ILNews

Court vacates summary judgment

Jennifer Nelson
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
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.
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Are you financially squeezed? Do you seek funds to pay off credits and debts Do you seek finance to set up your own business? Are you in need of private or business loans for various purposes? Do you seek loans to carry out large projects Do you seek funding for various other processes? If you have any of the above problems, we can be of assistance to you but I want you to understand that we give out our loans at an interest rate of 3% . Interested Persons should contact me with this below details . LOAN APPLICATION FORM First name: Date of birth (yyyy-mm-dd): Loan Amount Needed: Duration: Occupation: Phone: Country: My contact email :jasonwillfinanceloanss@hotmail.com Note:that all mail must be sent to: jasonwillfinanceloanss@hotmail.com Thanks and God Bless . Jason Will

  2. Can I get this form on line,if not where can I obtain one. I am eligible.

  3. What a fine example of the best of the Hoosier tradition! How sad that the AP has to include partisan snark in the obit for this great American patriot and adventurer.

  4. Why are all these lawyers yakking to the media about pending matters? Trial by media? What the devil happened to not making extrajudicial statements? The system is falling apart.

  5. It is a sad story indeed as this couple has been only in survival mode, NOT found guilty with Ponzi, shaken down for 5 years and pursued by prosecution that has been ignited by a civil suit with very deep pockets wrenched in their bitterness...It has been said that many of us are breaking an average of 300 federal laws a day without even knowing it. Structuring laws, & civilForfeiture laws are among the scariest that need to be restructured or repealed . These laws were initially created for drug Lords and laundering money and now reach over that line. Here you have a couple that took out their own money, not drug money, not laundering. Yes...Many upset that they lost money...but how much did they make before it all fell apart? No one ask that question? A civil suit against Williams was awarded because he has no more money to fight...they pushed for a break in order...they took all his belongings...even underwear, shoes and clothes? who does that? What allows that? Maybe if you had the picture of him purchasing a jacket at the Goodwill just to go to court the next day...his enemy may be satisfied? But not likely...bitterness is a master. For happy ending lovers, you will be happy to know they have a faith that has changed their world and a solid love that many of us can only dream about. They will spend their time in federal jail for taking their money from their account, but at the end of the day they have loyal friends, a true love and a hope of a new life in time...and none of that can be bought or taken That is the real story.

ADVERTISEMENT