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. Don't we have bigger issues to concern ourselves with?

  2. Anyone who takes the time to study disciplinary and bar admission cases in Indiana ... much of which is, as a matter of course and by intent, off the record, would have a very difficult time drawing lines that did not take into account things which are not supposed to matter, such as affiliations, associations, associates and the like. Justice Hoosier style is a far departure than what issues in most other parts of North America. (More like Central America, in fact.) See, e.g., http://www.theindianalawyer.com/indiana-attorney-illegally-practicing-in-florida-suspended-for-18-months/PARAMS/article/42200 When while the Indiana court system end the cruel practice of killing prophets of due process and those advocating for blind justice?

  3. Wouldn't this call for an investigation of Government corruption? Chief Justice Loretta Rush, wrote that the case warranted the high court’s review because the method the Indiana Court of Appeals used to reach its decision was “a significant departure from the law.” Specifically, David wrote that the appellate panel ruled after reweighing of the evidence, which is NOT permissible at the appellate level. **But yet, they look the other way while an innocent child was taken by a loving mother who did nothing wrong"

  4. Different rules for different folks....

  5. I would strongly suggest anyone seeking mediation check the experience of the mediator. There are retired judges who decide to become mediators. Their training and experience is in making rulings which is not the point of mediation.

ADVERTISEMENT