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

Between 1983-2015, Heneghan was an associated person (AP) of 14 different National Futures Association (NFA)-member firms. Troyer invested hundreds of thousands of dollars in financial derivatives through NFA Members. The first interaction between Troyer and Heneghan was in 2008. After receiving an unsolicited phone call from Heneghan, Troyer invested more than $160,000. Despite changes in Heneghan’s entity affiliation, his working relationship with Troyer remained constant. At one point, Heneghan’s then-firm, Statewide, withdrew from the NFA following an investigation. Heneghan was the subject of a four-month NFA approval-hold in 2012. Troyer began sending money to Heneghan personally in 2013, allegedly to obtain trading firm employee discounts; these investments totaled $82,000. Troyer neither received nor asked for any investment documentation for this investment. In 2016-2015, NFA investigated Heneghan’s then-firm, PMI, Despite Troyer’s alleged substantial investment, no PMI accounts were listed for either Troyer or Heneghan. In 2015, Troyer directed Heneghan to cash out the fund; “all hell broke loose.” In 2016, the NFA permanently barred Heneghan from NFA membership. Troyer filed suit under the Commodities Exchange Act. 7 U.S.C. 25(b).The Seventh Circuit affirmed the summary judgment rejection of Troyer’s claim. NFA Bylaw 301(a)(ii)(D), which bars persons from becoming or remaining NFA Members if their conduct was the cause of NFA expulsion, is inapplicable. Statewide’s agreement not to reapply represented a distinct sanction from expulsion and did not trigger Bylaw 301(a)(ii)(D). View "Troyer v. National Futures Association" on Justia Law

Alleging debilitating pain in her back, legs, and hands, Zoch sought disability insurance benefits, 42 U.S.C. 413, 423. An ALJ denied the application, finding that, based on the opinions of three of her four treating physicians, a consulting physician, and the objective medical evidence, she could perform sedentary work.The district court and Seventh Circuit affirmed, rejecting Zoch’s arguments that the ALJ improperly discounted her assertions and an opinion by a physician who relied on those assertions. Substantial evidence supports the ALJ’s decision. Zoch’s testimony of incapacitating pain conflicted with the objective medical evidence, including normal test results: lumbar MRI, wrist x-rays, range of motion, straight-leg raising, strength in extremities, and pressure on her nerves. Zoch’s testimony that she usually walked with a cane conflicted with the doctors’ reports that at all but one appointment she walked normally. Zoch’s testimony that she could not raise her arms or bend over to dress conflicted with a doctor’s observation that Zoch could comfortably bend over to touch her fingertips to her knees. Zoch’s hearing testimony that she could not perform the usual activities of daily living was inconsistent with her assertions in her application. View "Zoch v. Saul" on Justia Law

Vargas began working as a mail carrier in 2005. Mail carriers must be able to carry up to 35 pounds in their shoulder bags. Vargas’s route also required shuttling mail and equipment weighing up to 75 pounds between the post office and a satellite location. Vargas sustained an on-the-job foot injury in 2008. He was diagnosed with plantar fasciitis, received treatment, submitted a successful workers’ compensation claim, and continued working. In 2011, Vargas filed an EEO complaint, raising miscellaneous workplace grievances and alleging race- and disability-related discrimination. He withdrew this complaint. Vargas’s plantar fasciitis subsequently flared up. His doctor placed him on work restrictions, March 1-22, prohibiting him from carrying more than 15 pounds. On March 14, Vargas returned to work from a vacation; he wanted his route restructured to eliminate carrying heavy loads. His superiors did not oblige and he applied for workers’ compensation. He also made daily requests for “light duty” but there was no light duty work available, so he took paid sick leave.Vargas, who is Hispanic, sued, alleging disability-based discrimination under the Americans with Disabilities Act, with retaliation and racial discrimination claims under Title VII. Vargas still works for the Postal Service. The Seventh Circuit affirmed summary judgment rejecting his claims. Vargas could not perform the only job available to him, with or without reasonable accommodation, and there is no evidence he was treated differently because of his race or suffered unlawful workplace retaliation. View "Vargas v. DeJoy" on Justia Law

Makhsous owned three Wisconsin residential care facilities. In 2015, the Wisconsin Department of Health Services (DHS) found that two of Makhsous’s facilities did not comply with Wisconsin law. Daye is the supervisor of the Aging and Disability Resource Center (ADRC) of Marinette County, which makes recommendations to individuals who inquire about residential care facilities. It does not place individuals in care facilities, monitor care facilities, or issue citations or sanctions to care facilities. In 2016, the ADRC began publishing a “facility directory” for potential residents. Under Wisconsin’s ADRC Operational Practice Guidelines, the directory cannot include facilities that have been found in violation of law.Makhsous filed suit, alleging that Daye violated the Due Process and Equal Protection Clauses by failing to include Makhsous’s facilities in the ADRC directory and refusing to refer individuals to her facilities. The Seventh Circuit affirmed summary judgment in favor of Daye. Makhsous did not show that Daye harmed a constitutionally protected property interest or discriminated against her. The ADRC directory did not include Makhsous’s facilities because they were found deficient by DHS and because Makhsous failed to ask the ADRC to include them. Makhsous had no rebuttal evidence showing that Daye failed to include her facilities in the directory because of her race. View "Makhsous v. Daye" on Justia Law

The Randolph-Sheppard Act, 20 U.S.C. 107(a), provides economic opportunities by granting blind persons priority to operate vending facilities at certain government properties. When a blind vendor, Belsha, was awarded certain vending operations in Racine County, Wisconsin, a different blind vendor, Taylor, became unhappy and challenged the award. The Act is administered by state licensing agencies; Taylor’s challenge traveled first through Wisconsin’s regulatory process. Although Taylor achieved some success through the Wisconsin Division of Vocational Rehabilitation, she commenced federal administrative proceedings with the Secretary of Education. An arbitration panel awarded Taylor money damages and a permanent vending machine services contract for a site in Racine.The district court vacated the arbitration decision, ruling that there were no material deficiencies in the choice of Belsha for the Racine site, that the arbitration panel’s key factual findings were not supported by substantial evidence, and the arbitration panel’s ultimate conclusion was arbitrary and capricious. The Seventh Circuit affirmed. The arbitration panel mistakenly substituted the APA standard of review for the burden of proof of a disappointed vendor under the Act. View "Wisconsin Department of Workforce Development v. Taylor" on Justia Law

Indiana law provides that state’s election polls open at 6 a.m. and close at 6 p.m. In 2019, Indiana enacted amendments: only a county election board has standing in an Indiana court to request the extension of the hours and only if the board’s members unanimously vote to file suit, IND. CODE 3- 11.7-7-2. Before a court may extend the poll hours, several findings must be made, including that the polls were substantially delayed in opening or subsequently closed during normal polling hours and any extension must be limited to not more than the duration of time the polls were closed and only for those polls whose opening was delayed.Common Cause challenged the amendments as burdening the fundamental right to vote, divesting state courts of jurisdiction to hear federal claims in violation of the Supremacy Clause, and depriving voters of procedural due process. On September 22, 2020, the district court granted a preliminary injunction.The Seventh Circuit reversed. Indiana may enforce the statutes as written. The court noted that no decision of the Supreme Court or any court of appeals has held that the Constitution requires a state to provide a private right of action to enforce any state law. To the extent that federal law will require Indiana to provide such an extension, voters can invoke their federal rights under 42 U.S.C. 1983. The amendments do not place a burden on the right to vote, View "Common Cause Indiana v. Lawson" on Justia Law

Most people eligible for Medicaid benefits are “categorically needy” because their income falls below a threshold of eligibility. People with higher income but steep medical expenses are “medically needy” once they spend enough of their own assets to qualify, 42 U.S.C. 1396a(a)(10). Plaintiffs contend that medical expenses they incurred before being classified as “medically needy” should be treated as money spent on medical care, whether or not those bills have been paid, which would increase Illinois's payments for their ongoing care.The Seventh Circuit affirmed the dismissal of their suit. Medicaid is a cooperative program through which the federal government reimburses certain expenses of states that abide by the program’s rules. Medicaid does not establish anyone’s entitlement to receive particular payments. The federal-state agreement is not enforceable by potential beneficiaries. Plaintiffs bypassed their administrative remedies and do not have a judicial remedy under 1396a(r)(1)(A). Section 1396a(a)(8) provides that a state’s plan must provide that all individuals wishing to apply for medical assistance under Medicaid shall have the opportunity to do so and that assistance shall be furnished with reasonable promptness to all eligible individuals; some courts have held that this requirement can be enforced in private suits. If such a claim were available, it would fail. Plaintiffs are receiving benefits. The court also rejected claims under the Americans with Disabilities Act, 42 U.S.C. 12131–34, and the Rehabilitation Act, 29 U.S.C. 794. Plaintiffs receive more governmental aid than nondisabled persons. View "Nasello v. Eagleson" on Justia Law

Beeler, a dual citizen of Canada and the U.S., worked in Canada for 19 years and contributed to the Canada Pension Plan. In 1989 Beeler moved to the U.S. Until she retired in 2013, she worked and paid Social Security taxes. Beeler’s Canadian earnings were not subject to Social Security taxes; her U.S. earnings were not subject to Canada Plan taxes. Beeler has received Canada Pension Plan benefits since 2013. In 2013, Beeler was awarded reduced Social Security retirement benefits because she was entitled to Canada Pension Plan benefits based on work not covered by Social Security taxation.Rejecting claims that the reductions did not apply to Beeler and similarly-situated plaintiffs, the Seventh Circuit affirmed summary judgment in favor of the government. The windfall elimination provision, 42 U.S.C. 415(a)(7)(A)(ii), states that an individual who becomes eligible for a monthly payment “which is based in whole or in part upon his or her earnings for service which did not constitute ‘employment’ as defined in [42 U.S.C. 410]” shall have their benefits recomputed. The provision excludes in part “payment by a social security system of a foreign country based on an agreement between the United States and such foreign country" under 42 U.S.C. 433. The plaintiffs’ work in Canada is not considered “employment” under section 410, so section 415 reduces their Social Security benefits. The agency’s interpretations of the provision and its implementing regulation and its application of the provision to reduce their benefits were permissible. View "Lorraine Beeler v. Andrew M. Saul" on Justia Law

Peeters sought disability benefits, citing degenerative disc disease in the lumbar spine, degenerative joint disease of the right shoulder, depressive disorder, post-traumatic stress disorder, generalized anxiety disorder, and learning disabilities. Peeters has not sustained gainful employment since 2014. After a hearing, an ALJ denied Peeters disability benefits in 2016. On stipulated remand, the Appeals Council instructed the ALJ to reconsider Peeters’ maximum residual functional capacity, obtain evidence and examples of jobs Peeters could perform from a vocational expert, provide a new hearing, and issue a new decision. At the second hearing in 2018, the ALJ issued a 15-page decision denying Peeters disability benefits because he failed to meet the severity requirements of 20 C.F.R. pt. 404 and 20 C.F.R. pt. 416.The district court and Seventh Circuit affirmed the denial as supported by substantial evidence. The court upheld the greater weight given to the opinions of six state agency psychologists who evaluated Peeters; three found Peeters would have moderate limitations completing a normal workday and carrying out detailed instructions, but could handle simple two to three-step instructions, while three found Peeters capable of performing light work. View "Peeters v. Saul" on Justia Law

During the coronavirus pandemic, Illinois Governor Pritzker issued executive orders designed to limit the virus’s opportunities to spread, similar to orders in other states. Executive Order 2020‐43 (EO43, June 26, 2020), imposing a 50-person cap on gatherings, states: This Executive Order does not limit the free exercise of religion. To protect the health and safety of faith leaders, staff, congregants, and visitors, religious organizations and houses of worship are encouraged to consult and follow the recommended practices and guidelines from the Illinois Department of Public Health.... the safest practices ... are to provide services online, in a drive‐in format, or outdoors (and consistent with social distancing requirements and guidance regarding wearing face coverings), and to limit indoor services to 10 people. Religious organizations are encouraged to take steps to ensure social distancing, the use of face coverings, and implementation of other public health measures. Emergency and governmental functions enjoy the same exemption.The Republican Party challenged the “favored” treatment of religion. The Seventh Circuit affirmed the denial of injunctive relief. Because the exercise of religion involves more than simple speech, the equivalency urged by the Republicans between political speech and religious exercise is a false one. If there were a problem with the religious exercise carve‐out, the state would be entitled to return to a regime in which even religious gatherings are subject to the mandatory cap. View "Illinois Republican Party v. J. B. Pritzker" on Justia Law