Opinion ID: 791124
Heading Depth: 2
Heading Rank: 1

Heading: facts

Text: 6 In May 1998, Lerner leased a new car from Mercedes Benz Credit Corporation (MBCC). To protect itself from damages arising out of the use of the leased car, MBCC maintained insurance coverage with Allianz. Isabella signed the lease agreement (Lease) as a co-lessee; Dimitry agreed to be the guarantor. The Lease required the lessees to obtain liability insurance for the vehicle in the amount of at least $100,000 per person and $300,000 per occurrence for bodily injury and death. 7 The Lease also contained an indemnity provision, stating that if MBCC is subjected to any claims, losses, injuries, expenses, or costs related to the use, maintenance or condition of the vehicle, the lessees will pay all of [MBCC's] resulting costs and expenses, including attorneys' fees. 8 As required by the Lease, Lerner obtained the $100,000 per person minimum amount of liability insurance from Allstate, her insurer. The Allstate insurance policy provides: 9 Allstate will pay for all damages a person insured is legally obligated to pay—because of bodily injury or property damage.... 10 Under these coverages, your policy protects a person insured from claims for accidents arising out of the ownership, maintenance or use, loading or unloading of the auto we insure. 11 We will defend a person insured if sued as the result of a covered auto accident. This defense will be supplied even if the suit is groundless, false or fraudulent. We will defend that person at our own expense, with counsel of our choice and, may settle any claim or suit if we feel this is appropriate. 12 In June 1998, Lerner drove through a red light in New York and collided with a car owned and operated by Robert Baron. Robert Baron's twelve-year-old son, Andrew, was a passenger and he sustained injuries.