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

Collins and others engaged in a scheme to defraud banks by submitting stolen and altered checks. The scheme netted $93,215.50. Collins pleaded guilty to bank fraud, 18 U.S.C. 1344. The presentence investigation report noted that Collins was eligible for up to five years of supervised release and recommended discretionary conditions requiring Collins to remain in the “jurisdiction” where he would be supervised, unless granted permission to leave and allowing a probation officer to visit him at work at “any reasonable time” and a special condition requiring Collins to perform at least 20 hours of community service per week at the direction of the Probation Office until gainfully employed, not to exceed 200 hours of service. Collins filed a memorandum objecting to several issues but did not dispute any of the conditions proposed in the PSR. The district court reviewed the PSR and imposed a sentence of 55 months’ imprisonment plus five years of supervised release. At sentencing, the court read the conditions, Collins asked questions about restitution but did not inquire about or object to the supervised release conditions. The Seventh Circuit upheld the imposition of the Jurisdiction, Visitation, and Community Service Conditions, noting that Collins had waived his objections. The court remanded with instructions for the district court to amend its written judgment to substitute the term “federal judicial district” for the word “jurisdiction” in the Jurisdiction Condition. View "United States v. Collins" on Justia Law

Gardner was arrested after firing a gun at two vehicles thought to be driven by rival gang members. While in pretrial custody, he engaged in additional violent behavior. Before trial, Gardner was diagnosed with major depression, obsessive-compulsive disorder, and chronic posttraumatic stress syndrome; a second evaluation found that Gardner “appears to [have] borderline personality disorder traits, i.e., a propensity toward marked impulsivity and reactivity without sufficient forethought or moral compunction.” He pleaded guilty to possessing a firearm as a felon, 18 U.S.C. 922(g)(1). The district judge imposed an above-Guidelines sentence based in part on Gardner’s use of violence in a prior burglary, U.S.S.G. 2K2.1(a)(1)– (4). Gardner had a lengthy criminal history. The Seventh Circuit affirmed his 100-month sentence, rejecting an argument that the “categorical approach” applies when a judge exercises Booker discretion to impose an above-Guidelines sentence based on a defendant’s aggravating conduct in a prior crime. The sentencing judge may consider aggravating circumstances in a defendant’s criminal record without the constraints imposed by the categorical approach that usually applies to statutory sentencing enhancements and the determination of offense-level increases and criminal-history points under the Guidelines. Gardner waived arguments that the judge inadequately addressed his mental-health challenges and relied on inaccurate information in the presentence report. View "United States v. Gardner" on Justia Law

In September 2011 Chicago Police Officers stopped and searched the plaintiffs without justification and took them to Homan Square, which was later exposed as a den of police misconduct. The officers interrogated them for several hours, omitting Miranda warnings and ignoring repeated requests for an attorney. The plaintiffs were denied food, water, and access to a bathroom. The officers tried to coerce false confessions and threatened to file false charges against the plaintiffs if they told anyone about their mistreatment. Fearing for their safety, the plaintiffs did not seek legal redress. In early 2015 a newspaper ran an exposé on Homan Square. In March the plaintiffs sued the city and the officers. The 42 U.S.C. 1983 lawsuit was dismissed under the two-year statute of limitations. A minute order issued on March 31, 2016. The judge issued her opinion on January 31, 2018, with a Rule 58 judgment. A week later, the plaintiffs filed their notice of appeal and docketing statement. By operation of Federal Rule 4(a)(7)(A), the time to file a notice of appeal expired 180 days after the minute order. The Seventh Circuit declined to dismiss an appeal but affirmed the dismissal. The defendants’ Rule 4(a) objection was untimely under Circuit Rule 3(c)(1) but the suit was untimely. Precedent forecloses the plaintiffs’ equitable estoppel theory. View "Vergara v. Chicago" on Justia Law

The district court certified a class of about 250 African-American financial advisers who alleged that the Bank treated them less favorably than equivalent advisers of other races. A settlement agreement included a payment of $19.5 million for the benefit of class members who do not opt-out, plus changes in the Bank’s operations and a fund to cover the costs of those changes. The order certifying the class cited Fed. R. Civ. P. 23(b)(2) with respect to the operational changes and Rule 23(b)(3) with respect to the proposed payments. Members are entitled to opt-out of Rule 23(b)(3) classes and pursue their claims individually but they cannot opt-out of Rule 23(b)(2) classes because relief is indivisible. The notice to class members explained this and that anyone who opted out of the (b)(3) relief would still receive the benefit of the (b)(2) changes while retaining a right to sue individually.The 11 opt-outs asked the court to create a subclass for them. The judge declined: 11 is too few to be a subclass and the 11 voluntarily opted out. The judge did not consider the opt-out's objections to the (b)(2) relief; in order to object, a member had to remain in the class for all purposes. The Seventh Circuit dismissed an appeal. The objectors were not aggrieved by the decisions they appealed. Their positions would not change if the district judge had made certain findings, if the allocation of settlement funds were different, or if the language in the notice were different. View "Braxton v. Senegal" on Justia Law

Six-year-old Swannie was found unresponsive on the bottom of a man-made swimming pond operated by the City of West Bend. She never regained consciousness and died days later. Swannie’s estate alleged federal constitutional (42 U.S.C. 1983) and state-law violations by the West Bend Parks Director, seven lifeguards, and the city. The theory of the constitutional claim was that the swimming pond is a state-created danger and the defendants acted or failed to act in a way that increased the danger. The Seventh Circuit affirmed summary judgment in favor of the defendants. The Due Process Clause confers no affirmative right to governmental aid and the evidence is insufficient to permit a reasonable jury to find a due-process violation premised on a statecreated danger. No reasonable jury could find that the defendants created a danger just by operating a public swimming pond or that they did anything to increase the danger to Swannie before she drowned. Nor was their conduct so egregious and culpable that it “shocks the conscience,” a necessary predicate for a court to find that an injury from a state-created danger amounts to a due-process violation. View "Estate of Swannie Her v. Hoeppner" on Justia Law

Hamilton operates a coal mine near Dahlgren, Illinois. On February 5, 2016, Leeper and 157 other full-time employees received a hand-delivered notice on Hamilton letterhead, stating that Hamilton was placing them “on temporary layoff for the period commencing on February 6, and ending on August 1, 2016.” The notice stated: “On August 1, 2016, you may return to your at-will employment with Hamilton” and explained that “[a] temporary layoff is treated as a termination of employment for purposes of wages and benefits.” Not long after receiving the notice, some mine workers began returning to work. Of the 158 notice recipients, 56 resumed their employment with full pay within six months. Leeper, a full-time Hamilton worker, filed a class action under the Worker Adjustment and Retraining Notification Act (WARN), which requires employers to give affected employees 60 days’ notice before imposing a “mass layoff.” 29 U.S.C. 2102(a)(1). WARN defines a mass layoff as an event in which at least 33% of a site’s full-time workforce suffers an “employment loss.” The Seventh Circuit affirmed summary judgment in favor of Hamilton because the worksite did not experience a “mass layoff.” The term “employment loss” is defined as a permanent termination, a layoff exceeding six months, or an extended reduction of work hours. View "Leeper v. Hamilton County Coal, LLC" on Justia Law

Delta, a collection agency, sent Koehn a letter stating that the “current balance” of Koehn’s debt was $2,034.03. Koehn claimed the letter was misleading under the Fair Debt Collection Practices Act, 15 U.S.C. 1692 because the phrase “current balance” implied that her balance could grow, even though her account was “static.” Additional interest and fees could no longer be added to the balance. The statute requires a debt collector to state “the amount of the debt,” and section 1692e prohibits more generally “any false, deceptive, or misleading representation or means.” The Seventh Circuit affirmed dismissal. To state a legally viable claim, Koehn needed to allege plausibly that Delta’s use of the “current balance” phrase “would materially mislead or confuse an unsophisticated consumer.” An unsophisticated consumer is “uninformed, naïve, or trusting,” but nonetheless possesses “reasonable intelligence,” basic knowledge about the financial world, and “is wise enough to read collection notices with added care.” There is nothing inherently misleading in the phrase “current balance.” Delta’s letter contained no directive to call for a “current balance,” nor does it include any language implying that “current balance” means anything other than the balance owed. “The Act is not violated by a dunning letter that is susceptible of an ingenious misreading.” View "Koehn v. Delta Outsource Group, Inc/" on Justia Law

A Downers Grove ordinance limits the size and location of signs. Leibundguth claimed that it violated the First Amendment because its exceptions were unjustified content discrimination. The ordinance does not require permits for holiday decorations, temporary signs for personal events such as birthdays, “[n]oncommercial flags,” or political and noncommercial signs that do not exceed 12 square feet, “[m]emorial signs and tablets.” The Seventh Circuit upheld the ordinance. Leibundguth is not affected by the exceptions. Leibundguth’s problems come from the ordinance’s size and surface limits: One is painted on a wall, which is prohibited; another is too large; a third wall has two signs that vastly exceed the limit of 159 square feet for Leibundguth’s building. The signs would fare no better if they were flags or carried a political message. A limit on the size and presentation of signs is a standard time, place, and manner rule. The Supreme Court has upheld aesthetic limits that justified without reference to the content or viewpoint of speech, serve a significant government interest, and leave open ample channels for communication. The Village gathered evidence that signs painted on walls tend to deteriorate faster than other signs. Many people believe that smaller signs are preferable. Absent content or viewpoint discrimination, that aesthetic judgment supports the legislation, which leaves open ample ways to communicate. View "Leibundguth Storage & Van Service, Inc. v. Village of Downers Grove" on Justia Law

DVO was to design and build an anaerobic digester for WTE to generate electricity from cow manure to be sold to the electric power utility. WTE sued DVO for breach of contract. Crum initially provided a defense under a reservation of rights, but a later advised DVO that it would no longer provide a defense. The court ordered DVO to pay WTE $65,000 in damages and $198,000 in attorney’s fees. DVO’s Crum insurance policies provided commercial general liability, pollution liability, and Errors & Omissions coverage. Under the E&O professional liability coverage, Crum is required to pay “those sums the insured becomes legally obligated to pay as ‘damages’ or ‘cleanup costs’ because of a ‘wrongful act’ to which this insurance applies.” An endorsement provides that the Policy does not apply to claims or damages based upon or arising out of breach of contract. DVO argued that the exclusion was so broad as to render the E&O professional liability coverage illusory. The district court disagreed. The Seventh Circuit reversed and remanded for contract reformation. The exclusion’s language is extremely broad. It includes claims “based upon or arising out of” the contract, thus including a class of claims more expansive than those based upon the contract, rendering the professional liability coverage in the E&O policy illusory. The court considered DVO's reasonable expectations in purchasing E&O coverage to insure against professional malpractice claims. View "Crum & Forster Specialty Insurance Co. v. DVO, Inc." on Justia Law

Tile Shop, a specialty retailer, pays its commissioned sales staff a semimonthly “draw” of $1,000 ($24,000 annually) even if a sales associate earns less than that amount in commissions during the pay period. Tile reconciles and recovers any shortfall between earned commissions and the $1,000 draw in subsequent pay periods, but only from commissions in excess of $1,000. For 10 months Osorio sold products for Tile. When business was slow and his commissions totaled less than $1,000 in a pay period, Tile paid him the guaranteed $1,000 and reconciled the difference in later pay periods when his commissions exceeded $1,000. He quit and filed a class action alleging that Tile’s “recoverable draw” system violates the Illinois Wage Payment and Collection Act, which prohibits employers from deducting more than 15% from an employee’s wages per paycheck as repayment for previous cash advances. The district judge rejected the claim. The Seventh Circuit affirmed. The Act prohibits “deductions by employers from wages or final compensation” unless specified conditions are met. 820 ILCS 115/9. Tile’s draw reconciliations are not “deductions” from wages or final compensation. The reconciliations determine the employee’s gross wages before tax withholding and other deductions are made. Considered in context, the term “deductions” as used in the Act refers to withholdings from an employee’s gross wages, not the formula used to calculate gross wages. View "Osorio v. The Tile Shop, LLC" on Justia Law