Reginald Clay v. Union Pacific Railroad Company

Court of Appeals for the Seventh Circuit·Decided April 1, 2026·No. 25-2185·Published·Brennan

Opinion

In the

United States Court of Appeals For the Seventh Circuit

No. 25-2185 REGINALD CLAY, Plaintiff-Appellee,

v.

UNION PACIFIC RAILROAD COMPANY, Defendant-Appellant.

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:24-cv-04194 — Georgia N. Alexakis, Judge.

No. 25-2761 BRANDON WILLIS, Plaintiff-Appellee,

v.

UNIVERSAL INTERMODAL SERVICES, INC., et al., Defendants-Appellants.

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:21-cv-01716 — Elaine E. Bucklo, Judge.

2 Nos. 25-2185 et al.

No. 25-2762 JOHN GREGG, Plaintiff-Appellee,

v.

CENTRAL TRANSPORT LLC, Defendant-Appellant.

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:24-cv-01925 — Elaine E. Bucklo, Judge.

ARGUED FEBRUARY 12, 2026 — DECIDED APRIL 1, 2026

Before BRENNAN, Chief Judge, and HAMILTON and JACKSON- AKIWUMI, Circuit Judges.

BRENNAN, Chief Judge. In 2024, Illinois’s General Assembly amended Section 20 of the Biometric Information Privacy Act, confirming that damages should be evaluated on a per-person basis. The legislature did so in response to a Supreme Court of Illinois decision, in which the court expressed concern that the old version of Section 20 might permit “annihilative liability ” for businesses regulated by the Act. Cothron v. White Castle Sys., Inc., 216 N.E.3d 918, 928 (Ill. 2023). The question presented is whether this amendment applies retroactively to cases pending when it was enacted.

Nos. 25-2185 et al. 3

I

A

Illinois enacted the Biometric Information Privacy Act (BIPA or the Act) to respond to the increasing use of biometric data in commerce. Fox v. Dakkota Integrated Sys., LLC, 980 F.3d 1146, 1149 (7th Cir. 2020). BIPA codified individuals’ “right to privacy in and control over their biometric identifiers and biometric information.” Bryant v. Compass Grp. USA, Inc., 958 F.3d 617, 621 (7th Cir. 2020) (quoting Rosenbach v. Six Flags Ent. Corp., 129 N.E.3d 1197, 1206 (Ill. 2019)). The Act regulates how private entities must handle the collection, retention, and disclosure of such information. 740 ILCS 14/15.

BIPA has become a font of high-stakes litigation. Cf.

Bridges v. Blackstone, Inc., 66 F.4th 687, 688 (7th Cir. 2023). Five years ago, one such case came before this court. In Cothron v. White Castle System, Inc., 20 F.4th 1156 (7th Cir. 2021), this court was asked to decide how claims accrue under BIPA’s substantive provisions. BIPA prohibits private entities from “collect[ing],” “captur[ing],” “disclos[ing],” or “otherwise disseminat[ing]” anyone’s biometric identifiers without their informed consent. 740 ILCS 14/15(b), (d). In Cothron’s view, this meant her employer collected her biometric information and a new claim accrued every single time she scanned her fingerprint to access the company’s computer system. Cothron, 20 F.4th at 1160. The defendant argued this per-scan theory of claim accrual would create “potentially crippling fi- nancial liability” for those who violate BIPA by repeatedly collecting the same information in the same way. Id. at 1165.

Recognizing the stakes of the case, this court certified the question of claim accrual under BIPA Sections 15(b) and (d) to 4 Nos. 25-2185 et al.

the Supreme Court of Illinois. Id. at 1167. That court accepted our certification request. Cothron, 216 N.E.3d at 921 (Ill. 2023). After concluding that the text of Section 15 is unambiguous, the court sided with the plaintiffs and held that claims accrue “with every scan or transmission” of biometric information. Id. at 926; see also id. at 922, 924–26.

Though the Cothron decision centered on the plain text of Section 15, another part of BIPA loomed over the case. Section 20 creates “a right of action” for plaintiffs to sue private entities that violate BIPA. 740 ILCS 14/20(a). That section also sets the damages a plaintiff can recover “for each violation,” creating a choice between actual and liquidated damages— “whichever is greater.” Id. at 20(a)(1)–(2). When a business “intentionally or recklessly violates a provision of this Act,” the plaintiff can obtain $5,000 in statutory damages. Id. at (a)(2). A negligent violation lands plaintiffs a $1,000 damages award. Id. at (a)(1).

The defendant and amici in Cothron invoked Section 20 to dissuade the court from adopting its per-scan reading of Section 15. “[B]ecause section 20 of the Act sets forth liquidated damages that a party may recover for ‘each violation,’” they argued, this approach “could potentially result in punitive and ‘astronomical’ damage awards.” Cothron, 216 N.E.3d at 928 (quoting 740 ILCS 14/20(a)). The defendant noted that class-wide damages in that suit could exceed $17 billion, a result the legislature could not have intended. Id.

The Supreme Court of Illinois acknowledged this concern.

Though BIPA leverages “the potential for significant damages awards” to ensure compliance, the court recognized that the text of Section 20 might cut against the availability of such massive monetary penalties. Id. at 928–29. But it still

Nos. 25-2185 et al. 5

“believe[d] that policy-based concerns about potentially excessive damage awards under the Act are best addressed by the legislature.” Id. at 929. So, the court concluded its opinion by “respectfully suggest[ing] that the legislature review these policy concerns and make clear its intent regarding the assessment of damages under the Act.” Id.

B

The Illinois General Assembly responded to the court’s invitation . Less than a year and a half after the Cothron decision, the General Assembly passed an amendment to Section 20 clarifying the scope of damages available under BIPA. See Pub. Act. 103-0769, 2024 Ill. Laws 6788–89 (2024). The amendment took effect on August 2, 2024—the same day the governor signed it into law. Id.

This amendment added two clauses to Section 20. The first provides that any entity that collects biometric information “in more than one instance … from the same person using the same method of collection in violation of subsection (b) of Section 15 has committed a single violation of subsection (b) of Section 15 for which the aggrieved person is entitled to, at most, one recovery under this Section.” 740 ILCS 14/20(b). The second adds the same operative language for violations of Section 15(d). Id. at 14/20(c). The legislature did not change the text of Section 15 or Section 20(a) at all, nor did it include an express retroactivity clause. Id.

II

We have consolidated three interlocutory appeals posing a common legal question—whether this amendment to BIPA Section 20 applies retroactively. Reginald Clay, a commercial truck driver, alleges that the Union Pacific Railroad violated 6 Nos. 25-2185 et al.

Section 15(b) of BIPA by requiring him to scan his fingerprints when he entered and exited the company’s facilities. John Gregg and Brandon Willis each allege their employers collected their fingerprints or hand geometry through a “biometric time clock,” violating BIPA Sections 15(a), (b), and (d). Though these cases come to us in different procedural postures , each district court certified this question for interlocutory review, and we granted the requests to appeal. 28 U.S.C. § 1292(b).

The financial stakes of this case are high. If the amendment does not apply, each plaintiff argues he is entitled to a substantial award of damages. Clay, for example, alleges that the Railroad collected his fingerprint scans approximately 1,500 times. If the railroad is found liable for intentional violations of the Act, that could net Clay alone $7.5 million in statutory damages. And Willis filed his case as a putative class action, leading to a risk of billions of dollars in damages.

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