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

Natale,a vascular surgeon, was compensated by Medicare for repairing a patient’s aortic aneurysm. Another doctor reviewed the post-surgical CT scan, which did not match the procedure Natale described in his operative reports. After an investigation, Natale was indicted for health care fraud related to his Medicare billing, mail fraud, and false statements related to health care. A jury acquitted Natale on the fraud counts but convicted him of making false statements, 18 U.S.C. 1035. The trial court used jury instructions that seemingly permitted conviction for false statements completely unrelated to Medicare reimbursement. The Seventh Circuit affirmed, finding the error harmless, but clarified that under the statute, even conviction for false statements made in connection with items or services still must relate to a “matter involving a health care benefit program.” View "United States v. Natale" on Justia Law

Basden was hired as a PTI dispatcher in 2007, subject to an attendance policy that did not differentiate between absences for medical reasons and other absences. Basden had two absentee incidents in 2007. In January 2008, Basden became dizzy and fell in her home. A CT scan suggested that she might have multiple sclerosis. She was considered to have five absence incidents following her fall, prompting a verbal warning. Absences in April were treated as a sixth incident, resulting in a written warning. She began to feel numbness in her hands she asked to be relieved of assignments that required additional typing. The company moved her back to dispatcher, but eventually returned her to the typing duties. At her request, Basden was moved to a part-time position. Basden was absent again in May and was suspended for three days. Her request for leave was denied and she did not return to work. Her employment was terminated. In her suit under the Americans With Disabilities Act and the Family and Medical Leave Act, the district court found that Basden had failed to establish a prima facie right to the protection of either statute and granted PTI summary judgment. The Seventh Circuit affirmed. View "Basden v. Prof'l Transp., Inc." on Justia Law

Under the Federal Mine Safety & Health Act of 1977, the Secretary of Labor protects the health and safety of miners, acting through the Federal Mine Safety and Health Administration (MSHA). Regulations under the Act require mine operators to report all mine-related injuries and illnesses suffered by employees. In 2010, MSHA acted on a new and broader interpretation and informed 39 mine operators that they would be required to permit MSHA inspectors to review employee medical and personnel records during inspections. Two operators refused to provide the records. MSHA issued citations and imposed penalties. An ALJ and the Review Commission found that the demands and enforcement were lawful under 30 U.S.C. 813(h) and 30 C.F.R. 50.41. Mine employees intervened to raise personal privacy challenges. The Seventh Circuit denied a petition for review, rejecting arguments that MSHA does not have authority for the requirement; that 30 C.F.R. 50.41 is not a reasonable interpretation of the Act and was not properly promulgated; that the requirement infringes operators’ Fourth Amendment right not to be searched without a warrant; that the demands violate the miners’ Fourth Amendment privacy rights in their medical records; and that penalties imposed for noncompliance violate the operators’ Fifth Amendment due process rights. View "Bickett v. Fed. Mine Safety & Review Comm'n" on Justia Law

Cloe started working for the City of Indianapolis in 2007 as an Unsafe Buildings/Nuisance Abatement Project Manager. In 2008, she was diagnosed with multiple sclerosis, a chronic, incurable neurological disorder that rendered her disabled and significantly impaired her day-to-day life. In 2009, the city terminated her, ostensibly for poor performance. Cloe sued under the Americans with Disabilities Act, 42 U.S.C. 12101, alleging that the city discriminated against her because of her disability; failed to reasonably accommodate her disability; and retaliated against her for requesting accommodations. The district court granted summary judgment in favor of the city. The Seventh Circuit affirmed with respect to the reasonable accommodation claims, but reversed on the discrimination and retaliation claims, noting “suspicious timing, ambiguous statements oral or written, and other bits and pieces from which an inference of retaliatory intent might be drawn.” View "Cloe v. City of Indianapolis" on Justia Law

In 2008, Pepper, then 54 years old, applied for Supplemental Security Disability Insurance Benefits, alleging that she became unable to work in November 1998 as a result of numerous physical and mental impairments. The alleged onset date was later amended to October 2002, when Pepper last worked. Extensive medical records show that Pepper sought treatment for numerous health concerns over the years. At various times, Pepper has been assessed as having ongoing neck pain and limited range of motion in her neck, degenerative disc disease in her spine, left knee problems, migraine headaches, problems with her vision, diabetes, asthma, mitral valve prolapse, sciatica, dyslipidemia, hyperglycemia, hypertension, allergic rhinitis, obesity, plantar fasciitis in her left heel, caregiver stress, and depression. An ALJ denied the claim and the district court affirmed. The Seventh Circuit affirmed, rejecting arguments that the ALJ erred when addressing Pepper’s residual function capacity and that the ALJ’s credibility determination was inadequately supported and patently wrong. Substantial evidence supported denial of benefits. View "Pepper v. Astrue" on Justia Law

In 2003, Congress created Health Savings Accounts to help people with high-deductible health plans save for health care costs by providing tax-preferred treatment for money saved for future medical expenses, 26 U.S.C. 223. Banas and others started a company that created a suite of software products that allowed savers to manage their Health Savings Accounts online. By 2009, the company had more than 100 employees. Venture capital and private equity firms thought the company was a solid investment and bought stock, but the company had provided counterfeit financial documents and had even “faked” customer calls. The owners started raiding clients’ Health Savings Accounts. By the time Banas and Blackburn were stopped, they had misappropriated more than $18,000,000 in client funds. Banas admitted his guilt, accepted responsibility for his actions, and has worked to secure some degree of restitution. The district judge sentenced Banas to 160 months of imprisonment for wire fraud, 18 U.S.C. 1343, well below the Guidelines range. The Seventh Circuit affirmed, particularly noting the impact of the crime on victims. View "Unted States v. Banas" on Justia Law

Hudson filed suit in an Illinois district court under the Federal Tort Claims Act, charging that medical personnel at a federal prison in Kansas, where he had been incarcerated, had negligently failed to diagnose a blood clot in his leg and that, as a result, he experienced serious health problems. The government moved to transfer the case to the federal district court in Kansas pursuant to 28 U.S.C. 1404(a), on the ground that the principal witnesses are in Kansas and that the Kansas court has a lighter caseload. The district court granted the motion. Hudson has petitioned the Seventh Circuit, arguing that the case should remain in Illinois because he lives here, as do his current treating physicians, who will testify about his current health problems and causation. His Illinois relatives will also testify to his continuing health problems. The Seventh Circuit dismissed, noting that about two-thirds of the witnesses are closer to Kansas, that the medical records are in Kansas, and the ease of electronic communications. View "Hudson v. Baker" on Justia Law

After a 2008 Indiana flood, the President authorized the Federal Emergency Management Agency to provide disaster relief under the Stafford Act, 42 U.S.C. 5121–5207. Columbus Regional Hospital was awarded approximately $70 million, but suit under the Tucker Act, 28 U.S.C. 1346, 1349, claiming that it was entitled to about $20 million more. The district judge granted FEMA summary judgment. In response to the Seventh Circuit’s questioning of subject-matter jurisdiction, the Hospital argued that the Court of Federal Claims was the right forum and requested transfer. FEMA argued that the district court had jurisdiction. The Seventh Circuit agreed with FEMA, holding that the suit was not for “money damages.” The Hospital wants money, but not as compensation for FEMA’s failure to perform some other obligation, but as “the very thing to which [it] was entitled” under the disaster-relief program. The court noted that only the district court can serve as a forum for all of the Hospital’s legal theories, then rejected all of those theories. View "Columbus Reg'l Hosp. v. Fed. Emergency Mgmt. Agency" on Justia Law

The Equal Employment Opportunity Commission filed this employment discrimination case on behalf of Shepherd, a former sales clerk at AutoZone, alleging that AutoZone had violated the Americans with Disabilities Act. Shepherd had a back injury that was aggravated by mopping floors, and he claimed that AutoZone required him to mop floors despite his requests for relief. The EEOC alleged that AutoZone had failed to accommodate Shepherd’s disability. The magistrate judge initially granted AutoZone summary judgment on the accommodation claim. The Seventh Circuit reversed. On remand, a jury returned a verdict in Shepherd’s favor. The judge then approved $100,000 in compensatory damages, $200,000 in punitive damages, $115,000 in back pay, an injunction on AutoZone’s anti-discrimination practices, and the EEOC’s motion to vacate a prior award of costs to AutoZone from the first trial. The Seventh Circuit affirmed, but remanded the injunction for imposition of a reasonable time limit. The award of compensatory damages was not excessive when compared to Shepherd’s pain and suffering; the jury heard sufficient evidence of AutoZone’s reckless indifference to Shepherd’s federal employment rights and because the punitive damages award was not grossly excessive under the Due Process Clause. View "Equal Emp't Opportunity Comm'n v. Autozone, Inc." on Justia Law

James has been an employee of Hyatt Regency Chicago since 1985. In 2007, James took a leave of absence due to an eye injury that occurred outside of work. James filed suit in 2009 claiming that Hyatt violated his rights under the Family Medical Leave Act, 29 U.S.C. 2601 and the Americans with Disabilities Act, 42 U.S.C.12101. During discovery, the district court denied James’ motions to compel and awarded Hyatt a portion of attorney’s fees it expended responding to motions. The court subsequently granted Hyatt summary judgment. The Seventh Circuit affirmed. In light of the limitations imposed by his doctors, Hyatt did not violate the FMLA or the ADA in refusing to allow James to return to work for “light duty” before doctors released him to perform functions essential to his position. James used discovery as a weapon, rather than as a tool to gather evidence. View "James v. Hyatt Regency Chicago" on Justia Law