 When PG&E filed a voluntary Chapter 11 bankruptcy petition on April 6, 2001 as a result of the California electricity crisis, Travelers hired attorneys to protect its interests.California law mandated that PG&E cover all attorney fees incurred by Travelers during state court proceedings.The litigation later moved to federal court, where PG&E refused to pay for Travelers' federal court expenses, claiming they were only responsible for fees incurred during state court proceedings.