Donegal Mutual Insurance Company v. Thangavel

Summary

The Supreme Court of Delaware affirmed summary judgment for the tenants because the lease did not clearly express an intent to hold them liable for damage to the landlord's property caused by their negligence. Applying the Sutton rule, the court held that residential tenants are treated as co-insureds under the landlord's property insurance absent a clear contrary lease provision, so the landlord's insurer could not pursue subrogation for the water damage. The court also held that the lease's general provisions concerning tenant-caused damage, indemnity, and liability insurance did not satisfy that clear-expression requirement.