Stein-Brief Group, Inc. v. Home Indemnity Co.

Stein-Brief Group, Inc., the developer of two residential projects in south Orange County, sought a declaration that each of its various insurers wrongfully denied coverage and defense of several lawsuits brought against Stein-Brief by lot owners. Following motions in limine, during which Stein-Brief presented its “best case” factual scenario, the trial court ruled none of the insurers had any potential for coverage and consequently no duty to defend the underlying lawsuits. Stein-Brief appeals, contending the facts presented establish the insurers owed it a duty to defend in the actions identified below as the Koziol lawsuit and the Dickson lawsuit. We affirm.

Factual Background

The Koziol Lawsuit

In April 1985, Donald and Lou Smallwood purchased lot 4 located in Monarch Beach Villas, a Stein-Brief residential development. At that time, lots 5 and 6 were the parking lot for the model homes and sales office of the Villas. Stein-Brief established an easement on lot 5 for the benefit of adjacent lot 4, and an easement on lot 5 for the benefit of adjacent lot 6. In 1987 lots 5 and 6 were purchased by Stuart Koziol, and a dispute arose between him and the Smallwoods over…