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

Mach operates an Illinois underground coal mine, using the “longwall” method, which begins with drilling tunnels for ventilation and access. A machine then shears coal from the wall and transports it out of the mine. Mach’s ventilation plan, required by 30 U.S.C. 863(o) involved blowing fresh air into the mine with an exhaust system that pulls out air containing methane, coal dust and particles. There are monitoring points throughout the mine, including at the longwall face and the top of the ventilation shaft. The system was approved for Panels 1 and 2, but not for Panel 3. There is no statutory process for obtaining review of refusal to approve a ventilation plan. Mach notified Mine Safety and Health Administration (MSHA) that it intended to operate without an approved ventilation plan in order to obtain administrative review. MSHA then issued two citations for “technical violations.” An ALJ for the Federal Mine Safety and Health Review Commission refused to consider additional evidence tendered by Mach that had not been presented to the district manager during informal negotiations and concluded that refusal to approve the ventilation plan was not arbitrary and capricious. The Commission affirmed. The Seventh Circuit denied a petition for review. View "Mach Mining, LLC v. Sec'y of Labor, Mine Safety & Health Admin." on Justia Law

Representing a class of truck owner-operators, Walker sued Trailer Transit, a broker of trucking services, for breach of contract in Indiana state court. Trailer Transit removed the suit to federal court under the Class Action Fairness Act (CAFA), section 1332(d)(2). Walker argued that notice of removal was untimely because it was filed more than 30 days after Trailer Transit “first ascertained” that the class’s theory of damages could result in recovery of more than $5 million. The district court denied a motion to remand. The Seventh Circuit affirmed. The earliest possible trigger for removal was Walker’s response to Trailer Transit’s requests for admission seeking clarification of the theory of damages. Even that response did not affirmatively specify a damages figure under the class’s new theory, so the removal clock never actually started to run View "Walker v. Trailer Transit, Inc." on Justia Law

When a Cook County, Illinois property owner fails to timely pay property, the amount of tax past due becomes a lien on the property. The county sells tax liens at auctions, with bids stated as percentages of the taxes past due. The percentage bid, multiplied by the amount of past‐due taxes, plus any interest, is the “penalty” that the owner must pay to clear the lien. The lowest penalty wins the bid. When bids are identical, the auctioneer tries to award the lien to the bidder who raised his hand first. The rules permit only one agent of a potential buyer or related entities, to bid. Plaintiffs accused defendants of fraud for having multiple bidders representing a single potential buyer and sought damages under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1961 and for interference with a prospective business advantage under Illinois tort law. On remand, a jury found in favor of the plaintiffs and awarded damages of $7 million, to which the judge added $13 million in attorneys’ fees and expenses. The Seventh Circuit affirmed, describing the defendants as hyperaggressive adversaries who drove up the plaintiffs’ legal costs without justification. View "BCS Servs., Inc. v. BG Inv., Inc." on Justia Law

Hacha and his wife, Solano, extorted money from Solano’s former boyfriend, Tenorio. Hacha told Tenorio that he had kidnapped Solano and her children and would harm them and would harm Tenorio and Tenorio’s parents unless Tenorio paid ransom. After paying Hacha nearly $55,000, Tenorio contacted the FBI, which arrested Hacha after recording calls during which Hacha pretended to have shot Solano in the leg and broken her fingers, and in which she was heard screaming in the background. Hacha and Solano pleaded guilty to conspiring to commit extortion, 18 U.S.C. 371, and extortion. 18 U.S.C. 875(b). Both pleaded guilty. She was sentenced to 42 months in prison and he was sentenced to 87 months, the bottom of his guidelines sentencing range. His appointed counsel for an appeal of the sentence concluded that the appeal wholly lacked merit and moved to withdraw. The Seventh Circuit granted the motion and dismissed the appeal, rejecting arguments concerning acceptance of responsibility and an enhancement based on his “demonstrated ability to carry out” his threat to harm Solano and the others. View "United States v. Hacha" on Justia Law

Buyers of Sears washing machines complained of a defect that causes mold, others complained of a control unit defect that stops the machine inopportunely. The district court denied certification of the class complaining about mold and granted certification of the class complaining about the control unit defect. The Seventh Circuit reversed with respect to the mold claims. The Supreme Court remanded for reconsideration in light of Comcast Corp. v. Behrend, 133 S. Ct. 1426 (2013). The Seventh Circuit reinstated its prior order, stating that there was a single, central, common issue of liability: whether the washing machine was defective. Complications that arise from the design changes and from separate state warranty laws can be handled by creation of subclasses. View "Butlerl v. Sears, Roebuck & Co." on Justia Law

During the 1970s and 1980s, American Agri‐Corp organized several limited partnerships, for which the company served as general partner. American solicited high‐income individuals to serve as limited partners, investing in supposed agricultural ventures. According to the IRS, the actual purpose was to shelter the income of limited partners from taxation. Plaintiffs were each limited partners (or spouses) in at least one partnership that was audited by the IRS during the mid‐1980s. Several years later, the IRS concluded that the partnerships were, essentially, tax‐avoidance schemes .In 1990 and 1991, the IRS issued Final Partnership Administrative Adjusts for the partnerships and disallowed several listed farming expenses and other deductions for the 1984 or 1985 tax years. The Tax Court consolidated cases, held that the IRS action was not time‐barred, and determined that the partnerships had engaged in “transactions which lacked economic substance” that resulted in a substantial distortion of income and expense. The district court held that it lacked subject‐matter jurisdiction over the taxpayers’ claims that the assessments were untimely and improperly included penalty interest. The Seventh Circuit affirmed. The determinations at issue are attributable to partnership items over which courts lack subject‐matter jurisdiction. View "Acute Care Specialists II v. United States" on Justia Law

Scottie Pippen won six championship rings with the Chicago Bulls and was named to the National Basketball Association’s list of the 50 greatest players in its history. Since he retired in 2004, he has lost much of the fortune he amassed during his playing days through bad investments. He has pursued multiple lawsuits against former financial and legal advisors. The media learned of Pippen’s problems and several news organizations incorrectly reported that he had filed for bankruptcy. Pippen contends that the false reports have impaired his ability to earn a living by product endorsements and appearances. He filed suit, alleging that he was defamed and cast in a false light. The district court dismissed, finding that the falsehoods did not fit any of the categories of statements recognized by Illinois law to be so innately harmful that damages may be presumed and that the complaint did not plausibly allege that the defendants had published the falsehoods with knowledge the statement was false or reckless disregard of whether it was false, as required for a public figure such as Pippen to recover defamation damages. The Seventh Circuit affirmed. View "Pippen v. NBC Universal Media LLC" on Justia Law

Camarena, a Mexican citizen, was admitted to the U.S. for permanent residence in 1977, at age 10. He did not become a citizen. After a felony conviction for indecent solicitation of a minor, his permanent-residence status was revoked, and he was ordered removed. Camarena is homosexual and HIV positive and claims that gays are persecuted in Mexico and that gays infected by HIV face extra risk. Although he is not eligible for asylum, he applied for withholding of removal under 8 U.S.C. 1231(b)(3), and relief under the Convention Against Torture. The immigration judge granted his application, finding, on the basis of statistics and expert testimony that Camarena probably would be killed or injured in Mexico as a result of his sexuality and disease. The BIA remanded; the IJ adhered to his position. The BIA then reversed and, after a remand, adhered to its position. The BIA accepted the IJ’s findings of historical fact but disagreed about the risk implied by those facts. The Seventh Circuit again remanded, for the BIA to consider, not whether aggregate data imply that Camarena is likely to be killed, but whether the IJ clearly erred in finding that he is more likely than not to be persecuted. View "Rosiles-Camarena v. Holder" on Justia Law

After entry of a judgment of $650,000 in the Northern District of Texas as a sanction for failure to engage in discovery, Sharif filed for Chapter 7 bankruptcy in the Northern District of Illinois. WIN, a judgment creditor, filed an adversary complaint, seeking to prevent discharge of Sharif’s debts under 11 U.S.C. 727, and a declaratory judgment that a trust of which Sharif was trustee was actually Sharif’s alter ego. Sharif failed to respond to WIN’s and the bankruptcy trustee’s discovery requests. Sharif eventually tendered some discovery, far short of full compliance. The bankruptcy judge entered default judgment in WIN’s favor and awarded attorney’s fees. After entry of judgment but before briefing on an appeal, the Supreme Court held that a bankruptcy court lacked constitutional authority to enter final judgment on a state‐law counterclaim against a creditor, even though Congress had granted it statutory authority to do so. When Sharif finally raised the issue, the district judge held that Sharif’s failure to raise it earlier constituted waiver. The Seventh Circuit reversed, holding that the constitutional objection is not waivable because it implicates separation‐of‐powers principles. The bankruptcy judge lacked constitutional authority to enter a final judgment on the alter‐ego claim but had constitutional authority to enter final judgment on objections to discharge of Sharif’s debts. View "Sharif v. Wellness Int'l Network" on Justia Law

In 2009, a political blog and a Chicago television station began reporting that Illinois State Rep. Froehlich offered his constituents reductions in county property taxes in exchange for political favors. The reports highlighted Satkar Hospitality, reporting that it and its owners donated hotel rooms worth thousands of dollars to Froehlich’s campaign. Satkar Hospitality and Capra appealed their tax assessments for 2007 and 2008 and won reductions, but after the publicity about Rep. Froehlich, both were called back before the Board of Review for new hearings. They claim that in these second hearings, the Board inquired not into the value of their properties but into their relationships with Rep. Froehlich. The Board rescinded the reductions. Satkar and Capra sued the Board and individual members under 42 U.S.C. 1983. The district courts concluded that the individual defendants were entitled to absolute quasi‐judicial immunity and the Board itself is not. The Seventh Circuit affirmed, but also held that the damages claims against the Board cannot proceed. They are not cognizable in federal courts, which must abstain in suits for damages under 42 U.S.C. § 1983 challenging state and local tax collection, at least if an adequate state remedy is available. View "Satkar Hospitality, Inc. v. Rogers" on Justia Law