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

Dixon pleaded guilty to possessing a firearm as a felon. The district court sentenced him to 96 months’ imprisonment, raising his base‐offense level by six levels under U.S.S.G. 2K2.1(a)(4)(A) because he had a previous conviction for a “crime of violence,” an Iowa conviction for intimidation with a dangerous weapon. According to the charging document in the Iowa court, Dixon had shot at a vehicle with multiple occupants and continued firing at them as they fled.The Seventh Circuit affirmed. A conviction under the Iowa statute requires that the defendant placed someone in “reasonable apprehension of serious injury.” The court applied the categorical approach and stated that the only way a defendant uses a dangerous weapon to put someone in fear of serious injury is by threatening physical force. View "United States v. Dixon" on Justia Law

In May 2007, SunTrust hired Birch to perform a portfolio valuation on a property located in Indiana. The Birch report valued the property at $3.23 million. PNC Bank provided financing for the mortgage loan; both PNC and SunTrust accepted the report. In October 2007, the owner sold the property to a SunTrust affiliate subject to a $2.3 million loan PNC extended to SunTrust. The loan was later acquired by Regent. After consulting with independent appraisal experts, Regent hired a law firm and employed a certified appraiser, Potter, to evaluate the original Birch report. Potter’s report detailed several deficiencies in Birch’s 2007 appraisal.Regent filed a federal complaint, with state law claims, but soon moved to dismiss the complaint. Birch then filed its own lawsuit against Regent for malicious prosecution. Regent counterclaimed for attorney’s fees under the Indiana frivolous litigation statute. The district court dismissed both claims. The Seventh Circuit affirmed. Birch cannot establish the elements of a successful malicious-prosecution claim, but its lawsuit was not frivolous under Indiana law. Regent did not act maliciously in commencing the underlying action; it had probable cause based on advice from outside counsel, a detailed report by a certified appraiser, and justifiable reliance on the report. View "Birch Rea Partners, Inc. v. Regent Bank" on Justia Law

Cortez sued Cook, alleging that she was injured by an Inferior Vena Cava Filter, implanted in her in 2006 for the prevention of pulmonary embolisms. Cortez’s action was part of consolidated multidistrict proceedings. Accordingly, Cortez filed a Short‐Form Complaint that incorporated counts from the Master Consolidated Complaint for Individual Claims, alleging product liability, negligence, breach of express and implied warranty, and violations of Oregon’s Unlawful Trade Practices Act.Cook argued that the product liability claims were filed beyond the time period in the statute of repose of Cortez’s home state, Oregon. Cortez countered that the Oregon statute incorporates Indiana law because the product was manufactured there, which allows for equitable tolling of the limitations period, and that the complaint sufficiently alleged entitlement to tolling based on fraudulent concealment. She alleged that Cook knew the product was defective and, through affirmative misrepresentations and omissions, actively concealed significant risks, continuing to promote the Filter as safe and effective even though inadequate clinical trials had been performed.The district court dismissed the claims, finding the allegations insufficient to demonstrate fraudulent concealment. The Seventh Circuit affirmed, applying Indiana law. Because these product liability claims are subject to a statute of repose, and fraudulent concealment cannot extend the time to file claims for such a statute, the claims are untimely. View "Cortez v. Cook Inc." on Justia Law

Rucker is serving a 240-month sentence. While awaiting a jail transfer in 2012, Rucker attacked another prisoner who had testified against him, slamming the man’s head against a concrete wall. In 2020, Rucker sought a sentence reduction under 18 U.S.C. 3582(c)(1)(A)(i), arguing that he had an extraordinary and compelling reason for release—his medical conditions (obesity, hypertension, pre-diabetes, poor eyesight, possible sickle cell trait, and his then-current COVID-19 infection) and the spread of COVID-19 throughout the prison. He argued that early release was supported by 18 U.S.C. 3553(a)’s sentencing factors, specifically his traumatic childhood during which his mother died and his father abused drugs, and his successful completion of anger management and drug abuse courses while in prison. Rucker’s criminal history included prior convictions for damage to property, battery, home invasion, and drug trafficking.The Seventh Circuit affirmed the denial of relief. The district court’s assessment of Rucker’s COVID-19 risk was cursory but any error was harmless because the court acted within its broad discretion in finding that the 3553(a) factors did not favor release. The court highlighted the need to protect the public from further crimes and the need to reflect the seriousness of the offense and provide just punishment for the offense. "Recent events underscore the need for ... individualized arguments and evidence." View "United States v. Rucker" on Justia Law

Thomas pleaded guilty to distributing 50 grams or more of methamphetamine, 21 U.S.C. 841(a)(1), while he was serving an extended term of supervised release based on an earlier conviction for conspiracy to possess with intent to distribute 100 grams or more of heroin. Thomas did not contest the revocation of his supervision term. The probation officer determined that Thomas qualified as a career offender under the Sentencing Guidelines because he had committed a controlled substance offense and had “at least two prior felony convictions of either a crime of violence or a controlled substance offense” In addition to his prior federal heroin conviction Thomas had a Wisconsin conviction for Child Abuse—Intentionally Cause Harm. Employing the career offender guidelines yielded a sentencing range of 262-327 months; without that designation, the range would have been 120-125 months.The underlying Wisconsin statute refers to: “Whoever intentionally causes bodily harm to a child.” Thomas argued that because the statute did not require the use of physical force as an element, it did not fit the definition of a “crime of violence.” The Seventh Circuit affirmed his sentences of 100 months in the distribution case with a consecutive sentence of 30 months in the revocation case. Seventh Circuit controlling precedent holds that the crime of intentionally causing bodily harm is a crime of violence. View "United States v. Thomas" on Justia Law

Witkemper was the president and sole shareholder of Maximum, which had employees, but in 2004-2006 never withheld and remitted federal income and insurance contribution taxes (FICA taxes). Maximum went bankrupt. Unable to fully collect the unpaid taxes during the bankruptcy proceedings, the IRS lodged an assessment totaling $385,705.54 and recorded a notice of a federal tax lien against Witkemper, who sent the IRS a signed Offer in Compromise. The IRS accepted the Offer. Witkemper began making the required monthly minimum payments, $500. Witkemper successfully sought to rescind the settlement after it had been in effect only 205 days. Witkemper then began making property transfers to his wife and children without any consideration.The IRS viewed the transactions as fraudulent conveyances and filed suit. The Witkempers had no response to the merits of the government’s position but argued that the government could not prove that its initial assessment of the FICA tax penalties fell within the statutory deadline, citing “unreliable government records” containing clerical errors. They claimed that because the government filed its complaint more than 10 years after it assessed the FICA recovery penalties the lawsuit was outside the limitations period, which was not tolled by the Offer, which had “forged signatures.” The Seventh Circuit affirmed a $385,705.54 judgment in the government’s favor, finding the case “not close," the Witkempers’ counsel never should have pressed the appeal. View "United States v. Witkemper" on Justia Law

Woods claims an identity thief opened a credit card in his name, leading debt collectors to pursue him for the card’s unpaid balance, $723.55. The debt collector, Resurgent, initially rejected his claims that the debt was not his. After months of phone calls and letter writing, Woods succeeded in having the debt removed from his credit report. Woods filed suit under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. He alleged that the companies violated the FDCPA by using “false representation[s] or deceptive means to collect or attempt to collect any debt,” 15 U.S.C. 1692e(10). In Woods’s view, Resurgent’s collection letters were literally false, since they stated that he owed a debt that American Airlines had since determined was not his. Woods claimed that Resurgent violated FCRA by failing to conduct a reasonable investigation into his fraud claims, 15 U.S.C. 1681s-2(b)(1)(A).The Seventh Circuit affirmed the dismissal of his suit. Literal falsity is not the standard under section 1692; a statement “isn’t ‘false’ unless it would confuse the unsophisticated consumer.” Resurgent’s investigation was reasonable, in light of Woods’s failure to respond to requests for information. View "Woods v. LVNV Funding, LLC" on Justia Law

Farnolo helped his clients file short‐form complaints in the multidistrict “Cook” litigation, involving product liability claims alleging injuries caused by Cook’s medical device—a filter designed to prevent pulmonary embolism. The case management order instructed all plaintiffs to complete a profile form with general personal and medical background information and details about their device and alleged injuries. In May 2019, the defendants notified attorney Farnolo that they did not have forms from his four clients. By late June, the forms still had not been filed. Farnolo never responded to the defendants' motion to dismiss.The district court dismissed the cases on July 19, 2019. Farnolo learned about the dismissal not by monitoring the docket, but from his client more than a year later. On August 18, 2020, he moved for reconsideration and reinstatement of the cases, claiming that he did not receive an electronic docket notification of the motion to dismiss; he attributed his delay in asking for reconsideration to his email inbox sending the dismissal order to his junk folder. The district court denied Farnolo’s motion as both untimely and meritless. The Seventh Circuit affirmed; all Rule 60(b) motions must be made within a “reasonable time” and Rule 60(c)(1) specifically requires requests for reconsideration predicated on excusable neglect to be brought within one year of entry of judgment. Inexcusable attorney negligence is not an exceptional circumstance justifying relief. View "Sides v. Cook Medical Inc." on Justia Law

Larry Nassar sexually assaulted hundreds of girls and young women during his involvement with USA Gymnastics (USAG), the non-profit organization which governs the sport in the United States. As a result of Nassar’s abuse, USAG has been sued several times and investigated by Congress and federal and state authorities. USAG sought financial help with its defense from insurers, including Liberty, with which USAG had a claims-made, directors and officers (D&O) liability insurance policy. An insurance-coverage lawsuit in Indiana state court was removed to federal court.The Nassar-related litigation and investigations forced USAG into bankruptcy. The bankruptcy court issued proposed findings and conclusions, including that the Nassar-related claims were timely made and that a wrongful-conduct exclusion applied to only those claims for which Nassar was criminally convicted. The district court agreed.The Seventh Circuit remanded, first holding that it had jurisdiction because the ruling had the “practical effect” of an injunction under 28 U.S.C. 1292(a)(1). USAG’s claims were timely made during the policy period. The wrongful conduct exclusion, which the court found ambiguous as applied to this case, applies to 10 instances of Nassar’s sexual abuse, but not to claims related to his abuse that were not finally adjudicated. A bodily injury exclusion in the policy does not preclude coverage; coverage is proper for various government investigations and other matters. View "USA Gymnastics v. Liberty Insurance Underwriter, Inc." on Justia Law

Pretrial detainees Kemp, Dearborn, Galvez, and Lind-Enriquez had lived together in the cellblock without incident for several months when a fight broke out, with Kemp throwing the first punch. Officer Burget was patrolling the jail but, to avoid being considered a “snitch,” Kemp did not tell Burget about threats made before the fight. The fight ended with Kemp lying motionless on the floor. Officer Williams, conducting her rounds, saw Kemp lying on the floor and called for emergency medical services. The medics responded about eight minutes later. Kemp suffered severe injuries.The Seventh Circuit affirmed the rejection of Kemp’s 42 U.S.C. 1983 suit on summary judgment. Although Burget had about 60% hearing loss in one ear and about 40% hearing loss in the other and was not wearing his prescribed hearing aid, the evidence did not indicate that his impaired hearing made any difference in the response to the beating. Nothing in the record would have put a reasonable guard on notice of a substantial risk of harm to Kemp. The court also rejected wrongful hiring and wrongful retention claims. View "Kemp v. Fulton County" on Justia Law