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

A large group of African-American police officers and firefighters sued the City of Indianapolis, alleging that the examination process it uses to rank candidates for promotion in the police and fire departments has a disparate impact on black candidates and is intentionally discriminatory. They filed lawsuits targeting promotion decisions made in successive promotion cycles starting inv2002, but most of the challenged decisions were based on scores generated by testing administered by the police department in 2008 and the fire department in 2007. The district court dismissed many of the claims as either time-barred or substantively flawed. The Seventh Circuit affirmed. Although the district court mistakenly assumed that allegations of intentional discrimination necessarily defeat a disparate-impact claim, here the disparate-impact claims fail because they are stated as legal conclusions, without any factual content to support an inference that the examination procedures caused a disparate impact on black applicants for promotion. The disparate-treatment claims lacked evidentiary support and were properly resolved on summary judgment. Although the second complaint concerns a different set of promotion decisions, it attacked the same eligibility list that was at issue in the first case and was, therefore, barred. View "Adams v. City of Indianapolis" on Justia Law

In Wisconsin, Register of Deeds is an elected position. If a vacancy occurs mid-term, the governor may appoint an interim Register for any unexpired portion of the term. The Marinette County Register announced her mid-term retirement. Chasensky, then employed as Chief Deputy Register of Deeds, sought the interim appointment. Chasensky was interviewed by Esser, Walker’s appointments official, who informed Chasensky that he would forward her application to Governor Walker for appointment to the position. Esser subsequently learned that Chasensky was involved in a personal bankruptcy proceeding. Esser informed Chasensky that Walker would not appoint her as interim Register. Chasensky claims that Werwie, Walker’s official spokesperson, publically broadcast that she was not appointed because she was in a bankruptcy proceeding and that “[d]erogatory comments and innuendo regarding [her] bankruptcy, personal financial matters and character which impugned and harmed [her] professional and personal reputation were intentionally publically disclosed by Governor Walker and Mr. Werwie” when Governor Walker spoke on the FOX television network. Werwie publically announced that Walker had planned to appoint her until he learned of her bankruptcy. In her suit alleging violation of privacy rights, employment rights, and of 11 U.S.C. 525(a) (bankruptcy discrimination), the district court held that the defendants waived qualified immunity by failing to raise it before their motion to dismiss the amended complaint. The Seventh Circuit reversed; the defendants are entitled to qualified immunity from Chasensky’s privacy and equal protection claims. View "Chasensky v. Walker" on Justia Law

After the end of World War II, holders of public and private bonds issued in Germany demanded repayment. Germany had suspended payment on many bonds during the 1930s, but some were not due until the 1950s or 1960s. A Debt Agreement involving 21 creditor nations specified that Germany would pay valid debts outstanding in 1945. Germany enacted a Validation Law requiring holders to submit foreign debt instruments for determination of whether the claims were genuine. In 1953 the U.S. and West Germany agreed by treaty (applicable to Germany as reconstituted in 1990) that the debts would be paid only if found to be legitimate. Holders had five years to submit documents for validation by a New York panel. Later claims went to an Examining Agency in Germany. Decisions were subject to review in Germany. Plaintiffs sued in 2008 under international diversity jurisdiction, 28 U.S.C. 1332(a)(2), to recover on bearer bonds issued or guaranteed by Germany before the war. One holder never submitted to validation. The other submitted bonds to a panel in Germany, which found them ineligible, and did not seek review. The district court dismissed, holding that the Treaty is binding and that the suit was barred by a 10-year (Illinois) statute of limitations. The Seventh Circuit affirmed, rejecting an argument that the Treaty amounted to a taking without just compensation. The Tucker Act, 28 U.S.C. 1491(a)(1), authorizes whatever compensation the Constitution requires and the Supreme Court has stated that there is no constitutional obstacle to an international property settlement. The Treaty is not self-executing; the Alien Tort Statute, 28 U.S.C. 1350, cannot be used to contest the acts of foreign nations within their own borders. How Germany administers the validation process is for German courts to consider. The case was also barred by the limitations period. View "Korber v. Bundesrepublik Deutscheland" on Justia Law

The Seventh Circuit considered appeals by Illinois and Illinois counties and a Wisconsin county of district court holdings that those governmental bodies cannot levy a tax on sales of real property by Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation). Although both are now private corporations, the relevant statutes provide that they are “exempt from all taxation now or hereafter imposed by any State … or local taxing authority, except that any real property of the corporation shall be subject to State … or local taxation to the same extent as other real property,” 12 U.S.C. 1723a(c)(2), 12 U.S.C. 1452(e). The Seventh Circuit affirmed. A transfer tax is not a tax on realty. After 2008 Fannie Mae owned an immense inventory of defaulted and overvalued subprime mortgages and is under conservatorship by the Federal Housing Finance Agency. The states essentially requested the court to “pierce the veil,” in recognition of the fact that if the tax is paid, it will be paid from assets or income of Fannie Mae or Freddie Mac, but their conservator is the United States, and the assets and income are those of entities charged with a federal duty. View "Milwaukee Cnty v. Fed. Nat'l Mortg. Ass'n" on Justia Law

In 2008 the EEOC received a charge of discrimination from a woman who claimed Mach Mining had denied her applications for coal mining jobs because of her gender. After investigation, the agency determined there was reasonable cause to believe Mach had discriminated against a class of female job applicants at its Johnston City site and notified the company of its intention to begin informal conciliation. The parties did not reach agreement. In 2011, the EEOC told Mach that further efforts would be futile and filed a complaint two weeks later. Mach asserted failure to conciliate in good faith. The district court certified for interlocutory appeal the question whether an alleged failure to conciliate is subject to judicial review in the form of an implied affirmative defense to an EEOC suit. The Seventh Circuit disagreed with other circuits and responded that it is not. Title VII of the Civil Rights Act directs the agency to try to negotiate an end to an employer’s unlawful employment practices before seeking a judicial remedy, 42 U.S.C. 2000e-5(b), but finding the requirement to create an implied failure-to-conciliate defense would add an unwarranted mechanism by which employers could avoid liability for unlawful discrimination. Such a defense would be contrary to the statutory prohibition on using what was said and done during conciliation “as evidence in a subsequent proceeding.” View "Equal Emp't Opportunity Comm'n v. Mach Mining, LLC" on Justia Law

A Caterpillar worker developed epicondylitis, an inflammation of tendons near the elbow. A Department of Labor regulation requires employers to report injuries if “the work environment either caused or contributed to the resulting condition.” The employee worked in a packing department, placing items in boxes for shipping. Caterpillar convened a panel, with three board‐certified specialists in musculoskeletal disorders. Relying on guides issued by the National Institute for Occupational Safety and Health and the American Medical Association that repetitive motion plus force (weight or impact) can cause epicondylitis, and that pronation plus force also can cause the condition, but that repetitive motion alone does not, the panel found that work could not have caused the employee’s epicondylitis. Although Caterpillar presented several witnesses, the ALJ accepted the view of the DOL’s single witness, which ignored epidemiological studies and Caterpillar’s experience. The Seventh Circuit remanded. On remand, the ALJ again held that Caterpillar must pay a penalty for failing to report an injury as work‐related and OSHA declined to review the decision. Caterpillar has filed another petition for judicial review. The Seventh Circuit vacated. Prevailing views, and the data behind them, must be considered; they cannot be ignored on the opinion of any witness. View "Caterpillar Logistics, Inc. v. Soli" on Justia Law

Reynolds, a 62-year-old white male with more than 30 years’ experience with the U.S. General Services Administration, was passed over for a promotion from Building Management Specialist, to Building Manager. Bell, a 32-year-old black employee, got the job over Reynolds and three other candidates, all older than 40. Reynolds sued, alleging age discrimination in violation of the “federal sector” provision of the Age Discrimination in Employment Act, 29 U.S.C. 633a; he also claimed race, sex, and retaliation discrimination under Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-16. The district court entered summary judgment on the retaliation claims for failure to exhaust administrative remedies; Reynolds dropped his claims of racial and sex discrimination. After trial, the district court rejected the age-discrimination claim for lack of evidentiary support and refused to allow Reynolds to amend his complaint. The Seventh Circuit affirmed, agreeing that the district court’s findings defeated the age-discrimination claim regardless of whether a “but-for “requirement or a more lenient “mixed motives” standard applied.View "Reynolds v. Johnson" on Justia Law

Crundwell, Comptroller of Dixon, Illinois since 1983, pleaded guilty to embezzling about $53 million from the city between 1990 and 2012. She used the money to support more than 400 quarter horses and a lavish lifestyle, which she had previously claimed to be the fruit of the horses’ success. During the last six years of her scheme, the embezzlement averaged 28% of the city’s budget. In exchange for her plea, the prosecutor limited the charge to a single count of wire fraud, 18 U.S.C. 1343. The crime’s impact on the population of Dixon played a major role in the district court’s decision to sentence her to 235 months’ imprisonment, substantially above the Guideline range of 151 to 188 months. The Seventh Circuit affirmed. The district court pronounced a substantively reasonable sentence after giving Crundwell full opportunity to present evidence and arguments. The judge considered deterrence and addressed every one of her arguments. That he thought less of her cooperation than Crundwell herself did, and gave a lower weight to her age than she requested does not undermine the sentence’s validity. View "United States v. Crundwell" on Justia Law

Philpot, former Clerk of Lake County, Indiana, took $25,000 in incentive payments from a federally funded child‐support fund (42 U.S.C. 658a(a)) without the required approval of the county fiscal body. The Indiana Department of Child Services disburses those federal funds to the counties, Ind. Code 31‐25‐4‐23(a), which have a relatively free hand in directing the money, although “amounts received as incentive payments may not, without the approval of the county fiscal body, be used to increase or supplement the salary of an elected official.” Philpot had used the funds to provide himself and staff members with bonuses. Convicted of mail fraud, 18 U.S.C. 1341, and theft from a federally funded program 18 U.S. 666(a)1A, he was sentenced to 18 months in prison. The Seventh Circuit affirmed, despite claims concerning whether Philpot “knowingly” violated the statute and the fact that Philpot had voluntarily returned the funds. View "United States v. Philpot" on Justia Law

The pro se plaintiff sued her former employer, a private recipient of federal funding, alleging violation of the Rehabilitation Act of 1973, 29 U.S.C. 794, by requiring her to complete certain duties as a dental assistant that she was incapable of performing due to an unspecified disability that limits her strength and mobility, and then firing her because of her disability. The district judge dismissed for failure to exhaust administrative remedies. The Seventh Circuit reversed. A plaintiff under the Rehabilitation Act against a recipient of federal money is not required to exhaust the administrative remedies that the Act provides; an employee or former employee of a private company, such as the plaintiff, is not required Act to even file an administrative charge or complaint. View "Williams v. Milwaukee Health Servs., Inc." on Justia Law