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

Orland Park fired police officer McGreal in 2010. McGreal sued, alleging that his termination was retaliation for remarks he made community board meeting. The district court granted the defendants summary judgment, finding that McGreal had advanced only speculation to support his claims. McGreal had more than 70 disciplinary complaints on his record. The Seventh Circuit affirmed. The district court granted the defendants’ motion for attorney fees and directed McGreal’s attorney, DeRose, to pay the defendants $66,191.75 to the defendants--the cost incurred because DeRose fought the defense's summary judgment motion. The Seventh Circuit affirmed. Defense counsel had repeatedly requested that DeRose end the litigation, pointing out the lack of evidence, and had threatened Rule 11 sanctions. DeRose’s summary judgment filings were not well grounded in fact or warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law. Discovery revealed an utter lack of evidentiary support for McGreal’s claims, but DeRose defended against summary judgment anyway. View "McGreal v. Village of Orland Park" on Justia Law

Fessenden’s employment was terminated after he began receiving short-term disability benefits. He then applied for long‐term disability benefits through his former employer’s benefits plan. The plan administrator, Reliance, denied the claim. Fessenden submitted a request for review with additional evidence supporting his diagnosis of Chronic Fatigue Syndrome. When Reliance failed to issue a decision within the timeline mandated by regulations governing the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1132, he filed suit. Eight days later, Reliance finally issued a decision, again denying Fessenden’s claim. The district court granted Reliance summary judgment. The Seventh Circuit vacated. If the decision had been timely, the court would have applied an arbitrary and capricious standard because the plan gave Reliance the discretion to administer it. When a plan administrator commits a procedural violation, however, it loses the benefit of deference and a de novo standard applies. The court rejected Reliance’s argument that it “substantially complied” with the deadline because it was only a little bit late. The “substantial compliance” exception does not apply to blown deadlines. An administrator may be able to “substantially comply” with other procedural requirements, but a deadline is a bright line. View "Fessenden v. Reliance Standard Life Insurance Co." on Justia Law

Doe, an Iranian national, sought conditional permanent residency using the EB-5 admission category, which offers visas for immigrants who invest in new job-creating enterprises. The U.S. Citizenship and Immigration Service (USCIS) initially approved Doe’s petition but revoked its approval two years later. The revocation notice identified material changes: USCIS discovered information that contradicted evidence in the record, that the project had moved, and that Doe had not provided a business plan or targeted employment area certification for the new location. The record contained no evidence that the center was under construction or would create 10 jobs. Doe sought judicial review under the Administrative Procedure Act. The district court concluded that Congress had stripped its jurisdiction to review discretionary revocations of visa petitions (8 U.S.C. 1252(a)(2)(B)(ii).) and dismissed Doe’s suit. The Seventh Circuit affirmed, rejecting an argument based on Musunuru v. Lynch (2016), in which the Seventh Circuit held that section 1252(a)(2)(B)(ii) does not preclude judicial review of purely procedural rulings during the adjudication of a visa petition. The Doe ruling was not procedural. Doe challenged the agency’s substantive decision-making and cannot evade a jurisdiction-stripping statute by repackaging his substantive complaints as procedural objections. “Taken to its logical conclusion, Doe’s approach would eviscerate 1252(a)(2)(B)(ii). Any petitioner dissatisfied with a final agency decision could secure judicial review by alleging that the agency committed a procedural violation by overlooking favorable evidence.” View "Doe v. McAleenan" on Justia Law

Martov participated in a wire fraud scheme in which he collected fraudulently obtained debit card numbers and personal identification numbers and then distributed them to others who used the information to make cash withdrawals from ATMs. The conduct cost the victims approximately $1.2 million. When he was arrested, the government seized Martov’s watch, $4,035 in cash, a car, and nine firearms. In exchange for Martov’s guilty plea under 18 U.S.C. 1343, the government dropped other charges and agreed not to pursue criminal forfeiture. The government initiated administrative forfeiture proceedings, 18 U.S.C. 983, by sending notice to Martov and his attorney. Martov responded to the notice by filing claims for the car and guns. The government denied both claims and declared the property forfeited. The Seventh Circuit affirmed the denial of relief while noting “reservations with the procedural path that the government took in executing the forfeiture.” The government had missed certain statutory deadlines. Martov, who only argued that the seizure was improper and that the forfeiture action violated his plea agreement, failed to advance any meritorious arguments. View "Martov v. United States" on Justia Law

Debtors sought sanctions against Kreisler, alleging that the law firm violated the automatic stay arising from their bankruptcy petition by filing a lien against Lorraine’s home. The couple had voluntarily dismissed a prior bankruptcy petition just a few months earlier, so the bankruptcy judge denied their motion based on 11 U.S.C. 362(c)(3), which lifts the automatic stay after 30 days in the case of a successive petition. Bankruptcy courts are divided over the proper interpretation of section 362(c)(3), so the judge certified her order for direct appeal but the Debtors never filed a petition for permission to appeal as required by Rule 8006(g) of the Federal Rules of Bankruptcy Procedure. The Seventh Circuit dismissed the appeal. Rule 8006(g) is a mandatory claim-processing rule, and if properly invoked, it must be enforced. Because Kreisler properly objected, the appeal must be dismissed. View "Wade v. Kreisler Law, P.C." on Justia Law

The district court dismissed Nestorovic’s discrimination claims against her employer and the deadline to appeal expired without Nestorovic appealing. The district court granted her motion without making any finding as to whether Nestorovic had made the required showing under 28 U.S.C. 2107(c) that excusable neglect or good cause justified missing the original deadline. The Seventh Circuit dismissed her appeal. Section 2107(c) is an act of Congress, so showing excusable neglect or good cause serves as a prerequisite to appellate jurisdiction. The record below contained no evidence of excusable neglect or good cause for Nestorovic’s tardiness Nestorovic explained only that she was “actively searching for attorneys willing to take the case on contingency” and had been “advised very recently that [prospective] counsel could not file an appeal before reviewing filings to date, which would take several weeks.” View "Nestorovic v. Metropolitan Water Reclamation District of Greater Chicago" on Justia Law

The U.S. Patent and Trademark Office has, on a few occasions, found that “capsule” was “merely descriptive” of cellphone cases, a finding that precludes registration on the Principal Register. The Office has also found otherwise and allowed Uncommon to register “capsule.” Rival case manufacturers still use the term. Uncommon sued Spigen for trademark infringement and unfair competition, 15 U.S.C. 1114, 1125(a). Spigen sought cancellation of the mark. In discovery, Spigen produced a survey to prove that consumers did not associate “capsule” with Uncommon’s cases, and disclosed the person who conducted the survey as a “non-testifying expert,” but without foundational expert testimony to explain the survey’s methodology, it was inadmissible, FRCP 26(a). The district court excused Spigen’s error and granted Spigen summary judgment on the merits. The Seventh Circuit affirmed. Spigen’s disclosure was inaccurate but harmless. Spigen carried its burden to defeat Uncommon’s presumption of inherent distinctiveness. Spigen demonstrated that there is no issue of material fact regarding the descriptiveness of the “capsule” mark. With the survey, there was no genuine issue of material fact as to the mark’s invalid registration. Nor was there an issue of fact regarding the unlikelihood of consumer confusion. View "Uncommon, LLC v. Spigen, Inc." on Justia Law

From 2007-2016, Trujillo worked as a manager of several Ashley Furniture HomeStores in the Chicago area. These stores were owned and operated by Rockledge Furniture LLC, a Wisconsin limited liability company associated with Ashley Furniture Industries, Inc., a Wisconsin corporation. Trujillo was fired and then filed a charge with the Equal Employment Opportunity Commission alleging age discrimination and retaliation. In the charge, he listed the name of the Illinois store where he had worked— Ashley Furniture HomeStore, with the address and telephone number of the store. The correct legal name of Trujillo’s employer, however, was Rockledge Furniture LLC. The district court dismissed Trujillo’s claims for failure to exhaust administrative remedies because he did not name his employer sufficiently and because the EEOC never managed to notify the correct employer of Trujillo’s charge. The Seventh Circuit reversed. Trujillo named his employer sufficiently in his original EEOC charge, and when his lawyer later sent his pay stub with Rockledge’s name and address, he removed any doubt about the employer’s identity. The EEOC’s error in processing his charge does not bar Trujillo from suing his employer. View "Trujillo v. Rockledge Furniture" on Justia Law

Casillas allegedly owed a debt to Harvester. Madison sent Casillas a letter demanding payment. The Fair Debt Collection Practices Act requires a debt collector to give consumers written notice, 15 U.S.C. 1692g(a), including a description of two mechanisms that the debtor can use to verify her debt. A consumer can notify the debt collector “in writing” that she disputes all or part of the debt, which obligates the debt collector to obtain verification and mail a copy to the debtor or a consumer can make a “written request” that the debt collector provide her with the name and address of the original creditor. Madison’s notice neglected to specify that Casillas’s notification or request under those provisions must be in writing. Casillas filed a class action. She did not allege that she planned to dispute the debt or verify that Harvester was actually her creditor. The Act renders a debt collector liable for “fail[ing] to comply with any provision.” She sought to recover a $1000 statutory penalty for herself and a $5000 statutory penalty for unnamed class members, plus attorneys’ fees and costs. The Seventh Circuit affirmed the dismissal of the suit. A plaintiff cannot satisfy the injury‐in‐fact element of Article III standing simply by alleging that the defendant violated a disclosure provision of a consumer‐protection statute. Absent an allegation that Madison’s violation had caused harm or put Casillas at an appreciable risk of harm, Casillas lacked standing to sue. View "Casillas v. Madison Avenue Associates, Inc" on Justia Law

Chicago awarded a construction contract to a joint venture formed by Gillen and other entities. The joint venture subcontracted some of the work to Gillen, which subcontracted with others for labor and materials. The joint venture obtained over $30 million in Fidelity performance and payment bonds. Fidelity received an indemnity agreement and a net worth retention agreement, both executed by Gillen. Gillen promised to maintain a net worth greater than $7.5 million. During 2012, several subcontractors sued Gillen in state court and named Fidelity as a co-defendant based on its bond obligations. Fidelity sued Gillen in federal court, alleging: breach of the indemnity agreement; a request for an accounting of contract payments; breach of the net worth retention agreement; quia timet; and a demand for access to books and records. Historically, litigants have used bills quia timet to pursue preemptive relief; on that claim, Fidelity sought $2.5 million from Gillen as bond collateral and an order requiring Gillen to satisfy all bond obligations and prohibiting Gillen from disbursing money without court approval. The parties settled all claims in mediation, except for Fidelity’s quia timet claim, agreeing their settlement would not impact the quia timet claim or Gillen’s defenses. The district court granted Gillen summary judgment on the quia timet claim. The Seventh Circuit affirmed. Fidelity negotiated for specific indemnification and collateralization rights, sued on those rights, and settled its breach of contract claims. It may not augment its contractual rights with the ancient equitable doctrine of quia timet. View "Fidelity and Deposit Co. of Maryland v. Edward E. Gillen Co." on Justia Law