Justia U.S. 7th Circuit Court of Appeals Opinion Summaries
Mesa Laboratories, Inc. v. Federal Insurance Co.
Mesa sent faxes promoting its services. Some recipients had not consented to receive such faxes, and the faxed materials did not include an opt‐out notice as required by the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227(b)(1)(C). Orrington filed a class‐action lawsuit under the TCPA and the Illinois Consumer Fraud and Deceptive Business Practices Act and alleged that Mesa’s conduct constituted common‐law conversion, nuisance, and trespass to chattels for Mesa’s appropriation of the recipients’ fax equipment, paper, ink, and toner. Mesa notified its insurer, Federal, of the Orrington action. Federal declined to provide a defense. After Mesa and Orrington reached a settlement, Mesa sued Federal, alleging breach of contract, bad faith, and improper delay and denial of claims under Colorado statutes.The Seventh Circuit affirmed summary judgment in favor of Federal. The policy’s “Information Laws Exclusion” provides that the policy “does not apply to any damages, loss, cost or expense arising out of any actual or alleged or threatened violation of “ TCPA “or any similar regulatory or statutory law in any other jurisdiction.” The exclusion barred all of the claims because the common-law claims arose out of the same conduct underlying the statutory claims. View "Mesa Laboratories, Inc. v. Federal Insurance Co." on Justia Law
MAO-MSO Recovery II, LLC v. State Farm Mutual Automobile Ins. Co.
MAO-MSO acquired rights to collect conditional payments that Medicare Advantage Organizations (MAOs) made if a primary insurer (such as automobile insurance carriers) has not promptly paid medical expenses. MAO-MSO sued those primary payers. The district court proof of required actual injury. Specifically, MAO-MSO needed to identify an “illustrative beneficiary”— a concrete example of a conditional payment that State Farm, the relevant primary payer, failed to reimburse to the pertinent MAO. MAO-MSO alleged that “O.D.” suffered injuries in a car accident and that State Farm “failed to adequately pay or reimburse” the appropriate MAO. The district court determined that these allegations sufficed for pleading purposes to establish standing.As limited discovery progressed, MAO-MSO struggled to identify evidence supporting the complaint. One dispute centered on whether O.D.’s MAO made payments related to medical care stemming from a car accident before State Farm reached its limit under O.D.’s auto policy so that State Farm should have reimbursed the MAO. The payment in question was to a physical therapist. State Farm argued that the physical therapy services had no connection to O.D.’s car accident and related only to her prior knee surgery.The district court determined no reasonable jury could find that the payment related to O.D.’s car accident, meaning that MAO-MSO lacked standing. The Seventh Circuit affirmed the dismissal. The Medicare Act may authorize the lawsuit but MAO-MSO fail to establish subject matter jurisdiction by establishing an injury in fact. View "MAO-MSO Recovery II, LLC v. State Farm Mutual Automobile Ins. Co." on Justia Law
United States v. Cole
Illinois Trooper Chapman received a message about a Volkswagen with California license plates driving on I-72. Chapman spotted the Volkswagen, driven by Cole, and trailed him, intending to find a pretext for a roadside stop. After another car cut off the Volkswagen, Chapman believed that the Volkswagen trailed that car at an unreasonably close distance. Chapman stopped Cole, requested his papers, and ordered him to sit in the police cruiser. This initial stop lasted 10 minutes. Chapman spent about six minutes questioning Cole about his residence, employment, travel history, plans, vehicle history, and registration information. Chapman told Cole that he would get a warning but that they had to go to a gas station to complete the paperwork because he was concerned for their safety. Chapman testified later that he had already decided that he was not going to release Cole until he searched the car. Driving to the gas station, Chapman requested a drug-sniffing dog and learned that Cole had been arrested for drug crimes 15 years earlier. At the gas station, Cole’s answers became contradictory. Finishing the warning, 30 minutes after the stop, Chapman told Cole that he could not leave because he suspected Cole was transporting drugs. The dog arrived 10 minutes later and quickly alerted. Chapman found several kilograms of methamphetamine and heroin in a hidden compartment.The Seventh Circuit reversed the denial of a motion to suppress. Even assuming that the stop was permissible, the officer prolonged the stop by questioning the driver at length on subjects well beyond the legal justification for the stop, in violation of the Fourth Amendment. View "United States v. Cole" on Justia Law
Shakman v. Clerk of Cook County
The 1972 Shakman Decree enjoined the City of Chicago and county officials from governmental employment practices based in politics. A 1983 Decree enjoined those officials from conditioning hiring or promotions on any political considerations. After the Supreme Court held that the First Amendment’s prohibition against patronage-based firings extends to promotion, transfer, recall, or hiring decisions involving public employment for which party affiliation is not an appropriate requirement, the Clerk of Cook County entered a separate consent decree. In 1992 the Voters Organization joined the Shakman complaint. The court has dismissed some entities and officials, including Chicago and its Park District, as showing substantial compliance. In 2010 the Clerk and other defendants consented to a magistrate judge conducting further proceedings. A new magistrate and a new district judge were assigned in 2020.In 2019, plaintiffs moved for supplemental relief. The magistrate found that the Clerk violated the 1991 Decree, that the evidence strongly suggested that the Clerk’s policy of rotating employees was “instituted for the purpose" of evading the 1972 Decree, appointed a special master to oversee compliance within the Clerk’s Office, and refused the Clerk’s request to vacate the Decrees. The Seventh Circuit, noting that it lacked authority to review the appointment of the special master, affirmed the denial of the request to vacate. Sounding a “federalism concern,” the court noted the permitting a consent decree over an arm of state or local government to remain on a federal docket for decades is inconsistent with our federal structure. View "Shakman v. Clerk of Cook County" on Justia Law
Burton v. E.I. DuPont de Nemours and Co., Inc.
Plaintiffs, who grew up in Milwaukee homes that had lead-based wall paint, were diagnosed with lead poisoning as children in the 1990s or early 2000s. Years later, they sued manufacturers of white lead carbonate; they identified the paint pigment in their childhood homes as white lead carbonate, but could not identify the specific company responsible for manufacturing the white lead carbonate that they ingested. They relied on “Thomas,” in which the Wisconsin Supreme Court adopted a “risk-contribution” theory of liability for plaintiffs suing manufacturers of white lead carbonate. That theory modifies the ordinary rule in tort law that a plaintiff must prove that a specific defendant’s conduct caused his injury and instead apportions liability among the “pool of defendants” who could have caused the injury. A jury found three manufacturers liable and awarded the plaintiffs $2 million each.The Seventh Circuit reversed, holding that the district court committed three significant errors about the scope of Wisconsin products liability law, impermissibly expanding the defendants’ potential liability and a separate error in the admission of expert testimony. The court improperly extended Thomas, allowing jurors to find the defendants liable in their capacity as paint manufacturers, rather than white lead carbonate manufacturers, erroneously allowed jurors to find Sherwin-Williams liable on negligence claims without proof of a product defect, and erroneously allowed jurors to find two defendants liable on strict liability claims in the absence of a duty to warn or any proof that the lack of a warning caused the plaintiffs’ injuries. View "Burton v. E.I. DuPont de Nemours and Co., Inc." on Justia Law
Deborah M. v. Saul
The Seventh Circuit affirmed the ALJ's determination that plaintiff has the capacity to perform light work and is therefore not entitled to disability benefits. Plaintiff claimed that the ALJ committed reversible error when determining her residual functional capacity (RFC) by selectively reviewing evidence of cervical and lumbar degenerative disc disease (back problems); incorrectly discounting plaintiff's credibility regarding her description of the intensity, persistence, and limiting effects of her symptoms; and not including any manipulative limitations in the RFC assessment.The court found plaintiff's arguments unpersuasive and concluded that substantial evidence supports the ALJ's denial of benefits where the ALJ did not ignore a line of evidence contradicting her decision; the ALJ's assessment of plaintiff's symptoms was not patently wrong; and the ALJ did not fail to note any supported manipulative limitations. View "Deborah M. v. Saul" on Justia Law
Posted in: Public Benefits
United States v. Outland
Defendant appealed the district court's denial of his motion to suppress incriminating statements which led to federal charges for distributing heroin. In this case, after defendant overdosed on heroin and fell unconscious, officers brought him to a local hospital where, after receiving care, he agreed to talk to the police, received Miranda warnings, and made several incriminating statements.The Seventh Circuit remanded for the district court to make a determination on the validation of defendant's waiver of his Miranda rights in the first instance. The court explained that whether a defendant knowingly and intelligently waived his rights at the outset of a police interview is a distinct and separate inquiry from whether, in the circumstances of the interview as a whole, the defendant's statements were voluntary. Given defendant was unconscious and entirely incapacitated from an overdose just two hours before police questioned him, a finding as to whether defendant knowingly and intelligently waived his Miranda rights matters. View "United States v. Outland" on Justia Law
Posted in: Criminal Law
Lewis v. Zatecky
In a 1999 incident, Hale told Lewis to kill Rogers. Lewis handed his revolver to Mays, who shot Rogers multiple times, fatally. Lewis, Hale, and Mays collected drugs and money and fled. Lewis, represented by Attorney Raff, refused to consider plea offers. Lewis was convicted. At sentencing. the court found no mitigating circumstances—none being asserted by the defense—and sentenced Lewis to the maximum aggregate sentence of 130 years' imprisonment. Lewis’s appeal was unsuccessful.In post‐conviction proceedings, the state conceded that Raff “basically did not do any advocacy" at sentencing but argued that he could not have made a difference. Other witnesses at the post‐conviction hearing spoke about a diagnosis of bipolar disorder, associated substance abuse, physical abuse by Lewis's mother’s boyfriends, mental disorders in other family members, and attempted suicide. The state appellate court concluded that Lewis was not prejudiced by the deficient performance of counsel.The Seventh Circuit reversed the denial of habeas relief. The decision of the last responsible state court was contrary to Supreme Court precedent, in holding that “Strickland,” not “Cronic,” furnished the applicable rule, While the Indiana Court of Appeals was not unreasonable in finding that Lewis had not been prejudiced by his attorney’s substandard performance, prejudice need not be shown. Raff gave up on Lewis and left him entirely without the assistance of counsel at the sentencing stage of a felony murder case. View "Lewis v. Zatecky" on Justia Law
Hadsall v. Sunbelt Rentals, Inc.
The Regional Director of the NLRB sought a temporary injunction under 29 U.S.C. 160(j), pending the Board’s resolution of unfair labor practices charges against Sunbelt. The ALJ in the Board proceeding subsequently issued its recommendation, concluding that Sunbelt had violated sections 8(a)(1), (3), and (5) of the Act. Before the district court, the Director submitted that Sunbelt had violated, and continued to violate those sections by interfering with, restraining, and coercing employees in the exercise of their rights under the Act; discriminatorily eliminating the bargaining unit and failing and refusing to bargain collectively and in good faith. The district court granted an injunction, ordering Sunbelt to cease certain unfair labor practices.While Sunbelt’s appeal was pending, the Board issued its decision and order. The Director then moved to dismiss this appeal of the injunction as moot. Sunbelt submitted that the appeal was not moot because the Board had severed and retained one issue for further consideration. The Seventh Circuit dismissed the appeal and directed the district court to vacate its judgment. The Board’s resolution of the unfair labor practices charges moots the appeal, regardless of the fact that the Board severed one issue and retained it for further consideration. The severed issue was not one presented to the district court in the Director’s petition for an injunction. The temporary relief authorized by the statute is no longer available. View "Hadsall v. Sunbelt Rentals, Inc." on Justia Law
Lopez v. Sheriff of Cook County
At 3:55 a.m. people were loitering outside a lounge when Lopez sideswiped an SUV parked in front of the lounge. Bystanders swarmed Lopez’s car, punching him through an open window. A passenger exited Lopez’s car and fired a warning shot. Lopez exited the car, grabbed the gun, and walked toward the bystanders. Raines, a Cook County correctional officer, out celebrating, arrived at 3:56:11. Lopez walked back toward his car, stopping to fire two shots at an upward angle. Raines approached Lopez with his own gun drawn. Lopez reached to open his car door. Raines started shooting at 3:56:27. Lopez, injured, dropped his gun and staggered away. Raines continued to fire. Raines pursued Lopez, who was leaning against a wall. Lopez’s passenger, Orta, picked up the dropped gun and fired at Raines at 3:56:32 a.m. For about three minutes, Orta and Raines engaged in a standoff. Raines simultaneously restrained Lopez, wounded but conscious, and used him as a human shield. At 4:00:10 a.m., Orta fled. Police and paramedics arrived. Lopez faced criminal charges.The Seventh Circuit affirmed summary judgment for the defendants in his 42 U.S.C. 1983 suit. Raines was entitled to qualified immunity because his use of deadly force did not violate clearly established law although the video footage of the events conveys the impression that Raines might have been able to avoid any use of lethal force. View "Lopez v. Sheriff of Cook County" on Justia Law