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Monday, August 09, 2010

Ind. Decisions - One Indiana case decided today by 7th Circuit

In Owner-Operator Independent Drivers Ass'n. v. Mayflower Transit (SD Ind., Barker), a 9-page opinion, Chief Judge Easterbrook concludes:

A chargeback for the cost of insurance is not a sale of insurance. The eighth circuit reached the same conclusion in United Van Lines, 556 F.3d at 696–97. No court of appeals has held otherwise.

The judgment with respect to chargebacks is affirmed, and the case is remanded for any further proceedings that may be required by our ruling on the limitations issue.

[Re the limitations issue, the circuit court writes on p. 4] The judge concluded that Congress had changed the numbering of §14704’s subsections and failed to adjust §14705 to match, leaving §14705(b) pointing to the wrong part of §14704. That could be corrected, the judge held, by reading the reference to §14704(b) as if it were a reference to §14704(a)(2). * * *

[On p. 5] Courts sometimes take liberties with texts that seem to be garbled or absurd, on the theory that when there is a choice between sense and nonsense both the legislature and the President prefer sense. But there is nothing absurd about §14705(b) as written. It points to a statute that could do with a period of limitations. Whether a four year period applies to §14704(a)(2) and a two-year period to §14704(b), or the reverse, neither outcome is absurd. * * *

[On p. 6] No matter what one makes of the oddity, it does not imply anything about how long people have to sue under §14704(a)(2).)

Posted by Marcia Oddi on August 9, 2010 02:23 PM
Posted to Ind. (7th Cir.) Decisions