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US Court of Appeals for the Seventh Circuit Opinions | Rexing Quality Eggs v. Rembrandt Enterprises, Inc. | Docket: 19-2146 Opinion Date: March 26, 2020 Judge: Diane Pamela Wood Areas of Law: Business Law, Civil Procedure, Contracts | Rembrandt contracted to supply Rexing with 3,240,000 cage-free eggs every week for a year. Eight months later, Rexing claimed that Rembrandt failed to provide eggs that met the specified quality standards. Rexing sought a declaration that it was excused from accepting any more eggs, and incidental and consequential damages. Rembrandt counterclaimed, seeking damages. The trial court determined that Rexing had unilaterally terminated the contract and that the breach was not excused. Rembrandt was awarded $1,522,302.61 in damages. Rexing voluntarily dismissed its subsequent appeal and filed suit in state court, alleging conversion and deception. Rexing claimed that Rembrandt had refused to return reusable shipping materials, the “EggsCargoSystem,” Rexing had provided. In the first suit, Rexing had sought the value of the EggsCargoSystem as part of the start-up costs that it allegedly incurred in reliance on the agreement. Rembrandt removed the second suit to federal court and argued that the claims were barred by claim-preclusion in light of the district court’s grant of summary judgment in the first suit and that Rexing had improperly split its claims between the two cases. The Seventh Circuit affirmed the dismissal of the second suit. Rexing impermissibly split its claims. Both suits centered around the same controversy. Under Indiana’s doctrine prohibiting claim splitting, a plaintiff cannot bring a new lawsuit based upon the same transaction or occurrence that underlies claims brought in another lawsuit. | | United States v. DISH Network L.L.C. | Docket: 17-3111 Opinion Date: March 26, 2020 Judge: Frank Hoover Easterbrook Areas of Law: Business Law, Communications Law, Labor & Employment Law | DISH sold its satellite TV service through its own staff plus third parties: “telemarketing vendors”; “full-service retailers” that sold, installed, and serviced satellite gear; and “order-entry retailers” that used phones to sell nationwide. The United States and four states sued DISH and four order-entry retailers. The district court found that the defendants violated the Telemarketing Sales Rule, 16 C.F.R. 310, the Telephone Consumer Protection Act, 47 U.S.C. 227, and related state laws. A $280 million penalty was imposed. DISH appealed concerning the extent to which DISH had to coordinate do-not-call lists with and among these retailers or was otherwise responsible for their acts. The Seventh Circuit affirmed, except for a holding that DISH is liable for “substantially assisting” Star Satellite and its measure of damages; those violations were essentially counted twice. Regardless of the definition of “cause” under the rule, which makes it unlawful for a seller to “cause a telemarketer to engage in” violations, the retailers were DISH's agents, regardless of any contractual disclaimer. They acted directly for DISH, entering orders into DISH’s system; they did not have their own inventory and were not resellers of any kind. The retailers were authorized to sell DISH’s service by phone nationwide; the district court found that DISH knew about these retailers’ wrongful acts, so DISH is liable as the principal. | | Worman v. Entzel | Docket: 19-2048 Opinion Date: March 26, 2020 Judge: Scudder Areas of Law: Civil Rights, Constitutional Law, Criminal Law | Worman mailed his supervisor a pipe bomb, which the Postal Service intercepted. Worman was convicted of mailing an explosive device (18 U.S.C. 1716), possessing an unregistered destructive device (26 U.S.C. 5861(d), 5845(f)), transporting an explosive device (18 U.S.C. 844(d)), and possessing and using a destructive device in furtherance of a crime of violence (18 U.S.C. 924(c)). Worman’s mailing of a bomb constituted the predicate crime of violence for the section 924(c) charge, which carried a mandatory minimum sentence of 30 years’ imprisonment consecutive to any sentence imposed on another count. Worman was sentenced to 360 months for the 924(c) offense and one month for the other offenses. The judge explained that Worman would not be released until he was 84 and lacked any criminal history. The Eighth Circuit vacated; its precedent prohibited judges from considering a mandatory consecutive sentence when granting a downward variance. The court resentenced Worman to 168 months for the pipe‐bomb offenses and 360 mandatory, consecutive months for the 924(c) offense. In 2016, Worman filed an unsuccessful pro se motion for a new sentence under 28 U.S.C. 2255, based on the Supreme Court’s 2015 “Johnson” decision. In 2017, the Supreme Court held, in “Dean,” that a sentencing court may use its discretion when calculating an appropriate sentence for a felony serving as the basis for a section 924(c) conviction. Worman sought relief under 28 U.S.C. 2241. The Seventh Circuit affirmed the denial of relief, despite recognizing that Dean provided Worman a basis for a sentencing reduction. Worman does not meet either exception authorizing a second habeas motion. Dean was a decision of statutory law, not an interpretation of the Constitution, and does not apply retroactively to cases on collateral review. | | Turner v. Paul | Docket: 19-2225 Opinion Date: March 26, 2020 Judge: Diane Pamela Wood Areas of Law: Civil Rights, Constitutional Law | Turner suffered a broken nose during an altercation with another inmate while in pre-trial detention at the Cook County Jail. The injury left him with pain and shortness of breath. A doctor determined that he needed surgery to treat his problems. The surgery was repeatedly rescheduled and postponed. More than a year after the initial injury, he finally received the surgery following his release from custody. Claiming that his treatment was unconstitutionally deficient, Turner sued administrators and medical professionals and Cook County itself. The district court granted the defendants summary judgment. The Seventh Circuit affirmed. Turner presented no evidence that would allow the trier of fact to conclude that the allegedly unreasonable conduct of any named defendant caused his surgery to be delayed; none of them had the authority to schedule or to perform the relevant surgery. Each time any of the individual defendants encountered Turner, his surgery or another appointment was on the surgery schedule. No rule of law imposes a duty on the medical defendants to continue calling the clinic after they properly contacted the proper schedulers. | |
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