Justia Government & Administrative Law Opinion Summaries

Articles Posted in U.S. 7th Circuit Court of Appeals
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Crundwell, Comptroller of Dixon, Illinois since 1983, pleaded guilty to embezzling about $53 million from the city between 1990 and 2012. She used the money to support more than 400 quarter horses and a lavish lifestyle, which she had previously claimed to be the fruit of the horses’ success. During the last six years of her scheme, the embezzlement averaged 28% of the city’s budget. In exchange for her plea, the prosecutor limited the charge to a single count of wire fraud, 18 U.S.C. 1343. The crime’s impact on the population of Dixon played a major role in the district court’s decision to sentence her to 235 months’ imprisonment, substantially above the Guideline range of 151 to 188 months. The Seventh Circuit affirmed. The district court pronounced a substantively reasonable sentence after giving Crundwell full opportunity to present evidence and arguments. The judge considered deterrence and addressed every one of her arguments. That he thought less of her cooperation than Crundwell herself did, and gave a lower weight to her age than she requested does not undermine the sentence’s validity. View "United States v. Crundwell" on Justia Law

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Philpot, former Clerk of Lake County, Indiana, took $25,000 in incentive payments from a federally funded child‐support fund (42 U.S.C. 658a(a)) without the required approval of the county fiscal body. The Indiana Department of Child Services disburses those federal funds to the counties, Ind. Code 31‐25‐4‐23(a), which have a relatively free hand in directing the money, although “amounts received as incentive payments may not, without the approval of the county fiscal body, be used to increase or supplement the salary of an elected official.” Philpot had used the funds to provide himself and staff members with bonuses. Convicted of mail fraud, 18 U.S.C. 1341, and theft from a federally funded program 18 U.S. 666(a)1A, he was sentenced to 18 months in prison. The Seventh Circuit affirmed, despite claims concerning whether Philpot “knowingly” violated the statute and the fact that Philpot had voluntarily returned the funds. View "United States v. Philpot" on Justia Law

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The pro se plaintiff sued her former employer, a private recipient of federal funding, alleging violation of the Rehabilitation Act of 1973, 29 U.S.C. 794, by requiring her to complete certain duties as a dental assistant that she was incapable of performing due to an unspecified disability that limits her strength and mobility, and then firing her because of her disability. The district judge dismissed for failure to exhaust administrative remedies. The Seventh Circuit reversed. A plaintiff under the Rehabilitation Act against a recipient of federal money is not required to exhaust the administrative remedies that the Act provides; an employee or former employee of a private company, such as the plaintiff, is not required Act to even file an administrative charge or complaint. View "Williams v. Milwaukee Health Servs., Inc." on Justia Law

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Augutis had reconstructive surgery on his foot at a VA hospital. Complications led to amputation of his leg. Augutis claims that the amputation was the result of negligent treatment and filed an administrative complaint with the Department of Veterans Affairs. The VA denied the claim. Augutis timely requested reconsideration on March 21, 2011. On October 3, the VA informed him that it had not completed reconsideration, but that suit could be filed or additional time could be permitted to allow it to reach a decision. The letter noted that Federal Tort Claims Act claims are governed by both federal and state law and that some state laws may bar a claim or suit. Days later, the VA denied reconsideration. The letter explained that a claim could be presented to a district court within six months, but again noted that state laws might bar suit. Augutis filed suit on April 3, 2012, more than five years after the surgery, but within six months of the VA’s final dismissal. The district court dismissed under Illinois’s statute of repose, 735 ILCS 5/13‐212(a), which requires that a medical malpractice claim be brought within four years of the date of the alleged malpractice. The Seventh Circuit affirmed, rejecting an argument that the state limitations period was preempted by the FTCA period. View "Augutis v. Uniited States" on Justia Law

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Mach operates an Illinois underground coal mine, using the “longwall” method, which begins with drilling tunnels for ventilation and access. A machine then shears coal from the wall and transports it out of the mine. Mach’s ventilation plan, required by 30 U.S.C. 863(o) involved blowing fresh air into the mine with an exhaust system that pulls out air containing methane, coal dust and particles. There are monitoring points throughout the mine, including at the longwall face and the top of the ventilation shaft. The system was approved for Panels 1 and 2, but not for Panel 3. There is no statutory process for obtaining review of refusal to approve a ventilation plan. Mach notified Mine Safety and Health Administration (MSHA) that it intended to operate without an approved ventilation plan in order to obtain administrative review. MSHA then issued two citations for “technical violations.” An ALJ for the Federal Mine Safety and Health Review Commission refused to consider additional evidence tendered by Mach that had not been presented to the district manager during informal negotiations and concluded that refusal to approve the ventilation plan was not arbitrary and capricious. The Commission affirmed. The Seventh Circuit denied a petition for review. View "Mach Mining, LLC v. Sec'y of Labor, Mine Safety & Health Admin." on Justia Law

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In 2009, a political blog and a Chicago television station began reporting that Illinois State Rep. Froehlich offered his constituents reductions in county property taxes in exchange for political favors. The reports highlighted Satkar Hospitality, reporting that it and its owners donated hotel rooms worth thousands of dollars to Froehlich’s campaign. Satkar Hospitality and Capra appealed their tax assessments for 2007 and 2008 and won reductions, but after the publicity about Rep. Froehlich, both were called back before the Board of Review for new hearings. They claim that in these second hearings, the Board inquired not into the value of their properties but into their relationships with Rep. Froehlich. The Board rescinded the reductions. Satkar and Capra sued the Board and individual members under 42 U.S.C. 1983. The district courts concluded that the individual defendants were entitled to absolute quasi‐judicial immunity and the Board itself is not. The Seventh Circuit affirmed, but also held that the damages claims against the Board cannot proceed. They are not cognizable in federal courts, which must abstain in suits for damages under 42 U.S.C. § 1983 challenging state and local tax collection, at least if an adequate state remedy is available. View "Satkar Hospitality, Inc. v. Rogers" on Justia Law

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Cooney divorced; she obtained sole custody of their sons. Later, her ex‐husband petitioned for change of custody. A court‐appointed expert diagnosed Cooney as having Munchausen Syndrome by Proxy, in which a person produces or feigns physical or emotional symptoms in another person under her care. A therapist reported to the Illinois Department of Children and Family Services that Cooney was abusing the children; DCFS investigated and entered an indicated finding of mental injury. Cooney filed an appeal, during which the ALJ recorded proceedings on microcassettes. Cooney retained a private court‐reporting company to transcribe the hearing as it occurred, creating the “Fishman transcripts.” After the appeal was denied, Cooney sought judicial review. Ultimately, Cooney filed a federal complaint, alleging that the DCFS representatives conspired to deprive her of her due process rights, 42 U.S.C. 1983; she claimed that the DCFS transcripts were “altered” at defendants’ direction, and that this caused delay and expense to convince the court to use the Fishman transcripts. The court granted the defendants summary judgment. The Seventh Circuit affirmed, stating that no reasonable jury could infer conspiracy from the mere existence of discrepancies in the transcripts, and ordered Cooney to show cause why a Rule 38 award should not be entered against her. View "Cooney v. Casady" on Justia Law

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The Wisconsin DNR decided to terminate a separate Pollutant Discharge Elimination System (WPDES) permit for Flambeau’s mining operation and to regulate Flambeau’s storm water discharge under its mining permit, allowing more frequent inspections. Flambeau has been in compliance since the permit issued in 1998. Plaintiff filed suit under the Clean Water Act’s citizen‐suit provision, 33 U.S.C. 1365(a)(1), alleging that Flambeau violated the CWA by discharging pollutants without a permit. They argued that the CWA permit shield did not apply because Flambeau did not have a WPDES permit and its mining permit was not issued pursuant to the CWA because Flambeau could not establish that the EPA had specifically approved the regulation under which the DNR issued the permit. The district court agreed and, after a trial, determined that Flambeau had violated the CWA and assessed penalties. The Seventh Circuit reversed, finding that the permit shield applies, characterizing the suit as an attempt to collaterally attack the WPDES program. View "WI Res. Prot. Council v. Flambeau Mining Co." on Justia Law

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Hester, a white male, began working for the Department’s laboratory in 1994. In 2007 he was reprimanded for failing to timely report test results. Hester later applied for promotion. Liu interviewed him, but chose another white male. When the supervisory position opened again, Hester again applied and was interviewed. Liu chose a white female in her mid-twenties, Gentry, who had been working in the lab for four years, citing Gentry’s performance record and concern that Hester did not have a good working relationship with others. In 2009, Hester received a form listing his “performance deficiencies.” A second performance appraisal report found that Hester still did not meet expectations for “job knowledge” and “communication.” The Department terminated his employment. Hester, then in his 50s, could be fired only for just cause. The State Employees Appeals Commission rejected his challenge. Hester sued, alleging violations of the Age Discrimination in Employment Act, 29 U.S.C. 621, and Title VII of the Civil Rights Act, 42 U.S.C. 2000e. The district court entered summary judgment, holding that Indiana was immune from liability for private damages under the ADEA, and that Hester did not adequately show that the Department discharged Hester because of a protected characteristic. The Seventh Circuit affirmed. View "Hester v. IN Dep't of Health" on Justia Law

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In 2009 the Fire Protection District passed an ordinance under which it took over fire alarm monitoring for all commercial properties in the District. Private alarm companies that had previously provided that service sued, alleging interference with their business, illegal monopoly, violations of constitutional rights, and exceeding statutory powers. Before the district court issued an opinion on remand, the District repealed the 2009 ordinance. Under a new ordinance, the District would not own any transmitters and would permit property owners to contract with private companies for alarm transmission, monitoring, and equipment; signals would still be transmitted via the District’s network to the District’s receiver. The district court entered a modified permanent injunction, requiring the District to permit alarm companies to receive and transmit signals directly from property alarm boards, independently of the District. The injunction barred the District from requiring that fire signals be sent to its station, charging residents for fire protection services, or selling or leasing fire alarm system equipment. It required the District to allow alarm companies to use any technology equivalent to wireless transmission and compliant with the NFPA code, to adopt the most current version of the NFPA code, and to refund fees. The Seventh Circuit affirmed as modified. The new injunction sets appropriate boundaries and does not contravene the earlier decision in most ways. The court struck provisions requiring refunds to subscribers and requiring the District to adopt the most current versions of the NFPA code. View "ADT Sec. Servs., Inc. v. Chicago Metro. Fire Prevention Co." on Justia Law