Justia U.S. 7th Circuit Court of Appeals Opinion Summaries

Michael Lincoln applied for disability insurance benefits and supplemental security income, alleging that his ability to work was limited due to conditions including prostate cancer, for which he received treatment beginning in late 2019. His treatment concluded in mid-2020, and his cancer entered remission. Lincoln continued to experience symptoms such as fatigue and reported using a cane at times, but also engaged in various daily activities. He claimed an inability to work beginning in October 2019.An administrative law judge (ALJ) held a hearing in May 2022 and, in August 2022, concluded that Lincoln was not disabled. The ALJ determined that Lincoln had the residual functional capacity to perform “light work” with certain postural limitations, and specifically found that Lincoln could perform his past work as a school bus driver. In reaching this conclusion, the ALJ found that Lincoln’s subjective complaints regarding fatigue and cane use were not entirely consistent with the medical evidence and daily activities. The ALJ also found the opinions of state agency medical consultants more persuasive than that of Lincoln’s treating nurse practitioner. The Appeals Council denied further review, making the ALJ’s decision final. The United States District Court for the Central District of Illinois affirmed the ALJ’s decision.On appeal, the United States Court of Appeals for the Seventh Circuit reviewed the ALJ’s findings, applying a deferential “substantial evidence” standard. The court held that substantial evidence supported the ALJ’s determination regarding Lincoln’s residual functional capacity, including the findings related to Lincoln’s fatigue, cane use, and the persuasiveness of medical opinions. Accordingly, the court affirmed the judgment of the district court, upholding the denial of benefits. View "Lincoln v. Bisignano" on Justia Law

Keisha Lewis worked for the Indiana Department of Transportation, handling federal relocation claim vouchers for those displaced by highway projects. After receiving a remote-work accommodation due to a kidney condition, Lewis began experiencing conflicts with her supervisors over her work responsibilities, performance, and compliance with job duties. Issues escalated when she refused to process certain vouchers and failed to comply with supervisor instructions, resulting in a backlog of over 400 parcels. Despite being warned that failure to perform her job duties would be considered insubordination, Lewis continued to dispute her work obligations and was eventually terminated for poor performance and insubordination.After her dismissal, Lewis filed suit against the Department and two supervisors, asserting claims of disability discrimination and retaliation under the Rehabilitation Act, as well as race discrimination and retaliation under Title VII and 42 U.S.C. § 1981. Some claims were voluntarily dismissed, and the United States District Court for the Southern District of Indiana granted summary judgment for the defendants on the remaining claims, concluding that no reasonable jury could find in Lewis’s favor.On appeal, the United States Court of Appeals for the Seventh Circuit reviewed the district court’s summary judgment ruling de novo. The appellate court held that the Rehabilitation Act requires plaintiffs to show that disability was the sole cause of an adverse employment action, a standard Lewis did not meet. The court further found no evidence of pretext or retaliatory intent in her termination, and that her race discrimination and retaliation claims failed due to lack of supporting evidence and waiver of arguments. The Seventh Circuit affirmed the district court’s grant of summary judgment for the defendants. View "Lewis v Indiana Department of Transportation" on Justia Law

Hyatt Hotels Corporation managed a loyalty program for guests, which was funded by contributions from both Hyatt-owned and third-party-owned Hyatt-branded hotels. These contributions, along with income from direct sales of points and investment returns, were held in a centralized fund managed by Hyatt. When members redeemed points, funds were used to compensate hotels and pay for program-related expenses. The Internal Revenue Service (IRS) asserted that income flowing into this fund from third-party sources, direct sales, and investments should be treated as Hyatt’s income for tax purposes.The United States Tax Court reviewed the IRS’s notice of deficiency and Hyatt’s petition challenging it. Hyatt argued that the fund’s income was not its own under the claim of right and trust fund doctrines, and, alternatively, that if it was, Hyatt should be allowed to use the trading stamp method of accounting to offset the income with estimated costs. The Tax Court rejected both arguments, holding that Hyatt’s benefit from the fund made the income taxable to Hyatt and that the trading stamp method was unavailable because the rewards were not tangible property.On appeal, the United States Court of Appeals for the Seventh Circuit found that the Tax Court’s analysis was incomplete. Specifically, the appellate court held that the Tax Court erred by failing to consider whether the claim of right doctrine provided an independent basis for excluding the fund’s income from Hyatt’s taxable income. The Seventh Circuit clarified that the claim of right doctrine is broader than the trust fund doctrine and may permit exclusion even when the trust fund doctrine does not apply. The court vacated the Tax Court’s decision and remanded the case for further proceedings to determine whether the fund’s income was Hyatt’s under the claim of right doctrine. View "Hyatt Hotels Corporation & Subsidiaries v. CIR" on Justia Law

A Wisconsin statute enacted in 2023 required that electronic nicotine delivery systems (such as vapes and e-cigarettes) could only be sold in the state if they had received premarket authorization from the Food and Drug Administration (FDA), were pending FDA review as of specified dates, or did not contain nicotine. The law also imposed financial penalties and authorized private lawsuits against violators. Several businesses and consumers involved in the manufacture, distribution, retail, and use of these products challenged the statute, arguing that federal law granting the FDA authority over tobacco products preempted the Wisconsin statute. They also asserted that the law violated the Equal Protection Clause, and sought preliminary and permanent injunctions to prevent enforcement.The United States District Court for the Western District of Wisconsin denied the motion for a preliminary injunction. The district court found that the Wisconsin law was not preempted by federal statutes, specifically the Federal Food, Drug, and Cosmetic Act (FDCA) and the Family Smoking Prevention and Tobacco Control Act (TCA). The court concluded that Congress had not intended to preempt states from imposing additional or more stringent requirements on the sale of tobacco products, and that the plaintiffs had not shown a likelihood of success on the merits or that the balance of equities favored an injunction.On appeal, the United States Court of Appeals for the Seventh Circuit reviewed the district court’s decision. The Seventh Circuit held that the text and structure of the relevant federal statutes, including the TCA’s preservation and savings clauses, demonstrated that Congress did not preempt state authority to regulate, or even prohibit, the sale of tobacco products. The court affirmed the district court’s denial of a preliminary injunction, holding that the plaintiffs had failed to show a reasonable likelihood of success on the merits of their preemption claim. View "Wisconsinites for Alternatives to Smoking v. Casey" on Justia Law

A teacher in Indiana, who was preparing to begin teaching grades 1–3, filed a lawsuit challenging a new state statute that prohibits public schools and teachers from providing “instruction” on “human sexuality” to students in prekindergarten through third grade. While the law allows teachers to answer students’ questions and to teach academic subjects and child abuse prevention, it does not define the key terms “instruction” or “human sexuality.” The teacher argued that the statute would chill or restrict her protected speech, such as including certain books in her classroom library, displaying pro-LGBTQ+ stickers, and addressing students’ use of pejorative language related to sexual identity. She also claimed the law is unconstitutionally vague, fearing she might inadvertently violate it and risk losing her teaching license.The United States District Court for the Southern District of Indiana denied her request for a preliminary injunction. The district court concluded that the teacher had not shown a likelihood of success on the merits of her First Amendment and Fourteenth Amendment claims. The court reasoned that most of the speech affected by the statute—classroom instruction and related communications—was official speech not protected by the First Amendment, and that any protected speech affected was not substantial enough to make the law overbroad. It also found that the terms “instruction” and “human sexuality” had a discernible core of meaning, so the law was not unconstitutionally vague.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court’s decision. The Seventh Circuit held that the teacher had not demonstrated that the statute prohibits a substantial amount of protected speech or is impermissibly vague. The court concluded that any ambiguity at the margins does not render the statute facially invalid and emphasized that challenges to specific applications of the law could be brought in the future if necessary. View "Smiley v. Jenner" on Justia Law

Rashaan Carter brought a lawsuit against SP Plus Corporation, his employer, alleging violations of state and federal minimum wage laws. During Carter’s onboarding, the employer claimed that he had agreed to arbitrate all claims by electronically checking a box and providing an electronic signature. However, Carter later submitted an affidavit stating that an employee from SP Plus’s human resources staff completed and signed the forms on his behalf, without explaining the documents or allowing Carter to view or decline them.The United States District Court for the Northern District of Illinois initially granted SP Plus's motion to stay the litigation in favor of arbitration, relying on the onboarding records. After Carter presented his affidavit challenging the validity of his assent to arbitration, the district judge reconsidered, lifted the stay, and denied SP Plus’s motion. The district court explained that, based on the record, it could not find that a valid arbitration agreement had been formed. The judge also noted that neither party had been given the required notice or an opportunity for a hearing to determine whether Carter had personally agreed to arbitration.SP Plus appealed to the United States Court of Appeals for the Seventh Circuit, arguing that the order was appealable and that the district court should have compelled arbitration. The Seventh Circuit held that, because SP Plus failed to request an evidentiary hearing or present evidence to dispute Carter’s affidavit in the district court, it forfeited any right to such a hearing. The appellate court further concluded that the district court’s order was a final denial of the request to compel arbitration and found no clear error in the district court’s determination that Carter did not agree to arbitrate. The Seventh Circuit affirmed the district court’s order. View "Carter v SP Plus Corp." on Justia Law

Law enforcement suspected the defendant of supplying drugs to a gang in Illinois and, after conducting several controlled purchases, arrested him. During his arrest, officers found multiple small bags of drugs in his possession. A search of an apartment he shared with family members revealed additional drugs, items associated with drug trafficking, and four firearms. While in custody, the defendant made a recorded call to his parents referencing the firearms found in the apartment. He was indicted on seven counts, including distribution of controlled substances and possession of a firearm in furtherance of a drug trafficking crime. He pleaded guilty to the distribution counts and went to trial on the remaining counts.The United States District Court for the Northern District of Illinois, Eastern Division, presided over the trial. The government called a fingerprint analyst who testified that two of the firearms bore fingerprints matching the defendant’s. The defense challenged the analyst’s methodology but was permitted to present its own expert, despite late disclosure. The jury found the defendant guilty on both remaining counts, concluding he possessed all four firearms. The district court denied the defendant’s post-trial motions for acquittal and a new trial, and sentenced him to 123 months in prison.On appeal, the United States Court of Appeals for the Seventh Circuit reviewed whether there was sufficient evidence to support the firearm conviction and whether the district court erred in admitting the expert fingerprint testimony. The appellate court held that the evidence—including the recorded phone call and fingerprint analysis—was sufficient for a rational jury to find constructive possession of the firearms. The court also concluded the district court properly applied Rule 702 and Daubert in admitting the expert testimony. The judgment of the district court was affirmed. View "United States v Andrews" on Justia Law

Law enforcement in Toulon, Illinois investigated a collection of sexually explicit images of underage girls discovered in an online file-sharing service. The Sheriff assigned the case to a deputy, who involved Jason Musselman, an auxiliary police officer and IT specialist, to help identify the victims. Musselman, though not formally trained for such investigations, was given access to the images. While he assisted with identifications, he also kept the images for personal use without the knowledge of other officers. Years later, Musselman was investigated and convicted on separate child pornography charges, and authorities discovered he had retained the images from the original investigation.The victims brought civil actions against Musselman and separately sued two local police officers, the Sheriff, the City, and the County. Their claims included state law torts and, relevant here, claims under 42 U.S.C. § 1983, alleging that the officers violated their substantive due process rights under the Fourteenth Amendment by allowing Musselman access to the images. The United States District Court for the Central District of Illinois dismissed the § 1983 claims, finding that the plaintiffs failed to allege the violation of a recognized constitutional right, and that any such right was not clearly established for the purposes of qualified immunity. The court dismissed some related state law claims but allowed others to proceed.On appeal, the United States Court of Appeals for the Seventh Circuit affirmed the district court’s judgment. The Seventh Circuit held that the plaintiffs did not allege a violation of a fundamental right protected by substantive due process. The court declined to recognize a new constitutional right in these circumstances, emphasizing that the Due Process Clause does not cover every wrong committed by a state actor. The dismissal of the § 1983 claims was affirmed. View "Doe v. Sloan" on Justia Law

A stateless individual born in Germany entered the United States illegally as a child and lived in the country for decades, marrying a U.S. citizen and raising three children who are also U.S. citizens. After his application for asylum was denied, the Department of Homeland Security initiated removal proceedings based on his lack of legal entry. He conceded removability and sought cancellation of removal, asserting that his deportation would cause exceptional and extremely unusual hardship to his qualifying relatives, including his wife, children, and father, all U.S. citizens. During removal proceedings, he and his wife testified primarily about their financial dependence on him, their close-knit family, and concerns about discrimination against gypsies in Europe.An Immigration Judge denied his application, finding insufficient evidence to meet the hardship standard. The Board of Immigration Appeals affirmed the decision, largely adopting the Immigration Judge’s reasoning. Later, the petitioner moved to reopen the proceedings, presenting new evidence about his wife’s mental health diagnoses, a past miscarriage, family members’ medical conditions, and reports of discrimination and poor economic conditions in Germany. The Board denied this motion, concluding that much of the new evidence could have been previously presented and that, even considered collectively, the evidence did not establish prima facie eligibility for cancellation of removal.The United States Court of Appeals for the Seventh Circuit reviewed both the denial of cancellation of removal and the denial of the motion to reopen. The court held that the agency’s determination that the petitioner failed to show exceptional and extremely unusual hardship was supported under either clear error or substantial evidence review. The court further held that the Board did not abuse its discretion in denying the motion to reopen. The petitions for review were accordingly denied. View "Petrov v Blanche" on Justia Law

A former student at the University of Southern Indiana was accused of sexual assault during the 2020–21 academic year. After a hearing, a university panel found the alleged victim’s account more credible than the student’s, noting her consistency over time, and concluded that the student committed rape and forcible fondling. The student was suspended for three semesters and did not return to the university. He subsequently filed a lawsuit against the university and other defendants, alleging sex discrimination in violation of Title IX, deprivation of due process, and intentional infliction of emotional distress. During discovery, the student learned of undisclosed records that suggested his account may have been consistent over time, contrary to the panel’s finding.The United States District Court for the Southern District of Indiana granted summary judgment to the defendants on all claims. In the course of the litigation, a magistrate judge ordered the student to proceed using his real name, not a pseudonym. The student objected, but the district judge overruled the objection, though the district court stayed its order pending this appeal. The student filed multiple appeals, which were consolidated for argument.The United States Court of Appeals for the Seventh Circuit reviewed whether the district court abused its discretion by denying the student’s use of a pseudonym. The court reaffirmed the strong presumption that adult parties litigate under their real names in federal court and found that the student did not present sufficient evidence of a substantial risk of physical harm or retaliation to justify use of a pseudonym. The court declined to broaden the standard to include mental health risks or to consider the merits of the underlying claims in deciding the pseudonym issue. The Seventh Circuit affirmed the district court’s order. View "Doe v University of Southern Indiana" on Justia Law