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

Articles Posted in Non-Profit Corporations
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The case centers on a lawsuit filed by the Attorney General of Florida against the American Academy of Pediatrics (AAP) and other organizations, alleging that their advocacy for gender-affirming care violated several Florida statutes, including the state's Deceptive and Unfair Trade Practices Act, RICO Act, and antitrust law. The Florida enforcement action targeted AAP's policy statements and legal filings that supported access to gender-affirming care for transgender youth, with the Attorney General seeking significant monetary penalties and organizational restrictions. Although the lawsuit was publicized, there was a three-month delay before the organizations were served.Following the initiation of the Florida state court action, AAP, an Illinois nonprofit, filed a separate suit in the United States District Court for the Northern District of Illinois. AAP claimed that the Florida enforcement proceeding was brought in bad faith to retaliate against its First Amendment–protected advocacy. The district court granted a preliminary injunction to prevent the Florida Attorney General from pursuing the enforcement action against AAP and denied the Attorney General’s motion to dismiss, finding that personal jurisdiction and venue in Illinois were supported, and that the facts suggested the Florida action was brought in bad faith.On appeal, the United States Court of Appeals for the Seventh Circuit reviewed only whether to stay the district court’s injunction during the expedited appeal. The Seventh Circuit denied the motion for a stay, holding that the Attorney General did not make a strong showing of likely success on the merits or irreparable harm. The court found that the bad-faith exception to Younger abstention applied based on the district court’s factual findings, and that jurisdiction and venue in Illinois were appropriate given the circumstances. The injunction against the Florida enforcement action remains in effect pending appeal. View "American Academy of Pediatrics v Uthmeier" on Justia Law

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In 1956, Sister Ephrem of the Most Precious Blood, experienced apparitions of the Virgin Mary, during which, Sister Ephrem claimed, she was told: “I am Our Lady of America.” The Archbishop supported a program of devotions to Our Lady of America. In 1965 Pope Paul VI approved creation of a cloister, which lasted until at least 1977, when surviving members left and formed a new congregation, dedicated to devotions to Our Lady of America. Sister Ephrem directed it until her death in 2000. Sister Therese succeeded Sister Ephrem, who willed to Sister Theres all her property, mostly purchased with donated money. Sister Therese worked with McCarthy, a lawyer, and Langsenkamp until 2007, when Langsenkamp and McCarthy established the Langsenkamp Family Apostolate in the chapel in which the Virgin Mary allegedly appeared to Sister Ephrem. They sued Sister Therese, claiming theft of physical and intellectual property, fraud, and defamation. She counterclaimed, alleging theft of a statue and of the website and defamation by calling her a “fake nun.” The district court denied McCarthy’s motion that the court take notice of the Holy See’s rulings on Sister Therese’s status in the Church. The Seventh Circuit reversed, with “a reminder” that courts may not decide (or to allow juries to decide) religious questions. Determination of the ownership of the property is likely possible without resolving religious questions. View "McCarthy v. Fuller" on Justia Law

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Defendant, a non-profit company that blocks unwanted bulk e-mail, maintains a list of internet protocol addresses of spam distributors, which internet service providers use to block e-mails originating from those addresses. Plaintiff, a now-defunct internet marketing company, sued for tortious interference with contractual relations, tortious interference with prospective economic advantage, and defamation. The district court granted default judgment and awarded $11,715,000 in damages. When defendant changed strategy, the Seventh Circuit affirmed default judgment but vacated the award. On remand, the court awarded a total of $27,002. The Seventh Circuit vacated and remanded with instructions to enter judgment in the nominal amount of three dollars. The district court properly struck most of plaintiff's evidence, either as an appropriate discovery sanction or for proper procedural reasons. The evidence did not support an award of $27,000 in actual damages because plaintiff based its damage calculations on lost revenues rather than lost profits.