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

In the late 1930s, Milwaukee County built a dam on the Milwaukee River in Estabrook Park, an urban green space that runs along the east bank of the river where the City of Milwaukee borders suburban Shorewood and Whitefish Bay. In 2017 the County transferred the dam to the Milwaukee Metropolitan Sewerage District for the purpose of removing it. Demolition was completed the following year. With the dam removed, the water level immediately upstream fell by about four feet from its previous high-water mark. Kreuziger owns a home along this stretch of the river, and the drop in the water level exposed a ten-foot swath of swampy land on his waterfront that used to be submerged.Kreuziger sued the District and Milwaukee County, alleging that their removal of the dam amounted to a taking of his riparian right to the prior surface water level without just compensation. The Seventh Circuit affirmed summary judgment in favor of the defendants. the riparian rights of waterfront property owners are subordinate to the government’s authority to regulate navigable waterways under the public-trust doctrine. Kreuziger had no property right to have the river remain at the previous level. View "Kreuziger v. Milwaukee County" on Justia Law

Suspecting that Troconis-Escovar was involved in the illegal drug business, the DEA searched his vehicle. Agents found $146,000 in cash, which they believed represented drug proceeds. DEA notified Troconis-Escovar that it intended to effect an administrative forfeiture of the funds (to declare them to be government property). Illegal drug proceeds are eligible for civil forfeiture under 21 U.S.C. 881(a)(6), subject to the procedural safeguards of the Civil Asset Forfeiture Reform Act, 18 U.S.C. 983. Troconis-Escovar’s attorney tried to contest the forfeiture, but filed the wrong form—a “petition for remission” rather than a “claim.” Only a claim may be used to challenge a proposed forfeiture. After the mistake was discovered, DEA gave Troconis-Escovar an extra 30 days to supplement his petition for remission. Troconis-Escovar did not do so and lost the money. He filed a Motion for the Return of Property under Federal Rule of Criminal Procedure 41(g).The district court dismissed his lawsuit, finding that it lacked jurisdiction. The Seventh Circuit affirmed. The dismissal was correct, but not because jurisdiction was lacking. Troconis-Escovar does not explain why he should be able to obtain relief outside section 983 when Congress expressly conditioned relief from civil forfeiture on circumstances that do not apply to him. He did not explain his argument about the untimeliness or sufficiency of the DEA’s notice. View "Troconis-Escovar v. United States" on Justia Law

In 1993 the Village of Channahon approved the plat of a residential subdivision lying within the DuPage River Special Flood Hazard Area. The Village subsequently issued permits for the construction of houses in this subdivision, all of which experience flooded basements when the river is at high water. The current owners of these houses contend that the Village violated the Constitution either by granting the permits to build or by failing to construct dykes to keep water away.The Seventh Circuit affirmed the dismissal of their suit, noting the plaintiffs do not contend that the Village required them to build where they did or dig basements, or took any steps after the houses’ construction that made flooding worse. The Constitution establishes rights to be free of governmental interference but does not compel governmental intervention to assist persons. Even if the Village violated a local ordinance and a federal regulation, 44 C.F.R. §60.3(c)(7), by granting the applications without insisting that the houses be built higher, the Constitution does not entitle private parties to accurate enforcement of local, state, or federal law. The Village did not take anyone’s property, either by physical invasion or by regulation that prevented the land’s use. The river, which did invade their basements, is not a governmental body. Government-induced flooding of limited duration may be compensable but the -plaintiffs have not plausibly alleged that the water in their basements is “government-induced.” View "Billie v. Village of Channahon" on Justia Law

Adams Outdoor Advertising owns billboards throughout Wisconsin, including 90 in Madison. Madison’s sign-control ordinance comprehensively regulates “advertising signs,” to promote traffic safety and aesthetics. The ordinance defines an “advertising sign” as any sign advertising or directing attention to a business, service, or product offered offsite. In 1989, Madison banned the construction of new advertising signs. Existing billboards were allowed to remain but cannot be modified or reconstructed without a permit and are subject to size, height, setback, and other restrictions. In 2009, Madison prohibited digital displays; in 2017, the definition of “advertising sign” was amended to remove prior references to noncommercial speech. As amended, the term “advertising sign” is limited to off-premises signs bearing commercial messages.Following the Supreme Court’s 2015 “Reed” decision, Adams argued that any ordinance treating off-premises signs less favorably than other signs is a content-based restriction on speech and thus is unconstitutional unless it passes the high bar of strict scrutiny. The judge applied intermediate scrutiny and rejected the First Amendment challenge. The Supreme Court subsequently clarified that nothing in Reed altered its earlier precedents applying intermediate scrutiny to billboard ordinances and upholding on-/off-premises sign distinctions as ordinary content-neutral “time, place, or manner” speech restrictions. The Seventh Circuit affirmed the dismissal of the suit. View "Adams Outdoor Advertising Limited Partnership v. City of Madison, Wisconsin" on Justia Law

In 2004, Foster, a real estate investor, purchased Florida property, with a $1.1 million loan secured by a PNC mortgage. Foster and PNC had multiple disputes. PNC acquired force‐placed insurance. While the parties disputed that issue, Foster only made payments in the amount originally specified in a 2010 modification although the payments had increased as a result of the force‐placed insurance policies. In 2012, PNC began returning Foster’s payments as incomplete payments. As of May 2019, PNC claimed Foster owed more than $1.75 million. PNC reported delinquent payments to credit agencies; Foster’s credit score dropped.Foster’s lawsuit included a claim under the Fair Credit Reporting Act (FCRA) for PNC’s failure to investigate the two credit reporting disputes; a breach of contract claim regarding the force‐placed insurance policies; a breach of the implied duty of good faith and fair dealing claim for the insurance; and a breach of fiduciary duty claim for the alleged mishandling of the escrow account. PNC counterclaimed to seek judgment on the loan. After determining that Foster’s affidavit was conclusory and speculative as to proof of insurance and his loan payments and that his evidence of damages was too general and conclusory, the district court granted PNC judgment. The Seventh Circuit affirmed but found that the FCRA claim should be dismissed for lack of standing. Foster did not establish an injury-in-fact fairly traceable to PNC’s conduct. View "Foster v. PNC Bank, National Association" on Justia Law

The Watters moved into the Preserve as the only black couple in the subdivision. Kate and Ed Mamaril have each been president of the Homeowners’ Association (HOA). When the Watters began construction, Ed told them that they were not welcome. There was a dispute about the Maramils’ cats. Subsequent encounters involved shoving and racial epithets. When the Watters asked for copies of the HOA’s restrictive covenants, Marmaril, as HOA president, refused to provide copies. The Watters had disputes with the HOA concerning mailboxes, paint colors, and porch posts. The HOA has a rule against privacy fences. Watters is a veteran who was diagnosed with PTSD after being trapped in a cave, with a dog. He is unable to work because of a terminal lung condition that further exacerbates his reactivity to dogs. Watters states that his doctors advised him to get a privacy fence to mitigate his PTSD triggers. He unsuccessfully requested the privacy fence as a reasonable and necessary accommodation. A subsequent dispute involved the Watters’ plan to construct a pool.In a suit under Fair Housing Act and 42 U.S.C. 1982, the district court granted the defendants summary judgment. The Seventh Circuit vacated. The Watters can proceed with their race discrimination claim under the Act and section 1982 against the Mamarils, but not against the HOA. Without any evidence showing that the HOA knew about Watters’s PTSD, the Watters’ failure-to-accommodate claim cannot survive. View "Watters v. Homeowners Association at the Preserve at Bridgewater" on Justia Law

Wisconsin assessed property taxes on lands within four Ojibwe Indian reservations. The tribal landowners have tax immunity under an 1854 Treaty, still in effect, that created the reservations on which they live. Supreme Court cases recognize a categorical presumption against Wisconsin’s ability to levy its taxes absent Congressional approval. The parcels in question are fully alienable; their current owners can sell them at will because the parcels were sold by past tribal owners to non-Indians before coming back into tribal ownership. Wisconsin argued that the act of alienating reservation property to a non-Indian surrendered the parcel’s tax immunity. No circuit court has considered whether the sale of tax-exempt tribal land to a non-Indian ends the land’s tax immunity as against all subsequent tribal owners, nor does Supreme Court precedent supply an answer.The district court ruled in favor of the state. The Seventh Circuit reversed. Once Congress has demonstrated a clear intent to subject land to taxation by making it alienable, Congress must make an unmistakably clear statement to render it nontaxable again but these Ojibwe lands have never become alienable at Congress’s behest. Congress never extinguished their tax immunity. The relevant inquiry is: who bears the legal incidence of the tax today--all the relevant parcels are presently held by Ojibwe tribal members. View "Lac Courte Oreilles Band of Lake Superior Chippewa Indians of Wisconsin v. Evers" on Justia Law

Finite owns 90.9% of Orient #1, an abandoned Illinois coal mine; the other 9.1% belongs to Royal. In 2004, Keyrock's predecessor acquired an interest in Orient #1 to extract coal mine methane from its section of the property, drilled wells, and, in 2007, obtained a vacuum permit from the Illinois Department of Natural Resources. Finite discovered the pump’s use in 2018 after a test revealed that coal mine methane had been drained extensively from Orient #1. Finite unsuccessfully petitioned the Department for compulsory unitization of the parties’ properties, to require Keyrock to share its methane production with Finite.Finite sued, alleging conversion, trespass, accounting, and common law unitization, and sought to enjoin the use of a vacuum pump. The district court granted the defendants summary judgment, finding that, under the rule of capture (gas that migrates is subject to recovery and possession by the holder of the gas estate on the property to which the gas migrates), the methane could not be owned until extracted regardless of whether extraction occurred by means of a vacuum pump. Finite’s claims hinged on ownership, so the rule of capture foreclosed Finite’s claims.The Seventh Circuit affirmed. Absent illegality, the Department’s issuance of the permit suggests that the use of the vacuum pump to extract methane did not violate Finite’s correlative rights (imposing a duty on owners not to waste natural resources intentionally or negligently as to injure their neighbor).. View "Finite Resources, Ltd. v. DTE Methane Resources, LLC" on Justia Law

The Seventh Circuit affirmed the judgment of the district court denying the motion filed by the Word Seed Church after the district court dismissed this suit for lack of standing, holding that Word Seed failed to show exceptional circumstances warranting relief from the denial of that motion.Word Seed and an organization to which it belonged (collectively, Word Seed) brought this action against the Village of Homewood, Illinois alleging violations of the Religious Land Use and Institutionalized Persons Act and the Equal Protection Clause of the Fourteenth Amendment. The district court dismissed the suit for lack of standing after concluding that Word Seed did not suffer an injury and denied Word Seed's ensuing motions to reconsider. In the second motion, which the district court considered under Fed. R. Civ. P. 60(b), Word Seed raised for the first an argument that could have been raised before the district court entered judgment dismissing the case. The district court denied the motion. The Seventh Circuit affirmed, holding that the court did not abuse its discretion in denying Word Seed's Rule 60(b) motion. View "Word Seed Church v. Village of Homewood" on Justia Law

Westfield amended its ordinance governing signs within city limits. Out of a stated concern for public safety and aesthetics, the ordinance requires those wishing to install a sign or billboard to apply for a permit. The ordinance exempts directional signs, scoreboards, particular flags, and notices on gas pumps and vending machines. It prohibits signs on poles and those advertising ideas, products, or services not offered on the same premises (off-premises signs). Those seeking to install a non-compliant sign may appeal the denial of a permit or, if necessary, request a variance. GEFT applied for a permit to build a large digital billboard on private property along U.S. Highway 31 in Westfield. Because of the proposed sign’s off-premises location and use of a pole, Westfield denied GEFT’s application and subsequent variance request.GEFT sued, 42 U.S.C. 1983. The Seventh Circuit previously upheld a restraining order compelling GEFT to cease all actions to install its proposed billboard pending the outcome of the litigation. The district court later granted GEFT summary judgment and permanently enjoined Westfield from enforcing many aspects of its ordinance. The Seventh Circuit remanded for consideration in light of the Supreme Court’s recent decision in “City of Austin v. Reagan National;” the fact that the city must read a sign to evaluate its conformity with regulations is not alone determinative of whether the regulation is content-based. View "GEFT Outdoors, LLC v. City of Westfield" on Justia Law