Court vacates summary judgment

Jennifer Nelson
January 1, 2007
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The 7th Circuit Court of Appeals vacated an Indiana District Court's grant of summary judgment and remanded the case so the court could determine what right a company has to receive compensation for its vandalized railroad cars.

In CSX Transportation Inc. v. Appalachian Railcar Services Inc., No. 06-3430, CSX brought suit in the Southern District to recover payment it made to Appalachian Railcar Services (ARS) for damaged railcars. CSX believed the 13 railcars derailed on CSX-owned track, making them liable for any damages; CSX paid ARS to replace 12 of the cars and repair one. Later, CSX reviewed the payments it made to ARS and determined the derailment didn't occur on track they owned. The owner of the track still has not been determined.

CSX filed a lawsuit to recover the money it paid to ARS, contending the payments constituted unjust enrichment because they were made on the basis of a mistake of fact. The District Court granted ARS' motion for summary judgment based on the voluntary-payment doctrine.

In Indiana, the voluntary-payment doctrine states that "money voluntarily paid in the face of a recognized uncertainty as to the existence or extent of the payor's obligation to the recipient may not be recovered, on the ground of 'mistake,' merely because the payment is subsequently revealed to have exceeded the true amount of the underlying obligation."

The District Court held that the voluntary-payment doctrine barred recovery by CSX because it paid ARS in the face of a recognized uncertainty, the amount of liability owed. The court reasoned a certainty of liability would have allowed CSX to simply send ARS a check for the amount of damages, rather than asking ARS about the value of the damaged cars.

Judge Ilana Rovner wrote that because neither CSX nor ARS regarded CSX's responsibility for the derailment as uncertain, whether the payment embodied the possibility that CSX did not own the track is a fact question that precludes summary judgment on the basis of the voluntary-payment doctrine. The District Court focused on the doctrine and did not consider other arguments raised by either party. The 7th Circuit cannot determine if ARS was actually entitled to the payment by CSX or another party, nor can it determine whether ARS's reasonable reliance on CSX caused ARS to forego the opportunity to investigate the accident or discover for itself if it was entitled to payment.

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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

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