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

Shaw’s pro se complaint alleged that three times in 2018 he needed to use the handicapped bathroom but was unable to because nondisabled prisoners occupied it. Shaw is confined to a wheelchair and incontinent. Each instance ended with Shaw defecating on himself. Shaw alerted prison staff, who asserted that they could not control what toilets other inmates used or reserve the handicapped stall solely for his use. Shaw’s complaint alleged violations of the Americans with Disabilities Act (ADA), the Rehabilitation Act, and constitutional rights.Before allowing the defendants to be served and fulfilling the screening obligation imposed by 28 U.S.C. 1915A(a), the district court addressed the ADA and Rehabilitation Act claims and concluded that Shaw, while unquestionably a qualified person with a disability, failed to allege a denial of access to any prison service and instead complained only about an “inconvenience” of prison life. The Seventh Circuit reversed. Shaw’s allegations suffice to state claims under the ADA and Rehabilitation Act; he will still need to prove his claim and show deliberate indifference. View "Shaw v. Kemper" on Justia Law

Tate has worked for the Sheriff of Cook County since 2007. In his third year as a correctional officer, Tate suffered a back injury. He returned to work under medical restrictions that required him to “avoid situations in which there is a significant chance of violence or conflict.” After Tate was promoted to sergeant, the Sheriff’s Office accommodated this medical restriction by allowing him to work in the Classification Unit, where the possibility of violence or physical conflict was relatively remote. When Tate sought a promotion to lieutenant, he was told that the Sheriff could not accommodate him in that position. Correctional lieutenants had to be “able to manage and [defuse] regular, violent situations involving inmates.” Tate’s doctor declined to modify his medical restrictions,Tate sued, alleging violations of the Americans with Disabilities Act, 42 U.S.C. 12101, and the Illinois Human Rights Act. The Seventh Circuit affirmed summary judgment in favor of the Sheriff’s Office. In concluding that Tate could not perform the “essential functions,” the court considered the employer’s judgment, written job descriptions, the amount of time spent performing the function, the consequences of not requiring the incumbent to perform the function, the collective bargaining agreement, and the work experience of incumbents in the job. View "Tate v. Dart" on Justia Law

Jane held a minority stake in Du-Kane and Crush-Crete, companies owned by her husband, Paul, and other family members. The couple divorced in 2009. Jane died in 2017. Paul died months later. In 2017 Jane’s estate sued, alleging that Jane’s ownership interest was wrongfully diluted after the divorce. The complaint named only Du-Kane as the defendant, though the allegations concerned the actions of the couple's four sons as officers, directors, and shareholders. An amended complaint filed in 2018 added Crush-Crete and the Dunteman brothers as codefendants. The codefendants were insured under “claims made” liability policies issued in 2017 and 2018 by Hanover. With “claims made” insurance, the insured must notify the insurer of a “claim” in the policy period in which it is first “made.” If a claim goes unreported in the relevant policy period, the insurer owes no duty to defend or indemnify. The defendants notified Hanover and sought coverage under the 2018 policy. Hanover denied the request because the claim was first made in 2017 and had not been timely reported during that policy period.Hanover sought a declaration that it owed no defense or indemnity. The insureds counter-claimed breach of contract. The Seventh Circuit affirmed judgment for Hanover. The original complaint triggered a reportable claim during the 2017 policy period. Subsequent amendments to that complaint did not commence a new, distinct claim first made in 2018. View "Hanover Insurance Co. v. R.W. Dunteman Co." on Justia Law

Riegel, seeking to build a condominium development in Isla Mujeres, formed ISLA and borrowed millions of dollars from the Hovdes. The project failed. More than 10 years later, the Hovdes sued ISLA and Riegel.The district court granted the defendants summary judgment on the claim based on the Mortgage Note, citing the 10-year limitations period, and later holding that the limitations defense could be asserted against Riegel as the guarantor. The Seventh Circuit affirmed. An acceleration clause provided that if a Default occurred, the outstanding unpaid principal and interest would automatically become immediately due, triggering the 10-year limitations period. One such “Default” was an “Act of Bankruptcy,” defined to include admitting in writing the inability to pay debts as they mature. Two emails sent by Riegel to the Hovdes constituted an admission in writing of inability to pay debts: an August 7, 2008 email, asking for an advance to pay a tax bill, and a subsequent email indicating that all construction workers had been suspended. The language does not require actual insolvency; it merely requires an admission of an inability to pay the debts, whether or not true. The terms “continuing, absolute, and unconditional” are terms of art when used in guarantees and do not waive the limitations defense. View "Hovde v. ISLA Development LLC" on Justia Law

Bernacchi was a passenger in a taxicab insured by First Chicago when an uninsured driver struck the cab. In February 2021, an Illinois court concluded that Bernacchi was covered under the First Chicago policy up to $350,000. On February 11, 2021, Bernacchi sent First Chicago documentation, requesting $350,000, though she valued her entire loss at $680,000. On May 11, 2021, Bernacchi filed suit in federal court, alleging that First Chicago had still not done anything to adjust her claim.The district dismissed, reasoning that Bernacchi’s complaint failed to cite any contract language creating an obligation to adjust her claim or to do so within a certain timeframe; Bernacchi’s claim relied upon the Illinois Insurance Code, which does not provide a private right of action. The Seventh Circuit affirmed. The district court did not violate the party presentation rule. The parties squarely argued about Illinois insurance statutes and administrative regulations; 215 ILCS 5/215 ILCS 5/154.6 enumerates a list of acts that constitute improper claims practice, but neither it nor its surrounding statutes provide a private right of action. View "Bernacchi v. First Chicago Insurance Co." on Justia Law

The School District includes four high schools. Groves, who is white, started at the District in 1991 as a teacher. In 2007 he became the Adams High School athletic director. In 2017 Groves applied to serve as Corporation Director of Athletics, a new, District-wide position. Superintendent Spells interviewed four applicants and recommended Gavin, who is Black, explaining that Gavin inspired confidence in his ability to repair the District’s relationship with the Indiana High School Athletic Association; Groves interviewed poorly and seemed to boast of firing 24 coaches during his tenure. Noncompliance with Association regulations occurred under Groves’s watch at Adams.Groves sued under Title VII, noting that Spells is also Black. The District later eliminated the Corporation Director of Athletics position and created a hybrid Dean of Students/Athletics position at each of the four high schools. Groves, Gavin, and seven other candidates applied for the four new positions. The Riley High School position went to Gavin. Groves added a claim of retaliation based on the elimination of his position. The Seventh Circuit affirmed the summary rejection of his claims. Groves was not substantially more qualified than Gavin. Both met the criteria that the District required for the position. The court rejected a claim of pretext. Although Gavin’s criminal background came to light after the challenged hiring decisions, the District interpreted its background check policy as applying only to external hires, not existing employees moving to new positions. View "Groves v. South Bend Community School Corp." on Justia Law

In 2012, a competitor sued Creation for trademark violations. Creation requested that Selective Insurance provide coverage. Selective refused. Creation’s settlement with its competitor prevented Creation from selling one of its primary lines. Creation struggled financially. Selective sought a declaration in Illinois state court that it had no duty to defend. Creation countersued and also alleged breach of the insurance policy. The Illinois court entered partial summary judgment for Creation on its duty-to-defend claim, limited to fees Creation incurred before the original trademark litigation was settled.In 2014—in the middle of the state-court litigation—Creation sued Selective in federal court for breach of contract and under the Illinois Insurance Code. In 2016, Creation voluntarily dismissed its state-court breach-of-contract claim with leave to refile. The Illinois court expressly reserved Creation’s right to maintain its federal action on its contract claim. After the 2017 state court award, the federal district court awarded Creation nearly $3 million in damages on the Insurance Code claim. After remand, Creation unsuccessfully sought to amend its complaint to seek punitive damages. The district court then concluded that the doctrines of claim and issue preclusion barred Creation’s remaining contract claim.The Seventh Circuit reversed, noting that the case is an “anomaly.” The state court expressly reserved Creation’s right to file the claim in federal court, so the suit is not precluded by its earlier state-court litigation. View "Creation Supply, Inc. v. Selective Insurance Co. of the Southeast" on Justia Law

After Gates split up with his girlfriend, B.F., he began violently threatening her, apparently vandalizing the house where she was staying. Gates was arrested nearby for disorderly conduct but released after a few hours. Gates called B.F. to say, “I posted bond, bitch. I’m on my way.” She saw Gates across the street. He fired five shots in her direction, then fled. After a third threatening call, a woman drove Gates past the house. He leaned out the window and shot at B.F. again. Police stopped the car and arrested Gates.Gates pleaded guilty as a felon in possession of a firearm, 18 U.S.C. 922(g)(1). The PSR recounted Gates’s extensive 25-year criminal history. In the weeks before he shot at B.F., he was arrested for domestic violence and was charged with drunk driving. Despite Gates’s long criminal record, the Guidelines assigned him just one criminal history point; with a four-level increase for using a firearm in connection with a felony offense, his Guidelines range was 18–24 months. The district court determined that an upward variance was appropriate, citing several 18 U.S.C. 3553(a) factors and a “pattern of escalating violence.” The Seventh Circuit affirmed his 48-month sentence. Gates’s sentence was procedurally sound and substantively reasonable. View "United States v. Gates" on Justia Law

Two drivers sued Bailey Trucking for violations of the Fair Labor Standards Act (FLSA), 29 U.S.C. 216(b), and Indiana wage laws by failing to pay drivers for time spent working before and after hauling jobs. The employees’ first attempt at class/collective certification was unsuccessful; the court concluded that class counsel Weldy’s disciplinary record precluded him from representing the class. On reconsideration, the court conditionally certified an FLSA collective and certified a Rule 23 class. Almost four years later, the court decertified the class and collective; finding the number of plaintiffs too small for collective resolution to provide any efficiency above simple joinder. The employees amended their complaint to add nine plaintiffs. The court granted the employees partial summary judgment. The parties negotiated settlements.The court approved a settlement that reflected a full recovery of claimed damages for the two-year period preceding the suit, plus a partial recovery for the third year of damages that would have been available if the employees proved a willful FLSA violation, concluding that an immediate partial recovery outweighed the time and risk of trial. The employees sought an award of more than $200,000 in attorney’s fees under FLSA. The court awarded $70,000. The Seventh Circuit affirmed. The district court did not abuse its discretion when it lowered the fee award after concluding that Weldy overbilled his hours and the employees obtained only partial success. View "Koch v. Jerry W. Bailey Trucking, Inc." 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