Puget Sound Power and Light Company v. Great American Insurance Co., Insurance Environmental Litigation Association, Amicus

51 F.3d 282 NOTICE: Ninth Circuit Rule 36-3 provides that dispositions other than opinions or orders designated for publication are not precedential and should not be cited except when relevant under the doctrines of law of the case, res judicata, or collateral estoppel. PUGET SOUND POWER AND LIGHT COMPANY, Plaintiff-Appellee, v. GREAT AMERICAN INSURANCE CO., Defendant-Appellant. Insurance Environmental Litigation Association, Amicus. No. 94-35072. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 9, 1995. Decided April 5, 1995. Before: WRIGHT, HALL and WIGGINS, Circuit Judges. 1 MEMORANDUM * 2 This case presents a novel issue regarding an insurer's duty to defend. The question is whether the Great American Insurance Company breached its duty to defend under Washington law by offering to pay only a fraction of its insured's defense costs. The answer depends on whether the offer was based on a reasonable method of proration. We conclude that it was not and affirm the judgment of the district court. 3 * From 1968 to 1982, Puget Sound Power and Light Company delivered used transformers to the Tacoma Tar Pits' metal recycling plant. Great American insured Puget…