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

A company operates a pipeline transporting oil and natural gas liquids between the United States and Canada. A portion of this pipeline crosses twelve miles of land within a Native American reservation in northern Wisconsin. In 2013, the company’s rights-of-way over certain parcels of reservation land expired. During the intervening years, the tribal band acquired ownership interests in a number of these parcels. The company continued to operate the pipeline without securing the tribal band’s renewed consent for the necessary easements. Following a breakdown in negotiations, the tribal band filed suit, alleging trespass and public nuisance. The band also pointed to the risk of a pipeline rupture near a river bend where erosion threatened pipeline safety.The United States District Court for the Western District of Wisconsin granted summary judgment for the tribal band on its trespass and unjust enrichment claims, and against the company on its breach-of-contract counterclaim. After a bench trial, the district court awarded the band restitution for past trespass, ordered future disgorgement of profits, and issued an injunction requiring the company to cease operations across the affected parcels within three years and to implement a monitoring and shutdown protocol to abate the alleged nuisance. Both parties appealed; the district court stayed the shutdown portion of the injunction while the appeal was pending.The United States Court of Appeals for the Seventh Circuit affirmed the finding that the company was trespassing on the parcels at issue and that restitution and injunctive relief are appropriate remedies. However, the court vacated the district court’s restitution calculation and the three-year shutdown deadline, remanding for a new determination of remedies that accounts for the public interest and ongoing pipeline reroute efforts. The court also held that federal statutory law displaced the band’s federal common law nuisance claim and vacated the related injunction. View "Bad River Band of the Lake Superior Tribe of Chippewa v Enbridge Energy Company, Inc." on Justia Law

The case involves a lawsuit filed in March 2024 by the City of Chicago against several major fossil fuel companies and a trade association. Chicago alleges the defendants misrepresented the effects of fossil fuel emissions on climate change, leading consumers to use more fossil fuels, which resulted in harm to the city such as increased illness, property damage, and environmental degradation. The city seeks damages only for harm attributable to increased fossil fuel usage due to the alleged misinformation, and specifically excludes claims related to federal property or specialized fuel sales to the federal government.After the complaint was filed in Illinois state court, the defendants removed the case to the United States District Court for the Northern District of Illinois, invoking the federal officer removal statute (28 U.S.C. § 1442(a)(1)). They argued that their work producing and supplying fossil fuels for the federal government brought the case within federal jurisdiction. The district court disagreed, finding the connection between the alleged misconduct and the defendants’ federal work too attenuated, and remanded the case to state court.The United States Court of Appeals for the Seventh Circuit reviewed the district court’s remand order de novo. The Seventh Circuit held that the federal officer removal statute did not support removal here because the defendants’ federal work was not sufficiently connected to Chicago’s claims, which focus on alleged misrepresentations to consumers and resulting non-federal harm. The court noted that the city’s complaint expressly disclaimed injuries related to federal activities, and agreed with the reasoning of other circuits in similar cases. The Seventh Circuit therefore affirmed the district court’s remand order. View "City of Chicago v BP P.L.C." on Justia Law

An industrial facility in Richmond, Indiana, owned by both private parties and the City of Richmond, caught fire in April 2023 and burned for more than a week. The fire caused the evacuation of nearby residents and allegedly released hazardous substances that damaged hundreds of properties and caused various injuries. Plaintiffs—both individuals and businesses—claimed that the private property owners’ failure to maintain the site and the City’s failure to remediate hazardous conditions after acquiring part of the property led to the fire. The lawsuit sought compensatory and punitive damages under several tort theories, including negligence, nuisance, trespass, and emotional distress.The plaintiffs initially filed their suit in the Wayne County, Indiana Circuit Court, but the defendants removed the action to the United States District Court for the Southern District of Indiana, arguing it qualified as a “mass action” under the Class Action Fairness Act (CAFA), and thus belonged in federal court. The district court, after briefing on whether the action fell within the CAFA “local event or occurrence” exception, concluded that the exception applied. The court found that all claims arose from the single fire event, which occurred in Indiana, and remanded the case to state court for lack of federal subject matter jurisdiction.The United States Court of Appeals for the Seventh Circuit reviewed the district court’s remand order. The court held that the local event or occurrence exception in CAFA is jurisdictional, meaning it can be raised at any time and by the court sua sponte. The appellate court determined that all claims indeed arose from the single fire event and that the exception applied. Therefore, federal jurisdiction was lacking under CAFA. The Seventh Circuit affirmed the district court’s order remanding the case to state court. View "Craig v City of Richmond" on Justia Law

Griffith Foods International and Sterigenics U.S. operated a medical supply sterilization plant in Willowbrook, Illinois, emitting ethylene oxide (EtO) over a 35-year period. In 2018, a report revealed high cancer rates in Willowbrook, allegedly due to these emissions. Griffith and Sterigenics faced over 800 lawsuits from residents claiming bodily injuries, including cancer, caused by the emissions. Griffith had obtained permits from the Illinois Environmental Protection Agency (IEPA) for the plant's operation, which included EtO emissions.The United States District Court for the Northern District of Illinois reviewed the case. Griffith and Sterigenics sought declarations that National Union Fire Insurance Company had a duty to defend them under their commercial general liability (CGL) policies. The district court ruled in favor of Griffith and Sterigenics, determining that the pollution exclusion in the CGL policies did not apply because the emissions were authorized by IEPA permits. The court relied on the Illinois appellate decision in Erie Insurance Exchange v. Imperial Marble Corp., which found ambiguity in the pollution exclusion when emissions were permitted by regulatory authorities.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court acknowledged the importance of the pollution exclusion in CGL policies and the precedent set by the Illinois Supreme Court in American States Insurance Co. v. Koloms. The Seventh Circuit noted the conflicting interpretations between Koloms and Imperial Marble regarding the scope of the pollution exclusion. Given the significant implications for Illinois law and the insurance industry, the Seventh Circuit decided to certify the question to the Illinois Supreme Court to determine the relevance of regulatory permits in applying the pollution exclusion in CGL policies. View "Griffith Foods International Inc. v National Union Fire Insurance Company of Pittsburg" on Justia Law

Griffith Foods International Inc. and Sterigenics U.S. operated a medical supply sterilization plant in Willowbrook, Illinois, emitting ethylene oxide (EtO) over 35 years. In 2018, a report linked these emissions to high cancer rates in the area, leading to over 800 lawsuits against the companies. The plaintiffs alleged that the companies knowingly emitted dangerous levels of EtO, causing various illnesses, including cancer.The United States District Court for the Northern District of Illinois handled the insurance dispute between Griffith, Sterigenics, and National Union Fire Insurance Company. Griffith and Sterigenics sought a declaration that National Union had a duty to defend them under their commercial general liability (CGL) policies. The district court ruled in favor of Griffith and Sterigenics, determining that the pollution exclusion in the CGL policies did not apply because the emissions were authorized by a permit from the Illinois Environmental Protection Agency (IEPA).The United States Court of Appeals for the Seventh Circuit reviewed the case. The court focused on whether the pollution exclusion in the CGL policies applied to the emissions of EtO. The court noted that the Illinois Supreme Court's decision in American States Insurance Co. v. Koloms interpreted the pollution exclusion to apply to traditional environmental pollution. However, an Illinois appellate court decision in Erie Insurance Exchange v. Imperial Marble Corp. suggested that emissions authorized by a regulatory permit might not constitute traditional environmental pollution.Given the conflicting interpretations and the significant implications for the insurance industry, the Seventh Circuit decided to certify the question to the Illinois Supreme Court. The court sought clarification on the relevance of a permit or regulation authorizing emissions in assessing the application of a pollution exclusion within a standard-form CGL policy. View "Sterigenics U.S., LLC v National Union Fire Insurance Company of Pittsburg" on Justia Law

3M Company operates a manufacturing facility in Cordova, Illinois, producing chemical products containing PFAS. The State of Illinois sued 3M, alleging that PFAS from the Cordova Facility contaminated the Mississippi River, violating state environmental laws. The State's complaint specifically excluded PFAS contamination from any other source, including AFFF used by the U.S. military at the nearby Rock Island Arsenal.The case was initially filed in Illinois state court. 3M removed it to the United States District Court for the Central District of Illinois, citing the federal officer removal statute, arguing that some contamination might have come from AFFF provided to the military, thus invoking a federal government contractor defense. The State moved to remand the case back to state court. The district court granted the motion, finding that the State's complaint excluded AFFF-related contamination, focusing solely on PFAS from the Cordova Facility.The United States Court of Appeals for the Seventh Circuit reviewed the case de novo. The court held that 3M could not satisfy the fourth element required for removal under the federal officer removal statute, which necessitates a colorable federal defense. The court noted that the State had unequivocally conceded that it would not seek relief for mixed PFAS contamination and that any recovery would be barred if contamination was not solely from the Cordova Facility. Consequently, 3M's government contractor defense was deemed irrelevant under the State's theory of recovery. The Seventh Circuit affirmed the district court's decision to remand the case to state court. View "Raoul v. 3M Company" on Justia Law

Kevin Shibilski was charged with environmental and wire-fraud crimes and conspiracy to defraud the United States, related to his operation of three Wisconsin-based companies involved in recycling electronic equipment. Shibilski pleaded guilty to a single felony count of willful failure to pay employment taxes, and in exchange, the government dropped the other charges. During the sentencing hearing, Shibilski objected to the presentence report’s recommendations regarding relevant conduct under the Sentencing Guidelines, particularly the recommendation to hold him responsible for the total amount of unpaid employment taxes for all three companies. The district judge held a seven-hour sentencing hearing, most of which was consumed by the presentation of documents and testimony, including testimony from Shibilski himself.The district judge found Shibilski responsible for the full amount of unpaid taxes. The judge also declined to award credit for acceptance of responsibility under U.S.S.G. § 3E1.1(a), finding that Shibilski had falsely denied responsibility for relevant conduct. After weighing the statutory sentencing factors, the judge imposed a sentence of 33 months in prison, the bottom of the advisory Guidelines range.Shibilski appealed to the United States Court of Appeals for the Seventh Circuit, arguing that the judge violated Rule 32(i)(4)(A)(i) of the Federal Rules of Criminal Procedure by unduly curtailing his attorney’s presentation of evidence, that the judge improperly denied credit for acceptance of responsibility under § 3E1.1(a), and that the judge committed procedural error by failing to meaningfully address the statutory sentencing factors. The Court of Appeals rejected these arguments and affirmed the district court's decision. View "United States v. Shibilski" on Justia Law

The Middle Mississippi is the 195-mile-long stretch from St. Louis, Missouri, where the Missouri River flows into the Mississippi, to Cairo, Illinois, where the Ohio River flows into the Mississippi and doubles its flow. The 1910 Rivers and Harbors Act authorized the Army Corps of Engineers to construct permanent river training structures in the Middle Mississippi and perform supplemental dredging to maintain a channel sufficient for commercial traffic. The Corps has for decades built and maintained structures—dikes, jetties, and chevrons—along the Middle Mississippi to ensure that the channel is at least nine feet deep and 300 feet wide for commercial navigation. In 1976, under the National Environmental Policy Act, the Corps prepared an environmental impact statement (EIS) assessing the project's ecological impacts. In 2013, the Corps decided to supplement its 1976 EIS, based on newly designated threatened and endangered species, and new information on the effects of river training structures and dredging. In the final supplemental EIS and record of decision, the Corps chose the “Continue Construction Alternative.” Because the exact locations and types of future river training structures are unknown, the supplemental statement studied environmental impacts at a programmatic level and will perform site-specific environmental assessments before actually building additional river training structures.In a challenge brought by environmental groups, the Seventh Circuit affirmed summary judgment for the government, rejecting arguments that the supplemental EIS did not comply with the Water Resources Development Act of 2007, 121 Stat. 1041, or the National Environmental Policy Act, 42 U.S.C. 4321. View "National Wildlife Federation v. United States Army Corps of Engineers" on Justia Law

Utility companies responsible for a planned electric transmission line asked the Fish and Wildlife Service (FWS) to allow construction across the Upper Mississippi River National Wildlife and Fish Refuge alongside an existing road and railroad. Rural Utilities Service completed an environmental impact statement under the National Environmental Policy Act (NEPA), 42 U.S.C. 4332(2)(C). FWS adopted the statement and issued a right-of-way permit.While litigation was pending, the utility companies sought to slightly alter the route and asked FWS to consider a land exchange. FWS discovered that it had relied on incorrect easement documents in issuing its original determination. It revoked the determination and permit but promised to consider the proposed land exchange. The district court ruled in favor of the environmental groups but declined to enjoin ongoing construction of the project on private land outside the Refuge.The Seventh Circuit vacated in part, first rejecting a mootness argument. FWS has revoked the compatibility determination but has not promised never to issue a new permit. However, FWS’s current position does not meet the criteria of finality. Whatever hardship the plaintiffs face comes not from FWS’s promise to consider a land exchange but from the Utilities’ decision to build on their own land, so the district court erred in reviewing the merits of the proposed land exchange. Plaintiffs’ request for relief against the Utilities under NEPA likewise is premature. Adopting the environmental impact statement did not “consummate” the decisionmaking process. View "Driftless Area Land Conservancy v. Rural Utilities Service" on Justia Law

The government is investigating Doe for suspected criminal violations of the Clean Water Act. With a search warrant, agents conducted a day-long search of Doe’s premises. An hour into the search, agents ordered Doe to turn off all security cameras. After the search, Doe contacted the U.S. Attorney’s Office and accused the agents of violating the Fourth Amendment in executing the search. Doe also filed an emergency motion to unseal the affidavit supporting the warrant, attaching still images from security-camera video footage of the search, showing agents pointing guns at employees.. Doe refused the government’s request to view the original video. The government served Doe with a grand-jury subpoena for the video.Doe argued that the video was irrelevant to the potential Clean Water Act violations and that the subpoena was for the improper purpose of conducting pre-trial discovery before Doe’s criminal trial or for potential civil litigation over the alleged constitutional violation. The government argued that “the grand jury is entitled to consider potential evidence of law enforcement misconduct in evaluating whether to indict” and that the video could be directly relevant, because it could provide details on what evidence was collected during the search, which employees had access to evidence, and whether anyone tampered with potential evidence. The district court quashed the subpoena. The Seventh Circuit reversed. The grand jury is entitled to inquire into the circumstances surrounding the collection of evidence relevant to its investigation. View "United States v. Doe Corp." on Justia Law