Mill's ex-workers sue for disability funds
Lawyers for former King Mill employees filed a lawsuit Wednesday asking a federal judge to appoint a receiver to disburse $1.6 million in long-term disability funds that have been in a South Carolina bank since the plant closed in May.
The suit was filed in U.S. District Court in Augusta on behalf of former King Mill employees Franklin Rachels, James C. Boynton and Clyde L. Williams Sr. and all other eligible employees of the mill's parent company, Spartan International Inc., against Wachovia Bank of South Carolina, the former trustee of the welfare benefit trust for former Spartan employees.
The named plaintiffs are former King Mill employees who were retired on long-term disability before Spartan turned over the keys to five plants in Georgia, South Carolina and North Carolina to its principal creditor, General Electric Capital Corp.
The trustee of the Spartan International bankruptcy case in South Carolina has determined that the long-term disability trust account held at Wachovia is not the property of the bankruptcy estate and could be used to resume payments to former employees.
According to the suit:
Mr. Rachels, 61, is the former plant manager of King Mill. About 60 percent of his income came from long-term disability benefits.
Mr. Boynton, a former supervisor at King Mill, had a heart attack and is unable to walk. His entire support came from the long-term disability payments.
Mr. Williams lost his leg, and has heart trouble and cancer. He is substantially dependent on the long-term disability funds paid to him in the past.
One of the plaintiffs' lawyers, John B. Long, said there also may be a medical benefits account that has not been disclosed.
"This has happened because of the way the plants were closed," Mr. Long said. "Nobody cared about anybody."
The plants closed without notice May 3, throwing 1,200 people out of work with no medical or retirement benefits. Some learned their health insurance had been canceled when they went to have prescriptions filled, although premiums had been deducted from their paychecks.
Reach Sylvia Cooper at (706) 823-3228 or sylviaco@augustachronicle.com.
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