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

The case involves plaintiffs Pamela Antosh and Ned Lashley, who challenged the Village of Mount Pleasant's use of its eminent-domain power to acquire their property for road improvements associated with the private Foxconn development. In state court, the plaintiffs contested only the amount of compensation they were owed, not the propriety of the taking. However, when the state court ruled against them on an evidentiary issue two years into litigation, they decided to try their luck in federal court. In their federal complaint, they alleged for the first time that the taking was improper because it served a private purpose, not a public one.The state court proceedings were stayed pending the resolution of the federal suit. The Village filed a motion to dismiss the federal complaint, arguing that the federal court should abstain from exercising its jurisdiction over the proceeding. The district court agreed, dismissing the federal claims without prejudice, citing Colorado River Water Conservation District v. United States, 424 U.S. 800 (1976). The plaintiffs appealed this judgment.The United States Court of Appeals for the Seventh Circuit affirmed the district court's decision. The court found that the district court was correct to refrain from exercising jurisdiction over the federal claims. The court concluded that the federal and state actions were parallel and that exceptional circumstances justified the district court's decision to abstain. The court noted that the plaintiffs' litigation strategy signaled a lack of respect for the state's ability to resolve the issues properly before its courts. The court also found that the plaintiffs' federal suit was a strategic attempt to bypass an unfavorable state-court ruling two years into that litigation. View "Antosh v. Village of Mount Pleasant" on Justia Law

This case involves a dispute over unpaid rent for a department store in an Illinois mall. The store was operated by CPS Partnership, which leased the retail space from WEC 98C-3 LLC. Saks Inc. guaranteed that it would pay the rent if CPS could not. However, when CPS stopped paying rent, Saks did not make any payments to WEC. This led to WEC defaulting on its mortgage, and the property was purchased by 4 Stratford Square Mall Holdings, LLC (“Stratford”) at a foreclosure auction. Initially, WEC sued Saks for damages. Later, Stratford intervened with its own claim for damages. The district court ruled only on Stratford’s claim for unpaid rent, finding that it was entitled to payment from Saks.The district court's decision was appealed to the United States Court of Appeals for the Seventh Circuit. Saks argued that Stratford lacked standing to sue, that the district court erred in certifying its judgment for immediate appeal, and that the district court erred in rejecting Saks’s affirmative defenses. The appellate court found that Stratford did have standing to sue Saks, and the district court properly certified its judgment for appeal. On the merits, the appellate court concluded that Saks could not mount any of its desired defenses as it had waived its right to present affirmative defenses to liability in the guaranty that it signed. Therefore, the appellate court affirmed the district court’s judgment. View "WEC 98C-3 LLC v. SFA Holdings Inc." on Justia Law

A group called Protect Our Parks, Inc. (POP) has been challenging the location of the planned Obama Presidential Center in Chicago's historic Jackson Park. The Center, which is currently under construction, is being built on a site selected by the Barack Obama Foundation. POP argues that the park should have been off-limits and that the Center could have been placed elsewhere. They have raised multiple arguments based on federal and state law to prevent the construction of the Center in the park.Previously, POP had asked the court to halt construction until its federal-law theories were resolved. However, the court declined to grant the preliminary injunction as POP failed to show that it was likely to succeed with those contentions. The district court also refused POP’s request to amend its pleadings and dismissed the state-law causes of action. The district court then awarded summary judgment against POP on the federal-law theories.In the United States Court of Appeals for the Seventh Circuit, POP asked the court to overturn the district court’s final judgment in its entirety. However, the court found that POP’s arguments remained unpersuasive and identified no legal error in the earlier analysis of POP’s case. The court also concluded that POP’s state-law theories were rightly dismissed and that the district court did not abuse its discretion when it denied POP’s motion to amend the complaint. Therefore, the court affirmed the judgment of the district court. View "Protect Our Parks, Inc. v. Buttigieg" on Justia Law

A private Catholic high school in Madison, Wisconsin, sued the city and other defendants, claiming that the city's decision to deny the school permission to install lights for nighttime athletic events violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Free Exercise Clause of the U.S. Constitution. The school also claimed a vested property right under Wisconsin law.In the United States Court of Appeals for the Seventh Circuit, the school argued that the city's actions amounted to unequal treatment and a substantial burden on its religious exercise. However, the court found that the school, as a master plan institution under the city's Campus-Institutional District ordinance, was not comparably situated to other institutions that had been granted lighting permits. The court also ruled that the city's denial of the permit did not amount to a substantial burden on the school's religious exercise under RLUIPA.Furthermore, the court found that the school's Free Exercise claim provided no additional protections beyond those under RLUIPA and thus could be dismissed. Lastly, the court rejected the school's vested rights claim, as the lighting permit application did not conform to the municipal zoning requirements in effect at the time. Consequently, the court affirmed the lower court's summary judgment in favor of the city. View "Edgewood High School of the Sacred Heart, Incorpor v. City of Madison, Wisconsin" on Justia Law

In this case, the plaintiff, Chicago Joe's Tea Room LLC, had plans to open an adult entertainment business in a suburb of Chicago. However, the Village of Broadview denied the plaintiff's application for a special-use permit, which led to the plaintiff claiming that their constitutional rights were violated. The plaintiff sought millions of dollars in lost profits for the business that never opened. The U.S. District Court for the Northern District of Illinois excluded most of the plaintiff's evidence and theories for lost-profit damages due to substantive and procedural issues. The court then awarded the plaintiff just $15,111 in damages. The plaintiff appealed, but the United States Court of Appeals for the Seventh Circuit affirmed the decision of the lower court, finding no abuses of discretion. The appellate court stated that the plaintiff's calculations of lost profits were beyond the scope of the plaintiff's personal knowledge of a similar business and required expert-like analysis and adjustments. The court also ruled that the plaintiff failed to disclose necessary damages evidence in a timely manner, a violation of the Federal Rules of Civil Procedure. The plaintiff was also denied the opportunity to amend their complaint to challenge a state statute, as the request was made a decade after the issue became relevant. The court found that granting the amendment would have caused undue delay and prejudice to the Village. View "Chicago Joe's Tea Room, LLC v. Village of Broadview" on Justia Law

In this case, the United States Court of Appeals for the Seventh Circuit addressed a dispute involving the owners of two parcels of real estate in Chicago who contended that banks tried to collect notes and mortgages that belonged to different financial institutions. The state judiciary had ruled that the banks were entitled to foreclose on both parcels, but the properties had not yet been sold and no final judgments defining the debt were in place. The plaintiffs attempted to initiate federal litigation under the holding of Exxon Mobil Corp. v. Saudi Basic Industries Corp., arguing that their case was still pending. However, the district court dismissed the case, citing the Rooker-Feldman doctrine, which states that only the Supreme Court of the United States can review the judgments of state courts in civil suits.The Appeals court held that the application of the Rooker-Feldman doctrine was incorrect in this case because the foreclosure litigation in Illinois was not yet "final". According to the court, the foreclosure process in Illinois continues until the property is sold, the sale is confirmed, and the court either enters a deficiency judgment or distributes the surplus. Since these steps had not occurred, the plaintiffs had not yet "lost the war", and thus parallel state and federal litigation could be pursued as per Exxon Mobil Corp. v. Saudi Basic Industries Corp.However, by the time the district court dismissed this suit, the state litigation about one parcel was over because a sale had occurred and been confirmed, and by the time the Appeals court heard oral argument that was true for the second parcel as well. The Appeals court stated that Illinois law forbids sequential litigation about the same claim even when the plaintiff in the second case offers novel arguments. The court found that the plaintiffs could have presented their constitutional arguments in the state court system and were not free to shift what is effectively an appellate argument to a different judicial system.The court also noted that Joel Chupack, the lead defendant, was the trial judge in the state case and was not a party to either state case. He did not claim the benefit of preclusion. Judge Chupack was found to be entitled to absolute immunity from damages, as he acted in a judicial capacity.The judgment of the district court was modified to reflect a dismissal with prejudice rather than a dismissal for lack of jurisdiction, and as so modified it was affirmed. View "Bryant v. Chupack" on Justia Law

In this case heard in the United States Court of Appeals for the Seventh Circuit, an accident occurred at a construction site which resulted in bodily injuries to Gaylon Cruse and Mark Duckworth. During the installation of roof trusses, a power crane operated by Douglas Forrest was prematurely released, causing a truss to fall and collapse onto other trusses, injuring Cruse and Duckworth. Southern Truss, the owner of the truck to which the crane was attached, had two insurance policies - a commercial auto policy from Artisan and Truckers Casualty Company (Artisan) and a commercial general liability policy from The Burlington Insurance Company (Burlington). Both insurance companies denied a duty to defend in the underlying lawsuit initiated by Cruse and Duckworth.Artisan filed a suit in federal court seeking a declaration that it owed no duty to defend under its auto policy due to an operations exclusion clause and that Burlington owed a duty to defend. The district court denied both companies' motions for judgment, finding an ambiguity in Artisan's policy that should be construed in favor of the insured and that Burlington had a duty to defend some claims not covered by Artisan's policy. Both Artisan and Burlington appealed.The appeals court, applying Illinois law and conducting a de novo review, found no ambiguity in Artisan's policy. The court concluded that the operations exclusion applied because the injuries arose from the operation of the crane attached to the truck, whose primary purpose was to provide mobility to the crane. As such, Artisan had no duty to defend. Since Artisan had no duty to defend, the court determined that Burlington did have a duty to defend under its policy. Thus, the court affirmed in part and reversed in part the decision of the district court. View "Artisan and Truckers Casualty Company v. Burlington Insurance Company" on Justia Law

Randall Ewing and Yasmany Gomez entered into a contract with 1645 W. Farragut LLC (Farragut) to purchase a house. The house was in need of substantial renovations, but Ewing and Gomez proceeded with the contract based on Farragut's assurance that the house would be renovated and ready by closing time. Unbeknownst to Ewing and Gomez, the house was under a stop work order, which hindered their ability to secure a mortgage. When they requested their earnest money back, Farragut refused. They subsequently sued Farragut for breach of contract, common law fraud, and fraud under the Illinois Consumer Fraud Act. The United States District Court for the Northern District of Illinois found Farragut liable for fraud and breach of contract and awarded Ewing and Gomez $905,000 in damages. Farragut appealed the decision and Ewing and Gomez cross-appealed, seeking to add Farragut's principal, Erik Carrier, to the case. The United States Court of Appeals for the Seventh Circuit affirmed the District Court's decisions, finding that the record supported the damages awarded and that the District Court did not abuse its discretion in denying the motion for a new trial and the motions to amend. View "Ewing v. 1645 W. Farragut LLC" on Justia Law

The Shelbyville Post Office is the closest one to Ellison’s home and the largest in that area of Indiana. Ellison keeps a P.O. box at Shelbyville or her non-profit organization, which educates the public about accessibility for people with disabilities. Ellison cannot enter the Shelbyville Post Office because it has only one customer entrance: at the top of its front steps. Ellison can ask for help from the loading dock or from a van-accessible parking space, use the Postal Service’s website, or visit wheelchair-accessible locations in surrounding towns. After multiple complaints about the inconvenience of those options, the City of Shelbyville offered to pay for a ramp at the front entrance. The Postal Service declined, citing a policy of refusing donations for exterior physical improvements.In a suit under the Rehabilitation Act, 29 U.S.C. 794(a), the district court entered summary judgment, concluding that Ellison could meaningfully access the program through its website and three wheelchair-accessible locations within a 15-minute drive of her home. The Seventh Circuit vacated and remanded for consideration of whether Ellison’s proposed accommodation (a ramp) is reasonable. The Shelbyville Post Office does not provide a significant level of access, and the alternative locations are further away and open for fewer hours than Shelbyville. View "Ellison v. United States Postal Service" on Justia Law

Willow purchased a house that needed repairs. Bids for the work exceeded $100,000. Renovations began in 2017 but soon halted. After several years passed, with the house remaining empty, the Village proposed its demolition as a nuisance. The Village published notice, posted notices on the house, and mailed notice to Willow, which concedes having actual knowledge of the impending demolition. Willow did not respond until the week scheduled for the demolition when its lawyer proposed a meeting. The parcel was sold at auction to satisfy the Village’s lien for demolition expenses.Willow sued under 42 U.S.C. 1983, claiming a taking without compensation. The Seventh Circuit affirmed summary judgment for the Village. Demolition of a dilapidated structure that constitutes a public nuisance is not problematic under the Due Process Clause and does not require compensation. The protection that the federal Constitution offers to property owners is notice and an opportunity for a hearing. The Village gave such a notice to Willow, which did not ask for a hearing. Illinois law offers procedures that are constitutionally adequate; someone wanting to stop a demolition need only file suit in state court, which automatically blocks action until the judge decides whether the building meets the statutory criteria for demolition. The district court was not required to decide a state law inverse-condemnation claim. View "Willow Way, LLC v. Village of Lyons, Illinois" on Justia Law