Case No. SV 01-17081 GM, Adv. No. SV 02-01127 GMUnited States Bankruptcy Court, C.D. California
October 24, 2002
ORDER ON PLAINTIFF’S MOTION FOR SUMMARY ADJUDICATION ON THE FIRST CLAIM FOR RELIEF RE BANKRUPTCY COURT JURISDICTION
GERALDINE MUND, United States Bankruptcy Judge.
On January 28, 2002, L. Tim Wagner, Director of Insurance of the State of Nebraska, In His Capacity as Liquidator for Amwest Surety Insurance Company (the “Liquidator”) filed an adversary proceeding against Amwest Insurance Group, Inc, (the “Debtor”) for (1) declaratory relief on the issue of jurisdiction, (2) declaratory relief regarding rights to tax refund, and (3) injunctive relief. On June 21, 2002, the Liquidator filed a motion for partial summary judgment on the first claim for relief for declaratory relief to resolve the issue of Bankruptcy Court jurisdiction over a Tax Allocation Agreement entered into between the Debtor and its subsidiary insurance company. Oral argument on the motion took place on September 18, 2002, after which the Court took the matter under submission.
A memorandum of opinion is entered concurrently herewith which constitutes the Court’s findings of fact and conclusions of law and resolves the following issues: (1) whether this Court is reverse preempted from interpreting the Tax Allocation Agreement by the McCarran Ferguson Act, and (2) whether the Court should abstain from hearing this matter.
Consistent with the memorandum of opinion, the Court orders that:
(1) The motion for summary adjudication on the first claim for relief is granted;
(2) Pursuant to the McCarran Ferguson Act, this Court is reverse preempted from interpreting the Tax Allocation Agreement; and
(3) In the alternative, this Court voluntarily abstains from interpreting the Tax Allocation Agreement.