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Ryder Truck Rental, Inc. v. Countrywide Insurance
Citations: 251 A.D.2d 313; 672 N.Y.S.2d 802; 1998 N.Y. App. Div. LEXIS 6220
Court: Appellate Division of the Supreme Court of the State of New York; June 1, 1998; New York; State Appellate Court
In the case regarding the obligation of the defendant to pay defense and indemnification costs related to the settlement of the action Borriello v Ryder Truck Rental, the defendant appealed two decisions from the Supreme Court, Kings County. The first was a denial of its motion for reargument dated November 13, 1996, and the second was a judgment dated November 15, 1996, which favored the plaintiff for $500,000 after a trial on damages. The appellate court dismissed the appeal from the order denying reargument, noting that such an order is not appealable. However, the court reversed the judgment, granting the defendant's motion for summary judgment. It declared that the defendant has no obligation to pay defense and indemnification costs to the plaintiff regarding the underlying action and remitted the case back to the Supreme Court for the entry of a judgment reflecting this conclusion. Additionally, the court awarded the defendant one bill of costs. The court determined that the plaintiff has no right of subrogation against the defendant's insured, Tar Messenger Service, citing relevant case law. Consequently, the defendant was not required to utilize its policy for the settlement of the underlying case on behalf of Tar Messenger Service. The remaining arguments presented were deemed without merit. Judges O’Brien, Pizzuto, Joy, and Florio concurred in the decision.