Preview
SUPERIOR COURT OF CALIFORNIA
COUNTY OF SAN FRANCISCO
MINUTES
May 29, 2018
WARWICK AMUSEMENTS
CORPORATION, et al.
PLAINTIFFS
VS.
APPLIED UNDERWRITERS, INC., A
NEBRASKA CORPORATION, ef al.
DEFENDANTS
Present:
Judge: RICHARD B. ULMER
Reporter: Debbie Acevedo-Ramirez,
CSR# 7692, Atkinson-Baker,
818-551-7300
Appearing for Plaintiff (s):
Larry J. Lichtenegger, Esq.
Lichtenegger Law Office
3850 Rio Road, Suite 58
Carmel, CA 93923
O: 831-626-2801
E: lawyer@mbay.net
for Plaintiffs
Warwick California Corporation and
WSF Beverage Corp.
Case Number: CGC-16-551614
Department: 306
Case Number: CGC-16-551614
Nature of Cause: Breach of
Contract [Workers’
Compensation Insurance]
Today's Proceedings: Plaintiffs’
Case
Trial Day: 1.5
Clerk: R. MICHAEL DILES
Bailiff:
Appearing for Defendant(s):
Spencer Y. Kook, Esq.
Kent R. Keller, Esq.
Hinshaw & Culbertson LLP
633 West 5th Street, 47th Floor
Los Angeles, CA 90071-2043
O: 213-614-7359 [Kook]
O: 213-614-7302 [Keller]
E: skkook@mail.hinshawlaw.com
E: kkeller@mail.hinshawlaw.com
For Defendants
Applied Underwriters Captive Risk
Assurance Co., Inc.; Applied
Underwriters, Inc.; Continental
Indemnity Co.
Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-l-
Form: CO1006Appearing for Plaintiff (s): Appearing for Defendant(s):
Travis R. Wall, Esq.
Hinshaw & Culbertson LLP
One California Street, 18'* Floor
San Francisco, CA 94111
O: 415-743-3738 [Wall]
E: twall@hinshawlaw.com
For Defendants
Applied Underwriters Captive Risk
Assurance Co., Inc., a California
Insurance Company; Applied
Underwriters, Inc., a Nebraska
Corporation; Continental Indemnity
Co.
This matter comes on for Court trial, having been continued from May 24, 2018.
The Court, courtroom staff and counsel, indicated in bold-face, above, are all
present as is Mr. Michael Sheh, Plaintiffs’ representative.
1:26 PM Court in session, on the record. Counsel state their appearances. At
the Court's invitation, Mr. Michael Sheh returns to the witness stand who is
reminded by the Court that he remains under oath. Mr. Lichtenegger resumes
direct examination of the witness, referring the witness to previously admitted
Defendants’ Exhibit #137 [2013 to 2014 California Insurance Company Workers’
Compensation and Employer's Liability Insurance Policy No. 73-871862-01-02
issued to Warwick Amusements Corporation for the policy period 06/14/13
through 06/14/14 (CA, TX) (Estimated Premium) [AU0002184-2237]].
1:28 PM Mr. Lichtenegger identifies for the record and refers the witness to
Plaintiffs’ Exhibit #11 [07/10/13 6:20 AM E-mail from Charles Steers to Michael
Sheh re: Workers Compensation Policies] and resumes direct examination of Mr.
Sheh.
1:30 PM Mr. Lichtenegger refers the witness to pre-approved and now
admitted Defendants’ Exhibit #139 [2014 to 2015 California Insurance Company
Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862-
01-03 issued to Warwick Amusements Corporation for the policy period 06/14/14
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-2- Form: CO100634 PM
137 PM
:40 PM
‘42 PM
144 PM
159 PM
2:00 PM
Plaintiffs’ Exhibit #12
re: Workers compensation Order to Bind with Applied Underwriters] and resumes
direct examination o
Quote #966881-
Willis-O27877-027880
effective date 0:
direct examination o
Mr. Licht
Mr. Licht
Mr. Lich
Mr. Lich
hrough 06/14/15 (CA, TX) (Estimated Premium) [AU002238-2292]] and resumes
direct examination of Mr. Sheh.
enegger refers the witness to pre-approved and now
admitted Defendants’ Exhibit #141 [2015 to 2016 California Insurance Company
Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862-
01-05 issued to Warwick Amusements Corporation for the policy period 06/14/15
hrough 05/04/16 (CA, TX) (Estimated Premium) [AU0002293-2348]] and resumes
direct examination o
Mr. Sheh.
enegger refers the witness to pre-approved and now
admitted Defendants’ Exhibit #79 [06/11/13 10:55 PM E-mail from Tina Bowe to
Michael Sheh re: RE:
Warwick Amusemen
Christina Bowe
Worker Comp Liability and Attaches: AU QUOTE V2.pdf;
s Corporation Agreement pdf [Michael Sheh Depo. Exh. 79;
Depo. Exh. 18 & Charles Steers Depo. Exh. 8); Willis-026945-
026972]] and resumes direct examination of Mr. Sheh.
enegger identifies for the record and refers the witness to
06/13/13 10:32 AM E-mail from Tina Bowe to Michael Sheh
Mr. Sheh.
enegger refers the witness to previously admitted
Defendants’ Exhibit #135 [Request to Bind Coverages & Services for EquityComp
1, Proposed Effective Date 06/14/13 dated 06/19/13
and resumes direct examination of Mr. Sheh.
Mr. Lich
enegger refers the witness to pre-approved and now
admitted Defendants’ Exhibit #136 [Reinsurance Participation Agreement
6/14/13 dated 06/19/13 [Willis-027887-027898]] and resumes
Mr. Sheh.
Brief recess.
Court in
session, on the record. Mr. Lichtenegger resumes direct
examination of Mr. Sheh.
2:03 PM
Mr. Licht
enegger refers the witness to Plaintiffs’ Exhibit #8
[Demonstrative exhibit] [Exhibit snowing calculation of Plan Analysis Return to
Warwick using paid claims] and resumes direct examination of Mr. Sheh.
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-3- Form: CO10062:06 PM Mr. Lichtenegger refers the witness to pre-approved and now
admitted Plaintiffs’ Exhibit #5 [EquityComp® Plan Analysis for Warwick
Amusements Corporation for the Plan Term 06/14/13 to 06/13/16 for the Period
03/01/18 to 03/31/18] and resumes direct examination of Mr. Sheh.
2:12PM The witness, Mr. Sheh, refers Mr. Lichtenegger to Defendants’ Exhibit
#150, shortly corrected thereafter to pre-approved and now admitted
Defendants’ Exhibit #151 [Exposure Group Adjustment Factors (Table B) for
Warwick Amusements Corporation (Account 871862) as of 06/14/13] and
resumes direct examination of Mr. Sheh.
2:16PM Mr. Lichtenegger then refers the witness to pre-approved and now
admitted Defendants’ Exhibit #150 [Billing Register for Warwick Amusements
Corporation (Account 871862) as of 04/10/18] and resumes direct examination
of Mr. Sheh.
2:18 PM Mr. Lichtenegger again refers the witness to previously admitted
Plaintiffs’ Exhibit #5 [EquityComp® Plan Analysis for Warwick Amusements
Corporation for the Plan Term 06/14/13 to 06/13/16 for the Period 03/01/18 to
03/31/18] and resumes direct examination of Mr. Sheh.
2:19 PM The Court questions counsel regarding the apportionment of various
premiums, whereupon Mr. Lichtenegger refers the Court to Plaintiffs’ Exhibit #8
[Demonstrative exhibit] [Exhibit snowing calculation of Plan Analysis Return to
Warwick using paid claims].
2:20 PM Mr. Lichtenegger concludes direct examination of Mr. Sheh. Mr.
Kent Keller commences cross-examination of the witness on behalf of
Defendants Applied Underwriters Captive Risk Assurance Co.., Inc., Applied
Underwriters, Inc., and Continental Indemnity Co., referring the witness to
Plaintiffs’ Exhibit #8 [Demonstrative exhibit] [Exhibit showing calculation of Plan
Analysis Return to Warwick using paid claims].
2:22 PM Mr. Keller refers the witness to Plaintiffs’ Exhibit #7 [Demonstrative
exhibit] [Exhibit showing calculation of Plan Analysis Return to Warwick using
developed claims] and resumes cross-examination of Mr. Sheh.
2:29 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #64 [04/25/13 12:45 AM E-mail from Natalie Gibbons to
Michael Sheh re: Warwick — Workers Comp. Mod and 2013 Renewal and
attaches: Loss Summ 2013 MARKETS.xls; NCCI Exp Mod.pdf; Interstate Exp
Mod.pdf; warwickend for final ERM.PDF; warwick master wc end.pdf [Michael
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-4- Form: CO1006Sheh Depo. Exh. 64; Willis-014294-014295]] and resumes cross-examination of Mr.
Sheh.
2:32 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #70 [05/01/13 6:13 AM E-mail from Michael Sheh to Charles
Steers re: FW: Warwick - Workers Comp. Mod and 2013 Renewal
[Michael Sheh Depo. Exh.'s 70; Willis-014994]] and resumes cross-examination of
Mr. Sheh.
2:35 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #71[05/23/13 5:47 PM E-mail from Tina Bowe to Michael Sheh
re: Market Responses and Loss Stratification and attaches: Detailed Market
Responses.xls; Loss Summ 2013 MARKETS.xls [Michael Sheh Depo. Exh. 71; Willis-
020856-020858]] and resumes cross-examination of Mr. Sheh.
2:38 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #72 [05/23/13 10:58 PM E-mail from Michael Sheh to Richard
Chiu FW: Worker Comp, GL and auto — Market Responses and premium
summary and attaches: Detailed Market Responses.xls; Loss Summ 2013
MARKETS.xls; PRELIMINARY Casualty Premium Sumary incl WC 2013 (2).xIs
[Michael Sheh Depo. Exh. 72; WARWICK009104-009107]] and resumes cross-
examination of Mr. Sheh.
2:40 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #73 [05/24/13 12:21 PM E-mail from Michael Sheh to Richard
Chiu re: FW: Worker Comp. Mod and 2013 Renewal [Michael Sheh Depo. Exh.
73; WARWICKO10923-010925]] and resumes cross-examination of Mr. Sheh.
2:46 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #74 [05/24/13 2:08 PM E-mail from Michael Sheh to Richard
Chiu re: FW: Warwick International Hotels [Michael Sheh Depo. Exh. 74; Christina
Bowe Depo. Exh. 11); WARWICK009108-009113]] and resumes cross-examination
of Mr. Sheh.
N
50 PM The Court questions the witness regarding the nature and function
of WSF Beverages. Mr. Keller resumes cross-examination of Mr. Sheh.
2:51 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #76 [05/27/13 6:32 AM E-mail from Michael Sheh to Tina
Bowe re: FW: Warwick Amusements — Casualty Premium Comparison 2013-2014
(without attachment) [Michael Sheh Depo. Exh. 76; Willis-0O21610-021612]] and
resumes cross-examination of Mr. Sheh.
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-5- Form: CO10062:55 PM Court recesses until 3:10 p.m.
3:08 PM Court in session, on the record. The Court, reporter, courtroom staff
and counsel are all present. Mr. Michael Sheh returns to the witness stand. Mr.
Keller resumes cross-examination of Mr. Sheh, referring the witness to previously
admitted Defendants’ Exhibit #125 [06/11/13 8:08 PM E-mail from Charles Steers
to Michael Sheh re: RE: Warwick WC Cancellation [Christina Bowe Depo. Exh. 17;
Willis-026941]].
3:10 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #124 [06/11/13 4:44 PM E-mail from Tina Bowe to Michael
Sheh and Charles Steers re: RE: Worker Comp Liability [Christina Bowe Depo. Exh.
16; Willis-026935]] and resumes cross-examination of Mr. Sheh.
3:14PM The Court questions the witness regarding the possible attraction of
a 3-year fixed rate insurance premium. Mr. Keller resumes cross-examination of
Mr. Sheh.
3:14PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #78 [06/11/13 9:40 PM E-mail from Michael Sheh to Richard
Chiu re: FW: Warwick- Captive Illustration and attaches: WC Only.xlsx; WC-
Liberty renewal guarantee program 2013-24 6.11.13.xls [Michael Sheh Depo. Exh.
78; WARWICKO09 1 22-009 127]] and resumes cross-examination of Mr. Sheh.
3:22 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #88 [06/15/06 Fax from Tarantino Insurance regarding Union,
a Garnet Captive Program 06/15/06 Fax from Tarantino Insurance regarding
Union, a Garnet Captive Program 06/15/06 Fax from Tarantino Insurance
regarding Union, a Garnet Captive Program [Michael Sheh Depo. Exh. 88;
AJG000019-000034]] and resumes cross-examination of Mr. Sheh.
3:25 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #91 [03/28/07 Document introducing “Union, A Garnet
Captive Program" [Michael Sheh Depo. Exh. 91]] and resumes cross-
examination of Mr. Sheh.
3:26 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #90 [04/01/08 Letter from Paul Papas, Arch Insurance Group,
Inc. to John J. Purdy, Garnet Captive Insurance Services, LLC, re: Warwick
Amusements Corp.; WSF Beverage Corp. (Part of Union Holdings, LLC)-Workers
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-6- Form: CO1006Compensation Bound Proposal-Effective April 1, 2008 [Michael Sheh
90; AJG000637-000641]] and resumes cross-examination of Mr. Sheh.
Depo. Exh.
3:28 PM Mr. Keller refers the witness to previously admitted Defendants’
Exhibit #132 [Workers’' Compensation Program Proposal and Rate Quotation for
Warwick Amusements Corporation for Quote #966881-1, Proposed Effective
Date 06/14/13 and Defendants’ Exhibit #133 [Scenarios for Warwick Amusements
Corporation for Quote #966881-1, Proposed Effective Date 06/14/13] and
resumes cross-examination of Mr. Sheh.
3:30 PM Mr. Keller initially refers the witness to Defendants’ Exhibit #79 then
almost immediately corrects the reference to previously admitted Defendants’
Exhibit #136 [Reinsurance Participation Agreement effective date 06/14/13
dated 06/19/13 [Willis-027887-027898]] and resumes cross-examination of Mr.
Sheh.
3:31 PM Mr. Keller refers the witness to previously admitted Defendants’
Exhibit #79 [06/11/13 10:55 PM E-mail from Tina Bowe to Michael Sheh re: RE:
Worker Comp Liability and Attaches: AU QUOTE V2.pdf; Warwick Amusements
Corporation Agreement pdf [Michael Sheh Depo. Exh. 79; (Christina Bowe
Depo. Exh. 18 & Charles Steers Depo. Exh. 8); Willis-026945-026972]] and resumes
cross-examination of Mr. Sheh.
3:39 PM Mr. Keller refers the witness to pre-approved and now admitted
Defendants’ Exhibit #63 [06/12/13 9:47 PM Email from Michael Sheh to Richard
Chiu re: FW: Worker Comp Liability [Michael Sheh Depo. Exh. 63;
WARWICKO009 1 48-009176]] and resumes cross-examination of Mr. Sheh.
3:43 PM The Court questions the witness regarding the nature and function
of their relationship wit Willis
examination of Mr. Sheh.
3:44 Pm Mr. Keller again
Defendants’ Exhibit #63 [06/
Chiu re: FW: Worker Comp Li
insurance broker]. Mr. Keller resumes cross-
refers the witness to previously admitted
2/13 9:47 PM Email from Michael Sheh to Richard
ability [Michael Sheh Depo. Exh. 63;
WARWICK009 1 48-009176]] and resumes cross-examination of Mr. Sheh.
3:58 PM Mr. Keller refers
he witness to previously identified Plaintiffs’ Exhibit
#12 [06/13/13 10:32 AM E-mail from Tina Bowe to Michael Sheh re: Workers
compensation Order to Bind
examination of Mr. Sheh.
Case Number: CGC-16-5516
Case Title: WARWICK AMUSE
UNDERWRITERS, INC., A NEBR
with Applied Underwriters] and resumes cross-
14 Date: May 22, 2018
MENTS CORPORATION, ET AL VS. APPLIED
ASKA CORPORATION ET AL
-7- Form: CO10064:02 PM Mr. Keller refers the witness to previously admitted Defendants’
Exhibit #79 [06/11/13 10:55 PM E-mail from Tina Bowe to Michael Sheh re: RE:
Worker Comp Liability and Attaches: AU QUOTE V2.pdf; Warwick Amusements
Corporation Agreement pdf [Michael Sheh Depo. Exh. 79; (Christina Bowe
Depo. Exh. 18 & Charles Steers Depo. Exh. 8); Willis-026945-026972]] and resumes
cross-examination of Mr. Sheh.
4:05 PM Mr. Keller concludes cross-examination of Mr. Sheh. Mr.
Lichtenegger commences re-direct examination of the witness.
4:08 PM Mr. Lichtenegger concludes re-direct examination of Mr. Sheh. Mr.
Keller briefly commences re-cross examination of Mr. Sheh, then concludes.
here being no other questions or further examination of the witness, the Court
hanks and directs Mr. Sheh to step down from the stand.
4:10 Pm Mr. Kook calls Ellen Gardiner to the witness stand who is placed
under oath. Ms. Gardiner is an actuary employed by the Defendant Applied
Underwriters. Mr. Kook commences direct examination of the witness.
4:17 PM Mr. Kook refers the witness to previously admitted Defendants’ Exhibit
#137 [2013 to 2014 California Insurance Company Workers' Compensation and
Employer's Liability Insurance Policy No. 73-871862-01-02 issued to Warwick
Amusements Corporation for the policy period 06/14/13 through 06/14/14 (CA,
TX) (Estimated Premium) [AU0002184-2237]], previously admitted
Defendants’ Exhibit #139 [Workers' Compensation and Employer's Liability
Insurance Policy No. 73-871862-01-03 issued to Warwick Amusements
Corporation for the policy period 06/14/14 through 06/14/15 (CA, TX)
(Estimated Premium) [AU002238-2292]], and previously admitted
Defendants’ Exhibit #141 [2015 to 2016 California Insurance Company Workers'
Compensation and Employer's Liability Insurance Policy No. 73-871862-01-05
issued to Warwick Amusements Corporation for the policy period 06/14/15
through 05/04/16 (CA, TX) (Estimated Premium) [AU0002293-2348]] and resumes
direct examination of Ms. Gardiner.
4:22 PM The Court questions the witness regarding the timing of the receipt
of premiums. Mr. Kook resumes direct examination of Ms. Gardiner.
4:24 PM Noting the time, Court adjourns until 1:30 p.m. tomorrow [May 30,
2018).
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-8- Form: CO10064:25 PM Off the record. Court and counsel briefly discuss a scheduling issue
with a defense witness. The Court determines to revisit the matter at the close of
testimony tomorrow.
Case Number: CGC-16-551614 Date: May 22, 2018
Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED
UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL
-9- Form: CO1006
Preview
SUPERIOR COURT OF CALIFORNIA COUNTY OF SAN FRANCISCO MINUTES May 29, 2018 WARWICK AMUSEMENTS CORPORATION, et al. PLAINTIFFS VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION, ef al. DEFENDANTS Present: Judge: RICHARD B. ULMER Reporter: Debbie Acevedo-Ramirez, CSR# 7692, Atkinson-Baker, 818-551-7300 Appearing for Plaintiff (s): Larry J. Lichtenegger, Esq. Lichtenegger Law Office 3850 Rio Road, Suite 58 Carmel, CA 93923 O: 831-626-2801 E: lawyer@mbay.net for Plaintiffs Warwick California Corporation and WSF Beverage Corp. Case Number: CGC-16-551614 Department: 306 Case Number: CGC-16-551614 Nature of Cause: Breach of Contract [Workers’ Compensation Insurance] Today's Proceedings: Plaintiffs’ Case Trial Day: 1.5 Clerk: R. MICHAEL DILES Bailiff: Appearing for Defendant(s): Spencer Y. Kook, Esq. Kent R. Keller, Esq. Hinshaw & Culbertson LLP 633 West 5th Street, 47th Floor Los Angeles, CA 90071-2043 O: 213-614-7359 [Kook] O: 213-614-7302 [Keller] E: skkook@mail.hinshawlaw.com E: kkeller@mail.hinshawlaw.com For Defendants Applied Underwriters Captive Risk Assurance Co., Inc.; Applied Underwriters, Inc.; Continental Indemnity Co. Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -l- Form: CO1006Appearing for Plaintiff (s): Appearing for Defendant(s): Travis R. Wall, Esq. Hinshaw & Culbertson LLP One California Street, 18'* Floor San Francisco, CA 94111 O: 415-743-3738 [Wall] E: twall@hinshawlaw.com For Defendants Applied Underwriters Captive Risk Assurance Co., Inc., a California Insurance Company; Applied Underwriters, Inc., a Nebraska Corporation; Continental Indemnity Co. This matter comes on for Court trial, having been continued from May 24, 2018. The Court, courtroom staff and counsel, indicated in bold-face, above, are all present as is Mr. Michael Sheh, Plaintiffs’ representative. 1:26 PM Court in session, on the record. Counsel state their appearances. At the Court's invitation, Mr. Michael Sheh returns to the witness stand who is reminded by the Court that he remains under oath. Mr. Lichtenegger resumes direct examination of the witness, referring the witness to previously admitted Defendants’ Exhibit #137 [2013 to 2014 California Insurance Company Workers’ Compensation and Employer's Liability Insurance Policy No. 73-871862-01-02 issued to Warwick Amusements Corporation for the policy period 06/14/13 through 06/14/14 (CA, TX) (Estimated Premium) [AU0002184-2237]]. 1:28 PM Mr. Lichtenegger identifies for the record and refers the witness to Plaintiffs’ Exhibit #11 [07/10/13 6:20 AM E-mail from Charles Steers to Michael Sheh re: Workers Compensation Policies] and resumes direct examination of Mr. Sheh. 1:30 PM Mr. Lichtenegger refers the witness to pre-approved and now admitted Defendants’ Exhibit #139 [2014 to 2015 California Insurance Company Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862- 01-03 issued to Warwick Amusements Corporation for the policy period 06/14/14 Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -2- Form: CO100634 PM 137 PM :40 PM ‘42 PM 144 PM 159 PM 2:00 PM Plaintiffs’ Exhibit #12 re: Workers compensation Order to Bind with Applied Underwriters] and resumes direct examination o Quote #966881- Willis-O27877-027880 effective date 0: direct examination o Mr. Licht Mr. Licht Mr. Lich Mr. Lich hrough 06/14/15 (CA, TX) (Estimated Premium) [AU002238-2292]] and resumes direct examination of Mr. Sheh. enegger refers the witness to pre-approved and now admitted Defendants’ Exhibit #141 [2015 to 2016 California Insurance Company Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862- 01-05 issued to Warwick Amusements Corporation for the policy period 06/14/15 hrough 05/04/16 (CA, TX) (Estimated Premium) [AU0002293-2348]] and resumes direct examination o Mr. Sheh. enegger refers the witness to pre-approved and now admitted Defendants’ Exhibit #79 [06/11/13 10:55 PM E-mail from Tina Bowe to Michael Sheh re: RE: Warwick Amusemen Christina Bowe Worker Comp Liability and Attaches: AU QUOTE V2.pdf; s Corporation Agreement pdf [Michael Sheh Depo. Exh. 79; Depo. Exh. 18 & Charles Steers Depo. Exh. 8); Willis-026945- 026972]] and resumes direct examination of Mr. Sheh. enegger identifies for the record and refers the witness to 06/13/13 10:32 AM E-mail from Tina Bowe to Michael Sheh Mr. Sheh. enegger refers the witness to previously admitted Defendants’ Exhibit #135 [Request to Bind Coverages & Services for EquityComp 1, Proposed Effective Date 06/14/13 dated 06/19/13 and resumes direct examination of Mr. Sheh. Mr. Lich enegger refers the witness to pre-approved and now admitted Defendants’ Exhibit #136 [Reinsurance Participation Agreement 6/14/13 dated 06/19/13 [Willis-027887-027898]] and resumes Mr. Sheh. Brief recess. Court in session, on the record. Mr. Lichtenegger resumes direct examination of Mr. Sheh. 2:03 PM Mr. Licht enegger refers the witness to Plaintiffs’ Exhibit #8 [Demonstrative exhibit] [Exhibit snowing calculation of Plan Analysis Return to Warwick using paid claims] and resumes direct examination of Mr. Sheh. Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -3- Form: CO10062:06 PM Mr. Lichtenegger refers the witness to pre-approved and now admitted Plaintiffs’ Exhibit #5 [EquityComp® Plan Analysis for Warwick Amusements Corporation for the Plan Term 06/14/13 to 06/13/16 for the Period 03/01/18 to 03/31/18] and resumes direct examination of Mr. Sheh. 2:12PM The witness, Mr. Sheh, refers Mr. Lichtenegger to Defendants’ Exhibit #150, shortly corrected thereafter to pre-approved and now admitted Defendants’ Exhibit #151 [Exposure Group Adjustment Factors (Table B) for Warwick Amusements Corporation (Account 871862) as of 06/14/13] and resumes direct examination of Mr. Sheh. 2:16PM Mr. Lichtenegger then refers the witness to pre-approved and now admitted Defendants’ Exhibit #150 [Billing Register for Warwick Amusements Corporation (Account 871862) as of 04/10/18] and resumes direct examination of Mr. Sheh. 2:18 PM Mr. Lichtenegger again refers the witness to previously admitted Plaintiffs’ Exhibit #5 [EquityComp® Plan Analysis for Warwick Amusements Corporation for the Plan Term 06/14/13 to 06/13/16 for the Period 03/01/18 to 03/31/18] and resumes direct examination of Mr. Sheh. 2:19 PM The Court questions counsel regarding the apportionment of various premiums, whereupon Mr. Lichtenegger refers the Court to Plaintiffs’ Exhibit #8 [Demonstrative exhibit] [Exhibit snowing calculation of Plan Analysis Return to Warwick using paid claims]. 2:20 PM Mr. Lichtenegger concludes direct examination of Mr. Sheh. Mr. Kent Keller commences cross-examination of the witness on behalf of Defendants Applied Underwriters Captive Risk Assurance Co.., Inc., Applied Underwriters, Inc., and Continental Indemnity Co., referring the witness to Plaintiffs’ Exhibit #8 [Demonstrative exhibit] [Exhibit showing calculation of Plan Analysis Return to Warwick using paid claims]. 2:22 PM Mr. Keller refers the witness to Plaintiffs’ Exhibit #7 [Demonstrative exhibit] [Exhibit showing calculation of Plan Analysis Return to Warwick using developed claims] and resumes cross-examination of Mr. Sheh. 2:29 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #64 [04/25/13 12:45 AM E-mail from Natalie Gibbons to Michael Sheh re: Warwick — Workers Comp. Mod and 2013 Renewal and attaches: Loss Summ 2013 MARKETS.xls; NCCI Exp Mod.pdf; Interstate Exp Mod.pdf; warwickend for final ERM.PDF; warwick master wc end.pdf [Michael Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -4- Form: CO1006Sheh Depo. Exh. 64; Willis-014294-014295]] and resumes cross-examination of Mr. Sheh. 2:32 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #70 [05/01/13 6:13 AM E-mail from Michael Sheh to Charles Steers re: FW: Warwick - Workers Comp. Mod and 2013 Renewal [Michael Sheh Depo. Exh.'s 70; Willis-014994]] and resumes cross-examination of Mr. Sheh. 2:35 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #71[05/23/13 5:47 PM E-mail from Tina Bowe to Michael Sheh re: Market Responses and Loss Stratification and attaches: Detailed Market Responses.xls; Loss Summ 2013 MARKETS.xls [Michael Sheh Depo. Exh. 71; Willis- 020856-020858]] and resumes cross-examination of Mr. Sheh. 2:38 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #72 [05/23/13 10:58 PM E-mail from Michael Sheh to Richard Chiu FW: Worker Comp, GL and auto — Market Responses and premium summary and attaches: Detailed Market Responses.xls; Loss Summ 2013 MARKETS.xls; PRELIMINARY Casualty Premium Sumary incl WC 2013 (2).xIs [Michael Sheh Depo. Exh. 72; WARWICK009104-009107]] and resumes cross- examination of Mr. Sheh. 2:40 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #73 [05/24/13 12:21 PM E-mail from Michael Sheh to Richard Chiu re: FW: Worker Comp. Mod and 2013 Renewal [Michael Sheh Depo. Exh. 73; WARWICKO10923-010925]] and resumes cross-examination of Mr. Sheh. 2:46 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #74 [05/24/13 2:08 PM E-mail from Michael Sheh to Richard Chiu re: FW: Warwick International Hotels [Michael Sheh Depo. Exh. 74; Christina Bowe Depo. Exh. 11); WARWICK009108-009113]] and resumes cross-examination of Mr. Sheh. N 50 PM The Court questions the witness regarding the nature and function of WSF Beverages. Mr. Keller resumes cross-examination of Mr. Sheh. 2:51 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #76 [05/27/13 6:32 AM E-mail from Michael Sheh to Tina Bowe re: FW: Warwick Amusements — Casualty Premium Comparison 2013-2014 (without attachment) [Michael Sheh Depo. Exh. 76; Willis-0O21610-021612]] and resumes cross-examination of Mr. Sheh. Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -5- Form: CO10062:55 PM Court recesses until 3:10 p.m. 3:08 PM Court in session, on the record. The Court, reporter, courtroom staff and counsel are all present. Mr. Michael Sheh returns to the witness stand. Mr. Keller resumes cross-examination of Mr. Sheh, referring the witness to previously admitted Defendants’ Exhibit #125 [06/11/13 8:08 PM E-mail from Charles Steers to Michael Sheh re: RE: Warwick WC Cancellation [Christina Bowe Depo. Exh. 17; Willis-026941]]. 3:10 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #124 [06/11/13 4:44 PM E-mail from Tina Bowe to Michael Sheh and Charles Steers re: RE: Worker Comp Liability [Christina Bowe Depo. Exh. 16; Willis-026935]] and resumes cross-examination of Mr. Sheh. 3:14PM The Court questions the witness regarding the possible attraction of a 3-year fixed rate insurance premium. Mr. Keller resumes cross-examination of Mr. Sheh. 3:14PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #78 [06/11/13 9:40 PM E-mail from Michael Sheh to Richard Chiu re: FW: Warwick- Captive Illustration and attaches: WC Only.xlsx; WC- Liberty renewal guarantee program 2013-24 6.11.13.xls [Michael Sheh Depo. Exh. 78; WARWICKO09 1 22-009 127]] and resumes cross-examination of Mr. Sheh. 3:22 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #88 [06/15/06 Fax from Tarantino Insurance regarding Union, a Garnet Captive Program 06/15/06 Fax from Tarantino Insurance regarding Union, a Garnet Captive Program 06/15/06 Fax from Tarantino Insurance regarding Union, a Garnet Captive Program [Michael Sheh Depo. Exh. 88; AJG000019-000034]] and resumes cross-examination of Mr. Sheh. 3:25 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #91 [03/28/07 Document introducing “Union, A Garnet Captive Program" [Michael Sheh Depo. Exh. 91]] and resumes cross- examination of Mr. Sheh. 3:26 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #90 [04/01/08 Letter from Paul Papas, Arch Insurance Group, Inc. to John J. Purdy, Garnet Captive Insurance Services, LLC, re: Warwick Amusements Corp.; WSF Beverage Corp. (Part of Union Holdings, LLC)-Workers Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -6- Form: CO1006Compensation Bound Proposal-Effective April 1, 2008 [Michael Sheh 90; AJG000637-000641]] and resumes cross-examination of Mr. Sheh. Depo. Exh. 3:28 PM Mr. Keller refers the witness to previously admitted Defendants’ Exhibit #132 [Workers’' Compensation Program Proposal and Rate Quotation for Warwick Amusements Corporation for Quote #966881-1, Proposed Effective Date 06/14/13 and Defendants’ Exhibit #133 [Scenarios for Warwick Amusements Corporation for Quote #966881-1, Proposed Effective Date 06/14/13] and resumes cross-examination of Mr. Sheh. 3:30 PM Mr. Keller initially refers the witness to Defendants’ Exhibit #79 then almost immediately corrects the reference to previously admitted Defendants’ Exhibit #136 [Reinsurance Participation Agreement effective date 06/14/13 dated 06/19/13 [Willis-027887-027898]] and resumes cross-examination of Mr. Sheh. 3:31 PM Mr. Keller refers the witness to previously admitted Defendants’ Exhibit #79 [06/11/13 10:55 PM E-mail from Tina Bowe to Michael Sheh re: RE: Worker Comp Liability and Attaches: AU QUOTE V2.pdf; Warwick Amusements Corporation Agreement pdf [Michael Sheh Depo. Exh. 79; (Christina Bowe Depo. Exh. 18 & Charles Steers Depo. Exh. 8); Willis-026945-026972]] and resumes cross-examination of Mr. Sheh. 3:39 PM Mr. Keller refers the witness to pre-approved and now admitted Defendants’ Exhibit #63 [06/12/13 9:47 PM Email from Michael Sheh to Richard Chiu re: FW: Worker Comp Liability [Michael Sheh Depo. Exh. 63; WARWICKO009 1 48-009176]] and resumes cross-examination of Mr. Sheh. 3:43 PM The Court questions the witness regarding the nature and function of their relationship wit Willis examination of Mr. Sheh. 3:44 Pm Mr. Keller again Defendants’ Exhibit #63 [06/ Chiu re: FW: Worker Comp Li insurance broker]. Mr. Keller resumes cross- refers the witness to previously admitted 2/13 9:47 PM Email from Michael Sheh to Richard ability [Michael Sheh Depo. Exh. 63; WARWICK009 1 48-009176]] and resumes cross-examination of Mr. Sheh. 3:58 PM Mr. Keller refers he witness to previously identified Plaintiffs’ Exhibit #12 [06/13/13 10:32 AM E-mail from Tina Bowe to Michael Sheh re: Workers compensation Order to Bind examination of Mr. Sheh. Case Number: CGC-16-5516 Case Title: WARWICK AMUSE UNDERWRITERS, INC., A NEBR with Applied Underwriters] and resumes cross- 14 Date: May 22, 2018 MENTS CORPORATION, ET AL VS. APPLIED ASKA CORPORATION ET AL -7- Form: CO10064:02 PM Mr. Keller refers the witness to previously admitted Defendants’ Exhibit #79 [06/11/13 10:55 PM E-mail from Tina Bowe to Michael Sheh re: RE: Worker Comp Liability and Attaches: AU QUOTE V2.pdf; Warwick Amusements Corporation Agreement pdf [Michael Sheh Depo. Exh. 79; (Christina Bowe Depo. Exh. 18 & Charles Steers Depo. Exh. 8); Willis-026945-026972]] and resumes cross-examination of Mr. Sheh. 4:05 PM Mr. Keller concludes cross-examination of Mr. Sheh. Mr. Lichtenegger commences re-direct examination of the witness. 4:08 PM Mr. Lichtenegger concludes re-direct examination of Mr. Sheh. Mr. Keller briefly commences re-cross examination of Mr. Sheh, then concludes. here being no other questions or further examination of the witness, the Court hanks and directs Mr. Sheh to step down from the stand. 4:10 Pm Mr. Kook calls Ellen Gardiner to the witness stand who is placed under oath. Ms. Gardiner is an actuary employed by the Defendant Applied Underwriters. Mr. Kook commences direct examination of the witness. 4:17 PM Mr. Kook refers the witness to previously admitted Defendants’ Exhibit #137 [2013 to 2014 California Insurance Company Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862-01-02 issued to Warwick Amusements Corporation for the policy period 06/14/13 through 06/14/14 (CA, TX) (Estimated Premium) [AU0002184-2237]], previously admitted Defendants’ Exhibit #139 [Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862-01-03 issued to Warwick Amusements Corporation for the policy period 06/14/14 through 06/14/15 (CA, TX) (Estimated Premium) [AU002238-2292]], and previously admitted Defendants’ Exhibit #141 [2015 to 2016 California Insurance Company Workers' Compensation and Employer's Liability Insurance Policy No. 73-871862-01-05 issued to Warwick Amusements Corporation for the policy period 06/14/15 through 05/04/16 (CA, TX) (Estimated Premium) [AU0002293-2348]] and resumes direct examination of Ms. Gardiner. 4:22 PM The Court questions the witness regarding the timing of the receipt of premiums. Mr. Kook resumes direct examination of Ms. Gardiner. 4:24 PM Noting the time, Court adjourns until 1:30 p.m. tomorrow [May 30, 2018). Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -8- Form: CO10064:25 PM Off the record. Court and counsel briefly discuss a scheduling issue with a defense witness. The Court determines to revisit the matter at the close of testimony tomorrow. Case Number: CGC-16-551614 Date: May 22, 2018 Case Title: WARWICK AMUSEMENTS CORPORATION, ET AL VS. APPLIED UNDERWRITERS, INC., A NEBRASKA CORPORATION ET AL -9- Form: CO1006