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

This case involves a dispute over unpaid rent for a department store in an Illinois mall. The store was operated by CPS Partnership, which leased the retail space from WEC 98C-3 LLC. Saks Inc. guaranteed that it would pay the rent if CPS could not. However, when CPS stopped paying rent, Saks did not make any payments to WEC. This led to WEC defaulting on its mortgage, and the property was purchased by 4 Stratford Square Mall Holdings, LLC (“Stratford”) at a foreclosure auction. Initially, WEC sued Saks for damages. Later, Stratford intervened with its own claim for damages. The district court ruled only on Stratford’s claim for unpaid rent, finding that it was entitled to payment from Saks.The district court's decision was appealed to the United States Court of Appeals for the Seventh Circuit. Saks argued that Stratford lacked standing to sue, that the district court erred in certifying its judgment for immediate appeal, and that the district court erred in rejecting Saks’s affirmative defenses. The appellate court found that Stratford did have standing to sue Saks, and the district court properly certified its judgment for appeal. On the merits, the appellate court concluded that Saks could not mount any of its desired defenses as it had waived its right to present affirmative defenses to liability in the guaranty that it signed. Therefore, the appellate court affirmed the district court’s judgment. View "WEC 98C-3 LLC v. SFA Holdings Inc." on Justia Law

The case involves William Campbell, who, along with his cousin, burglarized an Indiana home and stole over 25 firearms. They sold these firearms to another person. Law enforcement was able to recover eight of the stolen firearms, but the rest remain unaccounted for. Campbell was indicted for possessing the eight recovered firearms as a felon, in violation of 18 U.S.C. § 922(g)(1). He pleaded guilty and was sentenced to 96 months of imprisonment by the district court. The court, in its explanation for the sentence, remarked that the missing guns were likely in the hands of other felons, as they are the people who buy stolen guns.The district court adopted the presentence investigation report, which calculated an adjusted offense level of 29 and a criminal history category of III, resulting in an advisory Guidelines range of 108 to 120 months’ imprisonment. The court, however, decided to sentence Campbell to a below-Guidelines sentence of 96 months’ imprisonment. The court explained its sentence with reference to the 18 U.S.C. § 3553(a) factors, discussing the mitigating and aggravating circumstances of Campbell’s case.On appeal to the United States Court of Appeals for the Seventh Circuit, Campbell argued that the district court's statement about the missing guns being likely in the hands of other felons amounted to impermissible speculation, requiring the sentence to be vacated. The appellate court, however, disagreed. It reviewed the procedural challenge de novo and found that the district court did not rely on speculative or inaccurate information in imposing the sentence. The court's concern was that the firearms are now unaccounted for, somewhere in the public, where authorities cannot track their owners and whereabouts. The judgment of the district court was affirmed. View "USA v. Campbell" on Justia Law

The case involves Appvion, Inc., a Wisconsin-based paper company, which was sold to its employees through an Employee Stock Ownership Plan (ESOP) in 2001. The company declared bankruptcy in 2017. Grant Lyon, acting on behalf of the ESOP, filed a lawsuit against various individuals and corporations, alleging that they fraudulently inflated the price of Appvion in 2001 and that the price remained inflated until Appvion’s bankruptcy. The district court dismissed almost all the claims.On appeal, the United States Court of Appeals for the Seventh Circuit affirmed the dismissal of some claims and reversed and remanded others. The court affirmed the dismissal of claims related to actions before November 26, 2012, as they were time-barred under the Employee Retirement Income Security Act (ERISA). However, the court reversed the dismissal of claims related to actions after November 26, 2012, finding that the plaintiff had adequately alleged that the defendants breached their fiduciary duties under ERISA by failing to ensure that the company's valuations were sound. The court also reversed the dismissal of claims alleging that the defendants engaged in prohibited transactions and co-fiduciary liability. The court affirmed the dismissal of state-law claims against the defendants, finding them preempted by ERISA. View "Appvion, Inc. Retirement Savings and Employee Stock Ownership Plan v. Buth" on Justia Law

The plaintiff, Richard Rodgers, a prisoner with a history of scoliosis and back pain, had steel rods implanted in his back prior to his incarceration. During his time in prison, the rods broke, but this went undetected for over a year due to two radiologists misreading his x-rays. The prison's primary care physician, Dr. William Rankin, discovered the broken rods and arranged for corrective surgery. Rodgers sued the radiologists and Dr. Rankin, alleging violation of his Eighth Amendment rights.The district court dismissed Rodgers' claims against the radiologists, finding that he did not state a viable constitutional claim against them. The court allowed Rodgers to proceed against Dr. Rankin but eventually granted summary judgment in his favor. The court found that Rodgers had not provided evidence that would allow a reasonable jury to find that Dr. Rankin had violated the Eighth Amendment by acting with deliberate indifference toward Rodgers' serious medical condition.The United States Court of Appeals for the Seventh Circuit affirmed the district court's judgment. The court agreed that Rodgers' allegations against the radiologists amounted to no more than negligence, which is insufficient to state a viable Eighth Amendment claim. Regarding Dr. Rankin, the court found that the evidence would not support a reasonable finding that he acted with deliberate indifference to Rodgers' serious medical condition. The court noted that Dr. Rankin was the one who discovered the radiologists' errors and arranged for Rodgers' corrective surgery. View "Rodgers v. Rankin" on Justia Law

In October 2019, Randall Craft pleaded guilty to one count of conspiracy to distribute over fifty grams of methamphetamine. He was sentenced to 150 months in prison and five years of supervised release. The district court applied two sentencing enhancements: one for maintaining a premises for the purpose of manufacturing or distributing a controlled substance, and another for Craft's role as a manager or supervisor of the scheme.The district court's decision was appealed to the United States Court of Appeals for the Seventh Circuit. The appellate court found that the district court erred in applying the premises enhancement, as the record did not support the conclusion that Craft used his home for the primary or principal purpose of manufacturing or distributing drugs. However, the court agreed with the district court's application of the two-level role enhancement, given Craft’s extensive role in the conspiracy.Therefore, the United States Court of Appeals for the Seventh Circuit vacated Craft’s sentence and remanded his case to the district court for resentencing, taking into account the appellate court's findings regarding the two sentencing enhancements. View "USA v. Craft" on Justia Law

The case involves a class action lawsuit brought against the Illinois Department of Corrections (IDOC) by four parents who were convicted of sex offenses and were on mandatory supervised release (MSR). The plaintiffs challenged an IDOC policy that restricts contact between a parent convicted of a sex offense and their minor child while the parent is on MSR. The plaintiffs argued that this policy violates their Fourteenth Amendment rights to procedural and substantive due process.The district court upheld the policy, with two exceptions. It ruled that the policy's ban on written communications was unconstitutional and that IDOC must allow a parent to submit a written communication addressed to their child for review and decision within seven calendar days. The plaintiffs appealed, challenging the policy's restrictions on phone and in-person contact.The United States Court of Appeals for the Seventh Circuit affirmed in part and reversed in part. The court agreed with the district court that the policy does not violate procedural due process. However, it held that the policy's ban on phone contact violates substantive due process. The court found that call monitoring is a ready alternative to the phone-contact ban that accommodates the plaintiffs’ right to enjoy the companionship of their children at a de minimis cost to IDOC’s penological interests. View "Montoya v. Jeffreys" on Justia Law

The case involves Songie Adebiyi, a former Vice President of Student Services at South Suburban College in Illinois, who was terminated in 2019 due to alleged performance issues. Adebiyi claimed that her termination was in retaliation for filing a charge with the United States Equal Employment Opportunity Commission and the Illinois Department of Human Rights. She sued the college and its president, alleging racial discrimination and retaliation under 42 U.S.C. § 1981 and Title VII of the Civil Rights Act of 1964, as well as breach of contract.The United States District Court for the Northern District of Illinois granted summary judgment to the college and its president, ruling that Adebiyi failed to show a causal link between her charge of discrimination and her termination. The court found that the evidence did not support Adebiyi’s retaliation claim. Adebiyi appealed the decision, arguing that the district court erred in dismissing her Title VII retaliation claim and abused its discretion when it denied her motion to amend the complaint and seek more discovery.The United States Court of Appeals for the Seventh Circuit affirmed the judgment of the district court. The appellate court agreed with the lower court's finding that Adebiyi failed to demonstrate a causal link between her protected activity and the adverse employment action. The court found no evidence of pretext in the college's reasons for termination or suspicious timing between Adebiyi's filing of her EEOC and IDHR charge and her termination. The court also found no abuse of discretion in the district court's denial of Adebiyi's motion to file an amended complaint and take additional discovery. View "Adebiyi v. South Suburban College" on Justia Law

On July 4, 2021, Gavin Wallmow was arrested for violating his probation and was taken to Oneida County jail. During his booking, Wallmow denied any suicidal tendencies or mental health issues. Two days later, Wallmow's probation officer visited him and noticed a change in his behavior, including him hitting himself and expressing "demonic" thoughts. The officer reported this to a corrections officer at the jail, who then informed her superior. Despite these reports, Wallmow was observed behaving normally during routine checks. On July 8, Wallmow was found unresponsive in his cell, having committed suicide. His estate brought a series of constitutional claims under 42 U.S.C. § 1983, alleging that the jailers failed to protect Wallmow from himself.The United States District Court for the Western District of Wisconsin granted summary judgment to the defendants, concluding that the record did not support an inference that any defendant knew Wallmow faced a serious risk of harm. The court also found no reason to think the County's policies were inadequate, given the absence of any pattern of suicides to put it on notice.Upon appeal, the United States Court of Appeals for the Seventh Circuit affirmed the lower court's decision. The appellate court found that the jail's employees had taken reasonable precautions, including checking on Wallmow at least 37 times per day. The court also noted that Wallmow had thrice disavowed any risk of suicide, and nothing indicated otherwise after his talk with his probation officer. The court concluded that the jail's actions complied with the Constitution's requirements. View "Estate of Wallmow v. Oneida County, Wisconsin" on Justia Law

The case involves Circle City Broadcasting I, LLC, a local television broadcasting network operating in Indianapolis, which owns two local television stations—WISH-TV and WNDY. The company is majority-owned by DuJuan McCoy, a Black man. The dispute arose when DISH and DirecTV Network declined to pay broadcast fees to Circle City for rights to carry the company’s two Indianapolis-based television stations. Circle City alleged that the decisions reflected discrimination against its majority owner, DuJuan McCoy, and thus discrimination against the company itself.Previously, the United States District Court for the Southern District of Indiana entered summary judgment for DISH and DirecTV, concluding that Circle City failed to identify evidence permitting a jury to find that the decisions not to pay the broadcast fees reflected anything other than lawful business choices responsive to dynamics of the television broadcast market.The United States Court of Appeals For the Seventh Circuit affirmed the lower court's decision. The court found that Circle City failed to produce evidence that would allow a jury to find that DISH or DirecTV's conduct during the contractual negotiations reflected racial discrimination. The court concluded that DISH and DirecTV declined to pay fees for rights to broadcast WISH and WNDY because Circle City—unlike Nexstar—as the new owner of both stations lacked the market power to demand the fees. The court also found that Circle City fell short of demonstrating any pretext in DISH and DirecTV’s explanations for choosing not to pay retransmission fees. View "Circle City Broadcasting I, LLC v. DISH Network L.L.C." on Justia Law

Bryant D. Aron was indicted by a grand jury for possession of a firearm and ammunition as a felon, a violation of 18 U.S.C. § 922(g)(1). Initially, Aron agreed to plead guilty under a binding plea agreement, which recommended a sentence of 96 months' imprisonment. However, the district court refused to accept this sentencing recommendation. As the plea agreement was binding, Aron was given the option to withdraw his guilty plea, which he did. Instead of negotiating a different plea agreement, Aron chose to proceed to trial. He was convicted by a jury and sentenced to the statutory maximum of 120 months' imprisonment.The district court's refusal to accept the sentencing recommendation in the plea agreement led to Aron's decision to withdraw his guilty plea and proceed to trial. After his conviction and sentencing, Aron appealed, raising several challenges to the indictment and the plea and sentencing process. He argued that the indictment failed to include a known and necessary element, that he had good cause for not raising this objection in the district court, and that the deficiency in the indictment was either structural error or met the plain error standard.The United States Court of Appeals for the Seventh Circuit rejected Aron's arguments. The court found that the indictment was not defective and that Aron had failed to raise his objection in a timely manner. The court also found that Aron had not demonstrated good cause for his failure to raise the objection pretrial. Therefore, the court did not conduct a plain error review of his claim.Aron also challenged the district court's rejection of his binding plea agreement. He argued that the court had improperly inserted itself into the plea negotiation process, failed to provide a sound reason for rejecting the plea agreement, and did not provide enough notice of its rejection of the plea agreement. The Court of Appeals rejected these arguments as well, affirming the decision of the district court. View "USA v. Aron" on Justia Law