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

Vidmar, Manney, and Gomez were discharged from the Milwaukee Police Department, for cause, by Police Chief Flynn. Their benefits and pay stopped immediately. They appealed their terminations to the Board of Fire and Police Commissioners, which rejected their appeals. They were permanently discharged. The former officers claimed that their employment did not end when they were discharged by the chief because they were entitled to employment until the conclusion of their appeals. They alleged that they were denied constitutional due process and wages. The district court rejected their claims and granted judgment on the pleadings. The Seventh Circuit affirmed. Under Wisconsin law, the former officers had no property interest in employment once they were discharged for cause by Chief Flynn. They were provided a full and adequate appellate process, and their discharges were upheld in accordance with Wisconsin law. They were not entitled to wages for the period of time between their discharge and the conclusion of their appeal under Wisconsin law as they were not employed during that time. View "Milwaukee Police Association v. Flynn" on Justia Law

Indiana’s alcohol regulatory scheme, like that of many states, divides the market into three tiers of the distribution chain (producers, wholesalers, and retailers) and three kinds of alcohol (beer, liquor, and wine). With limited exceptions, Indiana prohibits any person who holds a permit in one tier of the distribution chain from also holding an interest in a permit in another tier. For example, anyone who holds an interest in a retailing permit is generally prohibited from having any interest in a manufacturer’s or wholesaler’s permit of any type. Indiana also restricts the issuance of wholesaling permits by type of alcohol. The law allows some wholesaling permits to be combined: a beer wholesaler can get a permit to wholesale wine; a liquor wholesaler can get a permit to wholesale wine, but a beer wholesaler may not acquire an interest in a liquor-wholesaling permit and vice versa. Monarch holds permits to wholesale beer and wine and would like to wholesale liquor. Monarch sued, alleging that this aspect of the law facially discriminates against beer wholesalers in violation of the equal protection guarantee. The district court and Seventh Circuit upheld the law as surviving “rational basis” review. Monarch could not identify a similarly situated class that receives better treatment under the statute and reducing liquor consumption is a legitimate governmental interest. View "Monarch Beverage Co., Inc. v. Grubb" on Justia Law

Smith was transported from the Rock Island County Jail to the federal courthouse for arraignment. U.S. marshals took Smith to an interview room to meet his lawyer. The Marshals Service inspects the interview rooms weekly. On the detainee’s side of the room, there is a metal stool attached to the wall by a swing-arm. According to Smith, when he sat on the stool it “broke,” causing him to fall and strike his head; he saw that bolts were missing. A nurse examined Smith and noted that his speech was slurred. She had him taken to the emergency room. He was treated for a stroke and continues to suffer adverse effects. Smith filed an administrative tort claim, which was denied. Smith then brought suit under the Federal Tort Claims Act, 28 U.S.C. 2671, relying on the doctrine of res ipsa loquitur to impute negligence to the government. The district court rejected the theory, noting that Smith’s fall occurred at 11 a.m., so it was possible that others could have already damaged the seat or that Smith fell without the stool having malfunctioned. The Seventh Circuit reversed. The fact that a detainee is left alone to confer with his lawyer does not defeat the notion that the room and its contents remain within the control of the government. The sort of malfunction that Smith has described is the kind of hazard that the government may be expected to guard against. View "Smith v. United States" on Justia Law

Because the state proposed to use federal highway funds to widen Wisconsin Route 23, the U.S. Department of Transportation (USDOT) issued an environmental impact statement (EIS). USDOT made a record of decision (ROD) permitting the use of federal funds. Opponents filed suit. The court denied a request for an injunction because Wisconsin can proceed using its own money regardless of whether USDOT satisfied the requirements for a federal contribution, but set aside the ROD, finding that the statement projecting 2035 traffic loads had not adequately disclosed all assumptions. USDOT issued a revised EIS with additional details about how the traffic estimates had been generated. The district court reiterated the order vacating USDOT’s ROD. The judge stated that plaintiff was entitled to a declaratory judgment but neglected to issue one. The order setting aside the ROD was appealed by the Wisconsin Department of Transportation. The Seventh Circuit dismissed an appeal. USDOT did not appeal. Wisconsin remains free to continue the project at the state’s expense. The National Environmental Policy Act, on which the suit rests, applies only to the national government, 42 U.S.C. 4332(2)(C). Wisconsin cannot seek relief against a judgment that does not bind it. Wisconsin does not contend that USDOT had a statutory duty to fund the project, to prepare a better EIS, or to appeal the decision. View "1000 Friends of Wisconsin, Inc v. Wisconsin Department of Transportation" on Justia Law

The Seventh Circuit upheld Milwaukee's residency requirement for law enforcement and emergency personnel. Milwaukee’s corporate charter previously required all city employees to live within city limits. In 2013, the Wisconsin legislature prohibited local governments from imposing a residency requirement as a condition of employment, exempting requirements that law enforcement, fire, or emergency personnel reside within 15 miles of jurisdictional boundaries. Milwaukee announced its intent to enforce its original residency requirement, citing the Wisconsin Constitution’s home‐rule provision. The Wisconsin Supreme Court rejected that argument. The city amended its charter to require all law enforcement, fire, and emergency personnel to reside within 15 miles of city limits, giving affected employees six months to comply, with extensions available for hardship. In a suit under 42 U.S.C. 1983, the Seventh Circuit affirmed judgment on the pleadings for the city. Municipal employees do not have a fundamental right to be free from residency requirements, for purposes of substantive due process. Rejecting a procedural due process argument, the court stated that no vested right was impaired. The amended charter does not apply retroactively. View "Milwaukee Police Association v. City of Milwaukee" on Justia Law

Ulloa, a citizen of Mexico, married Morfin, a U.S. citizen. Morfin sought approval for his permanent residence, but Ulloa was present in the U.S. without authority and was required to return to Mexico to obtain a visa for lawful entry. He applied at the consulate in Juarez. After twice interviewing Ulloa, the State Department denied him a visa, stating that it had reason to believe that he is (or was) involved in drug trafficking. In 2001 Ulloa had been indicted for possessing more than 500 grams of cocaine, with intent to distribute. The U.S. Attorney dismissed the indictment and Ulloa denies the charge, but he lacks a favorable adjudication. The couple sued under the Administrative Procedure Act, 5 U.S.C. 702, alleging that the denial was arbitrary and not supported by substantial evidence. The district court found that it lacked jurisdiction because decisions on visa applications are committed to agency discretion and are outside the scope of judicial review under the APA. The Seventh Circuit affirmed. While the APA does not curtail jurisdiction granted by other laws, the consular officer gave a legitimate reason for denying Ulloa’s application. Precedent prevents the judiciary from reweighing the facts and equities. Whether Congress acted wisely in making “reason to believe” some fact sufficient to support the denial of a visa application is not a question open to review by the judiciary. View "Morfin v. Tillerson" on Justia Law

Until 1997, Illinois residents could only purchase power from a public utility, with rates regulated by the ICC. The Electric Service Customer Choice and Rate Relief Law allows residents to buy electricity from their local public utility, another utility, or an Alternative Retail Electric Supplier (ARES). The ICC was not given rate-making authority over ARESs, but was given oversight responsibilities. The Law did not explicitly provide a mechanism for recovering damages from an ARES related to rates. Zahn purchased electricity from NAPG, after receiving an offer of a “New Customer Rate” of $.0499 per kilowatt hour in her first month, followed by a “market-based variable rate.” Zahn never received NAPG’s “New Customer Rate.” NAPG charged her $.0599 per kilowatt hour for the first two months, followed by a rate higher than Zahn’s local public utility charged. Zahn filed a class-action complaint, claiming violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, breach of contract, and unjust enrichment. The court dismissed for lack of subject-matter jurisdiction, or for failure to state a claim. After the Illinois Supreme Court answered a certified question, stating that the ICC does not have exclusive jurisdiction to hear Zahn’s claims, the Seventh Circuit reversed. The district court had jurisdiction and Zahn alleged facts that, if true, could constitute a breach of contract or a deceptive business practice. View "Zahn v. North American Power & Gas, LLC" on Justia Law

Dana operates a Summit, Illinois truck‐tank washing facility. Dana employees drain residual product from the truck’s metal tank; insert a mechanical spinner that rotates scrubbers, dousing it with soap or solvents; then rinse the tank with water. Occasionally, employees have to enter a tank and manually clean residual sludge. OSHA has regulations for entering these “permit‐required confined spaces (PRCSs),” 29 C.F.R. 1910.146: the employee must obtain an entry permit and checklist of required safety precautions; must hook a full‐body harness to a mechanical retrieval device that can pull him out of the tank; must test the tank air; and must wear a respirator and conduct continuous atmospheric testing. While an employee is in the tank, automatic blowers force fresh air into it. Another employee must be on standby. Employees may not enter a tank before it has been mechanically cleaned. Fox encountered a problem with a tank before beginning the mechanical cleaning. He entered the tank without attaching the retrieval device or following permit procedures. After a short time, another employee saw Fox unconscious in the chemical sludge and called the fire department. A TV news crew broadcast the rescue. An OSHA inspector saw it; she arrived at the facility within three hours of the accident, inspected and issued citations for serious and willful violations of the Occupational Safety and Health Act. An ALJ vacated some of the citation items, finding that Dana qualified for the less stringent “alternate entry procedures.” The Commission held that Dana was not eligible for the alternate entry procedures and reinstated the citation items. The Seventh Circuit rejected a petition for review. Dana did not provide a compelling reason to overturn the Commission’s determinations. View "Dana Container, Inc. v. Secretary of Labor" on Justia Law

In 2009, the Social Security Administration notified Casey that he needed to repay about $334,000 in disability benefits he should not have received. Casey unsuccessfully sought a waiver. Six months later, Casey submitted an untimely request for review to the Appeals Council, arguing that he had good cause for his delay. The Appeals Council extended Casey’s deadline to submit evidence or a statement in support of his waiver claim; 15 months later, the Council reversed course, informing Casey that it had dismissed his review request because there was “no good cause to extend the time for filing.” Casey then sued the Acting Commissioner of Social Security. The district judge dismissed. The Seventh Circuit reversed. The Council's action in first granting and then retroactively denying Casey’s good cause request was arbitrary, having the effect of an unfair bureaucratic bait‐and‐switch. The Council had discretion to determine initially whether Casey offered good cause for his late administrative appeal, but, having granted Casey’s request, the Council could not simply change its mind on the theory that he had not adequately justified his delay, after leading him on for over a year without suggesting he needed to provide more information, an affidavit, or anything else by way of support. View "Casey v. Berryhill" on Justia Law

Indiana’s 2015 Vapor Pens and E-Liquid Act regulates the manufacture and distribution of vapor pens and the liquids used in e-cigarettes, Ind. Code 7.1-7- 1-1. The Act has extraterritorial reach and imposed detailed requirements of Indiana law on out-of-state manufacturing operations. It purported to regulate the design and operation of out-of-state production facilities, including requirements for sinks, cleaning products, and even the details of contracts with outside security firms and the qualifications of those firms’ personnel. The Seventh Circuit reversed dismissal of a challenge to the Act. Imposing these Indiana laws on out-of-state manufacturers violates the dormant Commerce Clause. Indiana has ample authority to regulate in-state commerce in vapor pens, e-liquids, and e-cigarettes to protect the health and safety of its residents, by prohibiting sales to minors and requiring child-proof packaging, ingredient labeling, and purity. The requirements for in-state production facilities pose no inherent constitutional problems. Indiana may not, however, try to achieve its health and safety goals by directly regulating out-of-state factories and commercial transactions. View "Legato Vapors, LLC v. Cook" on Justia Law