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

DWM agreed to purchase 30 gasoline station-convenience stores from Smart for $67 million. It was understood that it was a "flip" because Smart did not yet own the properties. Both parties were represented by counsel. The Agreement requires DWM to deposit $300,000 into an escrow account. At the close of the due diligence period, DWM is to pay a second deposit of $450,000. DWM never paid the initial earnest money deposit but the parties continued their due diligence investigations and negotiations. The Agreement requires DWM to provide Smart with written notice to terminate the Agreement if, after its investigations, DWM disapproved of the purchase. If DWM did not provide that written notice, the Agreement states that Smart is entitled to keep the earnest money if the deal falls through. DWM failed to provide notice of disapproval and did not pay the second deposit. In the meantime, Smart executed contracts to acquire the properties. When the DWM-Smart deal fell through, Smart sued DWM for breach of contract, arguing it was entitled to $750,000 in earnest money as liquidated damages. DWM counterclaimed for breach of contract and fraudulent inducement, for failure to provide adequate due diligence materials.The Seventh Circuit affirmed holdings that DWM breached the contract, that DWM’s obligation to pay the earnest money remained, and that Smart was entitled to the earnest money as liquidated damages under Illinois law. View "Smart Oil, LLC v. DW Mazel, LLC" on Justia Law

The False Claims Act, 31 U.S.C. 3729–3733, authorizes relators to file qui tam suits on behalf of the U.S. government. If such an action is successful, the relator receives part of the recovery. The Act prohibits presenting to a federal healthcare program a claim for payment that violates the Anti-Kickback Statute, 42 U.S.C. 1320a-7b(b), Venari formed 11 daughter companies, each for the purpose of prosecuting a separate qui tam action, alleging essentially identical violations of the False Claims Act by pharmaceutical companies. CIMZNHCA, a Venari company, filed suit alleging illegal kickbacks to physicians for prescribing Cimzia to treat Crohn’s disease in patients who received federal healthcare benefits. The government did not exercise its right “to intervene and proceed” as the plaintiff but moved to dismiss the action, representing that it had investigated the Venari claims and found them to lack merit. The court denied that motion, finding the government’s general evaluation of the Venari claims insufficient as to CIMZNHCA and that the decision to dismiss was “arbitrary and capricious.”The Seventh Circuit reversed with instructions to dismiss, construing the government’s motion as a motion to both intervene and dismiss. By treating the government as seeking to intervene, a court can apply Federal Rule of Civil Procedure 41, which provides: “The Government may dismiss the action” without the relator’s consent if the relator receives notice and opportunity to be heard. View "United States v. UCB, Inc." on Justia Law

After four months of pretrial detention at the Madison County jail in 2007, Pittman attempted suicide by hanging himself with a blanket. The attempt left Pittman in a vegetative state. In his suicide note, he stated that the guards were “f***ing” with him and would not give him access to “crisis [counseling].” Banovz, an inmate housed near Pittman’s cell, substantiated the claim that Pittman had made in his suicide note. In a recorded interview with a county detective, Banovz stated that in the days leading up to Pittman’s suicide attempt, Pittman had asked officers Werner and Eaton to refer him to crisis counseling; neither of them followed through with their promises. On remand, in a suit under 42 U.S.C. 1983, a jury ruled in favor of the defendants. The Seventh Circuit ruled that the district court’s exclusion of the Banovz video interview was a reversible error. After a second trial, the jury again returned a verdict for the defendants.The Seventh Circuit again remanded. One of the jury instructions erroneously directed the jury to evaluate Pittman’s Fourteenth Amendment claim according to a subjective rather than objective standard. The jury was told to consider whether the defendants “consciously failed to take reasonable measures to prevent [Pittman] from harming himself.” View "Pittman v. Madison County" on Justia Law

Greene pleaded guilty to distributing child pornography, 18 U.S.C. 2252A(a)(1), 2252A(b)(1), and received a within‐guidelines 15-year prison sentence and a life term of supervised release. Greene argued that the sentence violated the parsimony provision of the sentencing statute, which requires that a sentence be “sufficient, but not greater than necessary.” He challenged the district court’s statement that, for him, at age 59, terms of 10 years and life would be “effectively the same” because his life after prison would be “short.”The Seventh Circuit affirmed. The district court considered the guidelines and explained, with reference to section 3553(a)'s factors, why it believed that a life term of supervised release was necessary. Agents found approximately 2,850 images of child pornography on his laptop and a thumb drive; he had a prior conviction for child pornography and was subject to a statutory minimum term of 15 years in prison. While Greene admitted that he had a problem and that his actions had caused a lot of pain and injury, the court saw a need for deterrence and to protect the public. View "United States v. Greene" on Justia Law

Brace, now age 40, was injured on the job in 2013 and can no longer perform his past work in health service, food service, and construction. He applied for Social Security disability benefits, claiming persistent back and neck pain and several other conditions. An ALJ found that Brace’s severe impairments from degenerative disc disease, neuropathy in the elbow and forearm, and a history of surgery in his shoulder. did not presumptively establish a disability. The ALJ ruled that Brace could not perform any of his past work. A vocational expert testified that Brace could perform jobs as a callout operator, semiconductor bonder, or registration clerk, or a counter clerk, subject to restrictions and that a significant number of jobs exist across those job categories—an estimated 140,000. Brace’s lawyer asked the vocational expert to explain how he arrived at his job estimates; the answer was inscrutable. The ALJ nonetheless accepted his testimony and rejected Brace’s claim for benefits.The Seventh Circuit reversed. The ALJ’s approach does not satisfy the substantial evidence standard. The court rejected the ALJ’s justifications that Brace’s counsel should have objected to the expert’s qualifications before he testified and that the cited jobs number was so large that “[e]ven if the methodology used create[d] a significant margin of error[,] … a significant number of jobs exist.” View "Brace v. Saul" on Justia Law

Thomas agreed to sell methamphetamine to a government cooperator and drove to the prearranged delivery time and place, where the police arrested him and searched his car. When police opened the glove compartment, out fell two firearms and a bag of methamphetamine. Thomas claimed that he used the guns for lawful purposes unrelated to drug dealing and did not possess them “in furtherance of” a drug trafficking crime in violation of 18 U.S.C. 924(c)(1)(A)(i). He had a concealed-carry permit.The Seventh Circuit affirmed his conviction, applying the plain error standard. At trial, Thomas had not challenged the admission of so-called “dual-role” (both expert and lay) testimony from a federal agent nor the jury instructions. Even setting aside the agent’s testimony, the government had ample evidence to show that Thomas was using the firearms found in his car to facilitate his drug dealing. Imperfect as they were, the jury instructions were not so confusing or misleading as to warrant reversal. View "United States v. Thomas" on Justia Law

Machicote, a Wisconsin inmate underwent surgery to remove damaged bone, tissue, and cartilage in his ankle after he suffered an injury while playing basketball in the prison yard. After the procedure, the surgeon supplied Machicote with oxycodone and warned that he would be in “extreme pain” when the medication wore off. He was discharged with instructions recommending narcotic-strength painkillers every six hours. At the prison, Dr. Herweijer ordered Tylenol #3, as needed every six hours for three days. Because of Nurse Stecker’s scheduling of the doses, Machicote woke at 3:30 a.m. in “excruciating pain.” Machicote continued to have trouble accessing the medication that had been ordered; the prison’s medication distribution schedule did not match Machicote’s prescription. Concerned about pain during the night, Machicote was told: “That’s how it will go.” Machicote’s medication order ran out completely and he began experiencing agonizing pain around the clock. Nurse Stecker refused to contact a doctor. Five days later, Dr. Hoffman prescribed him another painkiller, Tramadol. Machicote did not receive the medication for two more days, and his medical records show that the pain required management for several more weeks.In Machicote’s suit under 42 U.S.C. 1983, the district court granted the defendants summary judgment. The Seventh Circuit affirmed as to the other defendants but vacated in part; a factual issue remains as to the deliberate indifference of Nurse Stecker. View "Machicote v. Roethlisberger" on Justia Law

The U.S. Postal Inspection Service identified suspicious packages sent from Puerto Rico to Duenas. Milwaukee officers intercepted and followed a package and arrested Duenas once he accepted the delivery. Duenas mentioned the shooting incident and stated that Medina had repeatedly shipped him cocaine from Puerto Rico. The powdery substance in the intercepted package contained cocaine; 40 small bags amounted to more than one kilogram. Three fingerprints inside the package matched Medina’s fingerprints. Medina was indicted for conspiring to distribute 500 grams or more of cocaine. The defense suggested that a fourth mail receipt—labeled as being sent from Milwaukee on August 19, 2014, at 3:25 pm—could not have been in Medina’s car. The judge said the receipt raised a “mystery” but dismissed the idea that it created a reasonable doubt as to the Puerto Rico officers’ testimony or the receipts bearing Duenas’ name.The Seventh Circuit affirmed Medina’s conviction. The judge recognized the factual discrepancies that Medina identified and only relied on the credible portions of the testimony. Medina’s arguments do not render the testimony physically impossible or otherwise unbelievable. Given the testimony and the corroborating physical evidence, a rational trier of fact could have easily found Medina guilty beyond a reasonable doubt. View "United States v. Medina" on Justia Law

Salazar-Marroquin, a Mexican citizen, entered the U.S. with a B-2 visitor’s visa in 2000 at age 16 and stayed despite the expiration of his visa. In 2010 he was arrested for driving without a license and was served with a Notice to Appear charging him as removable under 8 U.S.C. 1182(a)(6)(A)(i), with a time and date for his hearing “to be set.” Salazar-Marroquin then received two Notices of Hearing, causing confusion, he says, that led him to miss his removal hearing. He was ordered removed in absentia. Two motions to reopen were denied.His third motion to reopen asserted that he had been charged incorrectly because, instead of entering the country illegally, he had been admitted on a visa; because he was not removable as charged, his 10 years’ continuous presence should allow him to seek cancellation of removal if a new Notice to Appear issued. He also asserted that he should be allowed to seek adjustment of status based on his marriage to a U.S. citizen. Salazar-Marroquin filed a supplemental motion to terminate his removal proceedings because his Notice to Appear, lacking the specific time or place of the removal proceedings, was deficient and did not trigger the “stop-time” rule under 8 U.S.C. 1229b(d)(1).The Seventh Circuit held that Salazar-Marroquin is entitled to have the Board of Immigration Appeals take a fresh look at his motion to have his case reopened based on evidence that he entered legally, despite the generally applicable time-and-number limits on motions to reopen. View "Salazar-Marroquin v. Barr" on Justia Law

Many years ago, a class of plaintiffs sued, alleging that the Clerk of the Circuit Court of Cook County was engaging in unlawful political patronage in violation of the First and Fourteenth Amendments. In 1972, the Clerk and the plaintiffs entered into a consent decree that prohibited the Clerk from discriminating against the office’s employees for political reasons; in 1983, a separate judgment extended that prohibition to hiring practices. Litigation has continued. In 2018, a magistrate judge appointed a special master to monitor the Clerk’s compliance. The special master sought to observe the conduct of the Clerk’s office managers at employee grievance meetings. The employees’ union sent the special master a cease-and-desist letter purporting to bar her from the room.The plaintiffs sought a declaratory judgment clarifying that the 2018 supplemental relief order authorized the special master to observe the grievance meetings. The union—which was not a party to the suit and did not seek to become one—filed a memorandum opposing the motion, arguing that the 1972 consent decree did not provide a basis for the supplemental relief order and that the special master’s presence violated Illinois labor law and the union’s collective bargaining agreement. The magistrate agreed with the plaintiffs. The Seventh Circuit affirmed without addressing the merits of the union’s argument. Party status is a jurisdictional requirement. View "Shakman v. International Brotherhood of Teamsters" on Justia Law