Avis Rent A Car Sys. v. McDavid, 984 N.W.2d 632

McDavid rented an Avis vehicle in Nebraska; the rental agreement named her as the only authorized driver.
While McDavid slept in Tennessee, her sister (against McDavid’s instructions) drove the car and caused a collision that injured three people.
The injured parties sued McDavid’s sister in Tennessee; Avis paid the injured parties $40,100 and obtained a general release naming Avis, McDavid, and the sister.
Sedgwick, Avis’s claims administrator, demanded reimbursement from McDavid under the rental agreement’s indemnity clause; McDavid refused.
Avis sued McDavid for breach and obtained summary judgment in district court for $40,100; both parties had filed cross-motions for summary judgment.
The Nebraska Supreme Court reviewed de novo and reversed, holding McDavid entitled to summary judgment because Avis failed to show it was actually or potentially liable to the injured parties.

Issue	Plaintiff's Argument (Avis)	Defendant's Argument (McDavid)	Held
Whether McDavid must indemnify Avis for amounts Avis paid third parties after the accident	Rental agreement requires McDavid to "defend, indemnify, and hold [Avis] harmless" for losses/expenses from the rental, so Avis is entitled to reimbursement for payments it made	Indemnity applies only to expenses Avis "incurred," which requires legal liability or at least potential liability to the injured parties; Avis made voluntary payments and has no shown liability	The clause is unambiguous that "incurred" implies legal obligation or potential liability; Avis presented no evidence of actual or potential liability or a legal theory of liability—McDavid wins summary judgment
Whether, to the extent the clause requires indemnity absent liability, it is void as against public policy	(Argued by Avis implicitly that clause is enforceable as written)	McDavid alternatively argued such an indemnity would be void against public policy	Court did not reach this issue because it resolved the case on contract interpretation and lack of Avis liability

Heist v. Nebraska Dept. of Corr. Servs., 312 Neb. 480 (2022) (standard of review for summary judgment)
Timberlake v. Douglas County, 291 Neb. 387 (2015) (contract interpretation and ambiguity questions of law)
Jacobs Engr. Group v. ConAgra Foods, 301 Neb. 38 (2018) (indemnity agreements construed like other contracts)
Kuhn v. Wells Fargo Bank of Neb., 278 Neb. 428 (2009) (distinction between contractual and common-law indemnity)
United Gen. Title Ins. Co. v. Malone, 289 Neb. 1006 (2015) (common-liability indemnity principles)
Martin v. Powers, 505 S.W.3d 512 (Tenn. 2016) (no Tennessee authority imposing vicarious liability on rental companies; Graves Amendment preemption concern)