Latest 4 Cases: Gunn v. Continental Casualty Co. (Civil Procedure), Allen-Noll v. Madison Area Technical College (Civil Rights), Vaughn v. ...

Economic Theory Shows that People Will Make Choices that Worsen the Pandemic

NEIL H. BUCHANAN

UF Levin College of Law professor and economist Neil H. Buchanan points out some of the ways in which congressional Republicans misunderstand economics to justify withholding unemployment payments from Americans during the COVID-19 pandemic. Buchanan argues that economic theory soundly demonstrates that given the opportunity, people will make choices that worsen the toll of the pandemic.

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Gunn v. Continental Casualty Co.

Docket: 19-2898

Opinion Date: August 5, 2020

Judge: HAMILTON

Areas of Law: Civil Procedure, Insurance Law

Gunn brought a putative class action against Continental, which had issued a group long-term care insurance policy to Gunn’s employer, the federal judiciary, in Washington D.C. Gunn alleged that Continental breached its contract, committed torts, and violated consumer protection laws by raising his premiums dramatically. The district court dismissed the case on the pleadings based on Continental’s assertion of a filed-rate defense, relying on the Washington state Insurance Commissioner’s approval of the new, higher premiums for individual insureds in Washington. The Seventh Circuit reversed, noting that choice of law is critical in this case, which involves employees in every state. It is unclear which state’s or states’ law creates Gunn’s causes of action, whether that jurisdiction recognizes an applicable filed-rate defense and within what contours, and which state or states have authority to approve premium rates under the group policy. The court remanded to allow the district court to address those questions.

Allen-Noll v. Madison Area Technical College

Docket: 19-2639

Opinion Date: August 5, 2020

Judge: Brennan

Areas of Law: Civil Rights, Education Law, Labor & Employment Law

In 2009 Allen-Noll, who is African-American, was hired by Madison Area Technical College as a nursing instructor. Beginning in 2010, Allen-Noll was criticized for her teaching methods. Students complained that she was “rude, condescending, and defensive” in class. In 2011 complaints about Allen-Noll resurfaced from students and the tutor assigned to her class, who criticized Allen-Noll for not timely posting grades and making study guides available and for failing too many students. Allen-Noll’s clinical class also complained that she failed to follow the rules on cell phone use and did not complete paperwork. Allen-Noll was assigned a faculty mentor. Allen-Noll filed a complaint with the College, alleging discrimination and harassment based on her skin color, Complaints about Allen-Noll’s teaching continued. Other faculty said she would not participate in team meetings or volunteer for the extra service expected of full-time faculty. When her teaching contract was not renewed, Allen-Noll sued, alleging racial discrimination and harassment. After discovery, the college moved for summary judgment, but Allen-Noll failed to follow the court’s procedures. The record was largely established by the defendants’ submissions, and the college prevailed. The Seventh Circuit affirmed, finding the appeal frivolous and granting the college’s request to sanction Allen-Noll and her lawyer.

Vaughn v. Walthall

Docket: 19-1244

Opinion Date: August 5, 2020

Judge: Diane Pamela Wood

Areas of Law: Civil Rights, Health Law, Public Benefits

Vaughn, a quadriplegic, has received home‐based care for over 30 years. She requires help with personal care, household maintenance, mobility exercises, transportation, medications, suctioning secretions from her tracheostomy, and use of the ventilator. When nursing shifts cannot be staffed, Vaughn has relied on friends. Indiana funded her care through two federally-reimbursed Medicaid programs: A&D waiver and core Medicaid. Vaughn could select her own caregivers to receive A&D waiver funds but could not personally direct nursing care funded through core Medicaid. In 2016, Vaughn was hospitalized with pneumonia. She was cleared to be discharged but the state could not find nurses to provide round‐the‐clock care at home at Medicaid rates Vaughn was transferred to a nursing home and filed suit under the Americans with Disabilities Act, 42 U.S.C. 12132; the Rehabilitation Act, 29 U.S.C. 794; and the Medicaid Act, 42 U.S.C. 1396a(a)(8). The court granted Vaughn summary judgment with an injunction requiring the state to “do whatever is necessary to achieve” round‐the‐clock home‐based care, fully paid for by the state. The Seventh Circuit vacated. Vaughn is not entitled to the services she has requested under Indiana’s version of the Medicaid program, as the program was structured before the state adopted a new pilot program. The state is not obligated to reimburse Vaughn’s providers at rates above the approved Medicaid caps, nor must it use funds outside the Medicaid program to comply with a rule about accommodation within the program.

Solomakha v. Safety International, LLC

Dockets: 19-2414, 19-2395

Opinion Date: August 5, 2020

Judge: St. Eve

Areas of Law: Personal Injury

At an Illinois road construction site, a flagger abruptly turned his sign from “SLOW” to “STOP.” Roberts slammed on his breaks. Solomakha, driving a tractor-trailer truck rear-ended him, causing Roberts serious injury. Roberts sued Solomakha and the Alex transportation companies. The defendants filed a third-party complaint for contribution against the construction site's general contractor, E-K, and a subcontractor, Safety. E-K settled and was dismissed. The Alex parties also settled with the plaintiffs but continued the contribution action against Safety, arguing that the Illinois Joint Tortfeasor Contribution Act allows the court to redistribute E-K’s share of liability as determined by a jury between the Alex Parties and Safety. The statute provides: The pro-rata share of each tortfeasor shall be determined in accordance with his relative culpability. However, no person shall be required to contribute to one seeking contribution an amount greater than his pro rata share unless the obligation of one or more of the joint tortfeasors is uncollectable. In that event, the remaining tortfeasors shall share the unpaid portions of the uncollectable obligation in accordance with their pro-rata liability. The district court determined that, as a matter of Illinois law, the Alex Parties, Safety, and E-K all must appear on the verdict form so that the jury could adequately apportion fault among every party, The Seventh Circuit certified to the Illinois Supreme Court the question of whether the “obligation” of a settling party is “uncollectable” under 740 ILCS 100/3.