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

A Marion, Indiana small claims court entered a judgment against Kevin about $1,000. He did not pay, although he had agreed to the judgment’s entry. Almost 20 years later Steel, claiming to represent the judgment creditor, asked the court to garnish Harold’s wages. It entered the requested order, which Harold moved to vacate, contending that Steel had misrepresented the judgment creditor’s identity (transactions after the judgment’s entry may or may not have transferred that asset to a new owner) and did not represent the only entity authorized to enforce the judgment. He did not contend that the request was untimely. A state judge sided with Steel and maintained the garnishment order in force. Instead of appealing, Harold filed a federal suit under the Fair Debt Collection Practices Act, contending that Steel and his law firm had violated 15 U.S.C. 1692e by making false statements. The district court dismissed for lack of subject-matter jurisdiction, ruling that it was barred by the Rooker-Feldman doctrine because it contested the state court’s decision. The Seventh Circuit affirmed. Section 1692e forbids debt collectors to tell lies but does not suggest that federal courts are to review state-court decisions about whether lies have been told. View "Harold v. Steel" on Justia Law

Parker asserted that “Scheck Industries” had fired him after just a few months on the job because of his race and several complaints he made to management about workplace discrimination. The EEOC issued Parker a right-to-sue letter, explaining that the agency had investigated but was unable to confirm his allegations. The agency’s letter did not suggest that “Scheck Industries” never employed Parker or that an entity with that name did not exist. In fact, Parker’s employer apparently used that name in dealing with the EEOC, since the agency’s letter to Parker was copied to “Scheck Industries.” Parker drafted a pro se complaint. Defense counsel acknowledged receipt of service but explained that the company’s liability insurer failed to file an answer after misidentifying the complaint; that Scheck Mechanical never employed Parker; and that Parker’s claims under Title VII were untimely. The district court dismissed. The Seventh Circuit reversed, rejecting Scheck Mechanical’s position, that Parker sued only Scheck Mechanical; the complaint included multiple references to Scheck Industrial. It may not matter which company employed Parker if, as Parker asserts, the line between the companies is blurred. View "Parker v. Scheck Mech. Corp." on Justia Law

A Catholic school in Fort Wayne, Indiana, discharged a language-arts teacher because she underwent in vitro fertilization in violation of the moral teaching of the Catholic Church. She sued under Title VII of the Civil Rights Act, as amended by the Pregnancy Discrimination Act, 42 U.S.C. 2000e-2; 2000e(k), and the Americans with Disabilities Act, 42 U.S.C. 12101. The district court denied the defendants’ motion for summary judgment. The Seventh Circuit dismissed for lack of appellate jurisdiction, concluding that the order was not final and that the case did not qualify for collateral order review. View "Herx v. Diocese of Fort Wayne-South Bend" on Justia Law

Several people interrogated by the infamous Jon Burge and other officers he trained or influenced sought damages under 42 U.S.C.1983. Between 1972 and 1991, while employed by Chicago’s police force, Burge regularly tortured people to extract statements. After the statute of limitations for prosecuting Burge about that misconduct expired, he was convicted of lying about his practices. The last interrogation about which any of the five plaintiffs complains occurred in 2004, and the statute of limitations for section 1983 actions in Illinois is two years. The last adverse event that might have been influenced by the interrogations was Freeman’s conviction in 2009, more than two years before the suit was filed and more than three years before Freeman joined the suit. The others are in prison following convictions for serious crimes; each conviction is supported by evidence independent of confessions induced by misconduct during interrogation. The district court dismissed all claims as barred by the statute of limitations. The Seventh Circuit affirmed. The plaintiffs waited on the sidelines hoping that the acts of others would tarnish Burge’s reputation and make a suit easier to win. That is not the sort of diligence required to establish equitable tolling. View "Estate of Jones v. Burge" on Justia Law

Plaintiff, a former Chicago police officer, is black, and claimed racially motivated harassment, and retaliation for complaining about the harassment, in violation of the Illinois Human Rights Act. While that suit was pending, he was fired. He claims retaliation for the internal complaints about harassment that he had made before he filed suit. Rather than amend his state court complaint to add a charge concerning his firing, he filed a federal suit under 42 U.S.C. 1981. The district judge stayed the federal suit while the state suit was pending. Brown dismissed the state case without prejudice. The district judge dismissed one count, alleging state claims, for lack of federal subject matter jurisdiction and the other claims, retaliation and racial discrimination, on the merits, as barred by res judicata. The Seventh Circuit modified to place dismissal of the first claim on the district court’s supplemental state-law jurisdiction, acknowledging that it may be so similar to the state law claims as to merit dismissal, but reversed with respect to the dismissal of the due process claim in that count. The judgment was otherwise affirmed. View "Brown v. City of Chicago" on Justia Law

Smith sued Greystone, a debt collector, alleging violation of the Fair Debt Collection Practices Act, 15 U.S.C. 1692–92p, and seeking statutory damages and compensatory damages for emotional distress. The district judge certified it as a class action, but the suit was transferred and the new judge decertified the class. Another judge dismissed, ruling that it had been moot since November 2009, when Greystone offered Smith $1,500 plus costs and attorneys’ fees. The Seventh Circuit vacated. A controversy exists when the plaintiff wants more, or different, relief than the defendant is willing to provide. The district judge decided that Smith’s compensatory damages could not exceed $500, but, while an excessive demand may lead to sanctions for frivolous litigation, it does not diminish the court’s jurisdiction. A court must resolve the merits unless the defendant satisfies the plaintiff’s demand. An offer that the defendant or the judge believes sufficient, but which does not satisfy the plaintiff’s demand, does not justify dismissal. View "Smith v. Greystone Alliance LLC" on Justia Law

FFRF, a Wisconsin-based organization of atheists and agnostics, gives its co-presidents housing allowances. They paid income tax on that portion of their salaries. Neither sought to exclude this income on their tax returns and neither has claimed a refund. FFRF and the co-presidents challenged the parsonage exemption, 26 U.S.C. 107, which allows a minister to receive tax-free housing from his church, whether by giving the minister access to a church-owned residence or by giving the minister an allowance to obtain housing. Plaintiffs conceded that they lacked standing to challenge section 107(1), covering in-kind housing, but argued that they had standing to challenge section 107(2), which applies to rental allowances. The district court agreed and held that the subsection is an unconstitutional establishment of religion under the First Amendment. The Seventh Circuit vacated with instructions to dismiss. A person suffers no judicially cognizable injury merely because others receive a tax benefit that is conditioned on allegedly unconstitutional criteria, even if that person is otherwise “similarly situated” to those who receive the benefit. Only a person that has been denied such a benefit can be deemed to have suffered a cognizable injury. The plaintiffs were not denied the parsonage exemption. View "Freedom From Religion Found., Inc. v. Lew" on Justia Law

Doe settled his sexual abuse claims against the Archdiocese of Milwaukee for $80,000 after participating in a voluntary mediation program. He later filed a claim against the Archdiocese in its bankruptcy proceedings for the same sexual abuse. Doe responded to the Archdiocese’s motion for summary judgment by contending that his settlement was fraudulently induced. The argument depends upon statements made during the mediation, but Wisconsin law prohibits the admission in judicial proceedings of nearly all communications made during mediation. Doe argued that an exception applies here because the later action is “distinct from the dispute whose settlement is attempted through mediation,” Wis. Stat. 904.085(4)(e). The Seventh Circuit affirmed summary judgment in favor of the Archdiocese. Doe’s bankruptcy claim is not distinct from the dispute settled in mediation. The issue in both proceedings, which involved the same parties, is the Archdiocese’s responsibility for the sexual abuse Doe suffered. Doe sought damages in both the mediation and bankruptcy for the same sexual abuse; he did not seek separate or additional damages for the alleged fraudulent inducement. View "Doe v. Archdiocese of Milwaukee" on Justia Law

In 2005 Greene and his wife had filed for Chapter 7 bankruptcy and obtained a discharge from all their debts except federal student loan debt of $207,000. As part of the bankruptcy case they sought an order that the Department of Education cancel their debt on the ground that having to repay it would inflict undue hardship. The Greenes claimed that the statute of limitations prohibited collection of their loans, penalties and interest on the loans were caused by the DOE’s negligence, and the loans should be discharged as reparations for slavery and discrimination.” The Seventh Circuit rejected the undue hardship defense on the ground that “the Greenes initiated this case and the DOE has not counterclaimed or sought any judgment … there is no actual controversy.” In 2010 the Department began to garnish Greene’s wages and he sought an injunction. The DOE counterclaimed. The district court ordered Greene to pay the debt. The Seventh Circuit affirmed, holding that DOE’s counterclaim was not barred by res judicata, collateral estoppel, or failure to make a compulsory counterclaim in the bankruptcy proceeding.View "Greene v. U.S. Dep't of Educ." on Justia Law

Zuppardi slipped and fell on the floor of a Wal-Mart store. The district court granted summary judgment in favor of Wal-Mart, finding that Wal-Mart had not caused the puddle and did not have actual or constructive notice of the puddle before Zuppardi’s fall, and denying Zuppardi’s motion to strike Wal-Mart’s reply for submitting a declaration in bad faith and violating a district court local rule. The Seventh Circuit affirmed. The declaration was not a bad faith filing and the district court was within its discretion in deeming certain facts admitted and in determining that the local rule did not prevent Wal-Mart from replying in the manner it did.View "Zuppardi v. Wal-Mart Stores, Inc." on Justia Law