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Citywide Auto Leasing v. City of New York

Appellate Division of the Supreme Court of New York, Second Department
May 28, 2002
294 A.D.2d 528 (N.Y. App. Div. 2002)

Opinion

01-08276

Argued April 22, 2002

May 28, 2002.

In an action for a judgment declaring that the defendants are obligated to defend and indemnify the plaintiffs in any and all actions that may be brought against them arising out of an automobile accident which occurred on or about November 22, 2000, and which involved Sana Kandeel, the defendants appeal from an order of the Supreme Court, Kings County (Hutcherson, J.), dated July 20, 2001, which granted the plaintiffs' motion for summary judgment.

Michael A. Cardozo, Corporation Counsel, New York, N.Y. (Leonard Koerner and Stephen J. McGrath of counsel), for appellants.

Jones Hirsch Connors Bull, P.C., New York, N.Y. (Robert S. Mazzuchin and Robert A. Glick of counsel), for respondents.

FRED T. SANTUCCI, J.P., SONDRA MILLER, GABRIEL M. KRAUSMAN, GLORIA GOLDSTEIN, JJ.


DECISION ORDER

ORDERED that the order is affirmed, with costs, and the matter is remitted to the Supreme Court, Kings County, for the entry of a judgment declaring that the defendants are obligated to defend and indemnify the plaintiffs in any and all actions that may be brought against them arising out of the automobile accident which occurred on or about November 22, 2000, and which involved Sana Kandeel.

Contrary to the contention of the defendants, the decision of the Court of Appeals in ELRAC, Inc. v. Ward ( 96 N.Y.2d 58) does not require the conclusion that the indemnification agreement entered into between the defendants, long-term lessees, and the plaintiffs, lessors, is unenforceable. As lessees under a lease for a period greater than 30 days, the defendants were required to provide their own liability and no-fault insurance for the vehicle (see Vehicle and Traffic Law § 128; GE Capital Auto Lease v. Allstate Ins. Co., 281 A.D.2d 456). Accordingly, the "Hold Harmless and Indemnification Agreement" entered into between the parties and prepared by the defendants, which provided that the defendants would indemnify the plaintiffs for all claims arising from the use of the leased vehicle, is valid and enforceable.

The defendants' remaining contention is unpreserved for appellate review and, in any event, is without merit.

We note that since this is a declaratory judgment action, the matter must be remitted for the entry of a judgment declaring that the defendants are required to defend and indemnify the plaintiffs in any and all actions that may be brought against them arising out of the subject automobile accident (see Lanza v. Wagner, 11 N.Y.2d 317, 334, appeal dismissed 371 U.S. 74, cert denied 371 U.S. 901).

SANTUCCI, J.P., S. MILLER, KRAUSMAN and GOLDSTEIN, JJ., concur.


Summaries of

Citywide Auto Leasing v. City of New York

Appellate Division of the Supreme Court of New York, Second Department
May 28, 2002
294 A.D.2d 528 (N.Y. App. Div. 2002)
Case details for

Citywide Auto Leasing v. City of New York

Case Details

Full title:CITYWIDE AUTO LEASING, INC., ET AL., RESPONDENTS, v. CITY OF NEW YORK, ET…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: May 28, 2002

Citations

294 A.D.2d 528 (N.Y. App. Div. 2002)
742 N.Y.S.2d 867

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