North Orange Cty. Cmty. College Dist. v. Cm Sch. Supply Co.

This is a companion case to County of Orange v. FST Sand & Gravel, Inc. (1998) 63 Cal.App.4th 353 [ 73 Cal.Rptr.2d 633 ] (FST Sand & Gravel), which we also decide today. (1) Both cases involve the question of whether a claim by a public entity is a “covered claim” for purposes of section 1063.1, subdivision (c)(4) (formerly subdivision (c)(3)) of the Insurance Code, which limits the kinds of claim which the California Insurance Guarantee Association (CIGA) is potentially liable to indemnify.

In FST Sand & Gravel, a county government is suing a gravel company for having trespassed on county land. In this case, a community college district has cross-complained against the installer of certain playground equipment, CM School Supply Co., after a minor was injured on the equipment and the minor sued the district for allowing a dangerous condition to exist on public property. CM’s insurer was ordered into liquidation and CIGA took over the defense. As in FST Sand & Gravel, summary judgment was granted against the public entity on the ground that its claim is a claim by the “state” for purposes of section 1063.1, subdivision (c)(4). Section 1063.1, subdivision (c)(4) defines…