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Darrell Cannon v. Jon Burge
2014 U.S. App. LEXIS 9719
| 7th Cir. | 2014
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Background

  • Cannon, an El Rukn general on parole for a 1971 murder, was tortured by Area 2 police officers including Burge in 1983 and falsely confessed to a 1983 murder.
  • Cannon settled his 1983 civil suit in 1988 under a broad release (the 1988 Stipulation) stating finality of all claims arising from the incident and indemnifying the City of Chicago and its employees.
  • Post-settlement, Cannon pled guilty to lesser charges in 2001; the Illinois Prisoner Review Board later denied parole release consistent with the plea terms, prompting further litigation about parole effects for the 1971 conviction.
  • In 2005 Cannon filed §1983 and state-law claims against the City and officers for rights violations, false arrest, torture, and related theories, which were dismissed as barred by the 1988 Stipulation.
  • The district court held the 1988 Stipulation barred the current claims and declined to reopen the case, adopting Illinois contract-law analysis and noting Bell v. City of Milwaukee as a potential exception but distinguishing it.
  • On appeal, Cannon argues the settlement was procured by fraud and unconscionable bargaining; the court ultimately affirms the district court’s reliance on the unambiguous release and rejects Bell-based exceptions.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does the 1988 release bar Cannon's current claims? Cannon asserts fraud/cover-up voids the release. Release unambiguously bars all claims arising from the incident. Release bars current claims.
Is there a triable issue for fraudulent inducement of the settlement? Defendants lied to induce the settlement; Cannon relied on those lies. No actionable fraud; Cannon knew of possible broader issues and could have sought more discovery. No genuine issue of material fact; fraud claim fails.
Is the 1988 Stipulation unconscionable (procedural or substantive)? Settlement was obtained under unequal bargaining power and is thus unconscionable. Cannon was represented by counsel; settlement terms were negotiated; not unconscionable. Not unconscionable; final and binding.
Should Bell v. City of Milwaukee relieve Cannon from the release under a Bell-based exception? Bell applies where a fraud/concealment undermines access to courts; Cannon’s case is analogous. Bell is distinguishable; no broad cover-up that prevented timely litigation at settlement. Bell is distinguishable; no exception to release.

Key Cases Cited

  • Bell v. City of Milwaukee, 746 F.2d 1205 (7th Cir. 1984) (fraudulent concealment may nullify a settlement under extraordinary circumstances)
  • Bell v. City of Milwaukee, 536 F. Supp. 462 (D. Wis. 1982) (early discussion of concealment and settlement impact)
  • Vasquez v. Hernandez, 60 F.3d 325 (7th Cir. 1995) (denial of access to courts can support §1983 claim when cover-up hinders redress)
  • Thompson v. Boggs, 33 F.3d 847 (7th Cir. 1994) (personal knowledge and timeliness affect Bell distinctions)
  • Rakowski v. Lucente, 472 N.E.2d 794 (Ill. 1984) (unambiguous release bars unknown future claims unless contrary intent appears)
  • Hurd v. Wildman, Harrold, Allen & Dixon, 707 N.E.2d 613 (Ill. App. 1st Dist. 1999) (parol evidence limits when contract language is unambiguous)
  • Whitlock, 581 N.E.2d 667 (Ill. App. 1st Dist. 1991) (unambiguous contracts are enforced as written)
Read the full case

Case Details

Case Name: Darrell Cannon v. Jon Burge
Court Name: Court of Appeals for the Seventh Circuit
Date Published: May 27, 2014
Citation: 2014 U.S. App. LEXIS 9719
Docket Number: 12-1529
Court Abbreviation: 7th Cir.