United Services Automobile Ass'n v. Snappy Car Rental, Inc.

[463]

Opinion

O’ROURKE, J.

United Services Automobile Association (USAA), Fred Azares and Gail Caldwell appeal summary judgments in favor of Snappy Car Rental, Inc. (Snappy) on USAA’s second amended complaint for declaratory relief, equitable subrogation and indemnity, and violations of Business and Professions Code section 17200 and on Snappy’s cross-complaint for indemnity, breach of contract and declaratory relief against Azares and Caldwell. The court rejected USAA’s contentions that: (1) Snappy’s rental vehicle registration card, together with its deposit of cash made with the California Department of Motor Vehicles (DMV) should be considered a “policy of automobile liability insurance” under Insurance Code

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section 11580.9, subdivision (h), and should be conclusively presumed to provide primary coverage under section 11580.9, subdivision (d); (2) that each car rental agreement signed by Azares and Caldwell along with Snappy’s deposit of cash constitutes a “policy of automobile liability insurance” under section 11580.9, subdivision (h); and (3.) Snappy was not entitled to indemnity from Azares and Caldwell for attorney fees and costs incurred in defending USAA’s claims for declaratory relief, equitable subrogation, and violation of Business and Professions Code section 17200. We affirm.

Background

This case was decided on stipulated facts. Caldwell and Azares are USAA insureds under automobile liability policies who rented automobiles from Snappy. Each individual signed rental contracts providing that “No Liability Insurance [is] Provided by Snappy” and containing indemnity clauses stating that the renter would indemnify Snappy “from all claims, liabilities and expenses for bodily injury, death or property damage, arising out of the use, operation, or possession” of the rental car during the period of rental. Each affirmed that he or she had a valid policy of automobile liability insurance in force for bodily injury or death of another, and for property damage. Each declined to purchase automobile liability insurance from Snappy. Snappy meets its California automobile insurance obligations by making a deposit of cash with the DMV in compliance with Vehicle Code section 16054.2. The parties do not dispute that Snappy’s deposit of cash did not describe or rate their rental cars.