34 F.4th 629
7th Cir.2022Background
- In response to COVID-19, Illinois Governor Pritzker issued executive orders requiring shelter-in-place, limiting gatherings, and closing or restricting "non-essential" businesses.
- Twelve plaintiffs (individuals and several businesses) sued the Governor in his official capacity alleging violations of the First, Fifth, and Fourteenth Amendments and seeking damages and injunctive/declaratory relief.
- The district court granted the Governor’s motion to dismiss for lack of Article III standing and failure to state a claim, allowed one amendment, then dismissed the amended complaint with prejudice and denied leave to amend a second time.
- Plaintiffs’ amended complaint largely replaced specific allegations with a repeated, generalized assertion that each plaintiff "lived in fear" and had rights removed, and businesses alleged economic harm and imminent collapse.
- On appeal, the Seventh Circuit affirmed dismissal: Counts I–V dismissed for lack of standing (modified to without prejudice); Count VI (regulatory takings by businesses) dismissed with prejudice for failure to state a claim; denial of further leave to amend affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing for First–Fifth Amendment claims (Counts I–V) | Plaintiffs were subject to restrictions on religion, speech, assembly, and travel during orders and thus suffered injury. | Allegations are vague, generalized, and not particularized to any plaintiff; fail Spokeo/Lujan concreteness requirement. | Plaintiffs lack Article III standing for Counts I–V; dismissal affirmed (converted to without prejudice). |
| Standing for Takings claim (Count VI) | Businesses lost revenue/ability to operate and face economic collapse due to closure orders. | Injuries are speculative or insufficiently pleaded for Article III. | Businesses plausibly alleged economic injury and thus standing may be satisfied (squeaks by). |
| Merits — Regulatory Takings (Count VI) | Orders deprived businesses of all or substantial use/value of property, requiring compensation. | No allegations of total or near-total deprivation; businesses could use property otherwise; pleadings are conclusory. | Failed to plead sufficient facts to state a regulatory-takings claim under Lucas/Penn Central; Count VI dismissed with prejudice. |
| Denial of further leave to amend (futility) | Plaintiffs should get another chance to cure defects. | Prior amendment duplicated vague allegations; another amendment would be futile. | District court did not abuse discretion; denial of further leave affirmed. |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing requires injury-in-fact, causation, redressability)
- Spokeo, Inc. v. Robins, 578 U.S. 330 (injury-in-fact must be concrete and particularized)
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard: legal conclusions must be supported by factual allegations)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (plausibility pleading standard)
- Lingle v. Chevron U.S.A. Inc., 544 U.S. 528 (framework for regulatory takings)
- Lucas v. S.C. Coastal Council, 505 U.S. 1003 (total regulatory takings require deprivation of all economically beneficial use)
- Penn Central Transp. Co. v. City of New York, 438 U.S. 104 (multifactor regulatory-takings test)
- Pennsylvania Coal Co. v. Mahon, 260 U.S. 393 (regulation can constitute a taking if it goes too far)
- Loretto v. Teleprompter Manhattan CATV Corp., 458 U.S. 419 (physical occupation is a taking)
- Sandy Point Dental, P.C. v. Cincinnati Ins. Co., 20 F.4th 327 (7th Cir. on COVID restrictions and alternative property uses)
- Elim Romanian Pentecostal Church v. Pritzker, 962 F.3d 341 (7th Cir. upholding similar COVID free-exercise challenges)
- Illinois Republican Party v. Pritzker, 973 F.3d 760 (7th Cir. addressing facial discrimination and enforcement evidence under gathering limits)
