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

In 2017, a bankruptcy court discharged Persinger’s debts, under 11 U.S.C. 727. A few months later, Southwest Credit began collection efforts on a pre‐petition debt of Persinger’s, including by acquiring a type of credit information called her “propensity‐to‐pay score.” Alleging that this information had been secured without a permissible purpose, Persinger sued Southwest under the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681.The district court granted Southwest summary judgment, holding that Southwest’s compliance procedures were reasonable and met FCRA’s requirements. The Seventh Circuit affirmed, first holding that Persinger has standing to sue. Southwest invaded her privacy when it reviewed her credit information but no reasonable juror could conclude that the inquiry into Persinger’s propensity‐to‐pay score resulted in actual damages. If a plaintiff cannot prove actual damages, she may still recover statutory or punitive damages by proving that the defendant willfully violated FCRA. Viewed as a whole, Southwest’s procedures for handling bankruptcy notifications and for ordering bankruptcy scrubs from LexisNexis were reasonable compliance efforts, not willful violations of the FCRA. At the time Southwest ordered the credit score, it was unaware that the debt at issue had been discharged. View "Persinger v. Southwest Credit Systems, L.P." on Justia Law

Chicago Police Officers Elizondo and Salgado used their positions to embezzle drugs and cash, some of which they distributed to informants. They encouraged informants to present false information to state judges to obtain search warrants, which yielded more drugs and cash. The FBI's first sting operation failed. After obtaining court authorization to wiretap Elizondo’s phone, the FBI conducted another sting operation and recorded Elizondo and Salgado stealing cash they recovered from an FBI-controlled rental vehicle. Salgado saw law enforcement towing the rental vehicle the next day, and told Elizondo, who instructed Salgado to “relocate” items from Salgado’s home. Both were convicted of conspiracy and theft; Elizondo was also convicted of obstruction of justice for instructing Salgado to destroy or conceal evidence. Elizondo was sentenced to 87 months’ imprisonment. Salgado was sentenced to 71 months’ imprisonment.The Seventh Circuit affirmed. The wiretap application was not an improper subterfuge search because the government was forthright about the scope of its investigation. The district court followed the applicable steps in its “Batson” inquiry. The trial evidencel on the obstruction charge was sufficient for the jury to infer that Elizondo acted with the intent to prevent the use of evidence in an official proceeding. There was no clear error in the loss calculation at sentencing. View "United States v. Elizondo" on Justia Law

In 2016, Lax raised concerns about discrimination. After notification of his right to file a formal complaint, Lax filed a formal complaint of disability discrimination against his employer (DHS), alleging he had been improperly placed on indefinite suspension and had his security clearance suspended after he checked himself into a hospital for mental health treatment and missed two days of work.DHS's final agency decision, rejecting Lax’s complaint, was sent to Lax’s work email address on July 17, 2019. One minute later, Lax was sent the password to open an attachment, which contained: the final decision, a “Notice of Appeal Rights,” a privacy statement, and a certificate of service. The “Notice of Appeal Rights” stated that Lax had the right to file suit in federal court within 90 days of receiving the final decision. Lax concedes that he opened these emails and read them on the day they were sent but claims that he was unable to open the attached document until the next day; government security measures prevented him from accessing his work email account on any non-work device.On October 16, 2019 (91 days after July 17), Lax filed suit. The Seventh Circuit affirmed the dismissal of the suit as untimely under 42 U.S.C. 2000e5(f)(1). Lax did not satisfy the extraordinary circumstances element for equitable tolling. View "Lax v. Mayorkas" on Justia Law

Buncich, while serving as Sheriff of Lake County, Indiana, received thousands of dollars from local towing companies that received lucrative towing contracts within the county. A jury convicted Buncich of wire fraud and bribery in 2017, and he was sentenced to 188 months in prison. Following an earlier appeal that vacated three counts of conviction, he was resentenced to 151 months.The Seventh Circuit affirmed that sentence, rejecting arguments that the district court erred in its Sentencing Guideline calculation, that the court failed to explain its guideline findings sufficiently and made other procedural errors, and that the sentence was substantively unreasonable. The court upheld the “benefit calculation” under U.S.S.G. 2C1.1(b)(2), which requires an offense-level increase if “the value of the payment” or “the benefit received or to be received in return for the payment” exceeded $6,500. The probation officer estimated that the benefit received was $108,650. The combination of the presentence report, the exploration of the benefit-received issue at the two sentencing hearings, and the district court’s resolution in favor of the presentence report’s view are sufficient to permit meaningful review. The sentencing judge understood his obligation to independently decide whether the Guideline sentence achieved the goals of section 3553(a). View "United States v. Buncich" on Justia Law

Wisconsin provides transportation to private-school students, limited to only one school “affiliated or operated by a single sponsoring group” within any given attendance area. The state superintendent decided that St. Augustine, a freestanding entity that describes itself as Catholic but independent of the church’s hierarchy, is “affiliated with or operated by” the same sponsoring group as St. Gabriel, which is run by the Catholic Archdiocese.In 2018, the Seventh Circuit rejected a suit by St. Augustine. The Supreme Court vacated and remanded for further consideration in light of intervening precedent. The Seventh Circuit then certified to the Wisconsin Supreme Court the question of how to determine “affiliation” under state law. That court responded: [I]n determining whether schools are “affiliated with the same religious denomination” [i.e., the same sponsoring group] pursuant to Wis. Stat. 121.51, the Superintendent is not limited to consideration of a school’s corporate documents exclusively. In conducting a neutral and secular inquiry, the Superintendent may also consider the professions of the school with regard to the school’s self-identification and affiliation, but the Superintendent may not conduct any investigation or surveillance with respect to the school’s religious beliefs, practices, or teachings.The Seventh Circuit then reversed. The Superintendent’s decision was not justified by neutral and secular considerations, but necessarily and exclusively rested on a doctrinal determination that both schools were part of a single sponsoring group—the Roman Catholic church—because their religious beliefs, practices, or teachings were similar enough. View "St. Augustine School v. Underly" on Justia Law

Cothron works as a manager at an Illinois White Castle restaurant where she must scan her fingerprint to access the restaurant’s computer system. With each scan, her fingerprint is collected and transmitted to a third-party vendor for authentication. Cothron alleges that White Castle did not obtain her written consent before implementing the fingerprint-scanning system, violating the Illinois Biometric Information Privacy Act, 740 ILCS 14/1. She brought a proposed class-action lawsuit on behalf of all Illinois White Castle employees. White Castle argued that a claim accrued under the Act the first time Cothron scanned her fingerprint into the system after the law took effect in 2008, making her suit untimely. Cothron responded that every unauthorized fingerprint scan amounted to a separate violation of the statute, so a new claim accrued with each scan.The district judge rejected White Castle’s “one time only” theory but certified an interlocutory appeal under 28 U.S.C. 1292(b). The Seventh Circuit certified the question to the Illinois Supreme Court: Do section 15(b) and 15(d) claims accrue each time a private entity scans a person’s biometric identifier and each time a private entity transmits such a scan to a third party, respectively, or only upon the first scan and first transmission? View "Cothron v. White Castle System, Inc." on Justia Law

After being fired from the CTA, Miller and McGuire (both Caucasian) sued their former employer, alleging racial discrimination and retaliation in violation of federal (42 U.S.C 1981 and 1983, Title VII of the Civil Rights Act of 1964) and Illinois state law. Following discovery, the defendants moved for summary judgment. Despite receiving two extensions, however, Miller and McGuire failed to respond. Finding no persuasive excuse for this failure, the district court denied their third extension and took up the motion without a responsive pleading. The court concluded that the undisputed evidence did not support the claims and granted CTA summary judgment.The Seventh Circuit affirmed. The district court did not abuse its discretion in denying an extension, and evidence of basic elements of a retaliation claim was lacking. Miller and McGuire could not avoid summary judgment based on the suspicious timing of their discharges alone unless, “[a]t minimum,” they first produced evidence supporting a reasonable inference that Bonds (a CTA officer) knew of their EEO complaints. They did not. Undisputed evidence showed that CTA had legitimate (nonracial) reasons for terminating Miller and McGuire’s employment and these reasons were not pretextual. View "Miller v. Chicago Transit Authority" on Justia Law

Based on his perception that Cole was following another vehicle too closely, Illinois Trooper Chapman stopped Cole. The initial stop lasted 10 minutes. Chapman spent about six minutes questioning Cole, then told Cole that he would get a warning but that, for safety reasons, they had to go to a gas station to complete the paperwork. Chapman testified later that he had already decided that he was not going to release Cole before searching the car. Chapman requested a drug-sniffing dog and learned that Cole had been arrested for drug crimes 15 years earlier. At the gas station, Cole’s answers became contradictory; 30 minutes after the stop, Chapman told Cole that he could not leave because he suspected Cole was transporting drugs. The dog arrived 10 minutes later and alerted. Chapman found several kilograms of methamphetamine and heroin in a hidden compartment. The Seventh Circuit initially reversed the denial of Cole’s motion to suppress. On rehearing, en banc, the court affirmed the denial. Travel-plan questions ordinarily fall within the mission of a traffic stop but, like other police inquiries during a traffic stop, must be reasonable under the circumstances. Here they were reasonable. The trooper inquired about the basic details of Cole’s travel, and his follow-up questions were justified given Cole’s less-than-forthright answers. The stop itself was lawfully initiated, and the trooper developed reasonable suspicion of other criminal activity before moving to the gas station for the dog sniff. View "United States v. Cole" on Justia Law

Suing under the Federal Tort Claims Act, 42 U.S.C. 233(a) Clanton alleged that nurse practitioner Jordan, an employee of the U.S. Public Health Service, failed to educate him about his severe hypertension or to monitor its advancement; his hypertension developed into Stage V kidney disease so that Clanton required dialysis and, at the age of 35, a kidney transplant. The district court rejected the government’s comparative negligence argument as to Clanton and awarded Clanton nearly $30 million in damages. The Seventh Circuit upheld the damages calculation but remanded for the court to assess Clanton’s comparative negligence under Illinois’s reasonable-person standard, noting that Clanton had external clues that he was seriously unwell, such as two employment-related physicals which showed dangerously high blood pressure.On remand, the court again concluded that comparative negligence was inapplicable. The Seventh Circuit affirmed. The district court made findings as to what an objectively reasonable person would understand as to hypertension and found that a reasonable person would not understand the potential for damage absent any symptoms, and therefore would not understand the need to take medication or see a medical provider when asymptomatic. Based on those findings, the court held that Clanton’s actions were not inconsistent with the due care that would be expected of a reasonable person. The government did not challenge whether the fact-findings and conclusion were supportable; the court properly identified and applied the standard. View "Clanton v. United States" on Justia Law

The Judicial Panel on Multidistrict Litigation (MDL) asked the Southern District of Indiana to oversee a multidistrict litigation docket to coordinate discovery and other pretrial proceedings in thousands of medical product-liability suits, alleging that Cook’s inferior vena cava (IVC) filters were defective. The court and the parties agreed to a procedure by which new plaintiffs could join the MDL by filing directly in the Southern District of Indiana rather than filing in their home districts and waiting for the judiciary’s administrative machinery to transfer their cases to the MDL in Indiana. The plaintiffs filed their lawsuits directly in the Indiana MDL rather than filing in the states where they lived and had their IVC filters implanted.Cook moved to dismiss both cases based on Indiana’s two-year statute of limitations for personal injury actions. The plaintiffs’ home states (South Carolina and Mississippi) have three-year statutes. The Seventh Circuit reversed the dismissal of the suits. The unique facts of this case indicate that Cook implicitly consented to using choice-of-law rules for these plaintiffs as if they had filed in their home states. It was not fair to allow Cook to change positions retroactively to dismiss these plaintiffs’ cases that had been timely filed under the “law of the case.” View "Looper v. Cook Inc." on Justia Law