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

Inmates sued (officials in the Illinois Department of Corrections for marking up the price of commissary goods beyond the statutory cap (730 ILCS 5/3-7-2a). The district court screened the complaint under 28 U.S.C. 1915A and dismissed for failure to state a claim. The Seventh Circuit affirmed, stating that the case is really about a substantive violation of Illinois law, not about the procedures required before the plaintiffs can be deprived of a property interest. Even assuming a property interest, no pre-deprivation process could have predicted or prevented the alleged deprivation, and plaintiffs have not alleged the absence of adequate post-deprivation remedies. Where meaningful pre-deprivation review would either be impossible or ineffectual, adequate post-deprivation remedies may satisfy constitutional due process requirements.

A class action suit against tobacco-related entities, first filed in 1998, alleged that for years the tobacco companies conspired to conceal the facts about the addictive and dangerous nature of cigarettes by intentionally using incomplete, misleading, or untruthful marketing and advertising. The putative class consists of Illinois residents who bought or smoked cigarettes, seeking disgorgement of profits on an unjust enrichment theory. After extensive proceedings, the district court dismissed for failure to state a claim. The Seventh Circuit affirmed. Mere violation of a consumer's legal right to know about a product's risks, without anything more, cannot support a claim that the manufacturer unjustly retained the revenue from the product's sale to the consumer’s detriment. Plaintiffs did not allege that they suffered any harm, that they relied on the marketing, or that they would have acted differently had the defendants been truthful.

A prominent civil rights activist, known for protesting police practices, died in custody about 27 hours after being arrested on drug charges. She was disabled, obese, and took daily medications for ailments, including diabetes, a thyroid condition, hypertension, and asthma. Pursuant to a department policy that prohibits arrestees from taking medications in lockup unless they are taken to a hospital, she had no access to her medications while in custody. When she met with her lawyer about 16 hours into her detention, she could hardly speak, walk, or stand. He told the guards to get her to a hospital; none responded. The district court entered summary judgment for defendants on 42 U.S.C. 1983 claims for denial of medical care and based on holding decedent in custody for 27 hours without a probable cause hearing. The Seventh Circuit affirmed as to the delayed hearing claim, but reversed on the medical care claim. The court erred in excluding expert testimony on causation; there was sufficient notice that decedent needed medical care ,that it would not have been difficult to transport her to the hospital, and no police interests stood in the way of that treatment.

When plaintiff, a 14-year employee, was terminated from his position he negotiated a severance package based, in part, on his belief that he would be receiving a pension in a certain amount from the company's pension plan. The administrator for the plan, who was also the company's human resources manager, miscalculated. After signing off on the severance agreement, plaintiff learned of the error and brought an estoppel claim against the plan. The Seventh Circuit affirmed summary judgment in favor of the plan. Plaintiff did not present the extraordinary circumstances necessary for the court to entertain a claim for estoppel against an ERISA Plan and there was no evidence of intentional misrepresentation or detrimental reliance.

A prisoner filed a pro se lawsuit under 42 U.S.C. 1983, alleging violations of civil rights by interfering with delivery of legal mail and failing to provide a sufficient law library. The district court denied his request to proceed as a pauper on the ground that he had accumulated three strikes. The Prison Litigation Reform Act precludes an inmate from bringing a civil action or appealing a civil judgment in forma pauperis if at least three of the inmate’s prior lawsuits have been dismissed as frivolous, malicious, or for failing to state a claim, 28 U.S.C. 1915(g), excepts when a prisoner is in danger of serious injury. The Seventh Circuit reversed, rejecting the "third strike," dismissal of a 1991 case for lack of jurisdiction. A determination that a case cannot proceed in a particular forum or at a particular time is not a determination that the case is frivolous.

As the governing body for middle and high school athletic programs, WIAA sponsors post-season tournaments. In 2005, WIAA gave a video production company exclusive rights to stream nearly all tournament events online; if the company elects not to stream a game, other broadcasters may do so after obtaining permission and paying a fee. The contract does not prohibit media coverage, photography, or interviews before or after games. Private media may also broadcast up to two minutes of a game, or write or blog about it, so long as they do not engage in "play-by-play." Defendant newspapers decided to stream four WIAA tournament games without obtaining consent or paying the fee. The district court entered declaratory judgment in favor of WIAA. The Seventh Circuit affirmed. Streaming or broadcasting an event is not the same thing as reporting on or describing it. The court noted the distinction between state-as-regulator and state-as- proprietor, and that tournament games are a performance product of WIAA that it has the right to control.

Asian carp have migrated up the Mississippi River and are at the brink of the man-made Chicago-Area Waterway System path to the Great Lakes. The carp are dangerous to the eco-system, people, and property. States bordering the Lakes filed suit, alleging that the U.S. Army Corps of Engineers and the Metropolitan Water Reclamation District of Greater Chicago manage the system in a manner that will allow carp to move into the Great Lakes, in violation of the federal common law of public nuisance. The district court denied a preliminary injunction that would have required additional physical barriers, new procedures to stop invasive carp, and an expedited study of how best to separate the Mississippi and Great Lakes permanently. The Seventh Circuit affirmed. Plaintiffs presented enough evidence to establish a likelihood of harm, a non-trivial chance that carp will invade Lake Michigan in numbers great enough to constitute a public nuisance and that harm to the plaintiff states would be irreparable. The defendants have, however, mounted a full-scale effort to stop the carp and has promised that additional steps will be taken in the near future. This effort diminishes any role that equitable relief would otherwise play and an interim injunction would only get in the way.

Original defendants wanted to build a power plant in southern Illinois. In the first appeal, the Seventh Circuit concluded that defendants' Prevention of Significant Deterioration (“PSD”) permit (42 U.S.C. 7475(a)), had expired. After the ruling, the district court assessed a penalty of $100,000 on all defendants, jointly and severally, and awarded attorneys' fees to Sierra Club. The Seventh Circuit affirmed, first holding that defendant waived constitutional arguments by not raising them before the district court. The court acted within its discretion; it considered all of the relevant statutory factors and did not make any clearly erroneous findings of fact in assessing a penalty and awarding fees.

Defendant manufactures medical goods and has distributors all over the U.S., including plaintiffs, which had exclusive distributorship agreements. When defendant terminated the agreements, plaintiffs were forced to shut down their businesses and sued for breach of contract, intentional misrepresentation, and negligent misrepresentation. The district court dismissed a negligent misrepresentation claim. A jury returned a verdict against defendant on remaining claims, awarding actual and punitive damages. The magistrate set aside the punitive damages awards. The Seventh Circuit vacated the awards of lost profits as not allowed by the contract and affirmed the decision to set aside punitive damages, but affirmed verdicts against defendant on intentional misrepresentation and negligent misrepresentation. The court vacated awards of actual damages, as supported by insufficient evidence.

After plaintiff filed suit in state court, Inc., alleging overbillings in excess of $100,000, defendant removed to federal court. The parties are of diverse citizenship. More than a year and a half after the lawsuit commenced, plaintiff produced a document showing that its damages were actually less than $40,000. Defendant waited 10 months, until after an unsuccessful settlement conference, to move for remand and attorney's fees and costs (28 U.S.C. 1447(c) and 1927). The district court remanded to state court without an award of fees. The Seventh Circuit affirmed. The district court acted within its discretion in taking defendant's delay into account in denying an award.