Employees' Liability Assurance Corp. v. New York Linen Supply & Laundry Co.

Headnote

Subrogation — contract — action by insurance company 10 recover on indemnity agreement amount paid in satisfaction of judgment recovered in action against policyholder.

Employers’ Liability Assur. Corp., Ltd., v. N. Y. Linen Supply & Laundry Co., Inc., 209 App. Div. 803 , affirmed.

Appeal from a judgment, entered June 10, 1924, upon an order of the Appellate Division of the Supreme Court in the first judicial department, which affirmed an order of Special Term granting defendant’s motion for judgment on the pleadings. The action was brought by the plaintiff, an insurance corporation, under subrogation to the rights of its policyholder, Otis Elevator Company, to recover upon an indemnity agreement made between Otis Elevator Company and the defendant New York Linen Supply and Laundry Company, Inc. The Otis Elevator Company, under a contract with the defendant, constructed and installed an elevator in premises owned by the defendant, and the indemnity agreement in question was entered into at a time when the elevator was handed over to the possession and control of the defendant, at the defendant’s request, prior to the completion of the work under the contract. An accident having occurred to one Harry Smith while the elevator was being operated by the defendant, and the Otis Elevator Company having been sued by said Harry Smith for damage for personal injuries, and the plaintiff, under its policy of insurance with the Otis Elevator Company, having defended the action and having paid a judgment recovered by Smith against the Otis Elevator Company, brings this action to recover the amount of the judgment in that action, and the reasonable cost of conducting the defense.