BVMI

Appellants Buena Vista Mines, Inc. (BVMI) and Harold J. Biaggini (its sole shareholder) sued several insurance carriers, claiming they breached insurance contracts and violated the implied covenant of good faith and fair dealing by refusing to defend BVMI in a lawsuit previously brought against it in federal court. The trial court sustained demurrers filed by three of those carriers (respondents herein) without leave to amend and dismissed the action against them. The court ruled that the claims alleged against BVMI in the prior action were outside the period of coverage under the policies at issue, there was no potential for coverage, and respondents, therefore, owed no duty to defend BVMI. Appellants contend the court erred in concluding that the claims alleged in the prior action did not trigger a potential for coverage or impose a duty to defend. We affirm.

Factual and Procedural Background

In 1997, BVMI was named as a defendant in a lawsuit brought in federal court entitled United Anglers v. Buena Vista Mines, Inc. (C.D.Cal. Aug. 14, 1997, No. 97-CV-6094) (hereafter the United Anglers action). In that action, plaintiff alleged that BVMI had violated the Clean Water…