Sntl Corporation v. Centre Insurance Company

I. FACTS

A. The Parties

On April 26, 2000 (the “petition date”), SNTL Corporation (formerly known as Superior National Insurance Group)1 and 1 SNTL Corporation is the post-confirmation successor to Superior National Insurance Group and will be referred to as “SNIG” in this opin- ion. 7442 IN THE MATTER OF SNTL its non-insurer affiliates SN Insurance Services, Inc., SNTL Holdings Corporation (formerly known as Business Insurance Group, Inc.), and SN Insurance Administrators, Inc. (collec- tively, “Debtors”) each filed chapter 11 petitions2 for relief.

Pursuant to a confirmed joint plan of reorganization (“Plan”), an SNTL Litigation Trust (“Trust”) was formed and an SNTL Litigation Trustee (“Trustee”) was appointed. The Trustee was authorized to prosecute certain claims, rights and causes of actions and to oversee and initiate actions pertaining to the allowance and payment of claims, including objections to proofs of claims.

Appellant Centre Insurance Company (“Centre”) filed a proof of claim in November 2000 asserting a claim in excess of $294,488,911 (including approximately $3 million in attor- neys’ fees but not including contingent and unliquidated…