Opinion ID: 2974348
Heading Depth: 1
Heading Rank: 3

Heading: Necessary Prerequisite - Negligence

Text: Even if we were to agree with Lubrizol that the indemnity agreement is enforceable under Ohio law and is also an insured contract, we would still be required to affirm the judgment of the district court. Under the indemnity agreement, Lubrizol agreed to compensate Valvoline only for claims arising from Lubrizol’s negligence or willful misconduct, and Lubrizol has made no showing of negligence in this case. Lubrizol asserts that its employee, James, was negligent and that his negligence must be imputed to Lubrizol. There has been no adjudication, however, of the issue of negligence, and the settlement agreements do not provide any basis upon which we could determine whether James’s injuries resulted to any degree whatever from his own negligence. There is simply no evidence before this court that James was negligent in any way. The lack of evidence of Lubrizol’s negligence would not be problematic if National Union 11 had agreed to be bound by Lubrizol’s characterization of its own claims. The policy, however, provides that when there is an occurrence that might give rise to a claim, Lubrizol is required to provide National Union with copies of all relevant documents, access to any relevant information, and cooperation in investigation of the occurrence. Furthermore, the policy specifies that “[n]o Insureds will, except at their own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent.” And finally, the policy explicitly provides that Lubrizol has no legal right of action against National Union under the policy unless the amount owed by Lubrizol to a third party, such as Valvoline, “has been determined with our consent or by actual trial and final judgment.” In this case, National Union did not consent to the settlement amount, and the James case never went to trial. In fact, Lubrizol sued National Union on the same day it settled with James. There is nothing in the record to support a conclusion that Lubrizol was negligent in any way, other than Lubrizol’s unsupported allegation, and we cannot bind National Union with Lubrizol’s bare assertion when it has not contractually agreed to be so bound. In order to avoid summary judgment under Celotex, Lubrizol had the burden of producing evidence from which the finder of fact could conclude that Lynn James’s injuries were the result of Lubrizol’s negligence. Because Lubrizol has offered no proof of a key element of its claim, we hold that the district court did not err in granting summary judgment to National Union.