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

A grand jury returned a 34-count indictment against 12 defendants involved in selling heroin. Page was charged in just two counts, and not with conspiracy. Based on wiretap investigations and a search of Page’s apartment, among other evidence, prosecutors alleged Hamlin purchased heroin from Harris and distributed those drugs to purported mid-level distributors like Page. Two years later, a superseding indictment charged Page, Harris, Hamlin, and others, with a drug-trafficking conspiracy involving over 100 grams of heroin. Page was charged with 12 counts of attempting to distribute and possession with intent to distribute heroin.Page was the only defendant who did not plead guilty. The jury instructions included Seventh Circuit pattern instruction on “Membership in Conspiracy." Page’s counsel did not propose a jury instruction that would have highlighted the difference between a drug conspiracy and a conventional buyer-seller relationship. Convicted on all counts, Page received a below-guidelines 90-month sentence. The Seventh Circuit reversed, rejecting a challenge to the sufficiency of the evidence but holding that the district court committed plain error by failing to instruct the jury on the difference between a buyer-seller relationship. Page characterizes his connection to the top drug dealer as a buyer-seller relationship, not a conspiracy, where two parties share some joint purpose in building a drug business together. View "United States v. Page" on Justia Law

The Bail Project, a nonprofit organization, advocates for the abolition of cash bail and pays cash bail for thousands of individuals across the country to show that conditioning a pretrial defendant’s release upon the payment of money is not necessary to secure appearances at future court dates. Indiana House Enrolled Act 1300 requires charitable bail organizations to register with the state and limits for whom such organizations can pay cash bail.The Project sought to enjoin Indiana’s Department of Insurance from enforcing the law, arguing that HEA 1300 (which had not yet gone into effect) would violate its First Amendment right to free speech and its Fourteenth Amendment right to equal protection. The district court held that The Project had not shown a likelihood of success on the merits. The Seventh Circuit affirmed. The payment of cash bail is not protected by the First Amendment. Although The Project pays bail with the intent to communicate its message and to further its advocacy, a reasonable observer would not understand the conduct itself as communicating any message without additional explanatory speech. HEA 1300 does not violate the Equal Protection Clause because it is rationally related to Indiana’s legitimate interest in regulating the pretrial detention of criminal defendants. View "The Bail Project, Inc. v. Commissioner, Indiana Department of Insurance" on Justia Law

Mac Naughton, a New Jersey attorney, represented Harmelech in a lawsuit filed by RMG until Harmelech failed to pay his legal fees. Mac Naughton later purchased from RMG the rights to the unpaid portion of a settlement judgment and filed multiple actions against Harmelech, seeking to collect the Judgment. He sought to set aside Harmelech’s conveyance of his Highland Park home to his son. Harmelech moved to disqualify Mac Naughton under New Jersey Rule of Professional Conduct 1.9(a): A lawyer who has represented a client “shall not thereafter represent another client in … a substantially related matter in which that client’s interests are materially adverse to the interests of the former client.” Judge Holderman barred Mac Naughton from acting as counsel in efforts to collect the RMG Judgment. Mac Naughton continued prosecuting the matter and filed similar actions before different judges. The Highland Park action was dismissed as a sanction for Mac Naughton’s defiance of the Order. The Seventh Circuit affirmed the dismissals of four other cases.Mac Naughton then sued Harmelech, seeking to set aside a purportedly fraudulent stock transfer to collect the RMG Judgment. The Seventh Circuit affirmed the suit's dismissal. This lawsuit was another attempt to circumvent the Holderman Order. Mac Naughton again argued that he did not violate Rule 1.9(a); he expects a New Jersey proceeding to vindicate him. But this dismissal was based on the Holderman Order, not Rule 1.9(a). Whether or not Mac Naughton violated his ethical duties as a New Jersey lawyer, he has a duty to comply with orders issued by Seventh Circuit courts. The appeal was frivolous; sanctions are warranted. View "Mac Naughton v. Asher Ventures, LLC" on Justia Law

G.G. ran away from home at age 13 and fell into the hands of a sex trafficker who used the now-defunct Backpage.com to advertise her. G.G. sued under the Trafficking Victims Protection Reauthorization Act, 18 U.S.C. 1595, which allows sex trafficking victims to recover damages from those who trafficked them and from anyone who “knowingly benefits … from participation in a venture which that person knew or should have known has engaged in” sex trafficking. She alleges that Salesforce should have known that Backpage.com was engaged in sex trafficking of minors. Salesforce had a close business relationship with Backpage—providing advice and custom-tailored software — and “knowingly benefited from its participation.”The Seventh Circuit reversed the dismissal of the case, rejecting arguments that a “venture” must be primarily a sex-trafficking venture; that a participant must have had constructive knowledge of the specific victim; that “participation in a venture” requires direct participation in a “common undertaking or enterprise involving risk and potential profit”; and that to knowingly benefit requires that the sex trafficker provide the participant with a benefit because of the participant’s facilitation of a sex-trafficking venture and that the participant must have known that this was the reason for the benefit. Those theories seek to impose restrictions on the civil remedy that are inconsistent with the statutory language. View "G.G. v. Salesforce.com, Inc." on Justia Law

Frazier-Hill was terminated from her employment as a CTA bus driver. She sued, alleging that the CTA failed to provide her a reasonable accommodation in violation of the Americans with Disabilities Act, 42 U.S.C. 12101 (ADA). Specifically, she claimed that the CTA should have allowed her to drive only standard, non-articulated buses due to certain maladies caused by her carpal tunnel syndrome.The district court granted the CTA summary judgment. The Seventh Circuit affirmed. No reasonable jury could find that Frazier-Hill was disabled within the meaning of the ADA. The court noted that Frazier-Hill had surgery that relieved her carpal tunnel symptoms; a medical report from her physician about three months after her operation and five days before one of her accommodation requests indicated no work restrictions other than a temporary inability to drive articulated buses. The doctor declined to check any of the boxes indicating that Frazier-Hill was restricted in, for example, lifting, pushing, walking, bending, carrying, pulling, or stooping. An occupational therapy report also noted no deficits in lifting. View "Frazier-Hill v. Chicago Transit Authority" on Justia Law

Bureau Chief Korza received a complaint regarding Snowden’s handling of a claim. Korza found discrepancies in Snowden’s records. Korza and a division administrator met with Snowden and her union representative and gave Snowden copies of the records. Korza continued his review and found many additional problems. Korza consulted with the Department’s Labor Relations office. Korza lacked the authority to discharge anyone and was advised that discharge was an appropriate penalty for the falsification of records. Korza summarized his findings for the director of the Division and recommended termination. At a later pre-disciplinary meeting, Snowden and her union representative were given a statement of charges. Korza stated that the discipline was undetermined because Snowden had not had an opportunity to respond, but that the charged violations were subject to discipline including discharge. Snowden’s written rebuttal did not contest the factual basis for the charges but noted arguable shortcomings in the investigation. At a final meeting, Korza advised Snowden that she was being placed on suspension pending discharge. Director Hoffman later signed a form terminating Snowden. Snowden pursued a grievance, which resulted in Snowden being allowed to resign without reinstatement rights.Snowden filed suit, asserting due process violations, claiming that Korza had decided to discharge her before the pre-disciplinary meeting and was not the impartial decision-maker. The Third Circuit affirmed the summary judgment rejection of the suit. Korza was not the decision-maker. Snowden was given notice and the opportunity to respond before that decision was made, plus a post-discharge grievance process. View "Snowden v. Illinois Department of Human Services" on Justia Law

The 1996 E-Rate program (Schools and Libraries Universal Service Support program, Telecommunications Act 110 Stat. 56), is intended to keep telecommunications services affordable for schools and libraries in rural and economically disadvantaged areas. The program subsidizes services and requires providers to charge these customers rates less than or equal to the lowest rates they charge to similarly situated customers. Heath brought a qui tam action under the False Claims Act, 31 U.S.C. 3729, alleging that Wisconsin Bell charged schools and libraries more than was allowed under the program, causing the federal government to pay more than it should have. The district court granted Wisconsin Bell summary judgment.The Seventh Circuit reversed. While Heath’s briefing and evidence focused more on which party bore the burden of proving violations than on identifying specific violations in his voluminous exhibits and lengthy expert report, Heath identified enough specific evidence of discriminatory pricing to allow a reasonable jury to find that Wisconsin Bell, acting with the required scienter, charged specific schools and libraries more than it charged similarly situated customers. It is reasonable to infer that government funds were involved and that if the government knew of actual overcharges, it would not approve claims. View "Heath v. Wisconsin Bell, Inc." on Justia Law

Luster was buying a house on contract and had already paid the owner at least 20 percent of the price of the home. The village contacted Luster to obtain the property to create a municipal park. Luster rebuffed this offer. The village then contacted the seller. Luster claims the village knew of his contract but convinced the seller to convey a warranty deed to the village without notifying Luster. The village then sent a letter to Luster demanding immediate possession of the property. According to Luster, he was unable to insure the house because of the ownership dispute. The house burned down while Luster was attempting to quiet title, destroying his family’s possessions and leaving them homeless. Luster sued the village under 42 U.S.C. 1983, seeking damages for his lost property and the village’s “malicious conduct.” He alleged that the village took the home without adequate notice and an opportunity to be heard.The Seventh Circuit vacated the dismissal of the complaint. Luster’s complaint does not allege or permit a reasonable inference that he was deprived of his property by the random, unauthorized acts of any village employee. Absent any obvious reason why the village could not have provided advance notice and a pre-deprivation hearing before it seized Luster’s property interest, the adequacy of a post-deprivation remedy is irrelevant. View "Luster v. Village of Ashmore" on Justia Law

The plaintiffs, three transgender boys, were denied access to the boys’ bathrooms at school. The boys sued the districts and the school principals, alleging sex discrimination under Title IX of the Education Amendments Act of 1972 and the Equal Protection Clause of the Fourteenth Amendment. The boys requested preliminary injunctions that would order the schools to grant them access to the boys’ bathrooms and, in the case of two boys, access to the boys’ locker rooms when changing for gym class. The district courts granted the preliminary injunctions.The Seventh Circuit affirmed, noting that litigation over transgender rights is occurring all over the country and that at some point the Supreme Court will likely step in with more guidance than it has furnished so far. The district courts appropriately followed Circuit precedent in crafting narrowly tailored and fact-bound injunctions. There was no abuse of discretion in the balancing of the equities and the public interest. The records showed only speculative harms, which are not enough to tip the balance. View "A.C. v. Kutruff" on Justia Law

Wilson was traveling at O’Hare airport with $33,783 in cash. The Drug Enforcement Administration seized the money, suspecting that the proceeds were from illegal drug activity. DEA notified Wilson that it would declare the seized cash as government property by administrative forfeiture. Under the Civil Asset Forfeiture Reform Act (CAFRA), 18 U.S.C. 983(a)(1)(A), Wilson had to file a “claim” with DEA by September 25, 2020. She received the required notice that failure to file a timely claim would waive her right to contest the forfeiture. On September 18, 2020, Wilson’s attorney mistakenly filed the wrong form, a “petition for remission,” which seeks to reduce the amount of seized money subject to forfeiture. Wilson’s attorney realized the mistake about five months later and sent a letter. DEA declined to correct the error.The Seventh Circuit affirmed the dismissal of Wilson’s Motion to Recover Seized Property under Federal Rule of Criminal Procedure 41(g), which “is properly invoked to request the return of seized property before forfeiture proceedings have been initiated.” CAFRA is “the exclusive remedy for seeking to set aside a declaration of forfeiture.” Wilson did not assert any challenge to the notice she received from the DEA; her argument amounted to a request for equitable relief. Apart from challenges based on notice, “Congress has authorized no other means for challenging a declaration of forfeiture” in federal court. View "Wilson v. United States" on Justia Law