New York Court of Appeals
Elrac, Inc., Doing Business as Enterprise Rent-A-Car, Respondent v. Gladys Ward, Appellant; Tricia Ward, an Infant…
April 3, 200196 N.Y.2d 58
Summary
The Court held that ELRAC, a self‑insured rental car company, may not enforce its indemnification clause for damages up to the statutory minimum liability required by Vehicle and Traffic Law § 370, but may enforce it for amounts exceeding that minimum. The Court also affirmed that self‑insurance does not exempt ELRAC from the minimum coverage mandate and that the antisubrogation rule supports the limitation.