Opinion ID: 1990920
Heading Depth: 1
Heading Rank: 3

Heading: American Home Assurance Co. v ELRAC

Text: Carlos Medina, who was insured by plaintiff American Home Assurance Company, rented a car from ELRAC and signed the standard indemnification agreement. While driving the rental car, Medina was involved in an accident with a New York City fire truck. A passenger in the car, Nelson Gonzalez, commenced an action against ELRAC, Medina and the owner of the fire truck. American Home Assurance then brought the instant action seeking a declaratory judgment that it had no liability for the accident and that ELRAC had a duty to defend and indemnify Medina. ELRAC responded that it owed no such duty and that, under the indemnification clause, Medina had an obligation to indemnify ELRAC. Supreme Court granted ELRAC's motion to dismiss American Home Assurance's complaint, holding that Medina was contractually obligated to defend and indemnify ELRAC. The Appellate Division affirmed, stating that the indemnification clause was valid and enforceable, and that ELRAC had no obligation to defend or provide primary insurance for the lessee of one of its vehicles (273 AD2d 330, 330-331).