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

Curry, the founder of “Get Diesel Nutrition,” has paid for advertising for his products, including "Diesel Test," in national fitness magazines since 2002. In 2016, the defendants began selling a sports nutritional supplement, "Diesel Test Red Series." Like Curry’s product, the defendants’ product comes in red and white packaging with right-slanted all-caps typeface bearing the words “Diesel Test.” Curry alleges that he received messages indicating that customers were confused. The defendants concocted a fake ESPN webpage touting their product and conducted all their marketing online. In about seven months, they received more than $1.6 million in gross sales. At least 767 sales were to consumers in Illinois. After Curry demanded that the defendants cease and desist, both parties filed trademark applications for "Diesel Test." The Patent Office suspended both applications. Curry filed suit, alleging violation of the Illinois Consumer Fraud and Deceptive Practices Act, violations of the Lanham Act, 15 U.S.C. 1125, violation of the Anti-Cybersquatting Consumer Protection Act, filing a fraudulent trademark application, and violation of common law trademark protections. The district court dismissed for lack of personal jurisdiction.The Seventh Circuit reversed. Revolution’s activity can be characterized as purposefully directed at Illinois, the forum state, and related to Curry's claims. Physical presence is not necessary for a defendant to have sufficient minimum contacts with a forum state. Illinois has a strong interest in providing a forum for its residents to seek redress for harms suffered within the state by an out-of-state actor. View "Curry v. Revolution Laboratories, LLC" on Justia Law

Martin, a 67-year-old woman, sought Social Security Disability benefits. Her persistent back pain stems from two car accidents; she also suffers from depression, anxiety, bipolar disorder, panic disorder, and PTSD. These conditions caused Martin to stop working in 2009. Before then she had worked as a home health aide, data entry clerk, and administrative assistant. An ALJ determined that Martin’s severe impairments left her capable of performing only a limited range of sedentary jobs. The district court remanded for a more thorough consideration of Martin’s mental health problems. A new ALJ then found that Martin had no physical limitations whatsoever and declined to award benefits.The Seventh Circuit reversed, finding the second ALJ’s decision not supported by substantial evidence, and took “the rare step of ordering the award of benefits.” The court rejected Martin’s argument that the ALJ’s residual functional capacity determination failed to translate her mental health symptoms into limitations related to concentration, persistence, and pace but the record is clear that Martin’s physical limitations leave her unable to perform any work above the light level. Given her restricted range of motion and symptoms of pain, light exertion would likely be a challenge for Martin because it requires “a good deal of walking or standing.” View "Martin v. Saul" on Justia Law

Robertson brought claims against DHS and two DHS employees, Mattke and Evan, under Title VII of the Civil Rights Act, alleging retaliation for complaining of discrimination in the workplace. The district court dismissed the claims against Evans and Mattke because Title VII authorizes suit only against an employer as an entity, not against individuals, then granted summary judgment, holding that Robertson’s retaliation claim against DHS for failing to promote her to a director position failed because she could not prove a “but-for” causal link between her protected activity (reporting discrimination) and DHS’s decision not to promote her. With respect to her second retaliation claim, alleging that DHS continued the retaliation against her through Evans, the court held that Robertson failed to establish that she suffered an adverse action. The Seventh Circuit affirmed. With respect to her failure-to-promote claim, DHS provided a nonretaliatory reason for choosing another candidate. Robertson failed to submit evidence that DHS’s reason was pretextual. Robertson failed to “identify such weaknesses, implausibilities, inconsistencies, or contradictions” in DHS’s stated reason for hiring Evans over her “that a reasonable person could find [it] unworthy of credence.” With respect to her claim that DHS continued the retaliation through Evans, Robertson has failed to show that she suffered a materially adverse action. View "Robertson v. Wisconsin Department of Health Services" on Justia Law

Jehan led a Chicago street gang's conspiracy to distribute drugs. After he and others were indicted, Jehan fled and remained a fugitive for four years. After Jehan was arrested, the parties entered a plea agreement: Jehan admitted responsibility for conspiring to distribute more than 150 kilograms of cocaine, more than 30 kilograms of heroin, and more than 1.5 kilograms of crack, matching the thresholds for the highest base offense level on the drug‐quantity table, yielding a guidelines range of life in prison. In exchange for his acceptance of responsibility and aid to the government in other cases, the agreement specified that Jehan would receive a 300‐month sentence. In 2015, the court reduced Jehan’s sentence to 240 months because of his assistance in another case. In 2016, Jehan moved to reduce his sentence under 18 U.S.C. 3582(c)(2), citing Guidelines Amendment 782, which retroactively increased the drug quantities required for each base offense level for most federal drug offenses. The court denied Jehan’s motion because his sentence was “based on” the parties’ Rule 11(c)(1)(C) agreement, not the Guidelines. The Seventh Circuit affirmed. After the Supreme Court held, in 2018, that section 3582(c)(2) relief should be available to defendants with plea agreements, Jehan filed a second, unsuccessful motion.The Seventh Circuit affirmed, stating that the district court held Jehan responsible for the quantities of narcotics necessary for the highest base offense level on the current drug‐quantity table. In deciding Jehan’s second 3582(c)(2) motion, the court determined that the same base offense level applied and let Jehan’s sentence stand; the court did not “retroactively increase” Jehan’s punishment, but only held that he was not entitled to the benefit of new policy changes. View "United States v. Jehan" on Justia Law

Bentley, the owner of Trucking, rear-ended the Kolchinskys’ car while driving a tractor-trailer through Illinois. The Kolchinskys were severely injured. Bentley's deliveries had been arranged by WD, which instructed Bentley to transport milk from Indiana to its destination. His route was up to him. Trucking’s agreement with WD provided that Bentley was an independent contractor. When Trucking accepted a job from WD, it agreed to call the broker daily with a status update, protect the freight, notify the broker of any damage, and inform the broker of delivery. Tucking was responsible for determining delivery times; WD reserved the right to withhold any resulting damages. The agreement required Trucking to pay its employees and provide and maintain its own tractor, fuel, insurance, licenses, and permits. The Kolchinskys sued Bentley; citing theories of respondeat superior and vicarious liability, the Kolchinskys also sued Trucking and WDThe judge granted the defendants judgment, concluding that the driver was an independent contractor so the Kolchinskys could not hold the companies responsible for his alleged negligence. The Seventh Circuit affirmed. Courts applying Illinois law consistently have declined to find an agency relationship when a company hires an independent driver to deliver a load to designated persons at designated hours but does not reserve the right to control the manner of delivery. WD had no part in the transaction leading to Bentley’s fateful trip View "Kolchinsky v. Western Dairy Transport, LLC" on Justia Law

Wisconsin inmate Glover sued prison medical staff and Department of Corrections officials for deliberate indifference and for violating his right to equal protection after they denied him medicine prescribed for post‐surgical erectile dysfunction, 42 U.S.C. 1983. Glover alleges that treatment of his erectile dysfunction following his prostate cancer surgery was necessary for penile rehabilitation and time-sensitive because he was at risk of suffering permanent loss of erectile function if his condition was left untreated for too long following surgery. Glover unsuccessfully moved to substitute the Department’s new medical director, Dr. Holzmacher, as a defendant. The court granted the defendants summary judgment.The Seventh Circuit vacated. The district court abused its discretion by not allowing Glover to amend his complaint: “It is difficult to see why, under these circumstances, it would not be in the interest of justice for Glover to be able to sue the person that all agree is responsible for denying him access to Cialis.” The defendants argued that, absent precedent specifically recognizing that erectile dysfunction is a serious medical need, it would not have been clear to Holzmacher that the prison was obligated to heed the advice of Glover’s off‐site urologist and prison physician and approve a Cialis prescription; the court declined to resolve the matter of qualified immunity. The answer to the question is not so obvious that permitting Glover to bring Holzmacher into the case would necessarily constitute a futile act. View "Glover v. Carr" on Justia Law

Crosby fell three stories from a window before Chicago Officer Gonzalez arrested him. Crosby maintains that Gonzalez intentionally pushed him through the window and then falsely claimed—with corroboration from other officers—that Crosby possessed a gun. Crosby was convicted and sentenced to eight years in prison. After an Illinois appellate court reversed his conviction, Crosby filed suit under 42 U.S.C. 1983, naming only Gonzalez and suing only for excessive force. The parties settled; the court dismissed Gonzalez’s claims with prejudice. The agreement was between Crosby, Gonzalez, and the city, though the latter had not been named as a defendant. It provided that Crosby would receive $5,000 to release "all claims he had or has against Gonzalez, the city, and its future, current or former officers … , including but not limited to all claims he had, has, or may have in the future, under local, state, or federal law, arising either directly or indirectly out of the incident which was the basis of this litigation." It stipulated that Crosby’s attorney read and explained its contents to Crosby.Three years later, Crosby filed another suit, naming the city, Gonzalez, and the officers who corroborated Gonzalez’s story, focusing on the alleged lie that he possessed a gun and his subsequent prosecution, conviction, and imprisonment. The court rejected the suit, awarding the city $2,131.60 for the printing of transcripts of Crosby’s state-court criminal proceedings. The Seventh Circuit affirmed. Crosby released all claims “arising either directly or indirectly out of the incident.” Even if “the incident” refers to Crosby’s fall rather than the arrest as a whole, Crosby’s claims regarding the coverup plainly “aris[e] from” the incident being covered up. The release language encompasses his claims for wrongs committed after his arrest. Crosby has not shown that the city’s requested costs were unreasonable. View "Crosby v. City of Chicago" on Justia Law

T-Mobile customers can participate in “T-Mobile Tuesdays,” a promotional service, offering free items and discounts. Customers who no longer wish to receive marketing communications may opt-out by contacting T-Mobile’s customer service. T-Mobile user Warciak received a text message: This T-Mobile Tuesday, score a free 6” Oven Roasted Chicken sub at SUBWAY, just for being w/ T-Mobile. Ltd supply. Get app for details. The message came from T-Mobile. Warciak was not charged for the text. Warciak sued Subway claiming Subway engaged in a common-law agency relationship with T-Mobile, and that Subway’s conduct violated the Telephone Consumer Protection Act (TCPA). T-Mobile is not included in the lawsuit. The court dismissed the complaint as lacking sufficient support for claims of actual and apparent authority: control over the timing, content, or recipients of the text message. The court also found that the wireless carrier exemption applied so that no underlying TCPA violation exists ( 47 U.S.C. 227(b)(2)(C)). Prior written consent is not required for calls to a wireless customer by his wireless carrier if the customer is not charged. The Seventh Circuit affirmed. The only alleged conduct by Subway is its contractual relationship with T-Mobile. Warciak’s complaint lacks sufficient facts showing Subway manifested to the public that T-Mobile was its agent. He relied on T-Mobile’s conduct. Statements by an agent are insufficient to create apparent authority without also tracing the statements to a principal’s manifestations or control. View "Warciak v. Subway Restaurants, Inc." on Justia Law

Around 2004, LeBeau's health club located on 10 acres in Aurora, Illinois, ran into difficulties. LeBeau teamed up with Bodie to redevelop the land as a condominium project. Bodie ran two mortgage companies. They submitted a loan application to Amcore, a federally insured financial institution. The bank gave them a $1,925,000 mortgage loan. LeBeau and Bodie executed full personal guarantees on the loan and listed Bodie’s two companies as guarantors. LeBeau failed to disclose more than $130,000 in outstanding personal loans. The two fell behind on the loan and obtained a forbearance agreement (later amended) from Amcore. The two men were indicted in 2014 on multiple counts of bank fraud and making false statements to the bank in connection with the loan and forbearance agreements. In 2017, they were convicted. The court sentenced each one to 36 months’ imprisonment and restitution of more than a million dollars.The Seventh Circuit affirmed, rejecting arguments that the district court erred by failing to give the jury an instruction on materiality for the bank-fraud offenses; that the court should not have admitted evidence related to certain victims’ losses in the scheme and their status as prior victims of fraud; and that LeBeau received ineffective assistance of counsel at the sentencing stage, where his lawyer failed to challenge the amount of restitution. The court also rejected Bodie’s argument that his superseding indictment was time-barred and his challenge to the sufficiency of the evidence. View "United States v. Lebeau" on Justia Law

Pontiac inmate Robertson was held in isolation, allegedly in deplorable conditions, for several days before he attempted suicide. He filed a complaint under 42 U.S.C. 1983 and a motion, seeking to proceed in forma pauperis (IFP). He claimed he had no assets other than $219 in his prison account and no income except an occasional allowance from his mother. The court granted the motion. Years later, days before trial, the state moved to dismiss his case because he had failed to disclose in his IFP affidavit that the state had agreed to pay him $4,000 to settle previous cases. Robertson actually received the money about a year after filing the affidavit. In addition, the prison never sent the required filing fee. The district court dismissed the case. The Seventh Circuit reversed, concluding that the Prison Litigation Reform Act, 28 U.S.C. 1915(a), requires only disclosure of assets that may currently be used to pay the filing fee, and in the alternative, even if expected payments should have been included, the affidavit is “untrue” only if the prisoner’s statement was a deliberate misrepresentation. View "Robertson v. French" on Justia Law