Foster-Gardner's rule does not apply to quasi-judicial proceedings employed to resolve government demands against insured parties
Ameron Int'l Corp. v. Ins. Co. of the State of Pennsylvania, S153852, concerned a plaintiff's suit against defendant-insurers, alleging causes of action for breach of contract, breach of the covenant of good faith and fair dealing, declaratory relief, waiver and estoppel, and contribution, claiming that the United States Department of Interior Board of Contract Appeals (IBCA) proceedings are "civil proceedings" and that the insurers had the duty to defend or settle the United States Department of the Interior's Bureau of Reclamation's (Bureau) claims against the plaintiff before the IBCA.
In reversing the judgment of the court of appeals, the court held that the the Foster-Gardner's rule does not apply to this case because the quasi-judicial adjudicative proceeding employed to resolve government demands against insured parties, is a "suit" as a reasonable insured would understand that term.
- Read the California Supreme Court's Full Decision in Ameron Int'l Corp. v. Ins. Co. of the State of Pennsylvania, S153852