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

In 2005, a van containing six family members van slipped off the edge of an Illinois roadway. In the ensuing rollover crash, everyone was hurt; one passenger died. The crash occurred in a construction zone; a guardrail had been removed and not replaced. All lines had not been repainted on the repaved road, and pieces of asphalt lay on the shoulder. In a suit against the construction companies, the defense attorney told the plaintiffs that the two companies were operating as a joint venture with a $1 million liability insurance policy. The parties settled for $1 million. Plaintiffs signed a release of all claims that stated the plaintiffs agreed they were not relying on any statements by any parties’ attorneys. Four years later, the plaintiffs discovered that the companies carried separate liability policies.The district court ruled as a matter of law that the failure to identify the individual policies violated FRCP 26; that the undisclosed policies would have covered plaintiffs’ claims; and no joint venture agreement existed under Illinois law, so joint venture exclusions in the individual policies were inapplicable. A jury awarded damages of $8,169,512.84 for negligent misrepresentation. The Seventh Circuit reversed. The district court erred in allowing plaintiffs to rely on a Federal Rule of Civil Procedure for a duty of care; in deciding, before trial, that plaintiffs reasonably relied on the insurance disclosures; and in excluding the defense’s expert testimony on liability and settlement value. View "Turubchuk v. Southern Illinois Asphalt Co., Inc." on Justia Law

Fuqua, a mail handler, was forced to transfer to a new location when his Chicago center was downsized. He did not receive placement within 30 miles of his home. He refused to appear for work in Kansas City and was fired. Fuqua alleged his termination caused him emotional distress and made an administrative claim under the Federal Tort Claims Act (FTCA), 28 U.S.C. 2671. The Postal Service denied his claim, ruling that his exclusive remedy was through the Department of Labor (DOL) under the Federal Employees’ Compensation Act (FECA), 5 U.S.C. 8101. Fuqua filed suit for intentional and negligent infliction of emotional distress under the FTCA. During a stay in the proceedings, Fuqua corresponded with the DOL alleging he was injured because of defendants’ “extreme and outrageous conduct refusing to allow [him] to become assigned a station closer to [his] residence.” The DOL denied his FECA claim, explaining “[e]motional conditions that arise out of administrative and personnel matters, such as termination of employment are usually covered only if the weight of the evidence supports that the employer acted in an abusive manner or erred.” The district court dismissed Fuqua’s case.The Seventh Circuit affirmed. FECA applied to Fuqua’s claim, its administrative scheme ran its course, and his claim was denied for lack of evidence. The district court had no subject matter jurisdiction over his FTCA claims. Fuqua’s allegation falls within the “transfer, or reassignment” definition of “personnel action.” View "Fuqua v. United States Postal Service" on Justia Law

United owns a fleet of ambulances. In 2016, Stofko was driving his car when a United ambulance crashed into it; Stofko’s injuries were fatal. United was insured by Markel but the particular ambulance that crashed was not listed on the policy. Rau, the representative of Stofko’s estate, argued that it was nevertheless covered by the policy because before the crash United sent Markel’s agent, Insurance Service Center, an email requesting that the vehicle be added to the policy. The Center denied seeing the email and United acknowledged that it had not received a response as was customary. Markel argued that even if United had sent an email, it never endorsed the change, which the policy requires, and has no duty to indemnify United or the driver and no duty to defend in Rau’s suit. The Seventh Circuit affirmed summary judgment in favor of Markel. It is not necessary to resolve what happened to the email request to add the vehicle to the policy; under Indiana law courts may not rewrite an insurance contract. Neither Center nor Markel accepted or responded in any way to United’s request, so the ambulance was not covered. View "Markel Insurance Co. v. Rau" on Justia Law

In October 2012, Jeske, working at a cemetery, was carrying a heavy casket when she stumbled, injuring her back. Four years later, she applied for disability insurance benefits and supplemental security income based on disability; she claimed that back and spine problems, anxiety, depression, and suicidal tendencies made her unable to work. At a hearing, Jeske told the ALJ that she was 44 years old and lived with her husband and three sons. She changed the date on which she allegedly became disabled to more than a year after her injury because she had substantial gainful activity in 2013. She explained that she received treatment through a workers’ compensation program and her employer allowed her to work from home many days. When the doctor released her from treatment, Jeske’s boss no longer permitted her to work from home and she quit. Since then she has worked as a part-time security guard.The ALJ found Jeske not disabled under the Social Security Act, 42 U.S.C. 423(d), 1382c(3). The Seventh Circuit affirmed. The ALJ applied the proper standards and sufficiently explained the decision. Although the evidence showed Jeske suffered from limiting back pain, abundant evidence supports the ALJ’s determination that her condition lacked the requirements of a presumptively disabling impairment. The use of daily-living activities, to assess credibility and symptoms, was not improper. The evidence supported a conclusion that Jeske could perform light work with specific restrictions. View "Jeske v. Saul" on Justia Law

Bentley, the owner of Trucking, rear-ended the Kolchinskys’ car while driving a tractor-trailer through Illinois. The Kolchinskys were severely injured. Bentley's deliveries had been arranged by WD, which instructed Bentley to transport milk from Indiana to its destination. His route was up to him. Trucking’s agreement with WD provided that Bentley was an independent contractor. When Trucking accepted a job from WD, it agreed to call the broker daily with a status update, protect the freight, notify the broker of any damage, and inform the broker of delivery. Tucking was responsible for determining delivery times; WD reserved the right to withhold any resulting damages. The agreement required Trucking to pay its employees and provide and maintain its own tractor, fuel, insurance, licenses, and permits. The Kolchinskys sued Bentley; citing theories of respondeat superior and vicarious liability, the Kolchinskys also sued Trucking and WDThe judge granted the defendants judgment, concluding that the driver was an independent contractor so the Kolchinskys could not hold the companies responsible for his alleged negligence. The Seventh Circuit affirmed. Courts applying Illinois law consistently have declined to find an agency relationship when a company hires an independent driver to deliver a load to designated persons at designated hours but does not reserve the right to control the manner of delivery. WD had no part in the transaction leading to Bentley’s fateful trip View "Kolchinsky v. Western Dairy Transport, LLC" on Justia Law

Elston and his friends were playing basketball at a DuPage County park, heckling one another with salty language. Demeter, an off-duty Kane County sheriff’s deputy, watching his child’s soccer game, demanded that they stop using expletives. Demeter flashed his badge and gun. The boys refused to clean up their language. Demeter grabbed Elston by the neck, threw him to the ground, and climbed on top of him. Bystanders separated the two. Demeter called 911, identifying himself as a police officer in need of assistance. Demeter told Elston’s father that he was a police officer attempting to take Elston into custody for disorderly conduct. Elston was never charged with any offense. Demeter pleaded guilty to violating Aurora’s ordinance against battery.Elston sued Demeter under 42 U.S.C. 1983, winning a default judgment and an award of $110,000. Elston also sued Kane County under Illinois’s Tort Immunity Act. The district court rejected the suit on summary judgment. The Seventh Circuit affirmed. Demeter was acting as a private citizen, not within the scope of his duties as a deputy when he injured Elston. Demeter was not acting substantially within the time and space limits authorized by his employment; that Demeter used his badge, gun, and training in an unauthorized manner in q purely personal pursuit does not bring his conduct within the scope of his employment. View "Elston v. County of Kane" on Justia Law

Kaiser had surgery to implant the Prolift Anterior Pelvic Floor Repair System, a transvaginal mesh medical device that supports the pelvic muscles. A few years later, Kaiser began experiencing severe pelvic pain, bladder spasms, and pain during intercourse. Her physician attributed these conditions to contractions in the mesh. Kaiser had surgery to remove the device, but her surgeon could not completely extract it and informed her that the complications she was experiencing were likely permanent. Kaiser sued Ethicon, Prolift’s manufacturer, under the Indiana Products Liability Act. A jury found Ethicon liable for defectively designing the Prolift device and failing to adequately warn about its complications and awarded $10 million in compensatory damages; the judge reduced a punitive award to $10 million. The Seventh Circuit affirmed, rejecting Ethicon’s claim of federal preemption. The requirements of the FDA’s premarket-notification process do not directly conflict with Indiana law. A reasonable jury could conclude that Prolift was unreasonably dangerous and could credit the physician’s assertion that additional warnings about complications would have led him to choose a different treatment plan. The court rejected challenges to the damages and to jury instructions. Seventh Circuit precedent interprets the Indiana Product Liability Act to require a plaintiff in a design-defect case to produce evidence of a reasonable alternative design for the product but the Indiana Supreme Court disagreed in 2010. The state supreme court’s decision controls on a matter of state law. View "Kaiser v. Johnson & Johnson and Ethicon, Inc." on Justia Law

While shopping at a Wal-Mart store, Waldon believes she slipped on a plastic hanger and fell causing her injuries. Under Indiana premises-liability law, a defendant must have actual or constructive knowledge of a condition on the premises that involves an unreasonable risk of harm to an invitee. Wal-Mart offered the testimony of employees that they had not been aware of a dangerous condition. After discovery, the district court concluded there was no evidence Wal-Mart knew of such a condition and granted it summary judgment. The Seventh Circuit affirmed and, because Waldons’ counsel had deleted date stamps on photographs submitted to the court, ordered counsel to show cause why he should not be sanctioned under Rule 46 of the Federal Rules of Appellate Procedure for misrepresenting the record to the court. View "Waldon v. Wal-Mart Stores, Inc." on Justia Law

Amling began working in the horticulture industry in 1965 and continued in that career for the rest of his working life. At one point, Robert worked for National Greenhouse, whose products allegedly contained asbestos. National’s assets and liabilities were transferred to Harrow. In 1990, Harrow executed an asset‐purchase agreement with Nexus, transferring all of National’s assets and some of its liabilities to Nexus. Amling was diagnosed with mesothelioma in 2015. The Amlings sued Harrow, Nexus, and others in state court and, while that case was stayed, sought a declaratory judgment in federal court that under the terms of the 1990 agreement, Harrow, not Nexus or any other entity, is liable for National Greenhouse’s torts alleged in the Amlings’ state complaint. The district court dismissed the suit. The Seventh Circuit affirmed. It is virtually certain that the state suit will answer the question presented by the federal suit: whether under the terms of the asset‐purchase agreement Harrow or Nexus could be liable for their injuries. That fact makes this a live controversy but simultaneously justifies the district court’s sound exercise of its discretion in deciding not to issue a declaratory judgment. View "Amling v. Harrow Industries, LLC" on Justia Law

For four years, nurse practitioner Jordan treated Clanton’s severe hypertension. Jordan, an employee of the U.S. Public Health Service, failed to properly educate Clanton about his disease or to monitor its advancement. Clanton’s hypertension developed into Stage V kidney disease requiring dialysis and a transplant. Clanton successfully sued the government under the Federal Tort Claims Act. The court determined that Clanton had not contributed at all to his own injuries, noting that Clanton did not understand why it was important to take his medication and to attend appointments. The court awarded $30 million in damages. The Seventh Circuit vacated, finding that the court erred in its analysis of comparative negligence. Clanton’s subjective understanding does not end the inquiry. Illinois law requires the court to take the additional step of comparing Clanton’s understanding of his condition to that of a reasonable person in his situation. Clanton was in the position of a person whose caregiver failed to provide information about the severity of his condition but he had external clues that he was seriously unwell: two employment-related physicals showed that he had dangerously high blood pressure. The court upheld the court’s method of calculating damages and agreed that Clanton’s Medicare benefits are collateral to his damages award under Illinois law, so the government is not entitled to a partial offset. View "Clanton v. United States" on Justia Law