Ameron International Corp. v. American Home Assurance Co.

MEMORANDUM

Ameron International Corporation and its subsidiary Ameron B.Y. '(collectively, “the Ameron parties”), along with Greenwich Insurance Company, appeal the district court’s grant of summary judgment in favor of American Home Assurance. We haye jurisdiction under 28 U.S.C.. § 1291. Reviewing the district court’s summary judgment de novo, Anthem Elecs., Inc. v. Pac. Emp’rs Ins. Co., 302 F.3d 1049, 1054 (9th Cir.2002), we revérse and remand.

The Ameron parties supplied paint that was affixed to various onshore and offshore facilities in a large natural gas production project in Nova Scotia, Canada. The organization behind the project is now suing the Ameron parties for paint failure, which allegedly caused corrosion of the underlying steel structure and pipelines. The Ameron parties seek defense costs for this action under the terms of a general liability policy issued by American Home Assurance.'

In California, an insurer “ ‘must defend a suit which potentially seeks damages within the coverage of the policy.’ ” Montrose Chem. Corp. v. Superior Court, 6 Cal.4th 287 , 24 Cal.Rptr.2d 467 , 861 P.2d 1153, 1157 (1993) (in bank) (quoting Gray v. Zurich Ins. Co., 65 Cal.2d 263…