The opinion of the court was delivered by: FREDERICK J. SCULLIN, JR.
MEMORANDUM-DECISION AND ORDER
The plaintiffs commenced this action on August 30, 1988, seeking $ 250,000 in damages plus interest, costs and attorney's fees from the defendant,
alleging that he, while employed as their sole "investment manager," violated the applicable ERISA and investment industry standards and breached his duties of loyalty, diversification and prudence. They alleged specifically that he breached his duties in that he:
1) failed to follow the plaintiffs' specific instructions to invest in a conservative, diversified portfolio;
2) allowed plaintiffs' complete portfolio to be invested in just three different stocks in the year 1986;
3) failed to diversify the plaintiffs' portfolio pursuant to 29 U.S.C. § 1104;
4) subjected plaintiffs' pension and profit sharing plans to imprudent and unreasonable losses under the existing market conditions; and
5) generally invested without care, skill or prudence in an undiversified portfolio.
A three day non-jury trial was held before this court on September 29 through October 1, 1992. At this trial, the plaintiffs called the following witnesses: Dr. John Thomas Lanka; Mrs. Leonore Lanka; Mr. Robert Matt; Dr. Gordon L. Wright; Ms. Sylvia Anapolis; Mrs. Terry Hunsinger; Mrs. Loretta C. Maurer; Mr. Michael B. O'Higgins; Mr. Dominick J. Izzo; Mr. Christopher M. Briggs; Mr. Daniel Steinberg; and pursuant to stipulation between the parties, the deposition of Mrs. Helen Cary was read into the record since she was unavailable to testify. The defendant testified on his own behalf and called Mr. Simon John Aman as his only additional witness.
Prior to the commencement of the trial, the parties stipulated in writing to the following statement of facts, which was introduced in evidence at the trial as Court's Exhibit No. 1:
1) that the plaintiffs, Thomas Lanka, D.D.S. and Gordon L. Wright, D.D.S., are co-trustees and administrators of the pension and profit sharing plans and trusts, which were established on ...