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

Outstanding debt for Chicago traffic tickets surpassed $1.8 billion last year. Under a 2016 Chicago ordinance, when a driver incurs the needed number of outstanding tickets and final liability determinations, Chicago is authorized to impound her vehicle and to attach a possessory lien. Many drivers cannot afford to pay their outstanding tickets and fees, let alone the liens imposed on their cars through this process. Mance incurred several unpaid parking tickets; her car was impounded and subject to a possessory lien of $12,245, more than four times her car’s value. With a monthly income of $197 in food stamps, Mance filed for Chapter 7 bankruptcy and sought to avoid the lien under 11 U.S.C 522(f). When a vehicle owner files for Chapter 7 bankruptcy, she can avoid a lien under 522(f) if the lien qualifies as judicial and its value exceeds the value of her exempt property (the car). If the lien is statutory, it is not avoidable under the same provision.The bankruptcy and district courts and the Seventh Circuit concluded that the lien was judicial and avoidable. The lien was tied inextricably to the prior adjudications of Mance’s parking and other infractions, so it did not arise solely by statute, as the Bankruptcy Code requires for a statutory lien. View "City of Chicago v. Mance" on Justia Law

The FBI conducted extensive surveillance, made more than 10 controlled purchases of heroin from Lottie, and secured court orders authorizing the interception of Lottie’s cellphone communications. Agents learned that Lottie agreed to a large heroin purchase. The supplier, who had recently suffered a leg injury, planned to arrive at a Rockford location to complete the transaction. To prepare for the deal, Lottie went to houses where he stashed drugs and money before returning to his residence. Shortly after, a white Corolla pulled into his driveway for 10-15 minutes before leaving. Law-enforcement officers followed the car and pulled it over after observing two traffic violations. Ochoa-Lopez was the driver; the suspected supplier was the passenger. One officer noticed that the passenger had a leg injury that required the use of an assistive device. Ochoa-Lopez claimed the two men were transporting the car for a company. Agents searched the vehicle and discovered a backpack containing $47,000 in cash.The Seventh Circuit affirmed the denial of a motion to suppress the evidence recovered during the warrantless search of the car. The agents had probable cause to search the car; based on the totality of the circumstances, there was a “fair probability that contraband or evidence of a crime” would be found there. View "United States v. Ochoa-Lopez" on Justia Law

In 2015-2019, Wood defrauded homeowners facing foreclosure, convincing them to "refinance" and make their mortgage payments to him. Wood convinced some clients to stall foreclosures by manipulating the bankruptcy process. A Wisconsin bankruptcy judge enjoined Wood from continuing his scheme. Wood disregarded that order, defrauding 73 victims of almost $400,000. Many were evicted from their homes. Wood was charged with six counts of wire fraud, 18 U.S.C. 1343; one count of mail fraud, section 1341; one count of bankruptcy fraud, section 157; and criminal contempt of court, section 401(3). Wood violated his pretrial supervision by contacting his victims and soliciting money for mortgage services. Wood pled guilty to wire fraud and bankruptcy fraud; his PSR recommended a sentence of 72 months, based on a Guidelines range of 70-87 months. The court expressed skepticism about Wood’s allocution, citing Wood’s previous fraudulent crimes, his “heartlessness,” and the profound, non-monetary harm to his victims and legitimate creditors. Concluding that the Guidelines inadequately accounted for Wood’s behavior, the court observed Wood’s “crime stands apart" and that the closest comparator was a fraudulent scheme in another case (Iriri). The court observed that Iriri was induced to commit fraud, whereas Wood committed his crime completely unprompted.The Seventh Circuit affirmed Woods' 144-month sentence. Wood’s sentence turned on the unique characteristics and qualities of his crime. That is not an abuse of discretion. The court’s reference to Iriri “is so limited as to flirt with irrelevance.” View "United States v. Wood" on Justia Law

Indiana University hired Palmer, who is Black, as a lecturer in Business Marketing in 2010. In 2013, Palmer inquired about his potential for early promotion to senior lecturer. His Department Chair said that it was rare for lecturers to apply for senior lecturer prior to their sixth year and suggested that Palmer wait. Palmer did not apply for early promotion. In 2016, IU promoted Palmer to senior lecturer. Palmer also served as Diversity Coach in the MBA program, for an additional $25,000 per year and a reduced course load; he resigned as Diversity Coach after the 2016–2017 school year. . In 2016, the Marketing Department hired Gildea, who is white, as a new lecturer and as Director of the Business Marketing Academy (BMA). Palmer complained that Gildea’s base salary nearly matched Palmer’s base salary. Palmer earned $98,750; Gildea earned $94,000, with no other lecturer or senior lecturer in their department earning over $90,000. Palmer also complained of discrimination.Palmer filed an EEOC charge, alleging race discrimination in violation of Title VII, 42 U.S.C. 2000e-2(a)(1), and subsequently filed suit. Palmer’s failure-to-promote claim is time-barred. His unequal pay claim fails on the merits. Palmer enjoyed higher pay than all of his colleagues, except Gildea, who is not a proper comparator. View "Palmer v. Indiana University" on Justia Law

Qin (from China) is among 165 foreign limited partners who collectively invested $82.5 million into the Colorado Regional Center Project Solaris LLLP (CRCPS), whose general partner is CRC-I (an LLC). The parent company of CRC-I is Waveland, which has a member (Deslongchamps) and a Milwaukee office. CRCPS was part of an approved U.S. EB-5 immigrant visa program through which Qin and others obtained permanent-resident visas as a result of their investment in a commercial enterprise in the United States. CRC-I invested CRCPS’s funds in a condominium project. The investment was a failure, allegedly due to CRC-I’s malfeasance. Qin, on behalf of a class of investors, wants to sue CRC-I in the Eastern District of Wisconsin. He filed a petition under Federal Rule of Civil Procedure 27, seeking leave to depose Deslongchamps, in order to identify CRC-1’s members.The district court denied the petition, reasoning that Qin’s request is not one to perpetuate testimony that is at risk of being lost. The Seventh Circuit affirmed. While Qin faces an obstacle to pursuing federal court relief, and the dilemma posed by the non-corporate association whose members (and their citizenship) the plaintiff cannot ascertain despite reasonable investigatory efforts has been noted and discussed elsewhere, the court concluded that addressing that issue would require an advisory opinion. View "Qin v. Deslongchamps" on Justia Law

Perez began work at Staples in 2011 and became a sales representative in 2015. Perez’s performance issues began five months later. His supervisor, Coha placed Perez on a “weekly activity plan.” Six months later Perez was still not meeting the company’s objectives, so Coha placed him on another plan. The two met weekly to discuss Perez’s work. In 2016, Staples divided its sales representatives into account managers, who targeted repeat local business and account developers, who targeted larger, multiple-location accounts with higher dollar amounts. Perez was classified as an account manager. Coha reassigned some of Perez’s accounts. Perez’s job performance continued to falter; he was placed on another plan. While Perez was on the plan, he served jury duty and voiced his discomfort with his company’s sale of a detergent banned in another state. In June 2016, Staples terminated Perez’s employment.Perez sued, alleging violations of the Illinois Jury Act and the Illinois Whistleblower Act, and common-law retaliatory discharge. The Seventh Circuit affirmed summary judgment in favor of Staples. Perez was terminated not in retaliation for protected activities but because of his poor sales production. Staples documented his poor performance before the detergent issue arose; no reasonable jury could conclude that Staples fired Perez because of his jury service. View "Perez v. Staples Contract & Commercial, LLC" on Justia Law

In 2012, Patlan pled guilty to conspiracy to distribute controlled substances. He began supervised release in April 2017. Because of violations, in January 2019, the court added six months of home confinement. After additional violations district court revoked his supervision and sentenced him to 18 months’ imprisonment plus three years of supervised release, including six months of home confinement. Patlan began his second period of supervised release in September 2020. In December 2020, he tested positive for drugs; in January he committed domestic battery. The Probation Office classified the drug possession as a Grade B violation, calculating his guidelines range as 18-24 months of imprisonment. Following Patlan’s concession of guilt, the court entertained Patlan’s “policy objection,” then sentenced Patlan to 18 months’ imprisonment (including 61 days of home confinement remaining when his supervision was revoked), plus 24 months of supervised release.The Seventh Circuit affirmed, rejecting arguments that the district court erred when it failed to recognize that it had the discretion to reject the inference that he possessed controlled substances from a positive drug test and to treat a failed drug screening as a Grade C violation, failed to provide justifications for the six‐month term of home confinement, and failed to pronounce that condition orally during the hearing. View "United States v. Patlan" on Justia Law

ECE's movie theaters lost money after North Carolina's Governor imposed statewide closures in response to COVID-19. ECE’s insurance policy with HCC provides: We will pay the actual loss of Business Income you sustain due to the necessary “suspension” of your “operations” during the “period of restoration.” The “suspension” must be caused by direct physical loss of or damage to property at premises that are described in the Declarations and for which a Business Income Limit of Insurance is shown in the Declarations. The loss or damages must be caused by or result from a Covered Cause of Loss. A “Civil Authority” provision covers “the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises due to direct physical loss of or damage to property, other than at the described premises, caused by or resulting from any Covered Cause of Loss.”After HCC denied ECE’s claim, the district court dismissed ECE’s suit. ECE argued that the policy covered losses due to COVID-related closures because the virus rendered ECE’s property unsafe. The Seventh Circuit affirmed the dismissal. ECE alleged neither a physical alteration to property nor an accessor use-deprivation so substantial as to constitute physical dispossession. View "East Coast Entertainment of Durham, LLC v. Houston Casualty Co." on Justia Law

Ten Pas worked as a tax partner at the McGladrey accounting firm until he suffered a cluster of cardiovascular events in 2014. He receives total disability benefits under McGladrey’s group long-term disability insurance policy, administered by Lincoln National. Ten Pas, arguing that he is entitled to a larger monthly benefit under the policy, filed suit under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1132(a)(1)(B). The policy calculates benefits based on a percentage of an employee’s salary on “the last day worked just prior to the date the Disability begins.” Lincoln used Ten Pas’s salary as of August 31, 2014, the date of his heart attack and the first of several consecutive hospital stays. Ten Pas argues that his determination date came on or after September 1. The short difference matters because Ten Pas received a substantial raise from McGladrey on that date.The district judge granted Ten Pas summary judgment. The Seventh Circuit reversed. Lincoln’s benefits determination cannot be disturbed unless Ten Pas can show that it was arbitrary or capricious. He has not met this demanding standard. The decision rests on a reasonable construction of the contract and an evaluation of Ten Pas’s medical records. View "Ten Pas v. Lincoln National Life Insurance Co." on Justia Law

Bensenberg, age 85, was driving her 2008 Chrysler SUV when she lost consciousness during a medical episode. Her car entered a ditch beside the highway at 45-65 mph, hit a raised earthen driveway, became airborne, and struck a concrete post. The side-curtain airbag deployed when the vehicle’s sensors detected a potential roll-over, but the front airbag did not deploy. Bensenberg's seat belt deployed properly. Bensenberg suffered an undisplaced fracture of the second cervical vertebra in her neck. She wore a cervical collar for three months but did not require surgery. She died of unrelated causes three years later, after filing suit against the car manufacturer, alleging strict liability based on a manufacturing defect and a design defect in the airbag system.The district court granted a motion in limine to exclude the opinion of Bensenberg’s expert that the vehicle’s airbag was defective because the expert did not identify any purported defect in the airbag system but simply assumed from the airbag’s failure to deploy that it must have had a defect. The Seventh Circuit reversed. The opinion of the plaintiff’s expert is admissible to show that the vehicle was traveling at a rate of speed sufficient to command deployment of the front airbag when it collided with the post; this is sufficient to make a prima facie case of a non-specific defect in the airbag system within the parameters that Illinois courts have established. View "Bensenberg v. FCA US LLC" on Justia Law