Storie v. Randy's Auto Sales, LLC

589 F.3d 873, 389 F. App'x 553, 2009 WL 4842481
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 4, 2010
Docket09-1675
StatusPublished

This text of 589 F.3d 873 (Storie v. Randy's Auto Sales, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Storie v. Randy's Auto Sales, LLC, 589 F.3d 873, 389 F. App'x 553, 2009 WL 4842481 (7th Cir. 2010).

Opinion

*554 ORDER

Larry D. Storie, who purchased a Western Star truck apparently without knowledge that the vehicle had previously been in a fatal accident, claims that under Indiana law Randy’s Auto Sales, LLC (Randy’s) should have applied for a salvage title within 31 days of receiving the certifícate of title, even though it no longer owned the truck at the time it received the title. The district court disagreed and granted Randy’s motion for summary judgment. Storie v. Randy’s Auto Sales, LLC, 2009 WL 348751, at 1 (S.D.Ind. Feb.6, 2009). The district court found that Randy’s did not have to apply for a salvage title, since it was no longer the owner of the truck when it received the certificate of title. Id. at *2. Since we were unable to determine whether the Indiana statute at issue in the present case, Ind.Code § 9-22 — 3—11(e), applied to former as well as to current owners of a salvage vehicle, we certified that question to the Indiana Supreme Court. Storie v. Randy’s Auto Sales, LLC, 589 F.3d 873 (7th Cir.2009). Thereafter, the Indiana Supreme Court held on May 13, 2010 that the relinquishment of ownership of a salvage vehicle does not extinguish the obligation to apply for a salvage title upon receipt of the relevant certificate of title. Storie v. Randy’s Auto Sales, LLC, 926 N.E.2d 487, 489 (Ind.2010).

According to our Circuit Rule 52(b), parties are required to file statements of their positions about what action this court should take to complete the resolution of the appeal within 21 days of the issuance of an opinion from the state court that decides a certified issue. Here, none of the parties has followed this rule. Nevertheless, applying the Indiana Supreme Court’s clarification of Ind.Code § 9-22-3-11(e) — that an entity that purchases and later sells a wrecked vehicle must still obtain a salvage title within 31 days of receiving the certificate of title, regardless whether that entity still owns that vehicle — we reverse the district court’s decision granting Randy’s summary judgment.

DISCUSSION

In 2003, a Western Star truck was involved in a fatal accident. St. Paul Mercury Insurance Company (St.Paul), the truck’s insurer, declared the truck a total loss. St. Paul bought the truck from its insured and applied for the truck’s Tennessee certificate of title as proof of its ownership. Before St. Paul received the certificate of title on March 19, 2004, the truck passed through a series of owners. On January 13, 2004, St. Paul sold the truck to Randy’s. On January 22, 2004, Randy’s sold the truck to West Side Auto Parts. On February 26, 2004, West Side sold the truck to Duckett Truck Center, Inc. In June 2004, Duckett sold the truck to Sto-rie. About two months before the truck was sold to Storie, Tennessee issued a certificate of title to St. Paul. St. Paul sent the title to Randy’s, after which it was passed on to West Side and then Duckett. None of these entities applied for a salvage title.

After driving the truck for eighteen months and experiencing several problems with it, Storie began to look into the truck’s history. From his search, Storie claims that he learned for the first time of the truck’s involvement in the fatal 2003 accident. As a result, Storie filed suit against each of the entities involved in the sale and purchase of the truck. The only claim remaining on appeal was that against Randy’s, which claimed that Randy’s had violated Indiana law by failing to apply for a salvage title within 31 days of receiving the certificate of title. Both parties then filed a motion for summary judgment.

Storie sought summary judgment on the issue of Randy’s liability, though it re *555 served the issue of damages for determination by the jury. Storie contended there was no genuine question of material fact that: (1) the truck had been declared a total loss by its insurer, St. Paul Mercury Insurance Co. (St.Paul); (2) Randy’s had failed to apply for a certifícate of salvage title after it had received the certificate of title from St. Paul; (3) Storie did not know that the vehicle had been involved in a wreck or that the driver had been killed; and (4) he would never have purchased the truck if he had known it had had a salvage history. Storie argued that Randy’s was required by Indiana law to apply for a salvage title after purchasing the truck from St. Paul, thus dictating partial summary judgment in his favor by virtue of the preceding uncontested facts.

Randy’s opposed Storie’s motion on numerous grounds. According to Randy’s, the record reveals that Storie did not review the certificate of title before purchasing the truck, such that its applying for a certificate of salvage title would have had no effect on Storie’s decision to purchase the vehicle. Randy’s contended further that the certificate of title revealed sufficient information that Storie must have known that the vehicle had been in a significant accident. Randy’s also insisted that a certificate of salvage title was not required under Ind.Code § 9-22-3-3(a)(2) because the cost of repairing the damaged vehicle to its insurer-owner was less than 70% of fair market value. 1 Randy’s relied on much the same arguments in its own motion for summary judgment.

The district court granted Randy’s summary judgment, finding that Randy’s was not required to apply for a salvage title because it no longer owned the truck when it received the original certificate of title from St. Paul. Thus, according to the district court, Randy’s “obligation to apply for a salvage title pursuant to Indiana Code 9-22-33-11(d) was never triggered.” Storie, 2009 WL 348751, at *2. 2 The district court recognized that its “holding is not necessarily consistent with the presumed purpose of the salvage title requirement, which is to protect consumers against the risks associated with purchasing previously wrecked vehicles without knowledge of their history,” but noted that “the Court cannot impose a statutory duty where none exists.” Id. at n. 4. The district court did not address the other arguments raised by the parties.

On appeal, we found Ind.Code § 9-22-3-11(e) to be ambiguous, since it was unclear whether the statute applied to former owners who received certificates of title after they had sold the relevant vehicles. Storie, 589 F.3d at 876-79. We found the interpretation of Ind.Code § 9-22-3-ll(e) to be outcome determinative and an issue that would most appropriately be decided by the Indiana Supreme Court. Id. at 879-81.

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Related

Storie v. RANDY'S AUTO SALES, LLC
926 N.E.2d 487 (Indiana Supreme Court, 2010)
Larry Storie v. Randy's Auto Sales, LLC
589 F.3d 873 (Seventh Circuit, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
589 F.3d 873, 389 F. App'x 553, 2009 WL 4842481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/storie-v-randys-auto-sales-llc-ca7-2010.