Stolte, Inc. v. Seaboard Surety Co.

This appeal from a declaratory judgment in favor of the insurer as subrogee of the lessor, presents the novel question of whether the insurer is required to provide coverage and defense to the lessee as an “ additional insured ’ ’ under the comprehensive liability policy issued to the lessor, where the lessee has agreed in the lease to hold the lessor harmless from all liability resulting from the use of the leased equipment.

The appeal is on an agreed statement that sets forth the following facts: In 1957, plaintiff, Rosendahl Corporation (hereafter Rosendahl), a commercial leasing company, leased to defendant, Stolte, Inc. (hereafter Stolte), a truck-crane to be used by Stolte on a construction job in Richmond, California. The crane lease agreement (hereafter lease) signed by Stolte provided that: “The Lessee expressly agrees to indemnify and save Lessor harmless from and against all costs, losses and claims for death or injury to persons, including employees of the Lessor, and loss, damage or injury to property including leased equipment caused or resulting, directly or indirectly, from the work covered by this order, or done hv said equipment, it being expressly agreed that…