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

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The case involves Janay Garrick, a former instructor at Moody Bible Institute, who alleged sex discrimination and other Title VII violations. Garrick claimed that she was subjected to hostile treatment due to her gender and the Institute's religious beliefs. Moody argued that her suit was barred by Title VII’s religious exemptions and the First Amendment doctrine of church autonomy. The district court denied Moody's motion to dismiss in part, leading to Moody's appeal.However, the United States Court of Appeals for the Seventh Circuit dismissed the appeal for lack of jurisdiction. The court reasoned that it could only review a small class of interlocutory orders under the collateral order doctrine, and Moody's appeal did not fit within this class. The court found that the district court's denial of Moody's motion to dismiss was not conclusive, did not resolve important questions separate from the merits of the case, and would not effectively be unreviewable on appeal from a final judgment.The appellate court also emphasized that Moody's defense, based on the doctrine of church autonomy, was not separate from the merits of Garrick's gender discrimination claims. Furthermore, the court noted that Moody's argument that it would experience irreparable harm without immediate review was unavailing, as the district court could limit discovery to instances of discriminatory treatment not implicated by Moody's religious beliefs. The court concluded that religious autonomy to shape and control doctrine would not be threatened by the further progression of Garrick's lawsuit. View "Garrick v. Moody Bible Institute" on Justia Law

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The case involves a dispute between the Trustee for the bankrupt company BWGS, LLC and BMO Harris Bank N.A. and Sun Capital Partners VI, L.P. The Trustee sought to avoid a payment made by BWGS to BMO Harris, which was used to finance the acquisition of BWGS by Sun Capital's subsidiary. The Trustee argued that the payment constituted a constructively fraudulent transfer under the U.S. Bankruptcy Code and Indiana state law.The United States Court of Appeals for the Seventh Circuit had to address two novel issues: whether Section 546(e) of the Bankruptcy Code, which protects certain transactions made “in connection with a securities contract,” applies to transactions involving private securities; and, if so, whether it also preempts state law claims seeking similar relief.The Court held that Section 546(e) does apply to transactions involving private securities and does preempt state law claims seeking similar relief. Consequently, the Trustee's attempt to avoid the payment under the Bankruptcy Code and Indiana law was barred by Section 546(e). The Court also rejected the Trustee's argument that he could recover the value of the payment from Sun Capital under a different provision of the Bankruptcy Code, holding that this claim was also preempted by Section 546(e). The Court thus affirmed the lower court's decision to dismiss the Trustee's complaint with prejudice. View "Petr v. BMO Harris Bank N.A." on Justia Law

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The case concerns a dispute between LKQ Corporation and its former Plant Manager, Robert Rutledge, who resigned from the company and joined a competing firm. LKQ sought to recover proceeds Rutledge realized from multiple stock sales over many years, based on a forfeiture-for-competition provision in their Restricted Stock Unit Agreements.The key legal issue revolves around the applicability of Delaware law on forfeiture-for-competition provisions. These provisions require former employees to forfeit a monetary benefit upon joining a competitor. The Delaware Supreme Court held in a recent case that such provisions are not subject to a reasonableness review. However, the United States Court of Appeals for the Seventh Circuit found it unclear whether this ruling applies outside the context of highly sophisticated parties.The Court of Appeals affirmed the lower court's judgment in favor of Rutledge on the breach of the Restrictive Covenant Agreements and unjust enrichment claims. However, due to the complexity of the Delaware law issue, the Court decided to certify questions to the Delaware Supreme Court for clarification. Specifically, the certified questions ask whether the Delaware Supreme Court's ruling on forfeiture-for-competition provisions applies outside the limited partnership context and, if not, what factors inform its application. View "LKQ Corporation v. Rutledge" on Justia Law

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The case before the United States Court of Appeals For the Seventh Circuit involves an appeal by Shamone White, who had been convicted by a jury of possessing marijuana with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a felon. White appealed his firearm convictions, arguing that the prosecution presented inadequate evidence to establish possession. He also argued that the district court incorrectly instructed the jury, allowing them to find him guilty based solely on his admission that he touched the gun a week before his arrest.White was arrested after a vehicle he was a passenger in was pulled over. Inside the vehicle, the police found two bags, one of which White admitted to owning. This bag contained cash and cannabis, while the other bag, which White denied ownership of, contained a firearm, ammunition, scales with cannabis residue, and other items.The court found that the evidence was sufficient for each conviction and that the jury instruction was not misleading. The court highlighted that possession could be either actual or constructive. The court determined that a reasonable jury could infer that White constructively possessed the firearm due to its proximity, the presence of scales with drug residue in the same bag, and the fact that the contents of the two bags collectively formed a complete set of drug trafficking tools. The court also found that White's admission to having previously touched the gun did not mislead the jury. The judgement of the district court was thus affirmed. View "USA v. White" on Justia Law

Posted in: Criminal Law
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A private Catholic high school in Madison, Wisconsin, sued the city and other defendants, claiming that the city's decision to deny the school permission to install lights for nighttime athletic events violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Free Exercise Clause of the U.S. Constitution. The school also claimed a vested property right under Wisconsin law.In the United States Court of Appeals for the Seventh Circuit, the school argued that the city's actions amounted to unequal treatment and a substantial burden on its religious exercise. However, the court found that the school, as a master plan institution under the city's Campus-Institutional District ordinance, was not comparably situated to other institutions that had been granted lighting permits. The court also ruled that the city's denial of the permit did not amount to a substantial burden on the school's religious exercise under RLUIPA.Furthermore, the court found that the school's Free Exercise claim provided no additional protections beyond those under RLUIPA and thus could be dismissed. Lastly, the court rejected the school's vested rights claim, as the lighting permit application did not conform to the municipal zoning requirements in effect at the time. Consequently, the court affirmed the lower court's summary judgment in favor of the city. View "Edgewood High School of the Sacred Heart, Incorpor v. City of Madison, Wisconsin" on Justia Law

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In a case heard by the United States Court of Appeals for the Seventh Circuit, the defendant, Deny Mitrovich, was indicted for possession of child pornography following a multinational investigation that used a software program to unmask his computer. Mitrovich requested detailed technical information about the software program, which was used by Australian and New Zealand authorities, to aid his defense. However, the United States government did not have this information and was unsuccessful in obtaining it despite repeated efforts. Mitrovich argued that the government was obligated to provide this information under Rule 16(a)(1)(E) of the Federal Rules of Criminal Procedure and the Due Process Clause of the Fifth Amendment.The court disagreed with Mitrovich, stating that Rule 16 does not require the production of documents held exclusively by foreign authorities. Furthermore, Mitrovich was unable to demonstrate that the government's inability to provide the requested information resulted in prejudice, a necessary condition to establish a Brady violation. Therefore, the court affirmed the district court's decision not to impose sanctions on the government for failure to disclose the requested information.The court also clarified that while the doctrine of constructive possession could extend to co-participants in a joint international investigation under the Due Process Clause, this would not apply if the U.S. lacks the capacity to access or obtain the information through reasonable means. The court also emphasized that mere speculation about the content of the missing information is not sufficient to establish prejudice under Brady. View "United States v. Mitrovich" on Justia Law

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This case was brought before the United States Court of Appeals For the Seventh Circuit by plaintiffs John Brooks and Gregory Simmons against the City of Pekin and four of its employees. Brooks, a former police lieutenant who developed sleep apnea, claimed that the City violated the Americans with Disabilities Act by failing to reasonably accommodate his condition, discriminating against him, and retaliating against him for raising complaints. Simmons, a former police officer, alleged retaliation under Title VII of the Civil Rights Act of 1964 for reporting sexually harassing comments made by his former boss. The district court had granted summary judgment in favor of the defendants.The Court of Appeals affirmed the lower court's decision. The Court found that Brooks failed to show that the City had not offered him reasonable accommodations for his sleep apnea. The Court also ruled that Brooks could not establish disparate treatment because he failed to identify similarly situated employees who received more favorable treatment. Furthermore, Brooks was unable to prove retaliation because he lacked evidence that the City's reason for disciplining him was pretextual.Regarding Simmons, the Court found that he could not establish a claim for retaliation under Title VII because the inappropriate comments made about him were not because of his sex and were not severe or pervasive enough to create an abusive working environment. Moreover, Simmons could not show that his termination was due to his complaints against his former boss. The Court also noted that the district court did not err in denying the plaintiffs' request to amend their summary judgment response. The Court declined the City's request to impose sanctions on Brooks and Simmons, reasoning that their appeal was not frivolous. View "Brooks v. City of Pekin" on Justia Law

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In this case, the United States Court of Appeals for the Seventh Circuit ruled on an appeal brought by Randall Artis, a former city councilman for East Chicago, Indiana. Artis was previously convicted of misappropriating public money for personal political gain. After returning to public service as a junior clerk, he was fired by his boss, Adrian Santos. Artis alleged that Santos fired him in retaliation for exercising his First Amendment free speech rights. The case went to trial, and a jury found in favor of Santos.Artis appealed, arguing that the district court erred in admitting the testimony of an expert witness, in denying him an impartial jury, and in issuing inaccurate and confusing jury instructions and verdict forms. He also questioned the jury's verdict. The appeals court affirmed the district court's judgment, finding no error or reason for a new trial.The court held that the district court did not abuse its discretion in allowing the expert witness to testify, and it did not err in denying Artis's for-cause challenge to a prospective juror. Moreover, the court ruled that the district court did not abuse its discretion in its choice of jury instructions and verdict form. Finally, the court found no inconsistency in the jury's verdict. View "Artis v. Santos" on Justia Law

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Margrit Meier, owner of a restaurant called Hartland Inn, filed a coverage request with Wadena Insurance Company after a fire destroyed her business. The policy entitled her to the "actual cash value" of the property at the time of the fire, but the parties disagreed on how to calculate this. Wadena initially paid Meier $775,000, using a method called the "Broad Evidence Rule" to calculate actual cash value. Dissatisfied, Meier hired a third-party adjuster, who estimated a higher value. Wadena then increased its estimate and paid an additional $60,135.79. Still unsatisfied, Meier invoked the policy’s panel appraisal option.The appraisal process was completed, and the umpire arrived at an independent estimate of the building’s actual cash value. However, Meier filed a second lawsuit, alleging breach of contract and bad faith, and sought to set aside the appraisal award as invalid under state law. The district court dismissed the action, observing that Wadena complied with the alternative dispute resolution process and paid out the binding award.The United States Court of Appeals For the Seventh Circuit affirmed the district court's decision, stating there was no breach of contract or bad faith on Wadena's part. The court upheld that the Broad Evidence Rule was correctly applied to calculate the actual cash value of the property. The court also affirmed the district court’s denial of Wadena’s motion for sanctions under Federal Rule of Civil Procedure 11. View "Meier v. Wadena Insurance Company" on Justia Law

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In the United States Court of Appeals for the Seventh Circuit, Parents Protecting Our Children, an association of parents, sought an injunction against the Eau Claire Area School District in Wisconsin to stop the enforcement of the District’s Administrative Guidance for Gender Identity Support. The parents argued that the policy violated the Due Process and Free Exercise Clauses of the U.S. Constitution by interfering with their right to make decisions on behalf of their children. The District Court dismissed the case due to lack of subject matter jurisdiction, stating that the parents failed to identify any instance where the policy was applied in a way that infringed on parental rights.The Court of Appeals affirmed the lower court's ruling. The court held that the parents' concerns about potential applications of the policy did not establish standing to sue unless the policy resulted in an injury or created an imminent risk of injury. The court stated that the parents had brought a pre-enforcement facial challenge against the policy without any evidence of the School District applying the policy in a manner detrimental to parental rights.The court also noted that the Administrative Guidance did not mandate exclusion of parents from discussions or decisions regarding a student’s gender expression at school. The court found that the alleged harm was dependent on a speculative "chain of possibilities," which was insufficient to establish Article III standing. Therefore, the court upheld the dismissal of the lawsuit for lack of subject matter jurisdiction. View "Parents Protecting Our Children, UA v. Eau Claire Area School District" on Justia Law