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HAWTHORNE SAVINGS v. RELIANCE INS. CO.

Nos. 03-55548, 03-55611.

421 F.3d 835 (2005)

HAWTHORNE SAVINGS F.S.B.; Hawthorne Financial Corporation, Plaintiffs-Appellees, v. RELIANCE INSURANCE COMPANY OF ILLINOIS, Defendant-Appellant. Hawthorne Savings F.S.B.; Hawthorne Financial Corporation, Plaintiffs-Appellees, v. M. Diane Koken, Insurance Commissioner of the Commonwealth of Pennsylvania, in her capacity as Liquidator of Reliance Insurance Company, Intervenor-Appellant, Reliance Insurance Company of Illinois, Defendant.

United States Court of Appeals, Ninth Circuit.

Filed August 24, 2005.

Attorney(s) appearing for the Case

W. Wendell Hall and Rosemarie Kanusky, Fulbright & Jaworski L.L.P., San Antonio, TX, Claudia Morehead and Robert S. Schulman, Fulbright & Jaworski L.L.P., Los Angeles, CA, and Oscar Rey Rodriguez, Fulbright & Jaworski L.L.P., Dallas, TX, for the defendant-appellant.

Pamela H. Woldow, Chief Counsel, Insurance Department, Commonwealth of Pennsylvania, Harrisburg, PA, for the intervenor-appellant.

Jeffrey A. Tidus and David P. Crochetiere, Baute & Tidus LLP, Los Angeles, CA, for the plaintiffs-appellees.

Before: BROWNING, PREGERSON, and BERZON, Circuit Judges.

BERZON, Circuit Judge:

"[F]ederal courts routinely confront the conflict between their exercise of federal jurisdiction and state laws establishing exclusive claims proceedings for insurance insolvencies." Callon Petroleum Co. v. Frontier Ins. Co., 351 F.3d 204, 209 (5th Cir.2003).1 These appeals present such a conflict.

Hawthorne Savings, F.S.B. ("Hawthorne") sued the Reliance Insurance...

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