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

When the Indiana Department of Child Services identifies a situation that involves the apparent neglect or abuse of a child, it files a “CHINS” (Children in Need of Services) petition that may request the child’s placement with foster parents. Minors who are or were subject to CHINS proceedings sought an injunction covering how the Department investigates child welfare. The district court denied a request to abstain and declined to dismiss the suit. The Seventh Circuit reversed, noting that only two plaintiffs still have live claims and that it is improper for a federal court to issue an injunction requiring a state official to comply with existing state law. Indiana subsequently filed a bill of costs under Fed. R. App. P. 39(a)(3), against the next friends who represented the minors’ interests. The Seventh Circuit denied that petition. Next friends are not parties to suits in which they assist minors or incompetent persons. Rule 39(a) authorizes awards against losing litigants, not against their agents (which may include lawyers and guardians ad litem as well as next friends). The next friends in this litigation are neither the children’s natural parents nor their foster parents and are not generally responsible for the children’s expenses. View "Ashley W. v. Holcomb" on Justia Law

Rankins, a DHL employee, was seriously injured at work when a cable within a winch system snapped. Rankins received workers’ compensation benefits. The winch system was designed and installed by SSK. Rankins brought products-liability claims in state court against SSK. DHL lost the physical pieces of the winch system after the suit was removed to federal court. SSK brought a third-party suit against DHL seeking damages for the spoliation of evidence and seeking contribution under the Illinois Joint Tortfeasor Contribution Act. DHL settled with Rankins by waiving its workers’ compensation lien ($455,229.17) and paying an additional $87,500. DHL then argued that its good-faith contribution settlement with Rankins entitled it under state law to a full dismissal of all third-party claims stemming from Rankins’s injury. The district court rejected SSK’s argument that the settlement did not compensate SSK for its own spoliation-related difficulties and dismissed SSK’s third-party complaint.The court found that, under FRCP 54(b), there was no just cause for delaying SSK’s appeal of the dismissal of the spoliation claim. The Seventh Circuit dismissed the appeal for lack of jurisdiction. The spoliation and product liability claims are not factually and legally separable to the extent required by Rule 54(b), so there is no final judgment. View "Systems Solutions of Kentucky LLC, v. DHL Express (USA), Inc." on Justia Law

In 2017 Nigro, a certified nurse anesthetist, began working at Riley Hospital. Division Director, Dr. Sadhasivam, recruited her and started implementing a new team-based care model. Within a year, an internal investigation revealed department-wide concern over the model’s efficacy and impact on team dynamics. Some employees believed that Sadhasivam’s leadership style resulted in a tense workplace. In 2017-2019, Nigro was the subject of multiple complaints, mostly concerning her attitude and ability to work on a team. Coworkers described her as “rude, snappy and belittling,” with management expressing concern that her behavior undermined the department’s already delicate atmosphere of collegiality. After investigating the complaints, hospital decision-makers issued a “coaching memorandum” to Nigro. A month later, it was determined that Nigro had engaged in timekeeping fraud by not working at times when she had been clocked in, Sadhasivam and three female administrators, agreed to terminate her for misconduct.Nigro filed suit under Title VII, 42 U.S.C. 2000e-2(a)(1), alleging sex-based discrimination and retaliation because of a supportive affidavit she had signed in another employee’s discrimination case. The Seventh Circuit affirmed summary judgment in favor of the defendants. There is neither direct nor indirect evidence to support Nigro’s Title VII claim. View "Nigro v. Indiana University Health Care" on Justia Law

To treat her endometriosis, Paulsen received Lupron injections in 2004 from her physician in Georgia. Shortly afterward she began experiencing health problems, including severe bone and joint pain, memory loss, and fevers. In April 2010, Paulsen filed a personal injury suit. Paulsen voluntarily dismissed her claims in 2014. In 2015, Paulsen filed a second lawsuit asserting product liability, negligence, breach of warranty, and misrepresentation. After several amended complaints and the addition of a defendant, two claims remained: a strict liability failure-to-warn claim against AbbVie and Abbott; and a negligent misrepresentation claim against Abbott. Limited discovery was permitted.The district court subsequently applied Illinois procedural law and Georgia substantive law, reasoning that Paulsen’s injury occurred in Georgia, and Illinois lacked a stronger relationship to the action, then granted the defendants summary judgment. The court ruled that Paulsen’s strict liability failure-to-warn claim was time-barred by Georgia’s 10-year statute of repose. Georgia does not recognize a stand-alone misrepresentation claim in product liability cases. Even if this cause of action did exist, the court reasoned, Paulsen’s misrepresentation claim would fail because “the undisputed evidence show[ed] that Abbott did not make any representations regarding Lupron.” The Seventh Circuit affirmed. The court noted extensive evidence that Paulsen’s claims accrued before April 2008 and are barred by the Illinois two-year statute of limitations for personal injuries. View "Terry Paulsen v. Abbott Laboratories" on Justia Law

Bloomington, Indiana (population 90,000) is in a metropolitan statistical area with a population near 200,000. From Bloomington, one can drive an hour and ten minutes to Indianapolis (population 865,000); two hours to Evansville (population 120,000); two hours to Louisville (population 620,000); or two and a half hours to Cincinnati, (population 300,000). Dr. Vasquez arrived in Bloomington in 2006, opened an independent vascular‐surgery practice, and obtained admitting privileges at Bloomington Hospital, Monroe Hospital, and the Indiana Specialty Surgery Center. He performed more than 95% of his inpatient procedures at Bloomington Hospital. In 2010, IU Health acquired Bloomington Hospital. In 2017, IU Health acquired Premier Healthcare, an independent physician group based in Bloomington. Vasquez alleges that, because of the acquisition, IU Health employs 97% of primary care providers (PCPs) in Bloomington and over 80% of PCPs in the region. Vasquez’s alleged that IU Health launched “a systematic and targeted scheme” to ruin his reputation and practice because of Vasquez’s commitment to independent practice. IU Health's employees cast aspersions on his reputation. IU Health revoked Vasquez’s Bloomington admitting privileges.Vasquez brought claims under Sherman Act, 15 U.S.C. 2, and Clayton Act, section 18. The Seventh Circuit reversed the dismissal of his suit. Vasquez’s accounts of how a hypothetical monopolist could dominate Bloomington’s vascular‐ surgery market suffice for the pleading stage; the complaint presents a plausible account under which his suit is timely. View "Vasquez v. Indiana University Health, Inc" on Justia Law

A 66-count, multi-defendant criminal indictment notified the defendants that the government would seek criminal forfeiture under 18 U.S.C. 982(a)(1), (a)(2)(A), (b) and 28 U.S.C. 2461(c) as part of any sentence imposed and would seek civil forfeiture under 18 U.S.C. 981(a)(1)(A), (a)(1)(C), (a)(1)(D), and 28 U.S.C. 2461(c). Furando and his companies pleaded guilty; Furando’s plea included agreed-upon forfeiture of personal property, assets, vehicles, funds, Saddle River, New Jersey real property, and proceeds from the sale of commercial real estate in Montvale. The subsequent preliminary forfeiture orders directed the government to give notice to potential third-party interest holders under 21 U.S.C. 853(n), which the government did.Furando’s wife and three companies (claimants) filed under 21 U.S.C. 853 to make their claim as innocent owners of the property. The district court denied the claimants’ petition to adjudicate the validity of their interest, granted the government’s motion for interlocutory sale of the Saddle River property, and denied the claimants’ section 853(n) petition without further explanation. The Seventh Circuit vacated in part. The district court erred in sua sponte denying the section 853(n) petition without a hearing or opportunity to amend. The government’s arguments that the claimants cannot prevail under 853(n)(6) and the arguments about prior vested interest are misplaced, because those statutory considerations are only relevant “after the hearing”—which never occurred. The court affirmed the order for an interlocutory sale. View "United States v. Furando" on Justia Law

Goulding, an accountant and lawyer, has a history of mail fraud and tax fraud. Goulding formed 15 funds that hired Nutmeg’s advisory services, which he managed. The funds invested in illiquid securities, many of which were close to insolvent. Gould wrote all of the disclosure documents, which overvalued the funds. Goulding made baseless statements about increases in value. Goulding did not use outside advisors and engaged in commingling, holding some securities in his own name.The Securities and Exchange Commission charged Goulding under the Investment Advisers Act of 1940, 15 U.S.C. 80b, with running Nutmeg through a pattern of fraud, including touting his supposed financial expertise while failing to disclose his crimes, in addition to violating the Act’s technical rules. The district court issued an injunction removing Goulding from the business and appointing a receiver. A magistrate judge enjoined Goulding from violating the securities laws, required him to disgorge $642,422 (plus interest), and imposed a $642,422 civil penalty. The Seventh Circuit affirmed the finding of liability and the financial awards. The extent of Goulding’s wrongdoing makes it hard to determine his net unjustified withdrawals; as the wrongdoer, he bears the consequence of uncertainty. The restitution reflects a conservative estimate of Goulding’s ill-got gains. Nor did the judge err by declining to trace funds from their source to Goulding’s pocket. View "Securities and Exchange Commission v. Goulding" on Justia Law

Weller was convicted of insider trading, Securities Exchange Act, 15 U.S.C. 78j(b). Fleming, a vice president of Life Time Fitness, had learned that his company was likely to be acquired by a private equity firm at an above-market price. Fleming told a friend, Beshey, who told Clark and Kourtis (who knew that the information had been misappropriated), who told others, including Weller. Most of them profited by trading on the information and showed their appreciation by “kickbacks.”Weller unsuccessfully argued that he did not know that Fleming violated a duty to his employer by passing the information to Beshey and that the government did not prove a financial benefit to Fleming. The Seventh Circuit affirmed his convictions. Although Weller did not interact with all of the others, he did conspire with at least Kourtis to misuse material non-public information for their own benefit. The court upheld Weller’s 366-day below-Guidelines sentence, noting that Weller profited more than the others. View "United States v. Weller" on Justia Law

Brito unlawfully entered the U.S. in or before 2013. After DHS ordered him removed, Brito illegally reentered before 2019. DHS issued a second notice of removal, Brito applied for withholding of removal under the Immigration and Nationality Act and withholding or deferral of removal under the Convention Against Torture (CAT), claiming that he would be subject to persecution and torture if removed to Mexico. Brito testified that he had fled Mexico because cartel members confronted and abducted him at gunpoint. His home was ransacked by the cartel. Brito’s expert testified that the cartel would seek him out to exact revenge for his escape and noted the Mexican government’s history of acquiescing to or even colluding with the cartel.The IJ granted Brito deferral of removal under CAT. The BIA vacated that decision and ordered Brito removed to Mexico, finding no factual support for the finding that the cartel sought him out specifically or was even aware of his identity. The BIA characterized Brito’s evidence as largely describing “the general inadequacies and corruption in the Mexican government.” The Seventh Circuit denied a petition for review. The BIA applied the correct standard and was not prohibited from accepting an untimely brief from DHS. View "Brito v. Garland" on Justia Law

Seven years into his 15-year sentence for heroin dealing, Brock sought early discharge under the compassionate release statute, 18 U.S.C. 3582(c)(1)(A). Receiving that relief depended on Brock first identifying a legally cognizable “extraordinary and compelling” reason for ending his sentence early and then convincing the district court the outcome was further justified by an application of the 18 U.S.C. 3553(a) factors. Brock argued, as “an extraordinary and compelling ground to consider a lower sentence,” that his 2005 cocaine conviction was no longer a proper predicate for his 21 U.S.C. 851 sentencing enhancement because the Illinois statute under which he was convicted covers isomers of cocaine omitted from the federal definition of cocaine.The district court denied relief, finding that the compassionate release statute could not be used as a path to a sentence reduction based on a position available to defendants during plea negotiations or trial, direct appeal, or in a post-conviction motion under 28 U.S.C. 2255 challenging a sentence. The Seventh Circuit affirmed. Intervening Circuit precedent, even if viewed as announcing new law or a new interpretation of an existing statutory provision, cannot alone constitute an “extraordinary and compelling” reason authorizing a reduced sentence under section 3582(c)(1)(A). View "United States v. Brock" on Justia Law