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

The owners of an adult entertainment establishment in the 500-resident Village of Dix that features nude dancing and permits customers to bring their own alcoholic beverages onto the premises, challenged the enactment of three ordinances that ban public nudity, open containers of alcohol in public, and the possession of liquor in public accommodations. Plaintiffs argued that the public nudity ban violates the free speech protections and that the Village lacks statutory authority to pass the challenged alcohol restrictions. The district court dismissed. The Seventh Circuit reversed as to the First Amendment challenge; at this early stage of the litigation, Dix has not established the necessary evidentiary basis for its assertion that nude dancing causes adverse secondary effects to the health, welfare, and safety of its citizens. The court affirmed dismissal of plaintiffs’ challenge to Dix’s alcohol regulations, the enactment of which fell within the parameters of Illinois law and was supported by a rational basis. View "Foxxxy Ladyz Adult World Inc.v. Village of Dix" on Justia Law

The Driver’s Privacy Protection Act (DPPA), 18 U.S.C. 2721, prohibits individuals from knowingly obtaining or disclosing “personal information” from a motor vehicle record. Chicago police officers brought suit against Sun-Times Media, alleging that the publishing company violated the DPPA by obtaining each officer’s birth date, height, weight, hair color, and eye color from the Illinois Secretary of State’s motor vehicle records, and publishing that information in a newspaper article that criticized a homicide investigation lineup in which the officers participated. Sun-Times unsuccessfully moved to dismiss the officers’ complaint, arguing that the published information does not constitute “personal information” within the meaning of the DPPA, or, in the alternative, that the statute’s prohibition on acquiring and disclosing personal information from driving records violates the First Amendment’s guarantees of free speech and freedom of the press. The Seventh Circuit affirmed. DPPA’s definition of “personal information” extends to the details Sun-Times published here; Sun-Times possesses no constitutional right either to obtain the officers’ personal information from government records or to subsequently publish that unlawfully obtained information. View "Dahlstrom v. Sun-Times Media, LLC" on Justia Law

Redbox operates automated self‐service kiosks at which customers rent DVDs and Blu‐ray discs with a debit or credit card. Redbox outsources certain functions to service providers, including Stream, which provides customer service when, for example, a customer encounters technical problems at a kiosk and requires help from a live person. If resolution of the issue requires accessing that customer’s video rental history the Stream employee will do so. Redbox has granted Stream access to the database in which Redbox stores relevant customer information. Plaintiffs challenged Stream’s ability to access customer rental histories and Stream’s use of customer records during employee training exercises as violating the Video Privacy Protection Act, which prohibits “video tape service provider[s]” like Redbox from “disclos[ing], to any person, personally identifiable information concerning any consumer of such provider,” 18 U.S.C. 2710(b)(1). The Act includes an exception for disclosure incident to the video tape service provider’s ordinary course of business, defined as debt collection activities, order fulfillment, request processing, and the transfer of ownership. The district court granted Redbox summary judgment. The Seventh Circuit affirmed, concluding that Redbox’s actions fall within the exception for disclosures in the ordinary course of business: disclosures incident to “request processing.”View "Sterk v. Redbox Automated Retail, LLC" on Justia Law

Springfield has an ordinance that prohibits panhandling in its “downtown historic district”—less than 2% of the city’s area but containing its principal shopping, entertainment, and governmental areas, including the Statehouse and many state-government buildings. The ordinance defines panhandling as an oral request for an immediate donation of money. Signs requesting money are allowed; as are oral pleas to send money later. Plaintiffs have received citations for violating this ordinance and allege that they will continue panhandling but fear liability. They unsuccessfully sought a preliminary injunction. The parties agreed that panhandling is a form of speech, to which the First Amendment applies, and that if it drew lines on the basis of speech’s content it would be unconstitutional. The Seventh Circuit affirmed, upholding the ordinance, which it called “indifferent to the solicitor’s stated reason for seeking money, or whether the requester states any reason at all…. Springfield has not meddled with the marketplace of ideas.” The prohibition is based on where a person says something rather than what position a person takes.View "Norton v. City of Springfield" on Justia Law

While a student at University of Wisconsin in 1969, Soglin attended the first Mifflin Street Block Party. Now in his seventh term as Mayor of Madison, Wisconsin, Soglin wants to shut down the annual event. For the 2012 Block Party, Sconnie sold 54 t-shirts and tank tops displaying an image of Soglin’s face and the phrase “Sorry for Partying.” Photographer Kienitz accused Sconnie of copyright infringement. Sconnie conceded starting with a photograph that Kienitz took at Soglin’s inauguration that it downloaded from the city’s website. The picture was posterized, background was removed, and Soglin’s face was turned lime green and surrounded by multi-colored writing. The district court granted summary judgment for the defendants, applying the fair use statutory defense to infringement, 17 U.S.C. 107. The Seventh Circuit affirmed, concluding that a shirt is no substitute for the original photograph; Kienitz does not argue that defendants reduced demand for the original work or any use that he is contemplating. Defendants removed so much of the original that, “as with the Cheshire Cat, only the smile remains.” What is left, besides a hint of Soglin’s smile, is the outline of his face, which cannot be copyrighted. Defendants chose the design as a form of political commentary, not for profit. View "Kienitz v. Sconnie Nation, LLC" on Justia Law

Satkar owns Schaumburg, Illinois hotel and was mentioned in blog posts and a television news report as having made a large donation to a local politician and later won a property-tax appeal. In response, the Cook County Board of Review revoked Satkar’s property-tax reduction and opened an inquiry. Satkar sued the Board, its members and staff, the blog, the television station, and reporters, under 42 U.S.C. 1983, and for defamation and false light. The district court dismissed the 1983 claims against the Board and the officials. The Seventh Circuit affirmed. The court separately dismissed the state-law claims against the media defendants, applying the Illinois Anti-SLAPP statute. Because the section 1983 claims were still pending, the judge entered final judgment under FRCP 54(b) to permit appeal of the SLAPP issue. Later, the judge orally invited Satkar to ask for a Rule 54(b) judgment on the SLAPP dismissal, forgetting that he had already entered final judgment. Satkar did not correct the judge, did not seek clarification, and did not file a notice of appeal. After the deadline to appeal expired, Satkar sought an extension, claiming that the judge’s comment created confusion. The judge granted the extension, relying on the defunct “unique circumstances” doctrine. The Seventh Circuit dismissed an appeal, noting that the Supreme Court has disavowed the unique circumstances doctrine and Satkar has not otherwise demonstrated excusable neglect. View "Satkar Hospitality, Inc.v. Fox Television Stations, Inc." on Justia Law

A strike against the hotel began in 2003, but apparently escalated in 2008, when the union pursued a more aggressive strategy. It began engaging in secondary activity by targeting organizations that had made arrangements to reserve large blocks of rooms or space at the hotel, in the hopes that they would cancel their plans and pressure the hotel to end the strike. The union would send delegations, consisting of striking hotel workers and union staff in groups of two-10 people, to the stores and offices of potential hotel patrons. The hotel claims that these delegations violated 29 U.S.C. 187(a) and 29 U.S.C. 158(b)(4)(ii)(B) by coercing the customers into cancelling their agreements to book rooms. Although the strike ended in 2013, the hotel sought damages for past activity. At the close of discovery, the district court granted the union summary judgment, finding that the union’s conduct was not coercive, and that barring it as a matter of federal labor law would raise important free speech concerns. The Seventh Circuit reversed in part and remanded for a trial regarding whether certain of the union’s actions were coercive, whether any such coercive conduct damaged the hotel, and if so, to what extent. View "520 S. MI Ave. Assocs., Ltd. v. Unite Here Local 1" on Justia Law

The Educational Rate Program, a subsidy program authorized by the Telecommunications Act of 1996, is implemented by the FCC, which established USAC, a private non-profit corporation, to administer the Program. USAC provides subsidies to eligible school districts for the cost of telecommunication services. FCC regulations require that providers offer schools the “lowest corresponding price” (LCP) for their services: the “lowest price that a service provider charges to non-residential customers who are similarly situated to a particular school, library, or library consortium for similar services.” Heath operates a business that audits telecommunications bills and was retained by Wisconsin school districts. Heath found that certain schools paid much higher rates than others for the same services. As a result, many districts did not receive the benefit of LCP and the government paid subsidies greater than they should have been. Heath informed Wisconsin Bell of the discrepancy, but it refused to provide the more favorable pricing. Heath also learned of an even lower price charged to the Wisconsin Department of Administration (DOA). Heath filed a qui tam lawsuit. The government declined to intervene. The district court dismissed for lack of subject matter jurisdiction, finding that the public disclosure bar applied and that Heath was not saved by the original source exception, because the DOA pricing was on its website. The Seventh Circuit reversed, stating that the claim was not based on the DOA website information and that Heath was not an opportunist plaintiff who did not contribute significant information. View "Heath v. WI Bell, Inc." on Justia Law

West Side Christian Church applied to the City of Evansville, Indiana, for a permit to set up its “Cross the River” display, consisting of 31 six-foot tall decorated crosses on four blocks of public Riverfront. After Evansville approved the application, residents sought an injunction, claiming that the display violated their First Amendment rights. The district court agreed. The City did not appeal, but West Side, which was an intervenor in the district court, did. The Sixth Circuit dismissed, finding that West Side did not have standing to appeal. The court could not redress any injury West Side might have suffered because Evansville was not party to this appeal and could prohibit the display regardless of any order issued. Any First Amendment injury West Side might have suffered from the injunction was not fairly traceable to, or caused by, Evansville. View "Cabral v. City of Evansville" on Justia Law

Daoud, an 18-year-old American citizen, had an email conversation with undercover FBI employees posing as terrorists who responded to messages that he had posted online. Daoud planned “violent jihad” and discussed his interest in committing attacks in the U.S, using bomb-making instructions that he had read in Inspire magazine, an English-language organ of Al Qaeda, and online. Daoud selected a Chicago bar as the target of a bomb that the agent would supply. The agent told him the bomb would destroy the building and would kill “hundreds” of people. Daoud replied: “that’s the point.” On September 14, 2012, Daoud parked a Jeep containing the fake bomb in front of the bar. In an alley, in the presence of the agent, he tried to detonate the fake bomb and was arrested. In jail, he tried to solicit someone to murder the undercover agent with whom he had dealt. The government notified Daoud, under the Foreign Intelligence Surveillance Act (FISA), 50 U.S.C. 1801, that it intended to present evidence derived from electronic surveillance conducted under the Act. His attorney sought access to the classified materials submitted in support of the government’s FISA warrant applications. The government supplied a heavily redacted, unclassified response and a classified version, accessible only to the court with a statement that disclosure “would harm the national security.” The harm was detailed in a classified affidavit signed by the FBI’s Acting Assistant Director for Counterterrorism. The district judge ordered the materials sought by defense counsel turned over. In an interlocutory appeal, the Seventh Circuit reversed, stating that in addition to having the requisite security clearance the seeker of such information must establish need to know. View "United States v. Daoud" on Justia Law