Steven was named as a defendant in a personal injury suit. At the time he was temporarily living at his parents' house while he awaited resolution of criminal assault charges brought against him by his wife. A condition of his bail prevented Steven from returning to his marital home. Steven eventually returned to live with his wife after having to live with his parents for about three months.

Steven invoked his father's homeowners insurance policy coverage of personal liability for bodily injury. The insurance company asked a court to declare that Steven was not covered by the policy, which defined the "insured" as including "residents" of the household. Trial and appellate courts agreed that Steven was covered as a "resident" notwithstanding the temporary nature of his stay in his parents' home.

The term "resident" is famously ambiguous in the law, and the insurer did not define it at all in the policy, much less to exclude persons who live in a residence for a limited duration. The ambiguity had to be resolved in favor of coverage.