Santa Clara Waste Water Co. v. Allied World Nat'l Assurance Co.

*883 Santa Clara Waste Water Company (SCWW) and Green Compass Environmental Solutions, LLC (GCES) appeal an order granting Allied World National Assurance Company's applications for prejudgment attachment. SCWW and GCES seek reversal of the order on the ground that Allied did not show the probable validity of its claims as required by Code of Civil Procedure section 484.090, subdivision (a). 1 We affirm.

*884 FACTS AND PROCEDURAL HISTORY

SCWW owned a wastewater treatment facility in Santa Paula. GCES, a subsidiary company owned by SCWW, operated a trucking unit that transported wastewater. SCWW and GCES applied for insurance coverage with Allied. In their insurance application and related correspondence, SCWW and GCES represented that they did not accept, process, transport, or discharge hazardous waste.

Allied issued a $2 million "Primary Environmental Liability Policy" and a $5 million umbrella policy. The policy covered " 'environmental damage' " or " 'emergency response expenses' " arising out of a " 'pollution incident.' " The policy also contained an "intentional noncompliance" provision, which excluded coverage for damages resulting from the "intentional disregard of or…