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

Before 1992, Chicago police officers received pension credit for time worked for the Cook County Sheriff’s Department. In 1992, the Retirement Board began denying pension credit to retiring officers for prior service with the Sheriff’s Department. In 2008, the Illinois Appellate Court ruled that this practice was improper under the Illinois Pension Code. Officers who had been denied pension credit sought reconsideration. The Board concluded that it lacked jurisdiction to reconsider the final rulings after the statutory 35‐day limit. The officers did not seek review in state court, but filed a federal suit on behalf of themselves and other similarly situated officers, alleging violations of procedural due process and equal protection rights under the U.S. and state constitutions. The district court dismissed. The Seventh Circuit affirmed, reasoning that the officers’ complaint is, essentially, that Illinois law provides no procedure for making the appellate decision retroactive Their sole remedy lies with the political branches of Illinois government. View "Rasario v. Ret. Bd. of the Policemens' Annuity & Benefit Fund" on Justia Law

Phillips worked at CTA as a trucker for 22 years, until, in 2010, he visited CTA’s onsite health services department to report that his fingers went numb at work and to initiate a workers’ compensation claim. CTA had a written substance abuse policy that required drug testing in certain situations, including initiation of workers’ compensation claim. Refusal to submit to testing was cause for immediate suspension pending termination. An injured employee could receive medical treatment in the health services department and return to work without being required to submit to a drug test if the employee did not seek to initiate a workers’ compensation claim and the situation did not fall into one of the other categories for which drug testing was required. Phillips was advised that if he didn’t take the drug test, his employment would be terminated. He refused to take the drug test and was terminated for refusing to submit to drug testing upon his initiation of a workers’ compensation claim. Phillips did file a workers’ compensation claim and eventually received benefits. The district court entered summary judgment, rejecting his claim that his termination was retaliation for filing a workers’ compensation claim. The Seventh Circuit affirmed.View "Phillips v. Cont'l Tire Americas, LLC" on Justia Law

Chhibber, an internist, operated a walk‐in medical office on the south side of Chicago. For patients with insurance or Medicare coverage, Chhibber ordered an unusually high volume of diagnostic tests, including echocardiograms, electrocardiograms, pulmonary function tests, nerve conduction studies, carotid Doppler ultrasound scans and abdominal ultrasound scans. Chhibber owned the equipment and his staff performed the tests. He was charged with eight counts of making false statements relating to health care matters, 18 U.S.C. 1035, and eight counts of health care fraud, 18 U.S.C. 1347. The government presented witnesses who had worked for Chhibber, patients who saw him, and undercover agents who presented themselves to the Clinic as persons needing medical services. Chhibber’s former employees testified that he often ordered tests before he even arrived at the office, based on phone calls with staff. Employees performed the tests themselves with little training, and the results were not reviewed by specialists; normally, the tests were not reviewed at all. Chhibber was convicted of four counts of making false statements and five counts of health care fraud. The Seventh Circuit affirmed, rejecting challenges to evidentiary rulings. View "United States v. Chhibber" on Justia Law

Pierce claimed that she injured her lower back in 2004 while moving cases of glassware at her waitressing job. She quit her job and sought medical treatment. An MRI showed signs of disc degeneration. She received chiropractic and electric-shock treatments to her back. She also took prescription pain medication. After her back improved, she started a new job at a café. In March 2006 (her alleged onset date for disability), Pierce re-injured her back to the point that she could no longer sit or stand comfortably, and she had to quit her new job. The injury disrupted her sleep, caused numbness in her legs, and prevented her from being able to sit, stand, lift, or bend for long periods. She could not work for more than five hours without pain. An ALJ found that Pierce, then more than 55 years old, was not disabled. The Seventh Circuit remanded for further proceedings, finding the ALJ’s assessment of Pierce’s credibility was flawed in several respects. View "Pierce v. Colvin" on Justia Law

Dalton worked in coal mine jobs from 1957 until 1991 and was exposed to substantial coal and rock dust. He developed trouble breathing; he quit his job and was never employed again. In 1999 Dalton sought benefits under the Black Lung Benefits Act, 30 U.S.C. 901‐45. In 2003, an ALJ awarded benefits, finding that Dalton was a “miner,” that Frontier was the “responsible operator,” and that Dalton had established clinical pneumoconiosis, based on the opinions of pulmonary experts, but could not determine the date of onset of total disability, so Dalton’s benefits began in 1999. The Board vacated, finding that the ALJ had not properly evaluated CT scans. The ALJ again awarded benefits beginning in 1999. In 2007, the case was again remanded. A new ALJ reweighed the evidence and ordered benefits to begin in 1999. Dalton died in 2007. The ALJ denied a motion by Dalton’s children to substitute as claimant. The Board dismissed an appeal and a cross‐appeal. The District Director returned the case to its third ALJ, who allowed the children’s motion, modified the date for commencement of benefits to 1991, and awarded attorneys’ fees and expenses. The Board vacated with respect to the onset date. The Seventh Circuit remanded for entry of the 1991 onset date, rejecting a claim that the children lacked standing. Substantial evidence supported the ALJ’s finding that 1991 marked the time of onset for Dalton’s total disability on account of pneumoconiosis. View "Dalton v. Office of Workers' Compensation Programs" on Justia Law

Garcia, previously a construction worker and then age 40, applied for social security disability benefits in 2010, claiming abdominal pain caused by cirrhosis of the liver, severe low platelet count, hepatitis C, and an umbilical hernia, all of which had been diagnosed by several physicians that year. All were caused or exacerbated by alcoholism, but he stopped drinking and alcoholism is no longer a “contributing factor” barring him from obtaining disability benefits, 42 U.S.C. 423(d)(2)(C). An ALJ ruled that Garcia is capable of doing limited sedentary work. The district court affirmed. The Seventh Circuit reversed, noting that Garcia would be a candidate for a liver transplant, but was not on the list because he was too sick for surgery. His platelet count was too low to for even a liver biopsy. Garcia has been repeatedly hospitalized and treated for pain with morphine and other opium derivatives, with limited success. He has lupus, anemia, colitis, anxiety and other psychological problems, and chronic fatigue. One physician described Garcia’s condition as “chronic and terminal.” The court stated that Garcia is “one of the most seriously disabled applicants for social security disability benefits whom we’ve encountered in many years … We are surprised that the Justice Department would defend such a denial.” View "Garcia v. Colvin" on Justia Law

Bates has suffered from radiating neck pain since 2004, when a truck struck her car. Since then, she has continued to care for her six adopted children and dealt with the loss of her fiancé and her mother. As a result of the stress, Bates sought psychological and psychiatric treatment. She sought Supplemental Security Income. After her application was denied, Bates requested a hearing before an Administrative Law Judge. The ALJ denied her application; the district court affirmed. The Seventh Circuit reversed and remanded for rehearing, finding that the ALJ improperly discounted the opinion of Bates’s treating psychiatrist and improperly evaluated Bates’s testimony concerning her mental health. View "Bates v. Astrue" on Justia Law

From 1978 to 2000, Cerentano worked as a coal miner. He was injured in 15 mining incidents and received six separate awards of permanent partial disability, but was able to return to work after each injury. In 2000 Cerentano was wrongfully discharged after a false positive drug test. Months later, he was diagnosed with depression due to his firing and treated for dysthymia and anxiety. Eventually, Cerentano found work as a real estate agent and a vehicle transporter. In 2005, Cerentano’s car was hit, causing more injuries. Cerentano was awarded Social Security disability benefits. He was denied disability pension benefits under the United Mine Workers Pension Trust Plan, based on the trustees’ conclusion that there was no causal link between his mine injuries and the award of Social Security benefits. Cerentano sued under the Employee Retirement Income Security Act, 29 U.S.C. 1332(a)(1)(b). The district court granted summary judgment to the plan. The Seventh Circuit reversed and remanded. The trustees should have examined all of the injuries, severe and non‐severe, that the ALJ relied on in finding Cerentano disabled and should have determined which of those injuries were caused by mine accidents and whether, the mine‐related injuries, in combination, comprised “a causal link.” View "Cerentano v. UMWA Health & Retirement Funds" on Justia Law

Orillo, her husband (a doctor), and another owned Chalice, a home health care provider. Chalice was an enrolled provider with Medicare and could seek reimbursement of home health care through that program. Orillo falsified forms by altering the codes and information that had been completed by the Chalice nurses to make the patient’s condition appear worse and the health care needs greater than the actuality. Those alterations caused Medicare software to generate different reimbursement rates Orillo also aided her husband in paying kickbacks to a Chicago doctor in return for referrals of Medicare patients. Orillo pled guilty to healthcare fraud, 18 U.S.C. 1347 and paying kickbacks to physicians for patient referrals under a federal health care program, 42 U.S.C. 1320a-7b and 18 U.S.C. 2, and was sentenced to 20 months’ imprisonment. Orillo conceded that her scheme caused a loss, to Medicare, in excess of $400,000, and agreed to entry of a $500,000 forfeiture judgment.The district court determined that the loss amount for the healthcare fraud count was $744,481 and ordered her to pay that amount in restitution. The Seventh Circuit affirmed, rejecting Orillo’s argument that the loss and restitution amount should be limited to only those stemming from visible alterations. View "United States v. Orillo" on Justia Law

Philpot, former Clerk of Lake County, Indiana, took $25,000 in incentive payments from a federally funded child‐support fund (42 U.S.C. 658a(a)) without the required approval of the county fiscal body. The Indiana Department of Child Services disburses those federal funds to the counties, Ind. Code 31‐25‐4‐23(a), which have a relatively free hand in directing the money, although “amounts received as incentive payments may not, without the approval of the county fiscal body, be used to increase or supplement the salary of an elected official.” Philpot had used the funds to provide himself and staff members with bonuses. Convicted of mail fraud, 18 U.S.C. 1341, and theft from a federally funded program 18 U.S. 666(a)1A, he was sentenced to 18 months in prison. The Seventh Circuit affirmed, despite claims concerning whether Philpot “knowingly” violated the statute and the fact that Philpot had voluntarily returned the funds. View "United States v. Philpot" on Justia Law