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

In 1996, Higgs murdered three women at a Maryland federal property. He was convicted in federal court and sentenced to death. Higgs claimed that the government failed to turn over exculpatory evidence in violation of Brady v. Maryland. His 2012 Freedom of Information Act (FOIA) request to the Park Police sought a complete copy of everything pertaining to the convictions. The Park Police produced some information, then referred the request to the FBI. Higgs filed suit, challenging the FBI’s decisions to redact or withhold information under FOIA Exemptions, 5 U.S.C. 552(b)(6), (b)(7)(C), and (b)(7)(D). Exemptions (6) and 7(C) cover materials that would invade personal privacy; Exemption 7(D) covers information that “could reasonably be expected to disclose the identity of a confidential source, … and, in the case of a record or information compiled by criminal law enforcement authority in the course of a criminal investigation … information furnished by a confidential source.” The district court concluded that the FBI properly withheld certain documents under Exemption 7(D), but did not justify the invocation of Exemption 7(C), and had to release all of the names of still-living people, contact information, reports of interviews, fingerprints, and rap sheets. T. The Seventh Circuit reversed in part. The court erred when it found that the public interest prevailed over the privacy interests of the persons involved under Exemptions 6 and 7(C). The court affirmed with respect to Exemption 7(D) materials. View "Higgs v. United States Park Police" on Justia Law

NFA is a self‐regulatory organization registered under the Commodity Exchange Act, subject to the authority of the Commodity Futures Trading Commission (CFTC), 7 U.S.C. 21, including review of NFA disciplinary actions. Effex, a closely held, foreign‐currency trading firm controlled by Dittami, is not subject to NFA regulation. NFA determined that its member, FXCM, had violated NFA rules. NFA released several documents related to a settlement, including allegations that Effex was involved in FXCM's misconduct. The press release did not specifically reference Effex but directed the public to the NFA’s website. Effex alleged that NFA’s findings are false and that their publication was defamatory. NFA had not contacted Effex or provided Effex notice of the investigation. CFTC conducted its own investigation, subpoenaed documents from Effex, and took the depositions of Dittami and other Effex employees. Effex alleged that NFA obtained documents from CFTC despite Effex’s request that its responses as a third party be kept confidential. CFTC issued its decision, finding that FXCM had concealed an improper trading relationship with a “high‐frequency trader” and the trader's company (HFT). Although not explicitly named, HFT is Effex. CFTC found materially the same facts as NFA did regarding Effex. The Seventh Circuit affirmed the dismissal of the suit. The Commodity Exchange Act regulates comprehensively all matters relating to NFA discipline, so a federal Bivens remedy is unavailable, and preempts Effex’s state law claims. View "Effex Capital, LLC v. National Futures Association" on Justia Law

The Prison Litigation Reform Act (PLRA) “three strikes” provision, 28 U.S.C. 1915(g), specifies that a prisoner may not proceed in forma pauperis if she “has, on [three] or more prior occasions, while incarcerated or detained in any facility, brought an action or appeal in a court of the United States that was dismissed on the grounds that it is frivolous, malicious, or fails to state a claim upon which relief may be granted.” Many courts require prisoner‐litigants to identify their entire litigation histories. The Northern District of Illinois’s form requires 42 U.S.C. 1983 inmate-plaintiffs to list the name of each case, assigned judge and court, docket number, filing date, all plaintiffs (with aliases), all defendants, a description of claims made, the disposition and date of disposition. In cases consolidated on appeal, the district court concluded that inmate-plaintiffs committed fraud. The Seventh Circuit vacated. District courts must ensure that a prisoner’s negligent or even reckless mistake is not improperly characterized as an intentional and fraudulent act. Even prisoners with no incentive to lie may not have ready access to their litigation documents and may not remember all of the details. When viewed in the liberal light appropriate for pro se pleadings, one inmate’s explanation of his mental health issues and illiteracy indicated he did not fully understand what was being asked of him; the omissions were inadvertent. None of the cases omitted by the inmates met applicable standards for materiality. View "Johnson v. Dalke" on Justia Law

Marchan was convicted of possession with intent to distribute 500 grams or more of cocaine, 21 U.S.C. 841(a)(1) and 846, and distribution of 500 grams or more of cocaine, section 841(a)(1). The Seventh Circuit affirmed, rejecting an argument that he was denied a fundamentally fair trial. The district court judge diligently presided over the trial; to the extent that any errors were made, they were harmless. Allegedly hearsay testimony was cumulative and corroborated; the few objections that were made at trial were largely sustained and the court instructed the jury to disregard the questions and answers. The testimony of a cooperating witness was sufficient to expose his bias against Marchan and illustrate the benefits he might receive in connection with his testimony. Giving the jury a recording it requested during deliberations was not error; the recording was properly admitted into evidence, provided additional information not present in the transcript (e.g., tone and clarity), and the district judge gave a proper limiting instruction. View "United States v. Marchan" on Justia Law

Unions set up a pension plan under the Employment Retirement Income Security Act, 29 U.S.C. 1001, with electrical contractors (Revcon) sharing ownership. Revcon withdrew from the plan in 2003. The Multiemployer Pension Plan Amendments Act, 29 U.S.C. 1381, requires employers who withdraw from underfunded pension plans to pay withdrawal liability. The trustees notified Revcon of $394,788 in withdrawal liability and demanded quarterly payments of $3,818. Revcon missed several payments. The trustees accelerated the outstanding liability (29 U.S.C. 1399(c)(5)) and filed suit. Revcon offered to cure its defaults and resume payments. The trustees agreed and voluntarily dismissed the suit under FED. R. CIV. P. 41(a). Revcon made some payments, then defaulted again. The trustees again sued. Revcon again promised to cure; the trustees again voluntarily dismissed. This cycle repeated in 2011, 2013, and 2015. In 2018, after another default, the trustees filed this case, which, unlike previous complaints, only the payments that Revcon had missed since the 2015 dismissal.Revcon argued claim preclusion because the previous complaints demanded the entire liability, which necessarily includes the defaulted payments at issue. The “two dismissal rule” of Rule 41(a)(1)(B) therefore barred any claims arising from that liability, and, because the trustees sought to collect the entire debt in 2008, the six-year limitations period had expired. The trustees countered that they revoked the 2008 acceleration with each dismissal and that the two dismissal rule did not apply because all parties consented to the previous dismissals. The Seventh Circuit found the case untimely, noting that the earlier complaints all stated the withdrawal liability was accelerated in 2008, contradicting an argument that acceleration had been revoked. The statute makes no mention of such a deceleration mechanism. View "Bauwens v. Revcon Technology Group, Inc." on Justia Law

In 1880, the Sisters, a Roman Catholic organization, founded OSF, which provides healthcare to indigent patients. The Sisters maintain authority through OSF’s governing documents and canonical and civil guidelines pertaining to church property. OSF merged with another Catholic hospital with the permission of the Holy See. Both offered employee pension plans before the merger. The Plans, with 19,285 participants, are now closed to new participants. Smith, a former employee and OSF plan participant, sued, claiming that the plans are not eligible for the church plan exemption under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1001 because they are administered by Committees that are not “principal-purpose organizations” and that the exemption itself is unconstitutional. She alleged that OSF allowed the plans to become severely underfunded; failed to follow notice, disclosure, and managerial requirements; and breached its fiduciary duties. The district court granted the defendants summary judgment despite plaintiff’s Federal Rule of Civil Procedure 56(d) motion to postpone the decision so that she could complete further discovery. The Seventh Circuit vacated. The summary judgment motion was filed long before discovery was to close; plaintiff was pursuing discovery in a diligent, sensible, and sequenced manner; and the pending discovery was material to summary judgment issues. The court’s explanation for denying a postponement overlooked earlier case-management and scheduling decisions and took an unduly narrow view of relevant facts. View "Smith v. OSF Healthcare System" on Justia Law

Columbia students Jane and John had a sexual encounter. Weeks later Jane alleged she had not consented to the encounter. Columbia investigated. John did not provide any exculpatory evidence. Columbia’s Title IX coordinator reviewed the investigative report and notified John that there was sufficient evidence for a hearing panel. John responded that the allegations were false and that he had been physically assaulted and verbally harassed by Jane and her friends. Campus safety identified the student who struck John and addressed the issue. Columbia addressed each of his concerns, reminded John that he could submit evidence, including evidence of bias by a Columbia employee, and identified an academic advisor who could approve any accommodations John might need. John responded with screenshots of text messages, his earlier letter, and a toxicology report. The hearing panel found by a preponderance of the evidence that John violated Columbia’s student sexual misconduct policy and suspended him for the academic year. Columbia's appeals officer upheld the findings and discipline. John filed suit, alleging violations of Title IX, 20 U.S.C. 1681, breach of contract, promissory estoppel, negligent and intentional infliction of emotional distress, and negligence. The district court dismissed. The Seventh Circuit affirmed. John failed to allege particularized facts that could lead to a reasonable inference that Columbia denied him an educational benefit because of his sex. Columbia responded quickly and diligently to his complaints and gave him multiple opportunities to present evidence. View "Doe v. Columbia College Chicago" on Justia Law

Sterling owed Southlake Health Club outstanding fees ($250). In 2001, Southlake's counsel, Austgen, instituted a state court collection action. A federal bankruptcy court discharged Sterling’s debt to Southlake in 2010. Although Sterling notified Southlake of the discharge, no one notified Austgen or the Indiana court. Sterling failed to appear in the state-court collection proceedings; that court issued a warrant for her arrest. A year later, Sterling was arrested and jailed for two days. Southlake and Austgen dropped pursuit of the debt. Sterling instituted adversary proceedings in bankruptcy court, seeking to have Southlake and Austgen held in contempt for continuing to collect a debt that had been discharged, 11 U.S.C. 524. The bankruptcy court and the district court ruled against Sterling. The Seventh Circuit affirmed in part; Austgen’s lack of knowledge of the discharge prevents it from being held in contempt. Southlake, however, must be held liable for the actions taken by counsel on its behalf. Southlake, a sophisticated party, had knowledge of the discharge yet turned a blind eye to the progress of Sterling’s case. Holding otherwise “would create a loophole in the law through which creditors could avoid liability simply by remaining ignorant of their agents’ actions or by failing to notify their agents of debtors’ bankruptcy proceedings.” View "In re: Sterling" on Justia Law

Paul Koh, 22, was found in a pool of blood next to a knife in his home, having been stabbed in the throat and chest. Officers initially noted a possibility of suicide. Paul's parents' requests to see Paul, get medicine and cell phone, and to go to the hospital were denied. They were taken to the police department and not allowed to make calls. Officer Kim, who spoke Korean socially, served as a translator but did not translate everything. Mr. Koh was questioned for 150 minutes. Koh claims Officer Graf “told me that the only person I could see was a lawyer... I didn’t have any phone numbers, so that was the end” and that Kim advised that he did not need an attorney. His Miranda warnings were in English. Some of Koh's responses were confusing or nonresponsive. Koh denied any involvement in Paul’s death. There was evidence suggesting a struggle and of tension in the family. During a second interview, officers pressed harder, stating, “We can be here for days” and asking questions at a rapid pace, with mistranslations. Koh gave short responses that could be interpreted as agreeing with Graf’s self-defense theory.Koh, acquitted on state murder charges after four years in the Cook County Jail, sued under 42 U.S.C. 1983. The district court denied the defendants summary judgment on false arrest claims, but held that Koh’s false arrest ended when the officers later had probable cause to arrest him; denied summary judgment on Koh’s coerced confession, conspiracy and failure to intervene, and municipal liability false arrest claims. The court granted the defendants summary judgment on Koh’s malicious prosecution, substantive due process, evidence-fabrication. and pretrial detention (Fourth Amendment) claims. The Seventh Circuit dismissed appeals on the issue of qualified immunity concerning coerced confession as inseparable from the questions of fact identified by the district court. View "Koh v. Ustich" on Justia Law

In 2015, Brazier, Fields, and Mzembe kidnapped, shot, and ruthlessly beat Harris as he left his home. Charged with federal kidnapping and firearms crimes, the three were tried and sentenced separately. Their appeals were consolidated. The defendants did not challenge their convictions for the underlying crimes of kidnapping or holding Harris for ransom; the two defendants convicted of being felons in possession of firearms did not challenge those convictions. Defendants Fields and Mzembe challenged their convictions and sentencing under 18 U.S.C. 924(c) for using and discharging firearms during a crime of violence. The Seventh Circuit reversed those section 924(c) decisions, citing later decisions by the Supreme Court, establishing that the underlying offenses do not qualify categorically as crimes of violence. Under the categorical analysis that applies to both the elements and residual clauses of section 924(c)'s definition of crimes of violence, Mzembe’s and Fields’ convictions for kidnapping and demanding ransom cannot support the mandatory consecutive sentences. The categorical method focuses on the essential elements of the counts of conviction, requiring courts to focus on the least culpable conduct that could violate the relevant statutes, without considering the actual facts of the defendants’ conduct. In resentencing Mzembe and Fields on the remaining charges, however, the court can consider their actual conduct in exercising its discretion under 18 U.S.C. 3553(a). View "United States v. Mzembe" on Justia Law