18, 2004 by certified mail no.
70000600002831490428 as evidenced by the attached receipt card.
(Endorsement Required)
· Complete items 1,2, and 3. Also complete
item 4 if Restricted Delivery is desired.
· Print your name and address on the mveme
so that we can return the card to you.
· Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
LaSalle National Bank
135 S LaSalle Street
Chicago, IL 60603
7000 0600 0028 3149 0428
A. Received t
C. Signature
[] Ag~t
D. Is delivery address different from item 17 [] Yes
If YES, enter delivery address below: [] No
3, Service Type
~ Certified Mail [] Express Mail
[] Registered [] Return Receipt for Merc~
[] Insured Mail [] C,O.D.
4. Restricted Delivery? (Extra Fee) [] Yes
PS Form 3811, July 1999 Domestic Return Receipt 102595.~9-M-17~9
RICHARD VARMECKY,
Plaintiff
RITE AID CORPORATION; RITE :
AID PENSION PLAN, NORTHERN :
TRUST COMPANY, Trustee; RITE :
AID 401 (K) PLAN, NORTHERN :
TRUST COMPANY, Trustee; :
RITE AID 401(K) DISTRIBUTION :
EMPLOYEES SAVINGS PLAN, :
NORTHERN TRUST COMPANY, :
Trustee; RITE AID CORPORATION :
401(K) PLAN FOR COLLECTIVELY :
BARGAINED ASSOCIATES, :
NORTHERN TRUST COMPANY, :
Trustee; RITE AID CORPORATION :
COMPANY STOCK FUND, :
LASALLE NATIONAL BANK, :
Trustee,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 04-2628 CIVIL TERM
CIVIL ACTION - LAW
JURY TRIAL DEMANDED
NOTICE TO STATE COURT
OF REMOVAL OF CIVIL
ACTION TO FEDERAL COURT
Defendants
In compliance with 28 U.S.C. § 1446, you are hereby notified of the filing of a notice of
removal of the above-captioned case to the United States District Court for the Middle District of
Pennsylvania, a copy of which is attached hereto.
Respectfully submitted,
COZEN AND O'CONNOR
Date: July 2, 2004
a, SEK, ESQUIRE
1900 Market Street
Philadelphia, PA 19103
(215) 665-2072
Attorneys for Defendants
CERTIFICATE OF SERVICFi
Jeffrey I. Pasek, Esquire, hereby certifies that he has caused to be served a true
and correct copy of the foregoing Notice of Removal and accompanying documents by first class
mail, postage pre-paid, this day, July 2, 2004, addressed to:
Lawrence J. Neary, Esquire
108-112 Walnut Street
Harrisburg, PA 17101-1609
-2-
JS 44
(Rev. 07/89) CIVIL COVER SHEET
The JS-44 c~vil cover sheet and he information contained herein neither replace nor supplement he filing and service of pleadings or other papers as re
provided by Iocar rules of court. Th s form approved by (he Judicial Conferenc
purpose of mifiating the civil docket sheet SEE IN e of the Un,ted States in Sep ember 1974 is r ' qulred by taw, except as
' ( STRUCTIONSONTHEREVERSEOFTHiSFORM , equlred~ortheuseoftheClerkofCourt for he
I (a) PLAINTIFFS '-
DEFENDANTS
Richard Varmecky Rite Aid Corp.; Rite Aid Pension Plan, Nodhem Trust Co., Trustee; Rite
401(k) Plan, Norlhern Trust Co., Trustee; Rite Aid 401(k) Distribution
Employee Savings Plan, Northern Trust Co., Trustee; Rite Aid Corp. 401(k)
Plan for Collecl~.ively Bargained ASsociates, Northern Trust Co., Trustee;
Rite Aid Corp. Company Stock Fund, LaSalle National Bank, Trustee
COUNTY OF RESIDENCE OF FIRST LISTED DEFENDANT
NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE
TRACT OF LAND INVOLVED
(bi COUNTY OF RESIDENCE OF FIRST LISTED PLAINTIFF
(EXCEPT IN US. PLAINTIFF CASES)
(c) ATTORNEYS (FIRM NAME, ADDRESS, AND TELEPHONE NUMBER)
Lawrence J. NeaP/, Esquire
108-112 Walnut Street
Harrisburg, PA 17101-1609
717-238-4798
II. BASIS OF JURISDICTION
r-I I U.S. GOVERNMENT
(PLACE AN X IN ONE BOX ONLY)
[] 3 FEDERAL QUESTION
(U.S. Government Net I Pady}
[] 4 DIVERSITY
ATTORNEYS (IF KNOWN)
Jeffrey I. Pasek, Esquire
Cozen O"Connor
1900 Market Street
Philadelphia, PA 19103
215-665-2072
IlL CITIZENSHIP OF PRINCIPAL PARTIES
(For Diversity Cases Only)
IV. CAUSE OF ACTION (CITE THE U S CIVJL STATUTE UNDER WHICH YOU ARE FILING AND WRJTE A BRIEF STATEMENT OF CAUSE
(PLACE AN X IN ONE BOX
FOR PLAINTIFF AND ONE SOX FOR DEFENDANT)
PTF OEF
DO NOT CJTE JURISDICTIONAL STATUTES UNLESS DIVERSITY ) Removal of claim arising under 29 U.S.C. § 1001 et seq.
V. NATURE OF SUIT (PLACE AN X IN ONE BOX ONLY)
VI. ORIGIN
BANKRUPTCY
PROPERTY RIGHTS
OTHER STATUTES
(PLACE AND X IN ONI BOX ONLY)
[] 10dgthal [] 2 Removed from [] 3 Remanded from [] Reinstated or [] 5 Transferred from [] 6 MuEidistrict [] 7 Appeal to Oistdct
ProCeeding State Court Appellate Court Reopened a~nother district Litigation Judge from
(:spacify) Magistrate
Judgment
VII. REQUESTED IN CHECK IF THIS IS A CLASS ACTION DEMAND $ 246,772.64 Check YES only if demanded in complaint:
COMPLAINT: [] UNDER F.R.C.P. 23
plus interest and costs JURY DEMAND: [] YES [] NO
of suit
VIII. RELATED CASES(S) JUDGE
IF ANY (See instructions):
-- ["~OT ~.e DOCKET NUMBER
DATE
_.~_~ z,.
UNITED STATES DISTRICT COURT
RICHARD VARMECKY,
Plaintiff
RITE AID CORPORATION; RITE :
AID PENSION PLAN, NORTHERN :
TRUST COMPANY, Trustee; RITE :
AID 401(K) PLAN, NORTHERN :
TRUST COMPANY, Trustee; :
RITE AID 401(K) DISTRIBUTION :
EMPLOYEES SAVINGS PLAN, :
NORTHERN TRUST COMPANY, :
Trustee; RITE AID CORPORATION :
401(K) PLAN FOR COLLECTIVELY :
BARGAINED ASSOCIATES, :
NORTHERN TRUST COMPANY, :
Trustee; RITE AID CORPORATION :
COMPANY STOCK FUND, :
LASALLE NATIONAL BANK, :
Trustee, :
Defendants
1N THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 04-2628 CIVIL TERM
CIVIL ACTION .. LAW
JURY TRIAL DEMANDED
NOTICE TO STATE COURT
OF REMOVAL OF CIVIL
ACTION TO FEDERAL COURT
In compliance with 28 U.S.C. § 1446, you are hereby notified of the filing of a notice of
removal of the above-captioned case to the United States District Court for the Middle District of
Pennsylvania, a copy of which is attached hereto.
Respectfully submitted,
COZEN AND O'CONNOR
Date: July 2, 2004
1900 Market Street
Philadelphia, PA 19103
(215) 665-2072
Attorneys for iDefendants
.CERTIFICATE OF SERVIC_E
Jeffrey I. Pasek, Esquire, hereby certifies that he has caused to be served a tree
and correct copy of the foregoing Notice of Removal and accompanying documents by first class
mail, postage pre-paid, this day, July 2, 2004, addressed to:
Lawrence J. Neary, Esquire
108-112 Walnut Street
Harrisburg, PA 17101-160,9
-2-
UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF PENNSYLVANIA
RICHARD VARMECKY,
Plaintiff
RITE AID CORPORATION; RITE
AID PENSION PLAN, NORTHERN
TRUST COMPANY, Trustee; RITE
AID 401(K) PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID 401(K) DISTRIBUTION
EMPLOYEES SAVINGS PLAN,
NORTHERN TRUST COMPANY,
Trustee; RITE AID CORPORATION
401(K) PLAN FOR COLLECTIVELY
BARGAINED ASSOCIATES,
NORTHERN TRUST COMPANY,
Trustee; RITE AID CORPORATION
COMPANY STOCK FUND,
LASALLE NATIONAL BANK,
Trustee,
Defendants
CIVIL ACTION - LAW
JURY TRIAL DEMANDED
NOTICE TO FEDERAL COURT
OF REMOVAL OF CIVIL
_ACTION FROM STATE COURT
Pursuant to 28 U.S.C. § 1446(a), Defendants, by their attorueys, state the following:
1. On or about, June 10, 2004, a civil action was commenced in the Court of
Common Pleas of Cumberland County, Pennsylvania, titled Richard Varmecky, Plaintiff, v. Rite
Aid Corporation; Rite Aid Pension Plan, Northern Trust Company,, Trustee; Rite Aid 401(K)
Plan, Northern Trust Company, Trustee; Rite Aid 401 (K) Distribution Employees Savings Plan,
Northern Trust Company, Trustee; Rite Aid Corporation 401 (K) Plan for Collectively Bargained
Associates, Northern Trust Company, Trustee; Rite Aid Corporation Company Stock Fund,
LaSalle National Bank, Trustee, Defendants, at docket no. 04~2628..
-3-
2. The Complaint in such action was served on Defendants as follows:
Defendant
Rite Aid Corporation
Rite Aid Pension Plan, Northern Trust Company, Trustee
Rite Aid 401(K) Plan, Northern Trust Company, Trustee
Rite Aid 401 (K) Distribution Employees Savings Plan,
Northern Trust Company, Trustee
Rite Aid Corporation 401.(K) Plan For Collectiw:ly Bargained
Associates, Northern Trust Company, Trustee
Rite Aid Corporation Company Stock Fund LaSalle National
Bank, Trustee June 22, 2004
3. A true and correct copy of all process, pleadings, and orders served upon
Defendants in such action is attached as Exhibit A.
On or about:
June 14, 2004
June 17, 2004
June 17, 2004
June 17, 2004
June 17, 2004
4. The Complaint a claim for trustee compensation which, although artfully pleaded
as a claim arising under state law, is in actuality a claim arising lmder the laws of the United
States, specifically, the Employee Retirement Income Security ,4.ct ("ERISA"), 29 U.S.C. ~ 1001
et seq.
Plaintiff alleges that he served as the sole trustee of various employee
benefit plans named as defendants in this action (Complaint ¶¶ 8-9).
Each of the defendant employee benefit plans is either a defined benefit
plan or a defined contribution plan. (Complaint ¶¶ 3-7).
The defendant employee benefit plans were sponsored by Defendant Rite
Aid Corporation (Complaint ¶¶ 3-7).
The defendant employee benefit plans are "employee pension benefit
plans" within the meaning of 29 U.S.C. § 1002 (2)(a) and are governed by
ERISA.
Plaintiff seeks to assert a claim against Defimdants for compensation for
his service as a trustee based upon provisions in the plans' governing
documents which provide that trustees shall be paid reasonable
compensation for their services by the respective trust funds or by the
employer, defendant Rite Aid Corporation
-4-
Section 502(e) of ERISA, 29 U.S.C. § 1132(e), provides that federal
courts all have exclusive jurisdiction of civil actions under this
"sh ·
subchapter brought by ...a fiduciary."
Section 502(a)(3) of ERISA, 29 U.S.C. !i 1132(a)(3), provides that a civil
action may be brought "by ... a fiduciary ... to obtain other appropriate
equitable relief.., to enforce ... the terms of the plan.
An action by a plan trustee seeking compensation for fith~ciary services is
fails within the traditional equitable powers ora court.
Accordingly, Plaintiff's claim for compensation for his service as a trustee
to various ERISA covered benefit plans is an action which arises under
federal law.
5. Removal of this action is based upon 28 U.S.C. { 1441(a) and (b) in that this is a
civil action brought in a state court of which the district courts have original jurisdiction under 28
U.S.C. § 1331.
Respectfully submitted,
COZEN AND O'CONNOR
Date: July 2, 2004
ID0~0 MiM~ar~ke/t Street
Philadelphia, PA 19103
(215) 665-2072
Attorneys for Defendants
-5-
CERTIFICATE OF SERVICE
Jeffrey I. Pasek, Esquire, hereby certifies that he has caused to be served a true
and correct copy of the foregoing Notice of Removal and accompanying documents by first class
mail, postage pre-paid, this day, July 2, 2004, addressed to:
Lawrence J. Neary, Esquire
108-112 Walnut Street
Harrisburg, PA 17101-16(}9
-6-
RICHARD VARMECKY,
Plaintiff
: IN THE COURT OF COMMON PLEAS
i CUMBERLAND COUNTY, PENNSYLVANIA
V.
RITE AID CORPORATION;
RITE AID PENSION PLAN, NORTHERN : CIVIL ACTION - _LAIN
TRUST COMPANY,, Trustee; i JURy:TRIAL DEMANDED
RITE AID 40'I(K) PLAN, NORTHERN TRUST ·
COMPANY, Trustee; ·
RITE AID 401(K) DISTRIBUTION
EMPLOYEES SAVINGS PLAN, NORTHERN
TRUST COMPANY, Trustee;
RITE AID CORPORATION 401(K) PLAN FOR i
COLLECTIVELY BARGAINED ASSOCIATES, .
NORTHERN TRUST COMPANY, Trustee; ·
RITE AID CORPORATION COMPANY STOCK i
FUND, LASALLE NATIONAL BANK, Trustee,
Defendants
NOTICE TO DEFEND AND CLAIM RIGHTS
You have been sued in Court. If you wish to defend against the claims set forth in
the following papers, you must take action within twenty (20) days altec this Complaint
and notice are served, by entering a written a~pearance personally or by attorney and filing
in writing with the Court your defenses or objections to the claims set forth against you.
You are warned that if you fail to do so, the case may proceed without you and a judgment
may be entered against you by the Court without further notice for any money claimed in
the Complaint or for any other claim or relief requested by the Plaintiff. You may lose
money or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOWTO FIND OUT WHERE
YOU CAN GET LEGAL HELP.
Cumberland County Bar Association
r Two Liberty Avenue
c~rl~l~i P~n~yi~ania '1~§~3§87
Telephone: (717) 249-3166
Date:_
Respectfully Submitted,
L{Iw, r,~n~. J. Nea~/~/~=sq'uire
AttlSrney for Plai.n,~ff,_ .
108 - 112 Walnut Street
Harrisburg PA 17101-1609
(717) 238-4798
(717) 238-4793 - Fax
Pa. hD. No. 25827
RICHARD VARMECKY,
Plaintiff
V.
RITE AID CORPORATION;
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
:
:NO.
.-
RITE AID PENSION PLAN, NORTHERN : CIVIL ACTION - LAW
TRUST COMPAN¥~Trustee;_ : JURY TRI,~[r DEMANDED
RITE AID 401(K) PLAN, NORTHERN TRUST :
COMPANY, Trustee; :
RITE AID 40t(K) DISTRIBUTION :
EMPLOYEES SAVINGS PLAN, NORTHERN :
TRUST COMPANY, Trustee;
RITE AID CORPORATION 40t(K) PLAN FOR ~
COLLECTIVELY BARGAINED ASSOCIATES,
NORTHERN TRUST COMPANY, Trustee; :
RITE AID CORPORATION COMPANY STOCK:
FUND, LASALLE NATIONAL BANK, Trustee, :
Defendants
COMPLAINT
AND NOW, comes the Plaintiff, Richard Varmecky, by his attorney, Lawrence J.
Neary who respectfully represents as follov, Js:
1. Plaintiff, Richard Varmecky, is an adult indiviclual residing at 2428 Toffree
Drive, Harrisburg, Dauphin County, Pennsylvania 17112.
2. Defendant, Rite Aid Corporation, is a Delaware corporation, authorized to do
business in Pennsylvania with its corporate headquarters located at 30 Hunter Lane, Camp
Hill, Cumberland County, Pennsylvania 17011.
3. Defendant, Rite Aid Pension Plan, is a defined benefit pension plan
sponsored by the Rite Aid Corporation with Northern Trust Company of 50 South LaSalle
Street, Chicago, Illinois 60675 designated as Plan Trustee effective April 1, 2003.
4. Defendant, Rite Aid 401(k) Plan, is a defined contribution plan sponsored by
the Rite Aid Corporation with Northern Trust Company of 50 South LaSalle Street,
Chicago, Illinois 60675, designated as Plan Trustee effective April 1, 2003.
5._ D~fe_ndant~ _Rite__Aid 4Q1 (k). Distribution~mpteyees--Saving~_Plarr_is a
defined contribution plan sponsored by the Rite Aid Corporation with Northern Trust
Company of 50 South LaSalle Street, Chicago, Illinois 60675, as Plan Trustee effective
April 1, 2003.
6. Defendant, Rite Aid Corporation 401(k) Plan for Collectively Bargained
Associates, is a defined contribution plan sponsored by the Rite Aid Corporation with
Northern Trust Company of 50 South LaSalle Street, Chicago, Illinois 60675 designated
as Plan Trustee effective April 1, 2003.
7. Defendant, Rite Aid Corporation Compal~y Stock Fund, is a defined
contribution plan sponsored by the Rite Aid Corporation with LaSalle Bank National
Association of 135 S. LaSalle Street, Chicago, Illinois 60603, designated as Plan Trustee
effective May 29, 2003.
8. At all times relevant hereto, Plaintiff was an appointed trustee of the
Defendant's Company sponsored 401 (k) Plans more specifically identified as follows:
Rite Aid Pension Plan
Rite Aid 401(k) Plan
Rite Aid 401(k) Distribution Employees Savings Plan
Rite Aid Corporation 401(k) Plan for Collectively Bargained Associates
Rite Aid Corporation Company Stock Fund
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9. For the period from June 28, 2002 through April 1,2003 and May 29, 2003,
Plaintiff was the sole remaining named trustee of said Plans as a result of the
removal/withdrawal of the other previously designated trustees and Pla_intiff performed all
of the duties and req~irernen~ts of a Trustee until notified of his replacement as trusteeby~
correspondence dated July 14, 2003, a copy of which is attached hereto and marked
Exhibit A.
10. Said Plans provide in their establishing documents that the Plans' Trustees
shall be paid "reasonable compensation" for their services as a trustee for the Plans and
said compensation shall be paid from the respective Trust Funds or by the employer, the
Rite Aid Corporation, all of which are named Defendants herein.
11. For the period from June28, 2002 through July 14, 2003, the Plaintiff
had advised the Defendant, Rite Aid Corporation, as the Plan sponsor for said Plans that
compensation was expected for his services.rendered as trustee for the various Plans and
that he would resign from said position once a replacement 'trustee had be~n selected and
designated.
12. The Plaintiff was replaced as the trustee for the Rite Aid Pension Plan, Rite
Aid 401(k) Plan, Rite Aid Corporation Distribution Employees Savings Plan and the Rite
Aid Corporation 401 (k) Plan for Collectively Bargained Associates on April 1, 2003 and the
Rite Aid Corporation Company Stock Plan on May 29, 2003.
13. The fee for the services rendered by th(; Plaintiff by and on behalf of the
Plans above mentioned, based on industry practice for said services, is $246,772.64 plus
accrued interest for non payment in a timely manner and said amount represents the
reasonable value of said services to the Defendants. _ . _
14. Demand has been made for payment which remains unsatisfied.
WHEREFORE, Plaintiff demands judgment against the above named Defendants
in the amount of $246,772.64 plus interest and costs of suit.
Date: ~, /'7 ,/~ ,.-,z
Respectfully Subm~, . ~,~/
(ayenc. J. Nea .~.~._~,q ~ire ,,,,~'
Harrisburg PA 17101-1609
(717) 238-4798
(717) 238-4793 - Fax
Pa. I.D. No. 25827
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VERIFICATION
I verify that the statements made in the attached Complaint are true and correct.
I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.
Section 4904 relating te unsworn falsificatior~ to authorities,
Date:
RITE AID Corporation
July 14, 2003
· MAILING ADDRESS
RO. Box 3165
Harrisburg, PA 17105
· GENERAL OFFICE
30 Hunter Lane
Camp Hill, PA 17011
· 1-800 RITEAID·
Mr. Righard Varmecky
2428 Toftree Drive
Harrisburg, PA 17112-6010
Re: Implementation of Plan Trustee Change
Dear Rich:
This letter stimmarizes the recent changes made with respect to plan trustee changes.
Northern Trust Company ,,vas engaged as trustee and investment manager for the defined
benefit pension plan as well as the defined contribution plans as of April 1, 2003 except
for the company stock fund in the 401(k) plans. LaSalle Bank National Association is the
trustee for the Rite Aid Corporation company stock fund as of May 29, 2003 for The Rite
Aid 401(k) Plan and the Rite Aid 401 (k) Distribution Employee Savings Plan.
Northem Trust is trustee/investment manager for the following plans:
· RiteAid Pension Plan
· The Rite Aid 401 (k) Plan
· Rite Aid 401(k) Distribution Employees'.Savings Plan
· Rite Aid Corporation 401(k) Plan for Collectively Bargained Associates
As we discussed, your signature is required on the Schedule P as trustee for the 2002 plan
year Form 5500 filings. Additionally your signature will be required on the Schedule P
for the 2003 plan year filings for the period of time during which you were trustee before
Northern and LaSalle became trustees.
Chuck Carlsen, Director Retirement Benefits, will contact you soon to coordinate the
delivery of the full audit reports to you and to your attornej, fbr review.
Sincerely,
RITE AID CORPORATION
Theresa G. Nichols, CEBS
Vice President, Benefits