Ameron International: Expanding Insurance Recovery for Administrative Environmental Proceedings

In Ameron Int'l Corp. v. Ins. Co. of Pennsylvania, the California Supreme Court issued its long-awaited reconsideration of Foster-Gardner v. National Union Fire Ins. Co. which adopted the minority position that administrative notice letters are not “suits” that trigger a CGL insurer's duty to defend. In an important development for insurers and policyholders alike, Ameron limited Foster-Gardner, holding that an administrative process that resembles a court proceeding is a “suit” insurers must defend. This article surveys the majority rule, Ameron, and Ameron's possible impact in minority rule jurisdictions with Foster-Gardner-like precedent.