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

Northrop laid off workers in 2012 and did not provide them all with severance benefits. Its Severance Plan provides that a laid-off employee regularly scheduled to work at least 20 hours a week will receive severance benefits if that employee “received a cover memo, signed by a Vice President of Human Resources.” The plaintiffs, who did not receive this “HR Memo,” filed suit under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1001– 1461.The parties agreed to have a magistrate resolve the case, 28 U.S.C. 636(c). After the suit was certified as a class action, the district judge resumed control at Northrop's request, finding that the increased stakes constituted “good cause” for withdrawing the reference. The district court granted the defendants summary judgment, ruling that the Plan gives the HR Department discretion to choose who gets severance pay.The Seventh Circuit affirmed, first finding no abuse of discretion in the withdrawal of the reference order. The Plan makes the receipt of severance benefits contingent on the receipt of an HR Memo, which the class members did not get. Welfare-benefit plans under ERISA—unlike retirement plans—need not provide for vesting, and the terms of welfare-benefit plans are entirely in the control of the entities that establish them. When making design decisions, employers may act in their own interests and may include a discretionary component. Rights under ERISA are not subject to estoppel. The plan itself—not past practice—always controls. View "Carlson v. Northrop Grumman Severance Plan" on Justia Law

Pucillo, an Indiana resident who formerly used the last name Lock, had previously leased an apartment from Main Street. He filed for Chapter 7 bankruptcy in May 201, and listed as a debt past‐due rent he allegedly owed Main. The bankruptcy court granted him a discharge in September 2017, including any debt to Main. That bankruptcy discharge is listed on Pucillo’s credit reports but Main was not notified of Pucillo’s bankruptcy. In July 2017, 10 weeks before the discharge, Main had placed Pucillo’s account with National Credit for collection. Over the next 18 months, National sent Pucillo two collection letters, stating that if payment was made, National “will update credit data it may have previously submitted regarding this debt.”The week before Pucillo received the second letter, he filed suit under the Fair Debt Collection Practices Act, 15 U.S.C. 1692e (demanding payment of a debt not owed) and section 1692c(c) (failure to cease communications and cease collections). He alleged that National’s continued communications “confused and alarmed” him. National did not actually give information to a credit reporting agency—before or after his bankruptcy discharge. The Seventh Circuit affirmed the dismissal of the suit. Pucillo lacked Article III standing to sue. Pucillo’s allegations of ʺconfusion,” “stress,” “concern,” and “fear” are not sufficiently concrete to result in an injury in fact that would give him standing to sue. View "Pucillo v. National Credit Systems, Inc." on Justia Law

In 2016, Gill ran as an independent candidate for the U.S. House of Representatives in Illinois’s 13th Congressional District. He was 2,000 signatures short of qualifying for the general election ballot. Gill sued members of the Illinois State Board of Elections, claiming that portions of the Illinois Election Code violated the U.S. Constitution. The district court granted the defendants summary judgment. The Seventh Circuit remanded with instructions to evaluate the ballot access provisions for independent candidates under the fact-intensive balancing test set forth in Supreme Court precedent. The district court did so and again granted the defendants summary judgment.The Seventh Circuit dismissed an appeal as moot. While the litigation was pending, Illinois adopted a redistricting plan that changed the boundaries of the 13th District so that the suit can no longer offer Gill any effectual relief. Any declaratory or injunctive relief would speak to a congressional district that no longer exists. Gill’s circumstances are not capable of repetition yet evading review. View "Gill v. Linnabary" on Justia Law

In a custody dispute between Hadzi-Tanovic and her former husband, Pavlovich, an Illinois state court ordered that Hadzi-Tanovic’s parenting time with her children be supervised. She filed suit in federal court under 42 U.S.C. 1983 and 1985 against her ex-husband, the children’s guardian ad litem, and the state court judge, alleging they conspired to violate her and her children’s rights to family association and her right to a fair and unbiased trier of fact. The district court dismissed her complaint on abstention grounds.The Seventh Circuit affirmed. It is well established that federal courts do not have jurisdiction to review such state court decisions. The Rooker-Feldman doctrine imposes a “jurisdictional bar” that prohibits federal courts other than the U.S. Supreme Court from reviewing final state court judgments The state court order at issue is final, so the Rooker-Feldman doctrine’s finality requirement is met. Allegations of state court corruption are not sufficient to avoid the application of the Rooker-Feldman doctrine. Hadzi-Tanovic has not argued that state law or procedures prevented her from raising her federal constitutional issues in state court. Parties may raise procedural and substantive due process challenges to custody orders in Illinois state court. View "Hadzi-Tanovic v. Johnson" on Justia Law

The Seventh Circuit three times ordered Neises to bargain with the Union that represents its employees. After reaching numerous tentative agreements on articles to be included in a collective bargaining agreement (CBA), Neises retracted those tentative agreements without good cause. The NLRB sought to hold Neises in contempt. The court appointed a Special Master to resolve factual disputes. After more than a year of discovery, motions, and deliberation, the Master found, by clear and convincing evidence, that Neises should be held in contempt.The Seventh Circuit held Neises in contempt and imposed most of the NLRB’s proposed sanctions, including a $192,400 fine. Neises significantly violated an unambiguous command to bargain in good faith by retracting, without good cause, the aspects of the CBA to which it tentatively had agreed. The record clearly and convincingly establishes that Neises disobeyed a court order. The court rejected arguments that the NLRB did not have the authority to file the contempt petition and that the petition was not properly ratified; that the Report improperly decided that the parties reached tentative agreements; and that Neises did not violate an unambiguous command because the judgment and consent order do not use the phrase “in good faith” and such a phrase is too vague anyway. View "National Labor Relations Board v. Neises Construction Corp." on Justia Law

Peraica represented Dordevic in her Chapter 7 bankruptcy proceeding and submitted a Statement of Financial Affairs (Rule 2016 disclosure) in which he reported that Dordevic had paid him $5,000. As the Trustee learned during discovery, Dordevic had actually paid Peraica $21,500. The Trustee informed Peraica that he needed to file an updated Rule 2016 fee disclosure. Peraica instead sent the Trustee an informal accounting document listing $21,500 in fees. The Trustee responded: “The Rule 2016 disclosures actually need to be filed with the Court” by submitting “an official form.” Peraica repeatedly ignored the Trustee’s reminders. The Trustee filed a motion, 11 U.S.C. 329, to examine the fees. Peraica failed to respond; the Trustee then requested that all fees be forfeited. The bankruptcy court granted the motion.The district court and Seventh Circuit affirmed. Beyond Peraica’s brazen disregard of the Trustee’s advice, Peraica’s proffered explanation for not updating his fee disclosure lacking, if not false. Peraica had been involved in more than 350 bankruptcy cases in the Northern District of Illinois alone. The bankruptcy court ordered Peraica to disgorge all past fees as a penalty for his blatant lack of compliance with his obligations. There is no leeway for partial or incomplete disclosure. View "Peraica v. Layng" on Justia Law

The Fund appealed the dismissal of its challenge to Indiana’s prohibition on corporate contributions to political action committees (PACs) for independent expenditures. Following oral argument, the Fund filed a “Motion Requesting Judicial Notice,” explaining that Morales has succeeded Sullivan as Indiana’s Secretary of State and has replaced Sullivan as a party to the case. Under Fed.R.App.P. 43(c)(2) the substitution happens automatically without any motion. The Fund sought judicial notice of the fact that there is no record evidence that Morales has taken any steps to disavow enforcement of Indiana’s Election Code prohibition on corporate contributions to PACs for purposes of independent expenditures.The Seventh Circuit denied the motion as “unnecessary” and “improper.” Nothing about Morales becoming Secretary of State calls jurisdiction into question. Nor does it materially alter anything about the issues. The Fund’s motion seeks one of two things, neither of which would be an appropriate use of judicial notice. It may attempt to define the likelihood that Secretary Morales will enforce the Election Code or it might attempt to highlight what it sees as a gap in the evidentiary record—that Secretary Morales has yet to make a statement regarding state regulation of independent-expenditure PACs. Judicial notice is only permitted for adjudicative facts “not subject to reasonable dispute.” View "Indiana Right to Life Victory Fund v. Morales" on Justia Law

While working as a standup forklift operator, Anderson hit a bump and fell onto the floor. The forklift continued moving and ran over her leg; the resulting injuries necessitated its amputation. Anderson sued the forklift’s manufacturer, Raymond, alleging that the forklift was negligently designed. The parties disputed the admissibility of the testimony of Dr. Meyer, one of Anderson’s experts. Meyer believed that Raymond could have made several changes to its design that would have prevented Anderson’s accident. Meyer’s primary suggestion was a door to enclose the operating compartment, which would prevent operators from falling into the forklift’s path. Like other standup forklift manufacturers, Raymond offers doors as an option but does not fit doors to its forklifts as standard, claiming that a door could impede the operator’s ability to make a quick exit if the forklift runs off a loading dock or begins to tip over. The district court concluded that Meyer’s opinion about a door was inadmissible because it did not satisfy Federal Rule of Evidence 702 or the “Daubert” test but admitted Meyer’s opinions on other potential design improvements.The Seventh Circuit reversed a judgment in Raymond's favor. The exclusion of Meyer’s opinion was substantially prejudicial to Anderson’s case. Meyer has a “full range of practical experience," academic, and technical training and his methodology rested on accepted scientific principles, Raymond’s critiques go to the weight his opinion should be given rather than its admissibility. View "Anderson v. Raymond Corp." on Justia Law

Suspecting that Troconis-Escovar was involved in the illegal drug business, the DEA searched his vehicle. Agents found $146,000 in cash, which they believed represented drug proceeds. DEA notified Troconis-Escovar that it intended to effect an administrative forfeiture of the funds (to declare them to be government property). Illegal drug proceeds are eligible for civil forfeiture under 21 U.S.C. 881(a)(6), subject to the procedural safeguards of the Civil Asset Forfeiture Reform Act, 18 U.S.C. 983. Troconis-Escovar’s attorney tried to contest the forfeiture, but filed the wrong form—a “petition for remission” rather than a “claim.” Only a claim may be used to challenge a proposed forfeiture. After the mistake was discovered, DEA gave Troconis-Escovar an extra 30 days to supplement his petition for remission. Troconis-Escovar did not do so and lost the money. He filed a Motion for the Return of Property under Federal Rule of Criminal Procedure 41(g).The district court dismissed his lawsuit, finding that it lacked jurisdiction. The Seventh Circuit affirmed. The dismissal was correct, but not because jurisdiction was lacking. Troconis-Escovar does not explain why he should be able to obtain relief outside section 983 when Congress expressly conditioned relief from civil forfeiture on circumstances that do not apply to him. He did not explain his argument about the untimeliness or sufficiency of the DEA’s notice. View "Troconis-Escovar v. United States" on Justia Law

The Partnership filed a contract claim in a Chinese court against Wan, his company, and his brother. The Chinese court entered a default judgment against Wan after he failed to appear. A year later, the Partnership filed a complaint in the Central District of Illinois, seeking enforcement of the Chinese judgment under the Illinois foreign judgment recognition law, predicating subject matter jurisdiction on diversity of citizenship. The district court, determining that the Chinese judgment was enforceable under Illinois law, granted the Partnership summary judgment.The Seventh Circuit vacated, finding the factual predicates for the district court’s jurisdiction not established firmly in the existing record. The Partnership, which had the burden on the issue, failed to present “competent proof” of its citizenship; it did not present any evidence establishing its citizenship or the citizenship of its several partners. The Partnership submitted a declaration by its employee who stated simply that it “is and was domiciled in Yancheng City, Jiangsu Province, People’s Republic of China.” However, a partnership does not have a “domicile” for purposes of diversity jurisdiction. Rather, to establish subject matter jurisdiction based on diversity of citizenship, the citizenship of each partner must be established. There is no evidence to support a finding of complete diversity. View "Yancheng Shanda Yuanfeng Equity Investment Partnership v. Wan" on Justia Law