Case 1:04-cv-00725-RPM
Document 45-20
Filed 07/21/2005
Page 1 of 4
Case 1:04-cv-00725-RPM
Document 45-20
Filed 07/21/2005
Page 2 of 4
LEwIs BRrsBorsBiSGAARD SMITHrrp &
A'ToRNEys Ar LA \' IOO WALL STRaET, INT{ FLooR, NEw YoRK, NBw VoRK lOOOJ-3701 N PHONE: 212,232.1300 | F Ax.: 212.232.t39g | \tEhstrE: www.lbbslrw.com
TEoMAS SANToID M. DRECT DtN: (212)232-1309 E^M Ir: [email protected]
April 5,2004
FIIINO. 264s7Al
vIA SACSIMILE,(303)291_2400 AND FRIIT CLASSMAIL Leooard MacPhee. H. Bso.
ledolls cole
1899Wynkoop Street ' Suite700 Ded.tt, 8020L1043 eO Re:
Wstchester llsurarce Compatry Fi! Managqment PrcteotiotrInsura{cepolicy Insuled: The Quizoo'sCopotatiot Polioies: DON 648451 ClailllNo.i X390L9630918 Mattr: L Sebestdv. Schailehet dl. (rhe"SebestaActiot\ 2. the Qtbto's Cotporationr. Faga4 et aI (the,,Di,tse\ten' Actlor"\ 3. Mcketsonv. Ihe S izno'sCorporation,et dL (thc,'Nictz6on Action'\
DearLli Thb leftot will setveto bform Theeuizno'sCoryoration Ceuiao,s,) in &!potto tbe of our Fire Cohpalty(.Weitclastil anaits 1ov-erage-position clielts, Weetcheste! hs8rance "jg]s dyry.9119t, ACE USA (,ACE ), iu respect the subject of mait"o. West"h"ster 8trd ALE, on rut benaU, bavehadatropportudty reviwnewhforEEtiooconceldtg thesubject to policy provisio:os may to p.:I:s- 119 takothis oppolhrnity hform tle Iasured certain of that llllur o! prolude covemge keeping I.D with Wstchster,s dutes ard obligations an ursuror. as AJrcaprtatrzecl used terms bereid shallhavg definitioGascribed th@ the to uader captione.d the Policy,udes6otbrwise spoified. announced it hadrcceived proporalto ooDplete that a &e -OnNtay22, 2001,Quiztro,s secodd-sGplf going-pdvate a tratsaction ,,Tratsactioo'1 (the lyraefgilg withF eaze Corp., sD drry wholly owled by RichardE. Schaderf euiztro'sClailDau, plesidd atrd CBO.and
2r3r50,1$0 srN&dcrsco 415.3!,"2380 srx DtEGo 619.:!3,1006 ?14145.9200
SANBqNA&Dn!b 9tD337.tt30 Src&$c}IlO 9t6J!4.54@ NEu,yOrr a'2232,\M L[lVEOrt 1@,366.y2t2
483r-76896!2.r
Case 1:04-cv-00725-RPM
Document 45-20
Filed 07/21/2005
Page 3 of 4
LEwIsBnIsBoIsBISGAARD bMTH I,} & l,eonard Macphee, H, Esq. ' April5,2004 Page2
Rjchard F. Schadel QuizDo'sDireotor,Vic presideDt Secletary,whercby a.!d euizno,r would Deue fllr!4vrng pnvately owrcd corporatiotr (the .Mergel). The 6r8t stel' of ths TraNactioB war sert telder offer coDpletedon Dcenbcr 1l, 2000,whereby euizno,s offeredto pt$ohase rB trom existing shareholders $8.00 per share(the ."TenderOtrel). Ln comeciioo for _shares "-$ rvh; had not participatedid the fi.a* Off* *"* {"-Y9"ger, tlo* minority sba&holdels offered$8.50per share, The sharelolders approved lr,Iergeby voto on Novemb;r 30,2001. the - -- ---.qE.N- -oJEtEbq ?!0_l,.Qgi?ll9: _14, s.aotifiqdllveslahesterolfho_firing -afthe SehestqActiori brought otr be.halfof a class of sharhoidprs of euizno,s on Octobr5, 2001. The complditrt ll"g4 thul tlre !comEeadatiotrof $8.50 purchaseplioe was itadoguale aud colstitutrd a brea.h of fiduciary dutiesby the dieotors to the rninorit sharchotrde.rs. OeceoUerZZ, iX ZOOf, QuizEo's @tified Westcbe,sttr its receipt of lettersfrom a aumbetof shareboldem of iarlicating *T]]9I,P UTTU pusuatt ao&e Crtorado Business CorporationAct C,CtsCAi govrdn|ng drssenter's layneat rights. Thereafter,Quizno,sfiledlhe Di.rsenters' Acfron,seekiugjudioijl appraisalof the dissentingshareholders' shars. Wes&hestr roceivedmtice;f the tt;&sao, ,4ctoz by-conesp@dence Jamary23,2004. TbeNiclaefionActian pryatts to b oa bhalf of of a.cErs ot sbarebolde$who participafedio the Trder Offer and names aad oertaio euizao,s drrecto$ ard ofhcer of Quiao's as defedatts. The allegationsof tho ]$ckersonAction ni$ot lnose made i\ AE SebestaAction rhzdt\e p'jce paid in the Ttansaotionwas imdeqqate aEd constituteda bre,rh of fiduciary dutiesby the dire.tors to th6 oindity shrreholders. Coxjlscl for litestchetorissuedan initial &servation of lights letie! oE laouary 4, 2002, "lrypl"lg,+ q"t positioo by conespondetrce ofFebuary 5, 2002and March 19,2002 and 3o Ir1 re.spect rhe.feberk lcr'or, Westohostr of reervd ligbb gNrerally ard Y:*-lll2oM. speclrlcauy, as mole ftrlly d.scribdiq each of the &spective letto$, and by ;ecft co-rrspotrdeDce, adoptedand iacorpoBtedall suohreseivatio! ;f rights tofu Nicfusoa Adlon, wstohgstc deded coverage the DiJJerted , lcJior, asit mercly sooghtthe astabli.lhFnr of a of rau pnce tor &e securitiesat issue,aoddid not allegeally WrotrgfirlActs by Insureds, _TheCoud's opision datedJaftary 8, 2004 ib the DirJerdlr, lctbz indjoatsthat tho [Eured-drd aot pay fair value to its shareholdrs contrectiotr in with the Transiction. We refer you to tle-Jnudy 4, 2002,corespoode@e patick B. Myers,Bsq.nom Arter to & I{adderl IIp ln. wlucl \rr'estchester specifcally reserved rights ia tespectof Exclu6ionA(7) of fhe policy, its which Fovides rhat
The]trsuershallrct bel.isble lrss oBacaoust aly Claim for of dadeaSainst lllsured aDy basod uporq arisiag of, o, attributable out to such l]lswdgaidngit faotadyprofit,reEuleration filaBcial or advantage whioh$!chbr.sured Eotlegallye[titled;butthis to is orclusion 6halllot applyto Lo6s indorEifiedby thoCompany. ACE md Westchester hadanopporhrnity roviewthedoisiou tlle Distenters, have to iB . lcf,br .nd believ thedecisiou that establishis, f;t, thateliztro's recav"Ju p-nG fu finaacialadvantage whiohit wa8{or legallyetrti0cd.Accoidiqely, to ACEandfiiesdnester
483r-7689-5232.t
Case 1:04-cv-00725-RPM
Document 45-20
Filed 07/21/2005
Page 4 of 4
LBWISBRISBOIS BISGAARD ST,4fI{ "P & Leomrd H. MacPheqEsq.
April5,2004 3 PaEe spocifcally resewe rigbtto dely covrage all Eatters the fq relating trg TtaDsaction tro based rpotr ExchsionA(7). ACBatrd ltestohester fultherspecifically Ie,serve righl to seek th rapayooDt ofDefenso Costs ftoh thelDtweds, pursuant Clause ofthe poliqy,which to Z rcpayment theentent it is finallyestablislFd suchDfeqse requircs to tbat tlaf Costs not are uddefthePolicy. coverd leoeipt you!colrespoDdenca of of Maroh31,2004,advising _ Thiswill alsoacknowledge .-- . .,_'--gs'sf-glejUiEaeq-ldein3llq-AggB]3bdflsir.-fi\aNfuke$oj,ActtasJ$yall-asyou-voio"mail .
message the uDdersigtrd to ofApril t 2004,advisingihat pLitriiffs haveNgreed mediab rhat to mafter. In light of tho above,andtle prior conespond@ce &od cousel to ACE aod Wostohestr, Polioy doestrot &spoadto pmyidecovrage the witb rospe.t to liability ilcurred by hsureds lolatiog to iEadequate cotsidaation paid io sharchotders their holdiogsia euiao's, for seekto settlsthelvr?I"rsoz lcrtaz, but itr doiag eo,it should Qujzno's may, of oourse, !trderstard that tbqe is uo coverage affoidedfor suchIrss utder the policy. ACE and Westc.hester dGageewith your coltdtioDlhat theNicbtsott Acdil,,nisrll,trlatid to th,Seresla lctbr ard confirEs &eit positiotroutliBed our conespotrdetce io ofMarch 10, 2004,both iurespectofthe applicabilityofBxclusiotrA{1) ofpofcy No. DON G21635662002 in rslec! aud of the reasotrablness aocessity refainingnew cot:esdto dEfedtfu l,Ilr4ktrtonAcdo;ard of
ACE and WestchestE Dost cotrtitruo leserveall rights and deftnsesuldtr the polioy, to at law and itr equity,whethe!or lot le.fereacad herei!, including the right to deoy ooverage based upon groutrd! other tbaDthoscexplesslyset forth in this letter and to sulplraentasd/or ameod this letber to addressadditional covemgeissues as they may adse! basd upoa all of 6e govisiorls, terEs, cotrditiods,exolusiotrqeodorsehtrts dofinitiols found in tho policy, its aad applicatioD, al1d aoy additioml facts that may cortre to ACE and Westohester'sdetrtio!Noflring statedbroin atrd tro fur[rer actiotr taketrby. lryqstchesler otr its behalf shou.ldb6 or co$hued.as a waiver ofa4y ofits rights udr the policy' at law or in equity. On the conhary, by providhg this or ary prior oorlesgondetce Insureds,by og"gng io aDyprior or filhlr io disoussiolsrdth the Iasureds,or by payiagor agreeidg pay aoy adrorat to or oo b*alf of &e io Iflsureais, Wesbchoster {prosslydoesnot $'aive anyeuohiights. Ifyou haye any questioDs plasefeel freeto contactthe mdef,sigued.
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TMS:Elap:cm cc; KemrcthD. Milbauor
4$r-768C5t32,1
LEWISBRISBOIS BISGAARD SMIII{ LLP &