Justia Civil Procedure Opinion Summaries

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

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

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

Kevin Brooks, an inmate at a federal prison camp, suffered from appendicitis, which was misdiagnosed by medical personnel as constipation and COVID-19. Despite his worsening condition, he was not sent to a hospital for over ten days, resulting in a ruptured appendix and peritonitis. Brooks eventually recovered but experienced severe pain during the ordeal. He filed a lawsuit seeking damages from five federal employees, three of whom treated him and two who were supervisors.The United States District Court for the Northern District of Illinois dismissed Brooks's suit, ruling that it presented a new context to which the doctrine of Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics does not extend. The court reasoned that Brooks's case differed from previous Bivens cases, particularly Carlson v. Green, due to the duration of his medical issue and the involvement of supervisory personnel.The United States Court of Appeals for the Seventh Circuit reviewed the case and disagreed with the district court's reasoning. The Seventh Circuit held that Brooks's claim did not present a new context, as it was similar to Carlson v. Green, where a prisoner alleged constitutionally inadequate medical care. The court found that the distinctions made by the district court regarding the duration of the medical issue and the involvement of supervisors were not sufficient to create a new context. The Seventh Circuit affirmed the dismissal of claims against the two supervisors but vacated the dismissal of claims against the three treating personnel, remanding the case for further proceedings. View "Brooks v. Richardson" on Justia Law

Denise Evans was diagnosed with a ureteral injury shortly after undergoing a hysterectomy on August 14, 2019. She filed a negligence lawsuit in state court against the surgeon and associated medical entities. The surgeon was employed by a federally-funded health center, and the Attorney General certified that he was acting within the scope of his employment, allowing the United States to substitute itself as the defendant under the Public Health Service Act (PHSA). The government removed the case to federal court and requested dismissal due to Evans's failure to exhaust administrative remedies. The district court dismissed the claims against the government without prejudice and remanded the claims against the non-governmental defendants to state court.Evans then exhausted her administrative remedies by filing a claim with the Department of Health and Human Services (HHS), which was received on September 23, 2021. After HHS failed to render a final disposition within six months, Evans filed a lawsuit against the United States under the Federal Tort Claims Act (FTCA), asserting medical negligence. The government moved to dismiss the suit, arguing that the claim was barred by the FTCA’s two-year statute of limitations. Evans contended that the Westfall Act’s savings provision and the doctrine of equitable tolling should apply. The district court disagreed and dismissed the suit.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court held that the Westfall Act’s savings provision does not apply when the United States substitutes itself as a party under § 233(c) of the PHSA. The court also found that equitable tolling was inapplicable, as Evans did not demonstrate extraordinary circumstances preventing her from timely filing her claim. Consequently, the Seventh Circuit affirmed the district court's dismissal of Evans's lawsuit. View "Evans v United States" on Justia Law

A collective bargaining agreement between the Teamsters Union and Quality Custom Distribution guaranteed that the top 80% of senior employees would receive at least 40 paid hours per week. During the early months of the COVID-19 pandemic, many Starbucks stores in or near Chicago closed or reduced their hours, resulting in senior employees averaging only 30 hours a week. The Union demanded that the employer make up the difference, but the employer refused, citing an exception for Acts of God.The dispute was taken to an arbitrator, who ruled in favor of the Union. The arbitrator determined that while epidemics might be considered Acts of God, the reduction in work was primarily due to the Governor of Illinois' orders, which were not Acts of God. The employer then filed a suit in the United States District Court for the Northern District of Illinois to nullify the arbitrator's decision. The district court judge declined to nullify the decision.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court's decision. The court held that as long as the arbitrator interprets the contract, the award must stand. The arbitrator had interpreted the contract's "Act of God" clause, concluding it did not cover the Governor's orders. The court emphasized that judicial review of arbitration awards is limited to ensuring the arbitrator interpreted the contract, not whether the interpretation was correct. The court also noted that the employer's conduct in the litigation process imposed unnecessary costs and ordered the employer to show cause why sanctions should not be imposed. View "Quality Custom Distribution Services LLC v International Brotherhood of Teamsters, Local 710" on Justia Law

A tenured professor at the University of Illinois Chicago School of Law, Jason Kilborn, included an expurgated racial slur in a law school exam question. This led to an investigation by university officials, who found that Kilborn had created a racially hostile environment and violated the university's nondiscrimination policy. Consequently, Kilborn was suspended from teaching until he completed a diversity training program and was denied a two percent raise. Kilborn sued several university officials, alleging violations of his constitutional rights to free speech and due process.The United States District Court for the Northern District of Illinois dismissed Kilborn's federal claims with prejudice, finding that his speech was not constitutionally protected. The court also declined to exercise supplemental jurisdiction over his state law claims, dismissing them without prejudice. Kilborn appealed the decision.The United States Court of Appeals for the Seventh Circuit reviewed the case and reversed the dismissal of Kilborn's First Amendment retaliation claim, concluding that his speech was constitutionally protected under the Supreme Court's decisions in Connick v. Myers and Pickering v. Board of Education. The court found that Kilborn's speech addressed matters of public concern and that the university's actions could be seen as pretextual. However, the court affirmed the dismissal of Kilborn's remaining federal claims, including his compelled speech and procedural due process claims. The court also vacated the dismissal of Kilborn's state law claims for further consideration by the district court. View "Kilborn v. Amiridis" on Justia Law

Charles Bich and the Bruno Bich Trust made a series of loans to WW3 LLC, owned by Curt Waldvogel, for constructing an oil-processing facility in North Dakota. Waldvogel assured the Bichs that their investment would be secured by real and personal property. However, the project failed, and the Bichs did not recover their investment, leading them to sue for breach of contract.The Eastern District of Wisconsin court found that Waldvogel's promise to secure the loans with property was a "special promise" under Wisconsin law, requiring compliance with the statute of frauds. Since there was no written agreement meeting the statute's requirements, the court ruled the loan agreement unenforceable. The court also determined that the promise would have constituted a mortgage, which also needed to satisfy the statute of frauds. The court granted summary judgment to the defendants on the breach of contract claim but allowed the unjust enrichment claim to proceed to trial. The jury awarded the Bichs $200,000 for unjust enrichment, and the court held Waldvogel and WW3 jointly and severally liable.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court affirmed the district court's decision, agreeing that the promise to secure the loans with property was a mortgage under Wisconsin law and required a written agreement to be enforceable. The court found that the emails exchanged between the parties did not constitute a final agreement and did not meet the statute of frauds' requirements. Consequently, the breach of contract claim failed, and the unjust enrichment award remained the only compensation for the Bichs. View "Bich v WW3 LLC" on Justia Law

The plaintiffs, Thomas Ghelf, Tricia Hansen, Constance and Thomas Klein, Maureen Sommerfeld, and Mississippi Sports and Recreation, Inc. (MSR), own abutting properties in the Town of Wheatland, Vernon County, Wisconsin. They alleged that the Town, its officials, Vernon County, the County Treasurer, and unknown agents and employees engaged in a harassment campaign against them. This included coordinated complaints about their businesses, unlawful arrests, failures to respond to emergency services, excessive property tax assessments, a foreclosure action, and the designation of a private driveway as a public road.The United States District Court for the Western District of Wisconsin dismissed the plaintiffs' tax assessment and road claims for lack of subject matter jurisdiction, abstained from exercising jurisdiction over the foreclosure claims, and dismissed the remaining claims for failure to state a claim. The court held that the Tax Injunction Act and principles of comity barred the tax assessment and foreclosure claims. It also found that the plaintiffs' claims related to events before September 15, 2016, were time-barred by the statute of limitations.The United States Court of Appeals for the Seventh Circuit affirmed the district court's dismissal of the tax assessment and foreclosure claims, agreeing that the Tax Injunction Act and comity principles deprived the district court of jurisdiction. The appellate court also upheld the dismissal of claims related to events before September 15, 2016, as time-barred. However, the Seventh Circuit reversed the dismissal of the plaintiffs' road claims, finding that these claims were not barred by claim or issue preclusion. The case was remanded for further proceedings on the road claims, and the court held that Town Chairman Jayne Ballwahn should not be dismissed from the suit at this stage. View "Ghelf v Town of Wheatland" on Justia Law

Kurt Beathard, a football coach at Illinois State University (ISU), was terminated from his position as offensive coordinator after posting a handwritten message on his office door that read, "All Lives Matter to Our Lord & Savior Jesus Christ." This occurred during a period of tension and unrest on the ISU campus following the death of George Floyd. Beathard alleges that his termination was due to this personal speech, which he claims is protected by the First Amendment.In the District Court for the Central District of Illinois, Beathard filed a section 1983 action against Larry Lyons, the Athletic Director, and Brock Spack, the head football coach, asserting that his termination violated his First Amendment rights. The defendants moved to dismiss the complaint under Rule 12(b)(6), arguing that they were entitled to qualified immunity because it was not clear that Beathard's speech was protected as personal rather than official speech. The district court denied the motion to dismiss, stating that factual development was necessary before resolving the qualified immunity question.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court concluded that it lacked jurisdiction to hear the appeal because the district court had not made a definitive ruling on the qualified immunity defense but had instead postponed the decision, indicating that further factual development was needed. The Seventh Circuit emphasized that interlocutory orders, such as the denial of a motion to dismiss, are generally not immediately appealable unless they conclusively determine the disputed question. Consequently, the appeal was dismissed for want of appellate jurisdiction. View "Beathard v. Lyons" on Justia Law