Justia Civil Procedure Opinion Summaries

Mains executed a mortgage on his home with WAMU in 2006 and made timely payments for about two years. WAMU failed in 2008; the FDIC became its receiver. Chase purchased Mains’s mortgage. Mains fell behind on his payments. He requested loan modifications from Chase three times and discontinued making payments in March 2009. Chase sent Mains a default and acceleration notice in June. In April 2010, Citibank (Chase’s successor) filed for foreclosure in Clark County, Indiana. That court granted Citibank summary judgment in 2013. Mains unsuccessfully appealed, contending that Citibank had committed fraud because it was not the real party in interest but instructed its employees fraudulently to sign documents. In 2015, Mains filed a “rambling, 90‐page” federal court complaint, alleging that he had discovered new evidence that he could not have presented to the state court—undisclosed consent judgments, parties in interest, and evidence of robo‐signing. He claimed to have rescinded his mortgage. He alleged state law claims and violations of: the Real Estate Settlement Procedures Act, 12 U.S.C. 2601; the Truth in Lending Act, 15 U.S.C. 1631; the Fair Debt Collection Practices Act, 15 U.S.C. 1692; and the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. 1961. The district court found that a decision for Mains would effectively nullify the state‐court judgment and dismissed for lack of subject matter jurisdiction under the Rooker‐Feldman doctrine. The Seventh Circuit agreed, but modified so that the dismissal was without prejudice. View "Mains v. Citibank, N.A." on Justia Law

Whitfield's 2002, 2003, and 2007 prison disciplinary proceedings resulted in the revocation of 16 months of good-conduct credit Whitfield had earned. Whitfield diligently, but unsuccessfully, filed administrative grievances regarding all three actions. In 2003-2004, Whitfield filed suit under 42 U.S.C. 1983, challenging the 2002 and 2003 proceedings, claiming retaliation in violation of the First Amendment. The district courts dismissed. Whitfield also, unsuccessfully, sought mandamus relief in Illinois state court alleging due process violations. In 2009, Whitfield attempted to challenge all three revocations of good-conduct credit through a state-law habeas corpus petition, which was dismissed without prejudice. An appeal was dismissed because Whitfield was unable to obtain the record. In March 2011, Whitfield filed a federal habeas petition. The state argued that Whitfield’s petition would be rendered moot in July 2011, when he was scheduled for release, and failure to exhaust state remedies. The district court dismissed the action as moot when Whitfield was released. Whitfield filed the present section 1983 action. Upon preliminary review (28 U.S.C. 1915(e)) the district court found that Whitfield stated claims for due process violations and for retaliation but granted the defendants summary judgment, finding that Whitfield’s suit was barred by precedent requiring a plaintiff to pursue timely collateral relief while in custody. The Seventh Circuit reversed. Whitfield did his best to obtain timely relief while in custody; precedent requires no more. View "Whitfield v. Howard" on Justia Law

Simic received a ticket for driving while texting on her cell phone, in violation of a Chicago ordinance. Simic failed to pay the $100 ticket and the city took steps to collect a fine. Simic then sued, seeking declaratory and injunctive relief and monetary damages greater than one million dollars. She alleged that Chicago’s cell phone ordinance violates the Fourteenth Amendment’s Due Process Clause and the Eighth Amendment’s Excessive Fines Clause, plus several state-law claims, and sought class certification. The city non-suited its case against her. The district court denied Simic’s motion for an injunction. The Seventh Circuit affirmed, reasoning that Simic did not face any threat of irreparable harm and that it appears that Simic lacks Article III standing for the relief she seeks. The court directed the district court to consider dismissing Simic’s lawsuit for lack of jurisdiction. View "Simic v. City of Chicago" on Justia Law

Netzer, a debtor in bankruptcy, asked the court to discharge a $9,200 debt to Wisconsin’s Office of Lawyer Regulation, imposed as costs in a disciplinary proceeding. The bankruptcy court concluded that the debt is a “fine, penalty, or forfeiture” under 11 U.S.C. 2 and not dischargeable. Netzer had 14 days to appeal, but 41 days later he asked the district judge to excuse his tardiness, contending that until a few days earlier he had not known of the bankruptcy court’s decision. The district court dismissed the appeal as untimely, reasoning that the 14-day period is jurisdictional and that there cannot be equitable exceptions to jurisdictional rules. The Seventh Circuit affirmed, stating that whether or not a given rule is “jurisdictional” it is still a rule and must be enforced. Courts lack an “equitable” power to contradict the bankruptcy statutes and rules. Litigants need only check the court’s electronic docket once a month in order to protect their interests. View "Netzer v. Office of Lawyer Regulation" on Justia Law

In 2012, NITEL filed this breach of contract suit in an Illinois state court against PNC Bank. PNC Bank removed to federal court and the district court granted summary judgment for PNC Bank. This appealed stemmed from the district court's post-judgment award of Rule 11 sanctions against both NITEL and its lawyer, Robert Riffner. In this case, PNC Bank failed to comply with Rule 11(c)(2)'s requirement that a party seeking Rule 11 sanctions first to serve a proposed motion on the opposing party and to give that party at least 21 days to withdraw or correct the offending matter. PNC Bank argued that the two letters it sent containing both settlement demands and threats to seek Rule 11 sanctions if its demands were not met amounted to "substantial compliance" with Rule 11(c)(2) and thus preserved its right to move for sanctions after the district court granted summary judgment in its favor. The district court agreed and imposed sanctions. The court need not revisit here whether substantial compliance can ever satisfy the warning shot requirement of Rule 11(c)(2). In this case, the court concluded that PNC Bank's warning shot letters fell far short of even the generous target of substantial compliance. Accordingly, the court reversed the award of sanctions against Riffner. View "Northern Illinois Telecom, Inc. v. PNC Bank" on Justia Law

Plaintiff filed suit alleging that various state officials acted unlawfully in refusing to release him on electronic surveillance because he lacked a Lake County residence. The district court dismissed plaintiff's claims with prejudice. Because plaintiff had a reasonable opportunity to present to the state court claims that were inextricably intertwined with that court's judgments, the court concluded that it lacked subject matter jurisdiction. Therefore, plaintiff's claims are jurisdictionally barred under the Rooker-Feldman doctrine. The court dismissed without prejudice. View "Jakupovic v. Curran" on Justia Law

Berry worked for Telamon from 2005-2011, under Consulting Agreements between Telamon and Berry’s one-woman company. Berry’s responsibilities expanded beyond those described in the Agreements. She became Telamon’s senior regional manager. She oversaw Telamon’s AT&T Asset Recovery Program, to remove old telecommunications equipment from AT&T sites and sell it to salvagers. Berry removed the equipment and sold it, but kept the profits. The company discovered the scheme in 2011; it had suffered $5.2 million in losses. Berry was convicted of wire fraud and tax evasion; she was sentenced to 60 months’ imprisonment and ordered to pay $3,440,885 in restitution. Telamon sought compensation under its Travelers crime insurance policy and its Charter Oak general commercial insurance policy. Travelers denied coverage because Berry was not, legally, an employee; Charter denied coverage because she was, functionally, an employee. Telamon sued, alleging bad faith, then unsuccessfully sought permission to add claims based on older policies. The request came a year after the deadline for amending pleadings. Telamon filed suit in state court, raising essentially the same claims. The insurers again removed; the district court dismissed the suit as an impermissible attempt to split claims. The Seventh Circuit affirmed both decisions, noting that none of the four ways of establishing bad faith under Indiana law exist in this case. View "Telamon Corporation v. Charter Oak Fire Insurance Co" on Justia Law

The district court certified eight classes, consisting of persons in Illinois and Missouri who take eye drops manufactured by six pharmaceutical companies for treatment of glaucoma. Plaintiffs claimed that the defendants’ eye drops are unnecessarily large and wasteful, in violation of the Illinois Consumer Fraud Act, 815 ILCS 505/1, and the Missouri Merchandising Practices Act, Mo. Rev. Stat. 407.010, so that the price of the eye drops is excessive and that the large eye drops have a higher risk of side effects. There was no claim that members of the class have experienced side effects or have been harmed because they ran out of them early. The Seventh Circuit vacated with instructions to dismiss. The court noted possible legitimate reasons for large drops, the absence of any misrepresentation or collusion, and that defendants’ large eye drops have been approved by the FDA for safety and efficacy. “You cannot sue a company and argue only ‘it could do better by us,’” nor can one bring a suit in federal court without pleading that one has been injured. The plaintiffs allege only “disappointment.” View "Eike v. Allergan, Inc." on Justia Law

The Indianapolis Airport Authority sued Travelers Property Casualty over Travelers’ partial denial of a claim for coverage arising from an airport construction accident that occurred in 2007. On motions for summary judgment, the district court interpreted the insurance contract in favor of Travelers on several issues, narrowing the Authority’s case to a claim for unreimbursed inspection costs associated with the incident. Two weeks before trial was set to begin on that claim, the district court entered an evidentiary order that effectively precluded the Authority from proving that sole remaining claim by restricting the testimony of two “hybrid fact/expert” witnesses, leaving the Authority with no designated damages expert. The Seventh Circuit affirmed in part and reversed in part the district court’s summary judgment order, and vacated the evidentiary order. The court upheld the district court’s construction of the General Coverage Provision and agreed that the Authority has no compensable soft cost claim because of the deductible, but stated that, if the Authority can demonstrate with competent evidence that it incurred expenses to reduce soft costs for which Travelers otherwise would have been liable, it may recover those expenses under the “expenses to reduce the amount of loss” provision, subject to policy limits. View "Indianapolis Airport Authority v. Travelers Property Casualty Co." on Justia Law

Wright was arrested by Calumet City police, without a warrant, based on the murder of one individual and the shooting of others. Wright admitted to having a gun. At a minimum, he was to be charged with felony unlawful use of a weapon by a felon, but the prosecutor instructed the officers to wait to charge Wright until lab results came back establishing whether his gun matched casings and bullets at the scene. After being in custody for 55 hours, Wright sued under 42 U.S.C. 1983, alleging that the city violated his Fourth and Fourteenth Amendment rights by failing to provide him with a judicial determination of probable cause within 48 hours of his arrest. The next day, a judge made a probable cause finding. In the section 1983 action, Wright sought class certification, asserting that the city had a policy or practice authorizing officers to detain persons arrested without a warrant for up to 72 hours before permitting the arrestee to appear before a judge. The city made an offer of judgment. Despite accepting that Rule 68 offer, granting him relief as to "all claims brought under this lawsuit,” Wright appealed the denial of certification of a proposed class of “[a]ll persons who will in the future be detained.” He did not appeal with respect to persons who had been detained. The Seventh Circuit dismissed, finding that Wright is not an aggrieved person with a personal stake in the case as required under Article III of the Constitution. View "Wright v. Calumet City" on Justia Law