Justia Government & Administrative Law Opinion Summaries

George and Maria Dernis borrowed money from Premier Bank, which was involved in fraudulent lending practices. The loans were secured by mortgages on their personal real estate. After Premier Bank collapsed, the FDIC was appointed as receiver and sold some of the bank's loans, including the Dernises' loans, to Amos Financial in 2014. The Dernises claimed that the FDIC was aware of the fraudulent nature of the loans and failed to take remedial action. They filed a lawsuit against the FDIC, which was dismissed by the district court. They then filed an amended complaint against the United States under the FTCA, alleging various torts based on the FDIC's conduct.The United States District Court for the Northern District of Illinois dismissed the amended complaint, determining that most of the claims were not timely exhausted under 28 U.S.C. § 2401(b). The court also found that the sole timely claim was barred by the FTCA’s intentional torts exception under 28 U.S.C. § 2680(h). The court dismissed the action with prejudice and entered final judgment.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the Dernises failed to timely exhaust their administrative remedies for most of their claims. The court also held that the only timely claim was barred by the FTCA’s intentional torts exception, as it involved misrepresentation, deceit, and interference with contract rights. The court rejected the Dernises' argument that the FDIC’s "sue-and-be-sued" clause provided a broader waiver of sovereign immunity, noting that the United States was the sole defendant and the FTCA provided the exclusive remedy for tort claims against the United States. View "Dernis v United States" on Justia Law

In July 2019, Indiana Department of Child Services (DCS) workers encountered a two-month-old infant, L.M., with a severe skull fracture and extensive brain damage. The infant's parents, Erika and Brian Mabes, had taken him to the emergency room after finding him unresponsive. This led to child abuse and custody proceedings against the Mabeses. They eventually regained custody and sued nine DCS workers and a consultant doctor, alleging violations of their Fourth and Fourteenth Amendment rights under 42 U.S.C. § 1983.The United States District Court for the Southern District of Indiana denied the defendants' motions for summary judgment, finding unresolved factual disputes that precluded their requests for qualified immunity. The defendants appealed this decision.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court reversed the district court's decision, granting qualified immunity to all defendants. The court found that the DCS workers and the consultant doctor acted reasonably under the circumstances and did not violate clearly established constitutional rights. The court emphasized the urgency and severity of the situation faced by the DCS workers and the consultant doctor, concluding that their actions were lawful and reasonable. The court also noted that the plaintiffs failed to provide evidence that the defendants acted with intent to misrepresent facts or ignored exculpatory evidence. The court remanded the case for entry of judgment in favor of the defendants. View "Mabes v McFeeley" 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

Plaintiffs, LSP Transmission Holdings II, LLC, and affiliates, sought to build and operate interstate electricity transmission lines in Indiana. An Indiana statute granted incumbent electric companies the right of first refusal to build and operate new interstate transmission facilities connecting to their existing facilities. Plaintiffs argued that this statute violated the dormant commerce clause of the U.S. Constitution. The district court issued a preliminary injunction preventing the Indiana Utility Regulatory Commission (IURC) Commissioners from enforcing the statute.The IURC Commissioners and several intervening defendants appealed the injunction. They argued that the IURC did not enforce the rights of first refusal and that the injunction would not redress plaintiffs' injuries. The district court had found that plaintiffs had standing because it believed the IURC enforced the rights of first refusal and that an injunction would prevent MISO from recognizing the statute.The United States Court of Appeals for the Seventh Circuit vacated the preliminary injunction, finding that plaintiffs lacked standing. The court concluded that the IURC had no relevant responsibilities for enforcing the challenged statute and that any genuine redress would have to operate against MISO, a non-governmental entity not party to the lawsuit. The court noted that MISO had made clear it would not respond to the preliminary injunction as plaintiffs and the district court expected. The court also rejected a dissenting opinion's novel theory of standing, which was not presented by plaintiffs or adopted by the district court. The case was remanded to the district court for further proceedings. View "LSP Transmission Holdings II, LLC v Commonwealth Edison Company of Indiana, Inc." on Justia Law

Jack William Morgan, a Messianic Jew, purchased a turkey log from the commissary at the Federal Correctional Institution (FCI) Thomson in May 2021, which led to the suspension of his kosher diet approval for thirty days by the institutional chaplain. Morgan claimed this forced him to choose between starvation and violating his religious beliefs, and he chose starvation. After exhausting administrative remedies, he sued the Federal Bureau of Prisons (BOP) and the prison warden, Andrew Ciolli, seeking changes to dietary policies and monetary damages under the Religious Freedom Restoration Act (RFRA). Morgan has since been transferred to a different BOP facility.The United States District Court for the Northern District of Illinois dismissed Morgan’s complaint with prejudice for failure to state a claim. The court found that Morgan did not provide sufficient factual allegations to show that the BOP’s dietary policies substantially burdened his religious exercise. Additionally, the court noted that the BOP is immune from suits for damages under RFRA and that Morgan’s complaint did not include allegations about Ciolli’s conduct.The United States Court of Appeals for the Seventh Circuit reviewed the case and focused on two threshold issues: subject-matter jurisdiction and sovereign immunity. The court determined that Morgan did not adequately allege standing to pursue his claim for injunctive relief, as his threat of future injury was too speculative. Furthermore, the court held that federal sovereign immunity barred Morgan’s claim for monetary damages, as RFRA does not waive the federal government’s sovereign immunity against damages suits. The court affirmed the district court’s dismissal but modified the judgment to reflect a jurisdictional dismissal. View "Morgan v BOP" on Justia Law

A group of religious organizations employing nonimmigrant workers challenged a regulation by the United States Citizenship and Immigration Services (USCIS) that precludes special immigrant religious workers from filing their applications for special immigrant worker status and permanent resident status concurrently. The plaintiffs argued that this regulation violated the First and Fourteenth Amendments, the Religious Freedom Restoration Act (RFRA), the Immigration and Nationality Act (INA), and the Administrative Procedures Act (APA).The United States District Court for the Northern District of Illinois dismissed the APA claim as time-barred and granted summary judgment in favor of USCIS on the remaining claims. The court found that the regulation did not violate RFRA because it did not affect religious practice, and it did not violate the First Amendment because it was neutral and generally applicable. The court also ruled that the regulation did not violate the Due Process and Equal Protection Clauses because it was based on the risk of fraud in the special immigrant religious worker program.The United States Court of Appeals for the Seventh Circuit reviewed the case. The court found that the plaintiffs had standing to bring their claims and that their APA claim was not time-barred due to the Supreme Court's decision in Corner Post, Inc. v. Board of Governors of the Federal Reserve System, which held that a plaintiff’s challenge to a final agency action does not accrue under the APA until the plaintiff is injured by the action. The court remanded the APA claim for further proceedings.The Seventh Circuit affirmed the district court's decision on the RFRA and First Amendment claims, concluding that the regulation did not substantially burden the plaintiffs' religious exercise and was neutral and generally applicable. The court also affirmed the dismissal of the Establishment Clause claim, finding that the regulation did not overly burden the plaintiffs' religious practice. View "Society of the Divine Word v. United States Citizenship and Immigration Services" on Justia Law

Dale Staten, a coal miner for nearly thirty years, retired in 2000 and passed away in January 2017 from respiratory failure after a two-week hospitalization. His widow, Bernadette Staten, filed for survivor benefits under the Black Lung Benefits Act. A Department of Labor administrative law judge (ALJ) awarded benefits, concluding that Bernadette qualified for a statutory presumption that Dale died from black lung disease due to his extensive underground mining work and total disability at the time of his death. The Benefits Review Board affirmed the ALJ's decision in a divided ruling.Consolidation Coal Company (CONSOL), Dale's former employer, challenged the ALJ's award, arguing that the 15-year presumption should only apply to chronic pulmonary conditions, not acute illnesses like Dale's respiratory failure. CONSOL contended that Dale's total disability was due to an acute condition rather than a chronic one. The ALJ had credited Dr. Sanjay Chavda's opinion that Dale was totally disabled at the time of his death, while discounting the opinions of CONSOL's experts, Dr. James Castle and Dr. Robert Farney, who argued that Dale was not disabled based on his medical history before his hospitalization.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the ALJ's award of benefits. The court held that the Black Lung Benefits Act does not require a claimant to prove that a miner's total disability arose from a chronic pulmonary condition to invoke the 15-year presumption. The court found that the ALJ acted within its authority in crediting Dr. Chavda's opinion and concluding that CONSOL failed to rebut the presumption that Dale's death was due to pneumoconiosis. The court denied CONSOL's petition for review and affirmed the judgment of the Benefits Review Board. View "Consolidation Coal Company v OWCP" on Justia Law

Waukegan Potawatomi Casino, LLC (WPC) alleged that its Fourteenth Amendment rights were violated when the City of Waukegan did not advance its casino proposal for licensing consideration. WPC claimed it experienced intentional discrimination during the application process as a "class of one." The City of Waukegan certified three other applicants but not WPC, which alleged that the process was rigged to benefit another applicant, Lakeside Casino, LLC. WPC pointed to the relationship between the City's mayor and a founding partner of Lakeside, as well as the City's handling of supplemental information from applicants, as evidence of discrimination.The United States District Court for the Northern District of Illinois granted summary judgment for the City. The court concluded that WPC, as an arm of a sovereign Native American tribe, could not maintain a claim under 42 U.S.C. § 1983. Additionally, the court found that WPC's class-of-one equal protection claim failed because WPC was not similarly situated to the other applicants and there were multiple conceivable rational bases for the City's conduct.The United States Court of Appeals for the Seventh Circuit affirmed the district court's decision. The appellate court held that WPC could not carry its heavy burden as a class-of-one plaintiff. The court noted that there were several rational bases for the City's decision, including differences in the casino proposals and the applicants' experience. The court also found that WPC failed to identify a similarly situated comparator who was treated more favorably. The court concluded that the City's conduct throughout the review process, including its handling of supplemental information, had rational justifications. Thus, WPC's class-of-one claim failed under both prongs of the analysis. View "Waukegan Potawatomi Casino, LLC v City of Waukegan" on Justia Law

The Seventh Circuit upheld Milwaukee's residency requirement for law enforcement and emergency personnel. Milwaukee’s corporate charter previously required all city employees to live within city limits. In 2013, the Wisconsin legislature prohibited local governments from imposing a residency requirement as a condition of employment, exempting requirements that law enforcement, fire, or emergency personnel reside within 15 miles of jurisdictional boundaries. Milwaukee announced its intent to enforce its original residency requirement, citing the Wisconsin Constitution’s home‐rule provision. The Wisconsin Supreme Court rejected that argument. The city amended its charter to require all law enforcement, fire, and emergency personnel to reside within 15 miles of city limits, giving affected employees six months to comply, with extensions available for hardship. In a suit under 42 U.S.C. 1983, the Seventh Circuit affirmed judgment on the pleadings for the city. Municipal employees do not have a fundamental right to be free from residency requirements, for purposes of substantive due process. Rejecting a procedural due process argument, the court stated that no vested right was impaired. The amended charter does not apply retroactively. View "Milwaukee Police Association v. City of Milwaukee" on Justia Law

Ulloa, a citizen of Mexico, married Morfin, a U.S. citizen. Morfin sought approval for his permanent residence, but Ulloa was present in the U.S. without authority and was required to return to Mexico to obtain a visa for lawful entry. He applied at the consulate in Juarez. After twice interviewing Ulloa, the State Department denied him a visa, stating that it had reason to believe that he is (or was) involved in drug trafficking. In 2001 Ulloa had been indicted for possessing more than 500 grams of cocaine, with intent to distribute. The U.S. Attorney dismissed the indictment and Ulloa denies the charge, but he lacks a favorable adjudication. The couple sued under the Administrative Procedure Act, 5 U.S.C. 702, alleging that the denial was arbitrary and not supported by substantial evidence. The district court found that it lacked jurisdiction because decisions on visa applications are committed to agency discretion and are outside the scope of judicial review under the APA. The Seventh Circuit affirmed. While the APA does not curtail jurisdiction granted by other laws, the consular officer gave a legitimate reason for denying Ulloa’s application. Precedent prevents the judiciary from reweighing the facts and equities. Whether Congress acted wisely in making “reason to believe” some fact sufficient to support the denial of a visa application is not a question open to review by the judiciary. View "Morfin v. Tillerson" on Justia Law