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

Articles Posted in Civil Procedure
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The case involves an appeal by Marianne Wayland against her former employer, OSF Healthcare System. Wayland alleged that OSF violated her rights under the Family and Medical Leave Act (FMLA) by failing to adjust performance expectations to reflect her reduced hours while she was on approved medical leave, and subsequently firing her. The U.S. District Court for the Central District of Illinois granted summary judgment in favor of OSF, concluding that it fired Wayland for justifiable reasons based on her performance.Wayland appealed this decision arguing that there was a genuine dispute of material fact over the amount of approved leave she took. The Circuit Court agreed, finding that if Wayland's testimony about the amount of leave she took is believed, a jury could find that OSF unlawfully failed to adjust its performance expectations by properly accounting for her leave when evaluating her.The Circuit Court also noted that a jury could potentially find that OSF interfered with or retaliated against Wayland's use of leave by holding her to the same standards as when she worked full time, and then firing her for falling short. It found that there was sufficient evidence to raise a genuine question about whether OSF's reasons for firing Wayland were pretextual, highlighting that OSF did not tell Wayland that poor performance would lead to discharge and set goals that were potentially impossible to meet.The Circuit Court vacated the district court's judgment and remanded the case for further proceedings. View "Wayland v. OSF Healthcare System" on Justia Law

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In this case, the plaintiff, Chicago Joe's Tea Room LLC, had plans to open an adult entertainment business in a suburb of Chicago. However, the Village of Broadview denied the plaintiff's application for a special-use permit, which led to the plaintiff claiming that their constitutional rights were violated. The plaintiff sought millions of dollars in lost profits for the business that never opened. The U.S. District Court for the Northern District of Illinois excluded most of the plaintiff's evidence and theories for lost-profit damages due to substantive and procedural issues. The court then awarded the plaintiff just $15,111 in damages. The plaintiff appealed, but the United States Court of Appeals for the Seventh Circuit affirmed the decision of the lower court, finding no abuses of discretion. The appellate court stated that the plaintiff's calculations of lost profits were beyond the scope of the plaintiff's personal knowledge of a similar business and required expert-like analysis and adjustments. The court also ruled that the plaintiff failed to disclose necessary damages evidence in a timely manner, a violation of the Federal Rules of Civil Procedure. The plaintiff was also denied the opportunity to amend their complaint to challenge a state statute, as the request was made a decade after the issue became relevant. The court found that granting the amendment would have caused undue delay and prejudice to the Village. View "Chicago Joe's Tea Room, LLC v. Village of Broadview" on Justia Law

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In this case, the United States Court of Appeals for the Seventh Circuit addressed a dispute involving the owners of two parcels of real estate in Chicago who contended that banks tried to collect notes and mortgages that belonged to different financial institutions. The state judiciary had ruled that the banks were entitled to foreclose on both parcels, but the properties had not yet been sold and no final judgments defining the debt were in place. The plaintiffs attempted to initiate federal litigation under the holding of Exxon Mobil Corp. v. Saudi Basic Industries Corp., arguing that their case was still pending. However, the district court dismissed the case, citing the Rooker-Feldman doctrine, which states that only the Supreme Court of the United States can review the judgments of state courts in civil suits.The Appeals court held that the application of the Rooker-Feldman doctrine was incorrect in this case because the foreclosure litigation in Illinois was not yet "final". According to the court, the foreclosure process in Illinois continues until the property is sold, the sale is confirmed, and the court either enters a deficiency judgment or distributes the surplus. Since these steps had not occurred, the plaintiffs had not yet "lost the war", and thus parallel state and federal litigation could be pursued as per Exxon Mobil Corp. v. Saudi Basic Industries Corp.However, by the time the district court dismissed this suit, the state litigation about one parcel was over because a sale had occurred and been confirmed, and by the time the Appeals court heard oral argument that was true for the second parcel as well. The Appeals court stated that Illinois law forbids sequential litigation about the same claim even when the plaintiff in the second case offers novel arguments. The court found that the plaintiffs could have presented their constitutional arguments in the state court system and were not free to shift what is effectively an appellate argument to a different judicial system.The court also noted that Joel Chupack, the lead defendant, was the trial judge in the state case and was not a party to either state case. He did not claim the benefit of preclusion. Judge Chupack was found to be entitled to absolute immunity from damages, as he acted in a judicial capacity.The judgment of the district court was modified to reflect a dismissal with prejudice rather than a dismissal for lack of jurisdiction, and as so modified it was affirmed. View "Bryant v. Chupack" on Justia Law

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In a case involving a series of toxic tort claims brought by individuals allegedly harmed by lead paint pigment, the United States Court of Appeals for the Seventh Circuit affirmed in part and reversed in part the decision of the United States District Court for the Eastern District of Wisconsin. The case involved approximately 170 plaintiffs, all alleging injuries stemming from their exposure to white lead carbonate, a lead paint pigment, when they were children. The district court had granted summary judgment to the defendants on all claims, based largely on the legal doctrine of "issue preclusion" and "law of the case." The appellate court agreed with much of the district court's reasoning. However, it held that a small group of plaintiffs who had filed their own separate cases had a due process right to try their cases separately. The appellate court also disagreed with the district court's application of issue preclusion to another group of plaintiffs who had filed separate cases and hadn't participated in the earlier proceedings. The appellate court concluded that these plaintiffs had not had a "full and fair opportunity to litigate" the issue of the defendants' duty to warn under a lead dust-based theory of liability. The court therefore sent the cases back to the district court for further proceedings. View "Thompson v. Armstrong Containers Inc." on Justia Law

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In this consolidated appeal of multiple toxic tort cases, approximately 170 plaintiffs alleged harm from exposure to white lead carbonate (WLC), a lead paint pigment, during their childhood in the 1990s and early 2000s. They sued several manufacturers of WLC for negligence and strict liability. The United States Court of Appeals for the Seventh Circuit affirmed the lower court's decision in part and reversed in part. The court upheld the district court’s application of the law of the case doctrine to dismiss many of the plaintiffs' claims, finding that the plaintiffs had chosen to bring their claims under a single complaint and were therefore bound by the court's earlier rulings. The court reversed the district court's grant of summary judgment against a small group of plaintiffs who had filed their own cases, ruling that due process protected their right to try their claims. View "Gibson v. Armstrong Containers, Inc." on Justia Law

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In this toxic tort case, a group of plaintiffs alleged that they were harmed by exposure to white lead carbonate (WLC), a lead paint pigment, while growing up in Milwaukee homes in the 1990s and early 2000s. They sought to hold several manufacturers of WLC liable under state-law negligence and strict liability theories. The case was managed such that groups of plaintiffs would try their claims in a series of waves. The initial waves of plaintiffs met defeat in both the district court and the Court of Appeals, resulting in summary judgment for the defendants on all claims. The district court then extended these rulings to the remaining plaintiffs based on the law of the case and issue preclusion.On appeal, the United States Court of Appeals for the Seventh Circuit determined that most of the plaintiffs indeed were bound by the district court's rulings due to their decision to proceed under a single complaint. However, a small group of plaintiffs who filed their own cases were found to be entitled to try their claims, as due process protected their rights. The court affirmed the district court's decision in large part, but reversed it in small part, sending the case back to the district court for further proceedings with respect to this small group of plaintiffs. View "Cannon v. Armstrong Containers Inc." on Justia Law

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In this toxic tort case, about 170 individuals allege that they were harmed by lead paint pigment. The plaintiffs, who were joined together in a single complaint, brought claims against several manufacturers of the pigment. After a series of trials, the district court granted summary judgment for the defendants on all claims. The court then extended these rulings to the remaining plaintiffs on law of the case and issue preclusion grounds. The United States Court of Appeals for the Seventh Circuit affirmed the district court's decision in large part but reversed in small part. The appellate court held that the law of the case doctrine properly applied to a group of plaintiffs who had opted to proceed under a single complaint and whose claims were sunk after summary judgment. However, the court reversed the district court's decision as to a small group of plaintiffs who filed their own cases, noting that due process protects their right to try their claims. The court also rejected the plaintiffs' request to revisit or certify certain questions addressed in a prior ruling, and affirmed that ruling based on the principle of stare decisis. View "Allen v. Armstrong Containers Inc." on Justia Law

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In this case, the plaintiff, Laura Mullen, claimed that the defendants, a youth volleyball club and its owners, fraudulently concealed previous sexual abuse allegations. The district court granted summary judgment in favor of the defendants, but also imposed sanctions against them and their lawyer for improperly interfering with the class notice process. The defendants appealed the sanctions.The United States Court of Appeals for the Seventh Circuit held that the district court did not abuse its discretion or commit clear error in imposing the sanctions. The court found that the defendants had intentionally interfered with the class notice and opt-out process and that their communications with class members during the notice period were potentially coercive. The court also upheld the decision of the district court to impose monetary sanctions against the defendants, which included the plaintiff’s reasonable attorney’s fees and expenses, as well as a civil penalty for each defendant.The court also affirmed the non-monetary sanctions imposed against the defendants' lawyer, who had contacted a class member directly and made a false statement to the court. Although the defendants argued that the lawyer had acted in good faith and did not knowingly or intentionally violate the rules of ethics, the court found that she had taken deliberate action to avoid confirming a high probability of wrongdoing.Finally, the court rejected the defendants' argument that the plaintiff should have been sanctioned. The defendants claimed that the plaintiff’s use of the term “rape” was inaccurate and irrelevant, that her actions before and after filing the complaint were inconsistent, that she did not have a proper basis for bringing the suit, and that she misrepresented evidence. The court found no merit in these arguments and affirmed the district court’s decision to deny sanctions against the plaintiff. View "Mullen v. Butler" on Justia Law

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The case arises from severe burns suffered by a minor, B.D., when a Samsung SDI battery exploded in his pocket in Indiana. B.D. sued Samsung SDI, a corporation organized under the laws of the Republic of Korea with no physical presence in Indiana, in Indiana state court for product liability. Samsung SDI moved the case to federal court and sought to dismiss the case for lack of personal jurisdiction. The district court denied Samsung SDI's motion to dismiss, finding that specific personal jurisdiction existed over Samsung SDI in Indiana. Samsung SDI subsequently appealed the decision to the United States Court of Appeals for the Seventh Circuit.The Seventh Circuit Court of Appeals found that the district court's record did not contain sufficient facts to assess whether the requirements of the stream-of-commerce theory, which may establish a defendant's minimum contacts with a forum state, were met in this case. The court also found that the district court's reliance on the Supreme Court case of Ford Motor Co. v. Montana Eight Judicial District Court was distinguishable as Samsung SDI did not advertise, sell, or service the specific batteries in question in Indiana. The court noted that the extent of Samsung SDI's knowledge and expectations about the 18650 batteries entering Indiana was unclear.The court also found that the record did not clearly show whether Samsung SDI's contacts with Indiana were related to the alleged injury. Lastly, the court determined that more facts were needed to assess whether the exercise of personal jurisdiction would be fair.Given these uncertainties, the Seventh Circuit Court of Appeals remanded the case for further jurisdictional discovery to gather more information about Samsung SDI's contacts with Indiana concerning B.D.'s claimed injuries. The court clarified that this remand was limited to the question of personal jurisdiction and did not obligate the district court to consider or reconsider any non-jurisdictional issues. View "B. D. v. Samsung SDI Co., Ltd." on Justia Law

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The case involves Green Plains Trade Group, LLC, who appealed the district court's dismissal of their claim for tortious interference with contract against Archer Daniels Midland Company (ADM). Green Plains alleged that ADM unlawfully manipulated the price of ethanol, causing Green Plains to receive less money for the ethanol it sold to third parties. The district court dismissed the case, saying Green Plains hadn't specified the contracts ADM interfered with or shown a breach of contract. Green Plains argued that under Nebraska law, tortious interference doesn't always require a breach and that ADM's actions made its performance under its contracts "more expensive or burdensome."The United States Court of Appeals for the Seventh Circuit vacated the district court's dismissal and remanded the case for further proceedings. The Court of Appeals found that while the district court was correct to require Green Plains to plead more than general allegations about its contracts, it may have required too much specificity. The Court of Appeals also found that the district court erred in not recognizing section 766A of the Restatement (Second) of Torts as part of Nebraska's law, which allows a plaintiff to bring a successful tortious interference with contract claim even if the contract was not breached. The Court of Appeals held that the district court must apply the law as it believes the highest court of the state would apply it if the case were now before it, and it should not fear adopting the less restrictive approach if it believes the state's highest court would adopt that approach. View "Green Plains Trade Group, LLC v. Archer Daniels Midland Co." on Justia Law