The defendants in this case can be divided into three general groups: 1) the former
directors of Trenwick,2 the parent corporation; 2) the former directors of Trenwick
America;3 and 3) certain former advisors of Trenwick.4
The History Of The Trenwick Companies Leading Up To This Litigation
What Was Trenwick As Of The Beginning Of 1998?
The amended complaint (“complaint”) is a confusing muddle, laden with
irrelevancies, and failing to set forth a coherent course of events. From the murk of the
complaint, and certain public documents it relies upon, I will attempt to craft a more
understandable rendition of Trenwick’s relevant history.
Critical to that endeavor is establishing a baseline understanding of what Trenwick
was before the transactions that the Litigation Trust attacks occurred. As of the
beginning of 1998, Trenwick was a specialty insurance underwriting organization. Its
shares were listed on the New York Stock Exchange. Trenwick did not have a
controlling stockholder or anything close to one.
At that time, Trenwick’s principally operated in the domestic United States as a
provider of so-called “treaty reinsurance” to American insurers of property and casualty
risks.5 Trenwick conducted this business through an indirect, wholly-owned subsidiary,
2 Defendants serving on the board of directors for Trenwick at various times were: James F. Billett, Jr.; Anthony S. Brown; Richard E. Cole; Robert M. DeMichele; Frank E. Grzelecki; P. Anthony Jacobs; Joseph D. Sargent; Frederick D. Watkins; and Stephen R. Wilcox.
3 Defendants serving on Trenwick America’s board of directors were: James F. Billett, Jr.; Stephen H. Binet; Paul Fedsher; Robert A. Giambo; Alan L. Hunte; and James E. Roberts.
4 The professional advisors named as defendants are Ernst & Young, L.L.P.; PriceWaterhouseCoopers, L.L.C.; Baker & McKenzie, L.L.P.; and Milliman, Inc.
5 Trenwick also sold some so-called facultative reinsurance as of that point, but it was a small portion of its business.