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

After prevailing in a suit for social security disability benefits, plaintiff asked for attorney's fees of $25,200 under the Equal Access to Justice Act, 28 U.S.C. 2412(d)(2)(A). The district judge awarded $6,625, cutting the hours from 112 or 116 to 53, adopting objections made by Social Security Administration lawyer, and the hourly rate from $225 to the rate specified in the statute $ 125. The Seventh Circuit reversed and remanded, noting that the Social Security Act provides for awarding a "reasonable fee" for representation in the administrative proceeding and in a successful appeal, 42 U.S.C. 406(a)(1), but the EJA does not provide for "market rate" and creates a presumptive ceiling of $125. The district court did not consider the special circumstances and factors that may be considered under the Act.

Two computer programs hold the registered trademark "CONDOR." After the district court entered summary judgment, the Seventh Circuit concluded that a trial was required on a confusion-in-trade allegation, but held that the state university was immune from federal jurisdiction. On rehearing, the Seventh Circuit reversed itself, citing the doctrine of waiver by litigation conduct and again rejected summary judgment.The state is not entitled to assert sovereign immunity over the counterclaims.

Two computer programs hold the registered trademark "CONDOR." After the district court entered summary judgment, the Seventh Circuit concluded that a trial was required on a confusion-in-trade allegation, but held that the state university was immune from federal jurisdiction. On rehearing, the Seventh Circuit reversed itself, citing the doctrine of waiver by litigation conduct and again rejected summary judgment.The state is not entitled to assert sovereign immunity over the counterclaims.

The applicant sought disability insurance benefits and supplemental security income, claiming that she is disabled by bipolar disorder and numerous physical impairments. The Social Security Administration denied the application; a magistrate judge affirmed. The Seventh Circuit vacated and remanded. The ALJ erred in discounting the testimony of the treating physician and in finding that the applicant exaggerated her difficulties.

Plaintiff suffered a stroke and claimed that the VA hospital failed to properly diagnose and take appropriate measures. He and his wife sued under the Federal Tort Claims Act, 28 U.S.C. 1346(b), 2671-80, and also sued their attorney for malpractice. The district court ruled in favor of the government and the attorney. The Sixth Circuit dismissed an appeal as forfeited because plaintiff had supplied only a transcript of the testimony of the government's expert witness Fed. R. App. P. 10(b)(3) and had failed to supplement. The district court properly refused to sanction plaintiff's attorney for ex parte communication with treating physicians. The court also properly credited the government expert and held that the hospital's actions were not the proximate cause of the stroke.

The Railroad Revitalization and Regulatory Reform Act prevents states and their subdivisions from imposing discriminatory taxes against railroads. 49 U.S.C. 11501. In 2008, the drainage district, a subdivision of Illinois, changed its method for calculating assessments. All other owners are assessed on a per-acre formula, but railroad, pipeline, and utility land were to be assessed on the basis of "benefit," apparently based on the difference in value between land within the district and land outside the levees; annual crop rentals being paid; and agricultural production of lands within the district. Two rail carriers brought suit under a section of the Act, which prevents imposition of "another tax that discriminates against a rail carrier." The district court held that the assessment was prohibited by the Act, but concluded that it was powerless to enjoin the tax. The Seventh Circuit reversed, holding that the court has authority to enjoin the tax, but, under principles of comity, should eliminate only the discriminatory aspects, not the entire scheme. The assessment is a tax that, raises general revenues; its ultimate use is for the whole district. It imposes a proportionately heavier tax on railroading than other activities.

The qui tam suit, brought by a former contractor for one of the defendants, alleges that defendants violated the False Claims Act, 31 U.S.C. 3729(a)(1) in connection with a sale of F-16 fighter jets to Greece, which paid for the jets with money borrowed from the United States. The district court granted summary judgment in favor of defendants. The Seventh Circuit affirmed. An FCA claim requires proof of an objective falsehood. There was no evidence to support allegations: that defendant lied about use of funds loaned by the U.S. to capitalize a Greek business development company; that defendant failed to disclose promptly its decision to delete a price adjustment clause from the draft contract; that defendant made misrepresentations relating to provisions concerning spare part purchases and an ill-fated "depot program;" and concerning a number of misrepresentations in two amendments to the contract.

Plaintiff, Green County's chief juvenile-intake worker from 1997-2008, alleged that Green County (county) deprived her of a property interest in her job without due process, in violation of 42 U.S.C. 1983, where the county Board of Supervisors removed the juvenile-intake position from the auspices of the circuit court and created a new juvenile-intake position within the Human Services Department. At issue was whether the district court properly granted summary judgment in favor of the county. The court concluded that the evidence indicated that the county reorganized to save costs and, had the county reorganized merely to terminate plaintiff's employment, its decision to rehire her for the new position would be inexplicable. The court also concluded that because nothing in the record suggested that saving money was a pretext for something else, the court affirmed the district court's holding that the county eliminated plaintiff's court-attached juvenile-intake position in conjunction with a legitimate governmental reorganization. Therefore, plaintiff was not entitled to due process and the court affirmed the judgment of the district court.

The former Governor of Illinois, in federal prison following convictions for racketeering, mail fraud, tax evasion, and lying to the FBI, filed a collateral attack (28 U.S.C. 2255) after the Supreme Court held in Skilling v. United States, 130 S. Ct. 2896 (2010), that the honest-services form of the mail-fraud offense (18 U.S.C. 1346) covers only bribery and kickback schemes. The district court dismissed and the Seventh Circuit affirmed, stating that any error was harmless because a reasonable jury could find that Ryan sold his offices to the high bidders.

The deputy liquor commissioner charged with exerting his position to demand bribes, property, and, in at least one instance, sexual favors from liquor license holders. He entered a plea of guilty to attempting to commit extortion under color of official right (18 U.S.C. 1951) and making false statements to the FBI and IRS (18 U.S.C. 1001 (A)(2)) and was sentenced to 60 monthsâ imprisonment based on a four-level upward adjustment under U.S.S.G. 2C1.1(b)(3) for conduct by a public official in a high-level decision-making or sensitive position. The district judge assigned a total offense level of 22 and with no criminal history points, that placed defendant in a guideline range of 41 to 51 monthsâ imprisonment. The Seventh Circuit affirmed, upholding a finding that defendant was in a "sensitive position;" he exercised an inordinate amount of discretion over the licensing of liquor establishments and the renewal of those licenses.