BAILLIE LUMBER CO LP v. ACE AMERICAN INSURANCE COMPANY
"FIRST CAUSE OF ACTION AGAINST ACE
(Breach of Written Contract)
11. Plaintiff hereby re-alleges and incorporates the preceding paragraphs as through fully set forth herein.
12. The Policy constitutes a written contract between Plaintiff and Defendant, the substantive terms of which require Defendant to reimburse losses Plaintiff incurred by reason of the loss of Plaintiff's personal property at Covered Locations.
13. Plaintiff performed all of it obligations under the Policy.
14. Plaintiff incurred clear losses covered by the Policy and, within the past two years, submitted an honest and accurate Claim to Defendant in a timely fashion,
15. Defendant denied Plaintiff's Claim in violations of the terms of the Policy.
16. By engaging in the acts and omissions alleged above, Defendant has breached its contract with Plaintiff.
17. As a direct and proximate result of Defendant's breach, Plaintiff has sustained and is continuinng to sustain damages including, withou limitation, the loss of policy benefits in an amount subject to proof, but in no event less than $190,00.00, plus interest at the legal rate from the date Defendant denied Plaintiff's claim.
18. A finding that the conduct of Defendant, as alleged above constitutes a breach of contract will result in the enforcement of an important right affecting the public interest by making it clear to Defendant (an other insurance companies) that insurers cannot refuse to honor their obligations to their insurds simply because most insureds are unwilling or unable to litigate their claims. Moreover, such a finding will result in a significant benefit to the general public or a large class of persons, the necessity and financil burden on Plaintiff to vindicate such right redners the award of Plaintiff's attorney's fees should be paid by Defendant, and not out of Plaintiffs' recovery pursuant to California Code of Civil Procedure Sectioni 1021.5.
SECOND CAUSE OF ACTION AGAINST ACE
(First Party Insurer Bad Faith Denial of Claims)
19. Plaintiff hereby re-alleges and incorporates the preceeding paragraphs as though fully set forth herein.
20. Defendant, as an insurer, owned a duty to Plaintiff at all times relevant to diligently investigate the facts of a claim, fairly evaluate a claims, and promptly resolve a claim.
21. Plaintiff incurred clear losses covered by the policy and submitted an honest and accurate Claim to Defendant. Defendant denied Plaintiff's Claim without adhering to law with respect to an insurer's burden to establish that policy exclusions apply to the facts of a claim."
"THIRD CAUSE OF ACTION AGAINST ACE
(Breach of the Implied Covenant of Good Faith and Fair Dealings)
27. Plaintiff hereby re-alleges and incorporates the preceeding paragraphs as though fully set herein.
28.There is in every contract, an implied covenant by each party not to take any step, or engage in an conduct that would deprive the other party of the benefit of the contract.
29. By among other things, engaging in the acts and omissions alleged above, Defendant breached the implied convenant of good faith and fair dealing."