CALPINE CORPORATION v. ACE AMERICAN INSURANCE COMPANY

13. In September 2004, Plaintiff CALPINE tendered its defense of the McVay lawsuit to Defendant ACE. ACE refused to respond for 4 months, and Plaintiff CALPINE finally received word from ACE acknowledging receipt of Plaintiff’s tender letter in January 2005. ACE has employed the tactic of delay and refuses to admit its obligations in this matter.
23. Defendant ACE breached its contract by failing: 1) to acknowledge and respond to Plaintiff CALPINE‘s tender letters within a reasonable time as Plaintiff CALPINE was an additional insured under the terms of Marley’s CGL policy; and 2) to acknowledge its duty to defend and indemnity Plaintiff CALPINE.
27. Defendant ACE approved the addition of Plaintiff CALPINE as an additional insured on Marley’s CGL policy for the Calpine Project. As an additional insured under Marley’s insurance policy, Defendant ACE owed Plaintiff CALPINE a duty of good faith and fair dealing in Plaintiff CALPINE’s tender of defense under Marley’s CGL policy."