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

In 2008, Sutton pled guilty to distributing cocaine base and carrying a firearm during a drug-trafficking crime. The district court sentenced Sutton to the then statutory minimum 15 years’ imprisonment. In announcing the sentence, the court emphasized that it had no authority to reduce the sentence further or amend it later, except on the government’s motion, and that the court’s authority had been so limited since the Sentencing Reform Act of 1984. The First Step Act of 2018 subsequently permitted a defendant sentenced for a covered offense (which includes Sutton’s crack cocaine charge) to move for the district court to impose a reduced sentence. The district court denied Sutton’s motion. On Sutton’s pro se appeal, the Seventh Circuit recruited counsel for supplemental briefing on the narrow question of the proper vehicle for a First Step Act motion--how the First Step Act interacts with the Sentencing Reform Act. The Seventh Circuit then affirmed the denial of relief. The First Step Act is its own procedural vehicle; the only limits on the district court’s authority under the First Step Act come from the interpretation of the First Step Act itself, which gives the court broad discretion. In this case, the district court did not abuse its discretion. View "United States v. Sutton" on Justia Law

During Ramirez’s 2001 Wisconsin state court trial, the prevailing interpretation of the Sixth Amendment’s Confrontation Clause was that a defendant had no confrontation right to cross-examine an unavailable declarant if the declarant’s statements were adequately reliable, which could be established where the statements fell within a firmly rooted hearsay exception. Applying hearsay exceptions, the court admitted several out-of-court statements accusing Ramirez of sexually assaulting his stepdaughter. The jury convicted Ramirez of multiple counts relating to the sexual assaults.In 2004, while Ramirez’s conviction was pending on direct review, the Supreme Court held that a defendant is entitled to cross-examine a declarant if the declarant’s statements were “testimonial”—e.g., were statements that the declarant “would reasonably expect to be used prosecutorially.” Ramirez urged his lawyer, Hackbarth, to raise a confrontation claim under Crawford. Hackbarth instead raised other claims, each of which Wisconsin state courts rejected. Ramirez filed a federal habeas corpus petition, arguing that Hackbarth’s representation was ineffective based on her omission of the confrontation claim. The Seventh Circuit affirmed the district court in granting relief. An attorney exercising reasonable professional judgment would have recognized that the confrontation claim was clearly stronger than the claims Hackbarth raised. Raising a confrontation claim while Ramirez’s conviction was pending on direct review would have given him a reasonable chance of prevailing. View "Ramirez v. Tegels" on Justia Law

Wanting to repurchase outstanding shares. AbbVie began its auction at $114. Shareholders offered to sell at or below $114. AbbVie selected the lowest price that would allow it to purchase $7.5 billion of shares. AbbVie hired Computershare to receive all offers. At the end of bidding, AbbVie announced the preliminary result: it would purchase 71.4 million shares for $105 per share. AbbVie’s stock, which had been trading at roughly $100, closed at $103. An hour later, AbbVie announced that it had received corrected numbers from Computershare. Instead of purchasing 71.4 million shares at $105 a share, it would purchase 72.8 million shares at $103 a share. AbbVie’s share price fell to $99 the next day.Walleye contends that AbbVie’s actions violated sections 10(b) and 14(e) of the Securities Exchange Act of 1934, 15 U.S.C. 78j(b) and 78n(e). The Seventh Circuit affirmed the dismissal of Walleye’s complaint. A plaintiff bringing section 10(b) claims must plead the fraud with particularity and allegations of scienter must be as compelling as any opposing inference. Walleye has not pleaded that AbbVie made any statement that is false or misleading, much less a statement with the required mental state. AbbVie accurately reported Computershare’s preliminary numbers and was not required to verify third-party data before reporting. The end of the tender offer placed Walleye outside the zone of interests protected by section 14. View "Walleye Trading LLC v. AbbVie Inc." on Justia Law

U.S. organized amateur hockey leagues come under the purview of USA Hockey, Inc., which is subject to the Ted Stevens Olympic and Amateur Sports Act, 36 U.S.C. 220501–43. USA Hockey delegates most of its authority to state and regional affiliates. Since 1975, the Association has governed the sport in Illinois. Black Bear, which owns Illinois skating rinks, filed suit under the Sherman Antitrust Act, 15 U.S.C. 2, alleging that the Association is monopolizing the sport. Black Bear does not claim to have paid monopoly prices, nor does it seek an order dissolving the Association and allowing free competition. It asked the district judge to order the Association to admit it as a member and permit it to sponsor a club and to pay damages for business losses suffered until these things occur. The Seventh Circuit affirmed the dismissal of the suit for lack of jurisdiction. The Sherman Act cannot be used to regulate cartels’ membership and profit-sharing. Members and potential members can enforce (or contest) its rules as a matter of state law, though a private group receives considerable leeway in the interpretation and application of those rules. View "Black Bear Sports Group, Inc. v. Amateur Hockey Association of Illinois, Inc." on Justia Law

Detective Mings submitted an affidavit relating that an informant had been inside PaWon’s home and seen him take a retail quantity of methamphetamine from his safe. The affidavit did not discuss the informant’s criminal history, his likely motivation for cooperation (lenience on pending charges), or his reliability. It contained some facts that corroborated his story, though many of those facts could have been learned by someone who had not been inside PaWon’s home. The informant’s statements were not recorded or transcribed. The state judge issued a warrant. The police found what they went looking for. At a hearing on PaWon’s motion to suppress, the informant did not appear and Mings had little memory of what was said in state court. The federal judge proceeded as if the informant had not testified and deemed the affidavit alone insufficient to establish probable cause but concluded that the police were entitled to rely on the warrant. After pleading guilty, PaWon was sentenced to 76 months’ imprisonment.The Seventh Circuit affirmed. It would not have been impossible for an officer to have “an objectively reasonable belief in the existence of probable cause.” Nor would every reasonable officer believe that unrecorded oral presentations to a judge must be ignored. A federal court must assume the state judge was doing his job, absent contrary evidence, and would have issued a warrant only after finding that probable cause existed under the governing precedents. View "United States v. Patton" on Justia Law

In 2003, McNair was sentenced for drug crimes. The court placed his Criminal History at Category II based on an Indiana conviction for driving without a license, calculated his Guidelines range at 324-405 months, and imposed a 360-month sentence, declining to consider McNair’s argument that his conviction was invalid. The Seventh Circuit affirmed. In 2005 McNair sought relief under 28 U.S.C. 2255, again disputing the state conviction. The court denied relief, reasoning that he needed to contest that conviction in state court. McNair's subsequent motions were dismissed as unauthorized successive collateral attacks. In 2017 McNair’s Indiana conviction was vacated.The Seventh Circuit affirmed the dismissal of McNair’s subsequent federal petition. A section 2255 petition based on the vacatur of a state conviction may be maintained as an “initial” section 2255 motion on the theory that the claim was unripe until the state court acted. Such a petition must be brought within a year of “the date on which the facts supporting the claim or claims presented could have been discovered through the exercise of due diligence.” McNair's judgment date was 2003. He first asked the state judiciary for relief in 2007. McNair did not appeal the denial of that motion. For nine years he did nothing in state court. When McNair returned to federal court in 2017, 14 years had passed since the event that requires diligent action. Ignorance of the law does not justify tolling the limitations period. View "McNair v. United States" on Justia Law

In 2009 the Gomezes stopped paying on a Bank credit card. The Bank treated the account as a bad debt and stopped sending statements. In 2011 it sold the debt to Cavalry. In January 2013 Cavalry sent a letter seeking payment of $5,800, including $1,600 in interest for months after the Bank stopped sending bills. A March 2013 letter sought $6,200. Their lawyer asked Cavalry to verify the debt. A March 2014 reply indicated that the balance was $6,320.13 without explaining how much constituted interest.The court dismissed a suit under the Fair Debt Collection Practices Act, 15 U.S.C. 1692e, which prohibits “any false, deceptive, or misleading representation … in connection with the collection of any debt” including “the character, amount, or legal status of any debt.” The court cited the one-year limitations period after finding that the Bank had waived interest after the charge-off, despite a contractual non-waiver clause; 12 C.F.R. 1026.5(b)(2) requires banks to send periodic statements while interest is being charged. The Seventh Circuit affirmed. The third letter stood alone, within the limitations period, but was not false. A demand for payment is not “false” just because, years later, a judge disagrees with an argument supporting the calculation of the debt. The letter would not have misled a competent lawyer, who would not deem “false” a demand by a potential opponent just because counsel believes that his client may have a defense. View "Gomez v. Cavalry Portfolio Services, LLC" on Justia Law

In 1998, Jones was convicted of two carjackings, armed bank robbery, and using firearms during those crimes of violence. His crime spree involved home invasion. He was sentenced, as a career offender under Sentencing Guideline 4B1.1, based on prior convictions for breaking and entering and armed robbery (during which Jones discharged his weapon), to 840 months in prison.In 2018, the court vacated that sentence; Jones no longer qualified as a career offender. At resentencing, Jones’s Guidelines range was 348–390 months. The court again sentenced Jones to 840 months in prison. Considering the 18 U.S.C. 3553(a) factors, the court stated that Jones had a “history as a violent predatory individual” and the offenses were “horrific crimes of violence…. The defendant put the victims in great fear … fired the firearms in the house during one of the break-ins.” Some of that statement was inaccurate. The court stressed that Jones “would be a risk of serious criminal activity based on his prior criminal history”; Jones’s co-defendants, “with similar records [and] similar conduct,” had received sentences of 675 months and 728 months; and after his original federal sentencing, Jones received a 273-year sentence in Indiana for murder and robbery. The court reiterated its “intention … to give the statutory maximum.” The Seventh Circuit vacated. The district court did not sufficiently justify the extent of its deviation from the Guidelines. View "United States v. Jones" on Justia Law

Under a 2014 contract Federal Insurance agreed to defend and indemnify Peoples Bank, against “claims” made by third parties during the 2014-2017 policy period. At the time of the agreement, the bank was embroiled in a lawsuit that had been filed in 2003. During the damages phase of that lawsuit, in 2016, the plaintiffs argued that the bank owed damages based on a new theory. The bank requested that Federal defend against the argument and cover the bank’s corresponding losses. Federal refused, arguing that the damages argument was not a “claim” under the policy. The bank sued Federal.The district court granted Federal judgment. The Seventh Circuit affirmed, rejecting the bank’s argument that because the damages argument was not based on the facts and legal theories presented in the 2003 complaint, the damages argument was a “claim” in itself. Under the policy, a “claim” taking the form of “a civil proceeding commenced by the service of a complaint” spans the entire civil action, not just the legal theories and factual allegations in the complaint that commenced the action. The damages argument was part of the civil action begun by the 2003 complaint and is not itself a “claim.” View "Market Street Bancshares, Inc. v. Federal Insurance Co." on Justia Law

In 2015, Cartwright sued his former employer, alleging discrimination based on his race and sex under Title VII, 42 U.S.C. 2000e; discrimination based on race, 42 U.S.C. 1981; and age discrimination, 29 U.S.C. 623. The judge appointed counsel for the limited purpose of settlement negotiations. The parties did not reach an agreement. The attorney was relieved of the limited representation. Cartwright failed to respond to discovery requests and filed many motions. The judge recruited a lawyer to represent him pro bono but later permitted the attorney to withdraw. The judge recruited another pro bono lawyer. After 14 months and more than 530 hours of work, the third attorney moved to withdraw citing substantial, irreconcilable disagreements with Cartwright. The judge granted the defendants partial summary judgment. Cartwright responded with multiple motions, accusing the judge of bias. The defendants moved to dismiss the case with prejudice for failure to prosecute. The judge recruited another pro bono attorney, then denied the motion as moot. Counsel later was allowed to withdraw. After four years and repeated warnings, the judge dismissed the case. The Seventh Circuit affirmed, reminding "judges that they need not and should not recruit volunteer lawyers for civil claimants who won’t cooperate ... Pro bono representation of indigent civil litigants is a venerable tradition ... courts must be careful stewards of this limited resource.” View "Cartwright v. Silver Cross Hospital" on Justia Law