ELRAC, INC. v. WARD


96 N.Y.2d 58 (2001)

748 N.E.2d 1

724 N.Y.S.2d 692

ELRAC, INC., Doing Business as ENTERPRISE RENT-A-CAR, Respondent, v. GLADYS WARD, Appellant. TRICIA WARD, an Infant, by Her Mother and Natural Guardian, PERSIA WARD, Plaintiff, v. ELRAC, INC., Doing Business as ENTERPRISE RENT-A-CAR, Defendant and Third-Party Plaintiff-Respondent, et al., Defendant. LESLIE SEATON, Third-Party Defendant-Appellant. AMERICAN HOME ASSURANCE COMPANY, Appellant, v. ELRAC, INC., Doing Business as ENTERPRISE RENT A CAR COMPANY, Respondent, et al., Defendant. ELRAC, INC., Doing Business as ENTERPRISE RENT-A-CAR, Respondent, v. AMERICAN HOME ASSURANCE COMPANY, Defendant, and SERGIO SABARIS, Sued Herein as SERGIO GABARIS, Appellant.

Court of Appeals of the State of New York.

Decided April 3, 2001.


Attorney(s) appearing for the Case

Law Offices of Neil L. Kanzer, Garden City (Steven T. Farmer and Neil L. Kanzer of counsel), for appellant in the first above-entitled action.

Law Offices of Christopher A. Jeffreys, P. C., Melville (Christopher A. Jeffreys and Eric John Felsberg of counsel), for respondent in the first above-entitled action.

Eliot Spitzer, Attorney General, New York City (Melvin L. Goldberg, Preeta D. Bansal, Daniel Smirlock, Thomas G. Conway, Dianne Dixon and Joy Feigenbaum of counsel), amicus curiae in the first above entitled action.

Rosenman & Colin, L. L. P., New York City (Philip A. Nemecek and Michael I. Verde of counsel), for Allstate Insurance Company, amicus curiae in the first above-entitled action.

Montfort, Healy, McGuire & Salley, Garden City (Donald S. Neumann, Jr., of counsel), for third-party defendant-appellant in the second above-entitled action.

Law Offices of Christopher A. Jeffreys, P. C., Melville (Christopher A. Jeffreys and Edward J. Savidge of counsel), for third-party plaintiff-respondent in the second above-entitled action.

Stuart M. Herz, Garden City, for appellant in the third above-entitled action.

Law Offices of Christopher A. Jeffreys, P. C., Melville (Christopher A. Jeffreys and Glenn H. Egor of counsel), for respondent in the third above-entitled action.

Isserlis & Sullivan, East Norwich (Bertram Herman of counsel), for appellant in the fourth above-entitled action.

Law Offices of Christopher A. Jeffreys, P. C., Melville (Christopher A. Jeffreys and Christopher J. Barletta of counsel), for respondent in the fourth above-entitled action.

Judges SMITH, LEVINE, CIPARICK, WESLEY, ROSENBLATT and GRAFFEO concur.


OPINION OF THE COURT

Chief Judge KAYE.

Can ELRAC, a rental car company, enforce a standard clause in its rental agreements requiring the renter to indemnify it for any injuries caused to third parties by use of the rental car? We hold that ELRAC may not seek indemnification where the damage falls below the minimum insurance that the rental company is required to provide under section 370 (1) of the Vehicle...

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