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

Gregory Johnson was convicted by a jury of attempting to use a minor to engage in sexually explicit conduct for the purpose of producing child pornography. At sentencing, the district court found Johnson indigent and waived a fine under 18 U.S.C. § 3571 and a discretionary assessment under the Justice for Victims of Trafficking Act (JVTA), 18 U.S.C. § 3014. However, the court imposed a $5,000 assessment under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA), 18 U.S.C. § 2259A, despite Johnson's indigency.The United States District Court for the Northern District of Indiana, Fort Wayne Division, adopted the facts in the presentence investigation report (PSR) without objection. The PSR indicated Johnson had no income apart from occasional support from his mother and minimal assets. The court recognized Johnson's inability to pay a fine and excused him from the JVTA assessment but imposed the AVAA assessment without further discussion of his financial condition.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court clarified that the AVAA assessment is mandatory regardless of the defendant's ability to pay, but the amount is discretionary and must consider factors including the defendant's financial condition. The court found that the district court did not adequately explain why $5,000 was an appropriate amount given its findings about Johnson's financial condition for other penalties. The Seventh Circuit vacated the AVAA assessment and ordered a limited remand for the district court to reconsider the assessment and provide a reasoned explanation for the amount imposed. View "USA v Johnson" on Justia Law

Dyson Technology, Ltd., a UK-based company, filed a trademark infringement lawsuit against multiple e-commerce stores for selling counterfeit Dyson products. Dyson sought remedies under the Lanham Act, which allows trademark holders to recover profits, damages, and costs from infringing parties. The defendants did not appear in court, leading to a default judgment in Dyson's favor. However, the district court awarded only $1,000 in statutory damages and denied Dyson's request to recover the infringing sellers' profits, stating that Dyson had only provided evidence of revenue, not profits.The United States District Court for the Northern District of Illinois, Eastern Division, handled the initial case. The court's decision to limit Dyson's award was based on its interpretation that revenue and profits are not the same, and it declined to assume that all revenue equaled profits.The United States Court of Appeals for the Seventh Circuit reviewed the case. The appellate court held that the district court erred in its interpretation of the Lanham Act. According to the Act, a prevailing plaintiff is entitled to the defendant's profits, and the defendant bears the burden of proving any costs or deductions. The appellate court found that Dyson's evidence of revenue was sufficient to establish profits, as the defendants did not provide evidence to the contrary. The court reversed the district court's decision and remanded the case for further proceedings, allowing the district court to adjust the award if deemed just based on the case's circumstances. View "Dyson Technology Limited v David 7 Store" on Justia Law

Members of a local union sued their national parent organization for imposing an illegal trusteeship. The plaintiffs, members of NABET-CWA Local 41, claimed that the national union imposed the trusteeship in bad faith following a local officer election. The district court agreed with the plaintiffs and issued a temporary restraining order, later converting it into a preliminary injunction. The parties eventually settled, resulting in a consent judgment that dissolved the trusteeship and required the national union to pay Local 41 approximately $26,000 in trusteeship costs. The only unresolved issue was whether the plaintiffs were entitled to attorneys' fees.The United States District Court for the Northern District of Illinois denied the plaintiffs' request for attorneys' fees. The court acknowledged its broad discretion and the American Rule, which presumes against fee shifting. It considered two exceptions: bad faith and common benefit. The court found that while the national union acted in bad faith in imposing the trusteeship, both parties litigated the dispute in good faith, thus not justifying fee shifting. Additionally, the court recognized that the plaintiffs conferred common benefits on Local 41 and the national union but concluded that these benefits were not substantial enough to merit an award of attorneys' fees.The United States Court of Appeals for the Seventh Circuit reviewed the district court's decision for abuse of discretion. The appellate court affirmed the district court's ruling, finding that the lower court had appropriately applied the American Rule and its exceptions. The district court's decision to deny attorneys' fees was deemed reasonable and within its broad discretion, as it provided a sound explanation for its conclusions. The appellate court emphasized the highly deferential standard of review for such decisions and upheld the district court's judgment. View "Siddiqui v National Association of Broadcast Employees & Tec" on Justia Law

Valerie Thomas received a notice claiming she owed $187, which she disputed. Resurgent Capital Services notified TransUnion about the debt before opening Thomas's letter and reported the dispute 29 days later. Thomas sued under the Fair Debt Collection Practices Act, seeking statutory damages for the delay. A jury awarded her $250. The clerk delayed entering the judgment, which was eventually entered on June 11, 2024. Resurgent filed a notice of appeal four days earlier, narrowly avoiding missing the appeal deadline.The United States District Court for the Northern District of Illinois concluded that Resurgent should have notified TransUnion earlier. Resurgent appealed, arguing that Thomas lacked standing because the delay did not injure her. District Judge Bucklo initially ruled that Thomas was injured as a matter of law, referencing Ewing v. Med-1 Solutions, LLC, which treated the absence of a dispute notice as defamation. However, the court noted that injury must be proven and not assumed.The United States Court of Appeals for the Seventh Circuit reviewed the case. It found that Thomas did not provide evidence of injury before or during the trial. She did not attempt to show that her credit score or insurance costs were affected by the delay. Judge Bucklo had precluded Thomas from introducing evidence of actual injury, and Thomas did not challenge this ruling or seek a new trial. The appellate court held that Thomas lacked standing to sue due to the absence of evidence showing injury. Consequently, the judgment of the district court was reversed, and the case was remanded with instructions to dismiss for lack of a justiciable controversy. View "Thomas v LVNV Funding, LLC" on Justia Law

Eric Blackmon was arrested in 2002 and charged with murder, leading to his conviction in 2004 after a bench trial. Despite multiple attempts, state judges in Illinois upheld his conviction. However, the United States Court of Appeals for the Seventh Circuit directed a district court to hold an evidentiary hearing regarding the failure of Blackmon’s lawyer to interview potential alibi witnesses, which resulted in the district court ordering his release unless retried. The state chose to release him rather than retry him. Subsequently, Blackmon filed a suit under 42 U.S.C. §1983 against three police officers, alleging that the photo array and lineup used for his identification were unconstitutionally suggestive.The United States District Court for the Northern District of Illinois denied the officers' motion for judgment on the ground of qualified immunity, concluding that it is clearly established that the results of unduly suggestive photo arrays and lineups must not be used at trial. The officers appealed this decision.The United States Court of Appeals for the Seventh Circuit reviewed the case and held that the police do not violate a suspect’s constitutional rights by conducting a suggestive photo array or lineup. The court emphasized that the introduction of evidence at trial is the responsibility of prosecutors and judges, who have absolute immunity. The court concluded that the appropriate remedy for suggestive identification procedures is the exclusion of evidence at trial, not damages. The court also noted that it was not clearly established in 2002 that officers could be personally liable under §1983 for conducting a suggestive lineup. Therefore, the officers were entitled to qualified immunity. The decision of the district court was reversed. View "Blackmon v. Jones" on Justia Law

Timothy Hoffstead, a canine handler for Metra, was suspended after testing positive for amphetamines and opioids during a random drug test. Hoffstead attributed the positive result to his prescribed medications for ADD, migraines, and a wrist injury. The medical review officer (MRO) attempted to contact Hoffstead for an explanation but was unsuccessful. Consequently, Hoffstead was suspended and later not considered for an open canine handler position. Despite providing proof of his prescriptions and having his test results revised to negative, Metra required him to complete a rehabilitation program. Hoffstead eventually returned to work but left Metra for other employment.The United States District Court for the Northern District of Illinois granted summary judgment in favor of Metra. The court found that Hoffstead failed to demonstrate that Metra's actions were due to his disability. The court also ruled that it could not consider Hoffstead's claim regarding the exercise of seniority under the collective bargaining agreement (CBA) due to the Railway Labor Act (RLA), which prohibits courts from interpreting CBAs.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court's decision. The appellate court held that Hoffstead did not provide sufficient evidence to show that Metra's actions were motivated by his disability. The court noted that Hoffstead's failure to respond to the MRO and his decision to waive an investigation in favor of the rehabilitation program were the primary reasons for Metra's actions. The court also found that the RLA did not preclude adjudicating Hoffstead's claim regarding the seniority rules but concluded that Hoffstead failed to demonstrate a link between his disability and Metra's actions. View "Hoffstead v Northeast Illinois Regional Commuter Railroad Corp" on Justia Law

Suzanne Wolf suffered multiple pelvic fractures in a car accident caused by an underinsured motorist. After receiving $100,000 from the at-fault driver’s insurance, she filed claims for underinsured motorist benefits with her personal automobile insurer and her employer’s general commercial liability insurer, Riverport Insurance Company. Wolf settled with her personal insurer for $150,000 and eventually settled with Riverport after four years of negotiations and arbitration, which awarded her $905,000. Riverport paid the award, less the amounts received from the other insurers.Wolf filed a lawsuit against Riverport in the Circuit Court of Cook County, alleging unreasonable delay in payment under section 155 of the Illinois Insurance Code. Riverport removed the case to the United States District Court for the Northern District of Illinois, invoking diversity jurisdiction. The district court granted Riverport’s motion for judgment on the pleadings under Rule 12(c) of the Federal Rules of Civil Procedure, finding that Wolf lacked a viable legal theory to support her claim. The court also denied Wolf’s discovery request.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court held that the insurance policy did not impose a duty on Riverport to investigate and settle Wolf’s claim in good faith. The court found that the policy’s provision granting Riverport discretion to investigate and settle claims applied only to defending insureds against third-party claims, not to first-party claims by insureds against Riverport. Consequently, Wolf’s breach-of-contract theory failed, and the district court’s judgment was affirmed. The appellate court also upheld the district court’s discovery decision, as Wolf could not show actual and substantial prejudice from the denial of additional discovery. View "Wolf v. Riverport Insurance Company" on Justia Law

Quintin Ferguson was sentenced to 240 months' imprisonment for violating 18 U.S.C. §844(i), which involves maliciously damaging or destroying property by fire or explosives. The district court classified him as a career offender under U.S.S.G. §4B1.1(a), which requires the current conviction and at least two prior convictions for felony drug offenses or crimes of violence. Ferguson contested that a violation of §844(i) should not be considered "arson" under §4B1.2(a)(2) of the Sentencing Guidelines.The United States District Court for the Northern District of Indiana, South Bend Division, initially reviewed the case. The district court concluded that §844(i) is a "crime of violence" and treated Ferguson as a career offender, leading to his 240-month sentence.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court held that a conviction under §844(i) qualifies as "arson" for the purposes of the career-offender guideline. The court reasoned that the definition of "generic arson" includes the intentional or malicious burning of any property, not limited to burning one's own property to collect insurance. The court affirmed the district court's classification of Ferguson as a career offender and upheld the 240-month sentence. View "United States v Ferguson" on Justia Law

In December 2015, sixteen-year-old Isaiah Taylor was stopped by Milwaukee police officers Justin Schwarzhuber and Jasen Rydzewski while running through his neighborhood to deliver a turkey. The officers frisked him, searched his bag, and detained him in their police car to check for outstanding warrants and recent robberies. Taylor later sued the officers under 42 U.S.C. § 1983, claiming an unreasonable search and seizure in violation of the Fourth Amendment and racial profiling in violation of the Equal Protection Clause of the Fourteenth Amendment.The United States District Court for the Eastern District of Wisconsin granted qualified immunity and summary judgment to the officers on Taylor’s Fourteenth Amendment claim and on the Fourth Amendment claim regarding the initial stop and frisk. However, the court denied qualified immunity on the issue of Taylor’s continued detention, sending it to trial. The jury found the officers not liable, and the court denied Taylor’s motion for post-trial relief under Federal Rule of Civil Procedure 59.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court affirmed the grant of summary judgment on Taylor’s Fourteenth Amendment claim, finding insufficient evidence of racial profiling. However, it vacated the summary judgment on the Fourth Amendment claims related to the initial stop and frisk, concluding that the officers lacked reasonable suspicion for the stop and frisk based on clearly established law. The court also vacated the jury verdict on the continued detention issue, as it was intertwined with the initial stop's constitutionality, and remanded the case for a new trial on all Fourth Amendment claims. View "Taylor v. Schwarzhuber" on Justia Law

James Hulce, on behalf of himself and others similarly situated, filed a putative class action suit against Zipongo Inc., doing business as Foodsmart. Hulce alleged that Foodsmart violated the Telephone Consumer Protection Act (TCPA) by making unsolicited calls and sending text messages to him, despite his number being on the national do-not-call registry. Foodsmart's communications were about free nutritional services offered through Hulce's state and Medicaid-funded healthcare plan, Chorus Community Healthcare Plans (CCHP).The United States District Court for the Eastern District of Wisconsin granted Foodsmart's motion for summary judgment. The court found that the calls and messages did not constitute "telephone solicitations" under the TCPA because they were not made for the purpose of encouraging the purchase of services. Instead, the communications were about services that were free to Hulce, with Foodsmart billing CCHP directly.The United States Court of Appeals for the Seventh Circuit reviewed the case de novo. The court affirmed the district court's decision, holding that the calls and messages did not fall within the definition of "telephone solicitation" under the TCPA. The court concluded that "telephone solicitation" requires the initiation of a call or message with the purpose of persuading or urging someone to pay for a service. Since Foodsmart's communications were about free services and did not encourage Hulce to make a purchase, they did not meet this definition. The court emphasized that the purpose of the call must be to persuade someone who makes the purchasing decision to buy the services, which was not the case here. View "Hulce v Zipongo Inc." on Justia Law