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

In this case, the defendant, Patrick Thompson, was convicted of making false statements about his loans to financial institutions. Thompson took out three loans from a bank totaling $219,000. After the bank failed, its receiver, the Federal Deposit Insurance Corporation (FDIC), and a loan servicer, Planet Home, attempted to recoup the money owed by Thompson. However, Thompson disputed the loan balance, insisting that he had only borrowed $110,000. He was subsequently charged with and convicted of making false statements to influence the FDIC and a mortgage lending business, in violation of 18 U.S.C. § 1014.On appeal, Thompson argued that his statements were not “false” under § 1014 because they were literally true, and that the jury lacked sufficient evidence to convict him. He also claimed that the government constructively amended the indictment and that the district court lacked the authority to order him to pay restitution to the FDIC.The U.S. Court of Appeals for the Seventh Circuit rejected Thompson's arguments and affirmed the lower court's judgment. The court held that under its precedent, § 1014 criminalizes misleading representations, and Thompson's statements were misleading. The court also found that there was sufficient evidence to support Thompson's conviction and that the indictment was not constructively amended. Finally, the court held that the district court properly awarded restitution to the FDIC, as the FDIC had suffered a financial loss as a direct and proximate result of Thompson's false statements. View "USA v. Thompson" on Justia Law

Erik Bertaud, who suffered serious injuries when a tree branch fell on his head, applied for disability insurance benefits and supplemental security income from the Social Security Administration. His application was denied, and he appealed. The Appeals Council remanded the case twice, but after the third denial, Bertaud's request for review was denied, making the ALJ's decision the final decision of the Commissioner. Bertaud then sought judicial review, arguing that the ALJ had failed to develop the record of his disability, pointing to over 800 pages of new medical evidence. The district court denied Bertaud's motion for summary judgment and affirmed the Commissioner's decision, and Bertaud appealed to the United States Court of Appeals for the Seventh Circuit.The court held that although an ALJ has a duty to develop a full and fair record, this duty is limited when the claimant is represented by an attorney. The claimant's duty to submit evidence is ongoing and covers any additional related evidence they become aware of. The court noted that Bertaud was represented and his attorney had confirmed that the evidence was complete and supplemented the record when necessary. Therefore, the court concluded that the ALJ did not fail to develop Bertaud's medical record. The court affirmed the district court's decision denying Bertaud's motion for summary judgment and affirming the decision of the Commissioner. View "Bertaud v. O'Malley" on Justia Law

In this case, the United States Court of Appeals for the Seventh Circuit affirmed a district court's decision to grant summary judgment in favor of the defendants on all federal claims made by the plaintiff. The plaintiff, Lamont Moore, was an inmate who filed a suit against a prison guard and the prison where he was subsequently sent to, alleging failure to protect him from another inmate's attack, violation of his rights under the Americans with Disabilities Act (ADA), and a conspiracy among the investigating officers to falsify the official report of the incident.The court found that Moore was unable to demonstrate that the prison guard was aware of and disregarded an excessive risk to his safety, a requirement for a successful claim of failure to protect. Moore's testimony indicated that his complaints to the guard about the other inmate were about annoyance and horseplay, not a fear for his safety.Regarding his ADA claim, the court found that Moore failed to demonstrate that any disability-based discrimination was intentional. Moore complained about the distance to the healthcare unit but never alerted anyone at any prison that he required an accommodation in order to access services. He was able to access every service in prison, albeit more slowly due to his loss of vision in one eye. There was no evidence that any defendant knew that he could not access any services or made a deliberate choice to deny him access to services.After resolving all of the federal claims, the court declined to exercise supplemental jurisdiction over the state law claims. View "Moore v. Western Illinois Correctional Center" on Justia Law

The case involves the plaintiff-appellant, Chris Martin, who suffered a back injury in June 2016 and stopped working. He sought medical attention in February 2018 and was diagnosed with a spine disorder in May 2018. Martin applied for Social Security disability benefits and was awarded supplemental security income after an administrative law judge (ALJ) found him disabled under the Social Security Act's stringent definition. However, he was denied disability insurance benefits because his insured status for those benefits had expired on December 31, 2017, a few weeks before he was found to have been disabled. Martin appealed, arguing that the ALJ should have consulted an additional medical expert to determine whether he was disabled earlier, before his insured status lapsed. The United States Court of Appeals for the Seventh Circuit concluded that the ALJ did not abuse her discretion in deciding not to consult another medical expert. The court explained that Social Security Ruling 18–01p allows an ALJ to decide whether to consult an additional medical expert to answer that question. Therefore, the court affirmed the denial of disability insurance benefits. View "Martin v. Kijakazi" on Justia Law

In 2023, the United States Court of Appeals for the Seventh Circuit upheld the disorderly conduct convictions of Jamison Krahenbuhl, an Air Force veteran. Krahenbuhl had been convicted following an incident at the Milo C. Huempfner Veterans Affairs Outpatient Clinic in Green Bay, Wisconsin. During a respiratory therapy appointment, Krahenbuhl became agitated and engaged in abusive language and disruptive behavior that led to the clinic staff summoning VA police. He was subsequently charged with two counts of disorderly conduct under 38 C.F.R. § 1.218(a)(5), (b)(11) and was found guilty on both counts.On appeal, Krahenbuhl argued that his convictions violated his First Amendment rights, and that the government failed to prove all the elements of the crimes. The appellate court, however, disagreed. It determined that the clinic was a nonpublic forum, where greater regulation of speech is permissible. The court found that the regulation under which Krahenbuhl was convicted was viewpoint neutral and reasonable, given the clinic's primary aim of providing medical care to veterans. The court also rejected Krahenbuhl's argument that the government failed to prove that the clinic was under the charge and control of the VA and not under the charge and control of the General Services Administration, finding that this was an invited error. Consequently, Krahenbuhl's convictions were affirmed. View "USA v. Krahenbuhl" on Justia Law

Fitschen was diagnosed with advanced cancer and stopped working. In 2000 the Social Security Administration (SSA) found Fitschen eligible for disability benefits. Fitschen returned to work in 2001 but continued to receive benefits for a nine-month “trial work period,” 42 U.S.C. 422(c)(4). After that period, he could continue to work and receive benefits for another 36-month period if his wages did not exceed the level at which a person is deemed to be capable of engaging in substantial work activity. The SSA's 2003 review determined that Fitschen had engaged in substantial work and should not have received benefits for much of 2002-2003. The SSA notified him of his overpayment liability but his benefits continued because he had again ceased substantial work. Fitschen again returned to work in 2004 but did not report the change. The SSA initiated another review in 2007 and suspended his benefits. The SSA may waive recovery of overpayments if the recipient was without fault.In 2019 the Commissioner of Social Security found Fitschen liable for an overpayment of $50,289.70 and declined to waive recovery. The district court and Seventh Circuit affirmed, rejecting an argument that the SSA was procedurally barred from recovering the overpayment because it failed to comply with its “reopening” regulation; the overpayment assessment did not “reopen” Fitschen’s initial eligibility determination or any later determination concerning the continuation or recomputation of his benefits. Substantial evidence supports the finding that Fitschen was at fault. View "Fitschen v. Kijakazi" on Justia Law

The Shelbyville Post Office is the closest one to Ellison’s home and the largest in that area of Indiana. Ellison keeps a P.O. box at Shelbyville or her non-profit organization, which educates the public about accessibility for people with disabilities. Ellison cannot enter the Shelbyville Post Office because it has only one customer entrance: at the top of its front steps. Ellison can ask for help from the loading dock or from a van-accessible parking space, use the Postal Service’s website, or visit wheelchair-accessible locations in surrounding towns. After multiple complaints about the inconvenience of those options, the City of Shelbyville offered to pay for a ramp at the front entrance. The Postal Service declined, citing a policy of refusing donations for exterior physical improvements.In a suit under the Rehabilitation Act, 29 U.S.C. 794(a), the district court entered summary judgment, concluding that Ellison could meaningfully access the program through its website and three wheelchair-accessible locations within a 15-minute drive of her home. The Seventh Circuit vacated and remanded for consideration of whether Ellison’s proposed accommodation (a ramp) is reasonable. The Shelbyville Post Office does not provide a significant level of access, and the alternative locations are further away and open for fewer hours than Shelbyville. View "Ellison v. United States Postal Service" on Justia Law

Vidal-Martinez, a non-citizen, was arrested three times for operating a vehicle while intoxicated. DHS detained him and initiated deportation. Vidal-Martinez filed a habeas petition, arguing that his detention was unconstitutional because it impeded his ability to defend himself against the drunk-driving charges. ICE transferred Vidal-Martinez to county custody “until the completion of [the] criminal matter, then released to his ICE detainer.” Vidal-Martinez was convicted of DUI and sentenced to 236 days in jail. He was then returned to ICE custody. Due to a lack of evidence that he posed a flight risk or a danger to the community, the district court granted Vidal-Martinez’s habeas petition and ordered his release.Vidal-Martinez filed a FOIA request, 5 U.S.C. 552, seeking disclosure from ICE of documents related to his custody transfer. ICE produced 561 pages of responsive documents, some of which contained redactions. Vidal-Martinez challenged ICE’s redactions. ICE submitted a Vaughn index and a declaration from its FOIA officer explaining the legal justification for each redaction, citing attorney-client, work product, deliberative process privileges, and identifying information of government employees. Vidal-Martinez responded that ICE committed criminal conduct by transferring him to Indiana, so the crime-fraud exception to attorney-client privilege applied. The district court granted ICE summary judgment. The Seventh Circuit affirmed, finding no factual foundation in the record for criminal conduct or misconduct by ICE. The district court had an adequate factual basis to evaluate ICE’s withholdings. View "Vidal-Martinez v. United States Department Of Homeland Security" on Justia Law

The Illinois Cable and Video Competition Law requires operators to obtain statewide authorization and become a “holder” and requires anyone who wants to provide cable or video service to obtain permission from state or local authorities and pay a fee, as a condition of using public rights of way. In recent years traditional cable services have been supplemented or replaced by streaming services that deliver their content through the Internet. East St. Louis, contending that all streaming depends on cables buried under streets or strung over them, sought to compel each streaming service to pay a fee. None of the defendants were “holders.” A magistrate dismissed the complaint, concluding that only the Attorney General of Illinois is authorized to sue an entity that needs but does not possess, “holder” status.The Seventh Circuit affirmed, first concluding that it had jurisdiction under 28 U.S.C. 1332(a). Normally the citizenship of any entity other than a corporation depends on the citizenship of its partners and members but, under section 1332(d), part of the Class Action Fairness Act, an unincorporated entity is treated like a corporation. The court then held that the statutory system applies to any “cable service or video service” and the defendants do not offer either. If “phone calls over landline cables, electricity over wires, and gas routed through pipes are not trespasses on the City’s land— and they are not—neither are the electrons that carry movies and other videos.” View "City of East St. Louis v. Netflix, Inc." on Justia Law

The 2019 Illinois Cannabis Regulation Act legalized the recreational use of cannabis and established a licensing system for cannabis dispensaries. Applications for the first licenses closed in 2020; by mid-2021 the Department had allocated 185 licenses using a lottery procedure. The issuance of licenses was stayed during state-court litigation. For a second group of licenses in 2022, the Department established a point system that heavily favored longtime Illinois residents. The plaintiffs want to invest in Illinois cannabis dispensaries but neither lived in Illinois.In March 2022, they filed suit raising a dormant Commerce Clause challenge to the residency provisions and sought a preliminary injunction halting the completion of the allocated 2021 licenses and enjoining the ongoing process for 2022 licenses. The district court denied the motion. The Seventh Circuit affirmed. The denial of a preliminary injunction allowed the Department to issue the 2021 licenses; it did so, largely mooting the appeal. To the extent that unwinding the licenses remains possible, the judge weighed the equities and held that the plaintiffs waited too long to challenge the residency provisions; an injunction would severely harm reliance interests and disrupt the orderly completion of the first-round licensing process. At the time of the ruling, the Department had not finalized the criteria for the second group but a challenge was unripe because the Department might materially modify the criteria. The Department subsequently finalized the 2022 rules and deleted provisions favoring Illinois residents. View "Finch v. Treto" on Justia Law