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ROBERT H. NUNNALLY, JR.
State Bar Number 134151
WISENER * NUNNALLY * GOLD, LLP
625 West Centerville Road, Suite 110
Garland, Texas 75041
(972) 840-9080
Facsimile (972) 840-6575
Attorneys for Insurance Commissioner
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF LOS ANGELES
JOHN GARAMENDI, Insurance
Commissioner of the State of California,
Applicant,
vs.
MISSION INSURANCE COMPANY, a
California Corporation,
Respondent.
Consolidated with Case Numbers
C 576 324; C 576 416;
C 576 323; C 576 325; C 629 709
Case No. C 572 724
Honorable John Shepard Wiley Jr.
ORDER WHICH GRANTS
THE MOTION TO APPROVE CLAIMS
FOR INTERCOMPANY RECEIVABLES
Hon. John Shepard Wiley Jr.
Action Filed: October 31, 1985
Department: 50
Hearing date: January 24, 2006
Hearing time: 8:30 a.m.
On this 24th day of January 24, 2006, this Court heard the Motion filed by the Insurance Commissioner for the inter-company receivables as to Mission Insurance Company Trust and Mission National Insurance Company Trust. No opposition was filed to the Motion. The Motion is GRANTED, and the Insurance Commissioner is authorized to approve the inter-company claims as set forth in the motion.
Signed this 24 day of January, 2006.
JOHN SHEPARD WILEY JR.
Hon. John Shepard Wiley Jr.
Judge of the Superior Court
ROBERT H. NUNNALLY, JR.
State Bar Number 134151
WISENER*NUNNALLY*GOLD, LLP
625 West Centerville Road, Suite 110
Garland, Texas 75041
Tel (972) 840-9080
Fax (972) 840-6575
Attorneys for Insurance Commissioner
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF LOS ANGELES
JOHN GARAMENDI, Insurance
Commissioner of the State of California,
Applicant,
vs.
MISSION INSURANCE COMPANY, a
California Corporation,
Respondent.
Consolidated with Case Numbers
C 576 324; C 576 416;
C 576 323; C 576 325; C 629709
Case No. C 572 724
Hon. John Shepard Wiley Jr.
NOTICE OF MOTION AND MOTION
TO APPROVE CLAIMS FOR INTER-
COMPANY RECEIVABLES FOR
MISSION INSURANCE COMPANY
TRUST AND MISSION NATIONAL
INSURANCE COMPANY TRUST;
MEMORANDUM OF POINTS AND
AUTHORITIES; DECLARATION OF
MOHSEN SULTAN
Action Filed: October 31, 1985
Department: 50
DATE: December 30, 2005
TIME: 8:30 A.M.
PLEASE TAKE NOTICE THAT ON THE 17th day of October, 2005, at the hour of 8:30 a.m., or as soon thereafter as the matter may be heard, John Garamendi, Insurance Commissioner of the State of California, in his capacity as Trustee of the Mission Insurance Company Trust and the Mission National Insurance Company Trust, will seek approval of the Court regarding the proofs of claim of the companies in liquidation for inter-company obligations. This relief shall be sought pursuant to California Insurance Code Sections 1037, though not required by that provision.
Wherefore premises considered, the Insurance Commissioner requests that the proof of claims be approved as set forth in the Declaration of Mohsen Sultan, filed herewith, the exhibits attached to his declaration, and the accompanying memorandum of points and authorities. The Insurance Commissioner also requests all other just and equitable relief.
Respectfully submitted,
WISENER*NUNNALLY*GOLD, LLP
By:
Robert H. Nunnally, Jr.
625 West Centerville Road, Suite 110
Garland, Texas 75041
Telephone: (972) 485-5065
Facsimile: (972) 840-6575
Memorandum of Points and Authorities
This motion seeks approval of a resolution of proofs of claim regarding inter-company debt filed by Holland America Insurance Company Trust, Mission Insurance Company Trust, Mission National Insurance Company Trust, Mission Insurance Company of Texas, Mission Reinsurance Corp. Trust, and Enterprise Insurance Company Trust. The Insurance Commissioner as Trustee proposes resolution of the proofs of claim subject to the approval of this Court, to resolve the outstanding inter-company obligations of the various companies in receivership.
In this case, various of the affiliated Mission companies filed proofs of claims in each others' liquidation estates seeking to recover for various obligations and expenses incurred as a consequence of their method of operation. The Insurance Commissioner has investigated the various claims and has arrived at balances he believes are appropriate for the resolution of the various proofs of claim. The Insurance Commissioner's Conservation and Liquidation Office staff believe the determination to be a reasonable resolution of this matter. California Insurance Code Section 1037 does not require the Insurance Commissioner to submit claims settlements for court approvals. However, this settlement agreement is filed for approval because it involves the resolution of inter-company claims in a substantial amount. California Insurance Code Section 1037 accords the Insurance Commissioner wide latitude in resolving matters such as these, subject only to abuse of discretion review. Low v. Golden Eagle Ins. Co., 104 Cal.App.4th 306, 128 Cal.Rptr.2d 423 (2002). The Declaration of Mohsen Sultan indicates that the determined amounts are reasonable and appropriate. This Court is accordingly requested to issue an order approving the Insurance Commissioner's determination on the inter-company debt. in the amounts set forth below. This resolution is one more step on the effort to wind up the Mission Insurance Company Trust and Mission National Insurance Company Trust estate.
Amounts To Be Approved
Mission National
Holland America Ins. Co. Trust
$0.00
Mission Insurance Co. Trust
$22,778,041.75
Mission Reinsurance Corp. Trust
$0.00
Mission
Enterprise Insurance Co. Trust
$40,205,804.60
Mission Reinsurance Corp. Trust
$5,246,199.63
Mission National Ins. Co. Trust
$21,729,090.53
Holland America Ins. Co. Trust
$11,543,155.84
Conclusion
The Court is requested to approve the disposition of the proofs of claim.
WISENER*NUNNALLY*GOLD, LLP
By:
Robert H. Nunnally, Jr.
625 West Centerville Road, Suite 110
Garland, Texas 75041
Telephone: (972) 485-5065
Facsimile: (972) 840-6575
ROBERT H. NUNNALLY, JR.
State Bar Number 134151
WISENER*NUNNALLY*GOLD, LLP
625 West Centerville Road, Suite 110
Garland, Texas 75041
(972) 840-9080
Facsimile (972) 840-6575
Attorneys for Insurance Commissioner
SUPERIOR COURT OF THE STATE OF CALIFORNIA
FOR THE COUNTY OF LOS ANGELES
JOHN GARAMENDI, Insurance
Commissioner of the State of California,
Applicant,
vs.
MISSION INSURANCE COMPANY, a
California Corporation,
Respondent.
Consolidated with Case Numbers
C 576 324; C 576 416;
C 576 323; C 576 325; C 629 709
Case No. C 572 724
Honorable John Shepard Wiley Jr.
DECLARATION OF MOHSEN
SULTAN IN SUPPORT OF MOTION
TO APPROVE CLAIMS FOR INTER-
COMPANY RECEIVABLES FOR
MISSION INSURANCE COMPANY
TRUST AND MISSION NATIONAL
INSURANCE COMPANY TRUST
Hon. John Shepard Wiley Jr.
Department: 50
Action filed: October 31, 1985
Hearing Date: December 30, 2005
Hearing Time: 8:30 a.m.
I, Mohsen Sultan, hereby make this declaration in San Francisco, California, and affirm under penalty of perjury of the laws of the State of California that the following facts are true and correct:
I am Mohsen Sultan. I am over the age of eighteen years. I am competent to be a witness. I have personal knowledge of the facts to which I attest. I acquired my personal knowledge in my role as the Estate Trust Officer for the Mission Insurance Company Trust and Mission National Insurance Company Trust. I am employed by the Conservation and Liquidation Office ("CLO"), which assists the California Insurance Commissioner with insurance company liquidations and conservations. I am a person qualified to testify as to business records for the Mission Insurance Company Trust and Mission National Insurance Company estates. The records of these estates are maintained by CLO in the ordinary course of CLO business. Regular entries are made into the records in the regular course of business. The writings are made at or near the time of the events set forth therein. As the Estate Trust Officer, I am qualified to attest to the records' status as business records for both estates.
Mission Insurance Company was placed into liquidation on February 24, 1987. The records reflect that notice was given to known policyholders and creditors for a claims bar date of September 12, 1987, and notice was published of the bar date. I am aware that tens of thousands of persons and entities filed proofs of claims, and thousands of those persons and entities updated those claims in 1995 in conjunction with an Amended Final Liquidation Dividend Plan including affiliates of the company in liquidation.
Mission National Insurance Company Trust was placed into liquidation on February 24, 1987. The records reflect that notice was given to known policyholders and creditors for a claims bar date of September 12, 1987, and notice was published of the bar date. I am aware that tens of thousands of persons and entities filed proofs of claims, and thousands of those persons and entities updated those claims in 1995 in conjunction with an Amended Final Liquidation Dividend Plan including affiliates of the company in liquidation.
Attached as exhibit 1 to this declaration is a listing of the inter-company debt of the Mission companies, prepared by CLO. Exhibit A to exhibit 1 shows the proposed disposition of proofs of claim filed by the various Mission affiliates in the Mission National and Mission estates. Exhibit B to exhibit 1 shows the analysis by CLO of the inter-company accounts.
Based on the accounts between the affiliated Mission companies and the analysis of the CLO of the accounts and proof of claims submitted the proper amounts to be approved on the proofs of claim is:
Mission National
Holland America Ins. Co. Trust
$0.00
Mission Insurance Co. Trust
$22,778,041.75
Mission Reinsurance Corp. Trust
$0.00
Mission
Enterprise Insurance Co. Trust
$40,205,804.60
Mission Reinsurance Corp. Trust
$5,246,199.63
Mission National Ins. Co. Trust
$21,729,090.53
Holland America Ins. Co. Trust
$11,543,155.84
I hereby execute this declaration under the penalty of perjury of the laws of the State of California in San Francisco, California, on the 24th day of November, 2005.
Mohsen Sultan
Mohsen Sultan
MISSION COMPANIES TRUSTS INTERCOMPANY PROOFS OF CLAIM DETERMINATIONS
A = The entries are prepared from the Pooling agreements between CIGA and CLO in Journal Batch #87507
B = This entry is to book the Payable for Reinsurance recovery allocation in journal B#84514.
PROOF OF SERVICE: By Mail
(Code Civ. Proc., §§ 1013, 2015.5)
STATE OF TEXAS, COUNTY OF DALLAS.
I am employed in the County of Dallas, State of Texas. I am over the age of 18 and not a party to the within action; my business address is 625 West Centerville Road, Suite 110, Street, Garland, Texas 75041.
On this date, I serve the foregoing documents described Notice of Motion and Motion to Approve Claims for Intercompany Receivables; Memorandum of Points and Authorities; Declaration of Mohsen Sultan by placing a copy thereof enclosed in sealed envelopes addressed as follows:
Sent via Federal Express to:
See Attached Exhibit "A".
I am readily familiar with my employer's practices of collection and processing correspondence for mailing with Federal Express and the above-referenced correspondence will be deposited with Federal Express on the same date as stated below, following ordinary course of business.