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Mourning worked for Ternes from 1997 until the company fired her in 2013. In February 2013, Frey, Mourning’s manager, granted Mourning leave under the Family Medical Leave Act, 29 U.S.C. 2615, to treat her encephalopathy. Mourning returned to work less than two months later. While Mourning was on leave, eight of her 10 subordinates submitted an internal complaint, alleging that Mourning intimidated and publicly humiliated them, acted unpredictably, and micromanaged her team. Before that submission, Mourning had never been the subject of a written complaint, nor had she ever been disciplined. Frey had rated Mourning’s performance as above “exceptional,” at her last evaluation in May 2012. Upon her return from leave, Mourning responded with a written rebuttal and her own internal complaint against the staff. A client indicated that Mourning’s “performance was not up to his standards.” The company fired Frey and Mourning. The company promoted another female to Mourning’s position. Mourning sued, alleging discrimination based on her sex (Title VII, 2 U.S.C. 2000e-2), and retaliation for taking medical leave. The Seventh Circuit affirmed summary judgment rejecting Mourning’s claims. Mourning did not have any direct evidence of sex discrimination nor did she produce evidence from which it could be inferred that she was meeting legitimate expectations, she was similarly situated to a more favorably treated employee, or that the reason for firing her was pretextual. View "Mourning v. Ternes Packaging, Indiana, Inc" on Justia Law

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Novae issued Cunningham an insurance policy. While insured by Novae, Cunningham entered into an agreement with AP to provide claims-handling services. In 2004 AP sued Cunningham in Texas state court, alleging misrepresentation and negligently-handled claims, resulting in unwarranted or underpriced policy renewals. While that litigation was ongoing, AP filed for bankruptcy. Novae then denied Cunningham’s request for coverage and remained largely uninvolved in the state litigation because the policy did not obligate it to defend. In 2012 Cunningham and AP’s bankruptcy trustee entered into a settlement, including a stipulation to the entry of a $5.12 million judgment against Cunningham; an assignment to AP of Cunningham’s purported right to recover against Novae; and a covenant not to execute on the judgment against Cunningham. The settlement stated that Illinois law would govern its interpretation. The Texas court entered judgment in accordance with the settlement. APs bankruptcy trustee then sued Novae in Illinois, asserting the assigned rights. The Seventh Circuit affirmed summary judgment for Novae. In Texas “assignments of choses in action that tend to increase and distort litigation” violate public policy and are invalid. The type of settlement at issue is collusive and distorts the adversarial process. View "Hendricks v. Novae Corporate Underwriting, Ltd." on Justia Law

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Willis and Simmons were convicted of conspiracy to distribute 100 grams or more of heroin and sentenced to 235 months’ and 108 months’ imprisonment, respectively. They appealed, claiming there was an impermissible variance from the indictment and that the jury pool failed to include a fair cross‐section of their community because only one of the 48 members of the venire was black. Simmons also challenged a jury instruction related to the amount of heroin involved in her offense and argued that the court erred in enhancing her sentencing offense level for possession of a gun during the commission of a drug offense. The Seventh Circuit affirmed. The defendants cannot show that the underrepresentation of blacks in the jury pool was due to a systematic exclusion of that group. The indictment adequately alleged conspiracy. The evidence that Simmons conspired with Willis to sell 100 grams or more of heroin was overwhelming. The evidence sufficiently established that Simmons constructively possessed the gun given that it was in the closet of the bedroom she shared with Willis and near drugs and drug paraphernalia. View "United States v. Simmons" on Justia Law

Posted in: Criminal Law

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Murphy was convicted of rape by force in Los Angeles 37 years ago and was required, while he resided in the state, to register as a sex offender for the rest of his life. Murphy moved to Wisconsin 21 years later and was convicted of aggravated assault. While he never registered in Wisconsin as a sex offender, the Wisconsin Department of Corrections determined that because of his California conviction, Murphy should register as a sex offender for the rest of his life once he was released from prison, in Wisconsin. Murphy challenged that determination. The Department removed Murphy from the registry. For almost two years, Murphy was free from sex offender restrictions and from the state’s registration requirements. Murphy filed a civil rights suit. The Department determined that it had erred and returned him to the registry. The Seventh Circuit affirmed summary judgment for the defendants, rejecting an argument that Murphy was denied due process before being placed on the registry because he did not receive prior notice and an opportunity to be heard. The Supreme Court has been clear that the Constitution does not require that a state provide individuals with process before being placed on a sex offender registry if the decision is based upon a conviction. View "Murphy v. Rychlowski" on Justia Law

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Stinson spent 23 years in jail for a murder he did not commit. No eyewitness testimony or fingerprints connected him to the murder. Two dentists testified as experts that Stinson’s dentition matched the teeth marks on the victim’s body. A jury found Stinson guilty. After DNA evidence helped exonerate Stinson, he filed this civil suit against the lead detective and the dentists alleging that they violated due process by fabricating the expert opinions and failing to disclose their agreement to fabricate. The district court denied the defendants’ motions for summary judgment seeking qualified immunity. The Seventh Circuit dismissed appeals for lack of jurisdiction. The court distinguished between appeals from denials of summary judgment qualified immunity based on evidentiary sufficiency and those “presenting more abstract issues of law.” The appeals failed to take the facts and reasonable inferences from the record in the light most favorable to Stinson and challenge the sufficiency of the evidence on questions of fact, precluding interlocutory review. The court concluded that it had jurisdiction to consider and affirmed the denial of absolute immunity. That denial was correct because Stinson’s claims focus on the defendants’ conduct while the murder was being investigated, not on their trial testimony or trial testimony preparation. View "Stinson v. Johnson" on Justia Law

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Rose bought $120,000 of products on credit from Caudill and did not pay. Before a district court ruled for Caudill, Rose gave 440 acres of land to his son Matt, then filed for bankruptcy. Caudill began an adversary proceeding, asking the judge to pull the land into the estate under 11 U.S.C. 548. The bankruptcy trustee's similar request was settled for payment of $100,000. The bankruptcy judge approved that settlement over Caudill’s objection. To get a discharge, Rose reaffirmed his debt to Caudill. He promised to pay $100,000, with an immediate $15,000; failure to pay entitles Caudill to a judgment for $300,000. Rose paid the $15,000 but nothing more. Caudill might have sought to rescind the discharge, but filed a new suit based on the reaffirmation agreement, obtaining a $285,000 default judgment. Rose failed to pay. Caudill commenced supplemental proceedings, contending that, under Indiana law, it can execute on the land that was fraudulently conveyed to Matt. Rose and Matt did not deny that the transfer was a fraudulent conveyance but argued that the settlement of the Trustee’s claim precluded further action to collect Rose’s debts from the value of the land. The district court and Seventh Circuit rejected that argument, observing that issue preclusion depends on an actual decision, by a judge, that is necessary to the earlier litigation. Whether the transfer of the land was a fraudulent conveyance was not actually litigated; the Trustee’s claim was settled. View "Caudill Seed & Warehouse Co. v. Rose" on Justia Law

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Wine & Canvas (W&C) hosts “painting nights.” Patrons, following a teacher’s instructions, create a painting while enjoying wine. W&C operated in Indianapolis, Bloomington, and Oklahoma City. Muylle signed a license agreement, moved to San Francisco, and opened a W&C operation. W&C’s executives were present and taught the first class, worked with Muylle to approve paintings for use, gave Muylle company email addresses, and advertised the San Francisco operation on the W&C website. Disagreements arose. Muylle gave notice to terminate the agreement, changed the business name to “Art Uncorked,” and ceased using the W&C name and marks. W&C alleged trademark infringement, 15 U.S.C. 1051. Muylle’s counterclaims invoked California franchise law, federal trademark cancellation. and Indiana abuse of process law. Plaintiffs failed to meet discovery deadlines, despite being sanctioned three times. The Seventh Circuit affirmed: dismissal of the California law counterclaims; W&C's summary judgment on Muylle’s trademark cancellation counterclaim; Muylle's summary judgment on trademark dilution, sale of counterfeit items, unfair competition, bad faith, tortious conduct, abuse of process, breach of contract, fraud, and a claim under the Indiana Crime Victims Act; and Muylle's partial summary judgment on trademark infringement. Through November 18, 2011, W&C impliedly consented to Muylle’s using the marks. On claims of trademark infringement and false designation of origin (for any use after November 18, 2011), and Muylle’s abuse of process counterclaim, the court affirmed awards to Muylle of $270,000 on his counterclaim and $175,882.68 in fees. View "Wine & Canvas Development, LLC v. Muylle" on Justia Law

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Winebow imports and distributes wines to downstream wholesalers. It wants to cut its ties with two wholesale distributors, which have had the exclusive right to sell and distribute Winebow products within specified regions of Wisconsin. The distributors claim that the Wisconsin Fair Dealership Law bars Winebow from doing so—at least without any financial penalty. Under the Law, certain sellers (Wis. Stat. 135.02(5)) unilaterally may stop doing business with their existing distributors only if they have “good cause.” The Law does not regulate all grantor-distributor relationships. In 1999, the Wisconsin General Assembly sought to broaden the Law to ensure that all “intoxicating liquor” dealerships were protected. It included changes in the state’s budget bill, which amended the definition of a “dealership” so that large-volume distributors of “intoxicating liquor” were brought under the umbrella of the statute’s definition of a protected “dealership.” Several changes never came into effect, because then-Governor Thompson objected to treating wine dealerships the same as other alcohol dealerships. He partially vetoed the appropriations bill, striking significant portions of the changes to the Law. In Winebow’s declaratory judgment action, the Seventh Circuit certified to the Supreme Court of Wisconsin the question whether wine dealerships are automatically to be considered as “intoxicating liquor” dealerships for purposes of the Law. View "Winebow, Inc. v. Capitol-Husting Co., Inc." on Justia Law

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Chessie is a railroad authorized to operate one mile of track in Melrose Park, Illinois. It has apparently been many years since trains have run on that track. Krinos owns and operates an adjacent industrial facility. A spur and side track run over Krinos’s property; Chessie says it has easements to use those tracks. Chessie alleges that Krinos constructed a sewer line and did drainage work, burying parts of its tracks and creating a slope directing runoff that damaged other parts. After Chessie notified Krinos, Krinos removed the dirt from one track and did additional damage. Chessie filed suit, alleging trespass, negligence, and violation of 49 U.S.C. 10903. Section 10903 requires rail carriers to receive permission from the Surface Transportation Board before abandoning parts of their lines. Krinos counterclaimed, alleging that Chessie did not have easements to use the spur and side tracks and seeking a declaratory judgment, quiet title, and ejectment. The district court agreed that section 10903 did not create a private right of action and granted Krinos summary judgment. Chessie did not show that it had easements over Krinos’s property, and an independent contractor, not Krinos, caused the alleged intrusion. The Seventh Circuit affirmed. Section 10903 does not create an implied right of action. Chessie was not entitled to change its negligence theory after discovery. View "Chessie Logistics Co., LLC v. Krinos Holdings, Inc." on Justia Law

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Farmer was convicted of armed bank robbery, 18 U.S.C. 2113(a) and (d), and brandishing a firearm during a crime of violence, section 924(c)(1)(A)(ii). Farmer drove the getaway car and was not in the bank during the robbery. Her convictions were premised on an accomplice theory under 18 U.S.C. 2. In 2014 the Supreme Court held (Rosemond) that a section 924(c) conviction under an accomplice theory requires proof that the accomplice had “foreknowledge that his confederate [would] commit the offense with a firearm.” The jury at Farmer’s 2012 trial was not instructed on a foreknowledge requirement. In a motion under 28 U.S.C. 2255, after Rosemond was decided, Farmer argued that her trial counsel was constitutionally ineffective for failing to object to the section 924(c) instruction. The district judge denied relief because Farmer failed to establish that she was prejudiced by that failure to object. On appeal, she attempted to raise the Rosemond issue directly rather than through trial counsel’s ineffectiveness. The Seventh Circuit held that Farmer procedurally defaulted that claim and must establish cause and actual prejudice to excuse the default. She did not do so. The government presented plenty of evidence that Farmer had advance knowledge that a gun would be used, so the Rosemond error was not grave enough to cause actual prejudice. View "Farmer v. United States" on Justia Law