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    DIXON, MARCUS v. PAGE, THOMAS
    In the
    United States Court of Appeals
    For the Seventh Circuit
    
    No. 01-1973
    
    Marcus Dixon,
    
    Plaintiff-Appellant,
    
    v.
    
    Thomas Page, et al.,
    
    Defendants-Appellees.
    
    Appeal from the United States District Court 
    for the Southern District of Illinois.
    No. 97-323-GPM--G. Patrick Murphy, Chief Judge.
    
    Argued December 6, 2001--Decided May 28, 2002
    
    
      Before Cudahy, Easterbrook and Evans,
    Circuit Judges.
    
      Cudahy, Circuit Judge.  In this appeal,
    Marcus Dixon argues that the district
    court erred in dismissing without
    prejudice Counts II and III of his
    complaint because he failed to exhaust
    his administrative remedies. We affirm.
    
    I.
    
      Because Dixon's complaint was dismissed
    under Rule 12(b)(6), all statements of
    fact in the complaint are taken as true
    and all reasonable inferences must be
    drawn in favor of Dixon. Massey v.
    Wheeler, 221 F.3d 1030, 1034 (7th Cir.
    2000). Dixon, a former Illinois prisoner,
    now released, was an inmate at Menard
    Correctional Center ("Menard"). Upon
    arriving at Menard on December 13, 1995,
    he immediately asked to be placed in
    segregation because of a "hit" placed
    upon him by a gang called the Vice Lords.
    On January 8, 1996, Dixon was beaten up
    by three members of the Vice Lords after
    the prison ended a lockdown that had
    prevented prisoners from moving about
    outside their cells. The failure of
    prison officials to prevent this beating
    formed the basis of Count I of Dixon's
    complaint.
    
      In Count II of his complaint, Dixon
    asserts that prison officials failed to
    protect him from assault and harassment
    by several inmates. He alleged that after
    the January 8, 1995 incident, he asked
    for protection again and was moved to the
    protective custody unit on Gallery 7.
    However, Dixon found that he was also in
    danger in Gallery 7 because there were
    Vice Lords there, who frequently
    threatened him. Despite repeatedly asking
    for assistance from prison officials, he
    received none. On February 22, 1996,
    Dixon was stabbed by Tyrone Jackson, a
    Vice Lord who had been placed in the cell
    with him. Dixon wrote several more
    letters asking for help but continued to
    receive no assistance. On May 28, 1996,
    Dixon was attacked and struck by another
    inmate, and he continued to be harassed
    by various inmates. He filed written
    grievances after each incident. In July,
    in response to his grievances, the
    Administrative Review Board told Dixon to
    contact his counselor. Dixon made
    repeated attempts to obtain a transfer to
    another prison through his counselor and
    through the other defendants but was told
    that he was ineligible at that time.
    
      In Count III of his complaint, Dixon
    alleged that he had been beaten by prison
    officials in retaliation for his filing
    of an administrative complaint against
    these same officials. He filed several
    more grievances and was subsequently
    granted a transfer to another prison.
    However, he was never transferred.
    
      On April 16, 1997, Dixon filed an
    initial two-count complaint in federal
    court under sec. 1983. He filed an
    amended complaint on February 23, 1998,
    adding Count III, and the case was
    assigned to Magistrate Judge Proud. The
    defendants moved for dismissal on the
    ground that Dixon had failed to exhaust
    his administrative remedies. Dixon then
    filed a second amended complaint adding
    that he had filed written grievances on
    specified dates. Magistrate Judge Proud
    issued an order and recommendation that
    the motion to dismiss be denied. This
    order and recommendation was approved and
    adopted by the district court in March
    1999. 
    
      In August 1999, the defendants asked the
    district court (and by implication,
    Magistrate Judge Proud) to reconsider the
    order in light of Perez v. Wisconsin
    Dep't of Corrections, 182 F.3d 532 (7th
    Cir. 1999), which held that
    administrative exhaustion was a
    precondition even for a suit seeking
    money damages. Upon reconsideration,
    Magistrate Judge Proud recommended that
    the defendants' motion to reconsider be
    granted. Specifically, Judge Proud
    recommended the dismissal of most of
    Count II and all of Count III for failure
    to exhaust administrative remedies. The
    district court then adopted this new
    order and recommendation, and most of
    Count II and all of Count III were
    dismissed without prejudice. In October
    2000, a trial was held on all of the
    remaining claims. At the close of Dixon's
    case-in- chief, the defendants moved for
    judgment as a matter of law under Rule 50
    of the Federal Rules of Civil Procedure.
    The court granted the motion from the
    bench and later issued a written order
    outlining its reasoning. Dixon now
    appeals from the dismissal of most of
    Count II and all of Count III of his
    second amended complaint.
    
    II.
    
      Dixon argues that we have appellate
    jurisdiction under 28 U.S.C. sec.
    636(c)(3). However, that provision
    applies only to appeals from a final
    judgment of a magistrate judge, not to
    appeals from a final judgment of a
    district court. Here, the dismissal was
    by a district court, and sec. 636(c)(3)
    does not apply. Instead, we have
    appellate jurisdiction over final
    judgments of a district court under 28
    U.S.C. sec. 1291. Although the counts in
    question were dismissed without
    prejudice, and on that basis, narrowly
    viewed, the dismissals would not be
    appealable, it is clear that there is
    nothing that Dixon can do to amend his
    complaint "that would permit it to go
    forward." Larkin v. Galloway, 266 F.3d
    718, 721 (7th Cir. 2001). The reason is
    that since Dixon is not currently a
    prisoner, the prison grievance system is
    not available to him, and he cannot
    exhaust his administrative remedies. He
    therefore cannot cure the defect in his
    complaint on which the district court
    based its dismissal of Counts II and III.
    Thus, under the circumstances, the
    dismissal of his claims is final for
    purposes of appellate review. See id.
    ("If it is clear, for example, that the
    plaintiff will not be able to amend her
    complaint, the dismissal [without
    prejudice] is final for purposes of
    appellate review."); see also Ray v.
    Kertes, 285 F.3d 287, 291 (3d Cir. 2002)
    (exercising appellate jurisdiction when
    "both parties agree that the time is long
    past for [the inmate-appellant] to pursue
    his normal administrative remedies
    [preventing him from] curing the defect
    in his complaint on which the District
    Court based its dismissal")./1 This
    court reviews a dismissal of a com-plaint
    under Rule 12(b)(6) de novo. Massey v.
    Helman, 259 F.3d 641, 645 (7th Cir.
    2001).
    
    A.
    
      The Prison Litigation Reform Act of 1995
    ("PLRA"), Pub. L. 104-134, 110 Stat. 1321
    (1996), provides in pertinent part that
    
    [n]o action shall be brought with respect
    to prison conditions under section 1983
    of this title, or any other Federal law,
    by a prisoner confined in any jail,
    prison, or other correctional facility
    until such administrative remedies as are
    available are exhausted.
    
    42 U.S.C. sec. 1997e(a) (1996).
    Exhaustion of administrative remedies, as
    required by sec. 1997e, is a condition
    precedent to suit. See Perez v. Wisconsin
    Dep't of Corrections, 182 F.3d 532, 535
    (7th Cir. 1999). sec. 1997e applies to
    "all inmate suits, whether they involve
    general circumstances or particular
    episodes, and whether they allege
    excessive force or some other wrong."
    Porter v. Nussle, 534 U.S. 516, 122 S.
    Ct. 983, 992 (2002). 
    
      Dixon first argues that he does not have
    to exhaust his administrative remedies
    because it would be futile for him to do
    so when he is seeking money damages, and
    he cannot be awarded money damages in the
    administrative system. However, this
    precise argument has been rejected by the
    Supreme Court in its recent decision in
    Booth v. Churner, 532 U.S. 731, 121 S.
    Ct. 1819 (2001), which was issued the day
    before Dixon filed his appeal. Booth held
    that administrative exhaustion was
    required even if the process could not
    result in a prisoner's desired form of
    relief.
    
    B.
    
      Dixon also argues that sec. 1997e does
    not apply to him because he is no longer
    a prisoner within the meaning of sec.
    1997e. sec. 1997e applies only to
    prisoners, and a plaintiff's status as a
    "prisoner" is to be determined as of the
    time he brought the lawsuit. Kerr v.
    Puckett, 138 F.3d 321, 323 (7th Cir.
    1998). Thus, when Dixon filed his
    complaint, he was a prisoner, who had
    access to Menard's administrative
    grievance system. That he is no longer a
    prisoner at the time of this appeal does
    not excuse him from the exhaustion
    requirement since exhaustion is a
    precondition to the filing of a complaint
    in federal court. See Perez, 185 F.3d at
    535. Therefore, sec. 1997e still applies
    to this lawsuit. 
    
    C.
    
      Finally, Dixon argues that he properly
    exhausted his administrative remedies
    when he filed his many grievances in the
    administrative system. But, in reviewing
    the record, we conclude that Dixon did
    not exhaust his administrative remedies. 
    
      The Illinois Department of Corrections
    has a three-step grievance procedure. See
    20 Ill. Admin. Code sec. 504.800 et seq.
    (1998) (detailing grievance procedure).
    If a prisoner has a grievance or
    complaint, he should first go to a
    counselor. 20 Ill. Admin Code sec.
    504.810 (1998). If no relief is provided
    by the counselor, a prisoner can then
    file a written grievance. Id. Finally, if
    the written grievance is dismissed, he
    can appeal to the Director of the
    Department. Id. There is also a statute
    of limitations requiring that written
    grievances be filed within six months of
    the incident or problem complained of.
    Id. If a written grievance is not filed
    within that period, it will be dismissed
    as untimely. Id. However, an untimely
    grievance can still be considered if the
    inmate can show that there is good cause
    for the delay. Id.
    
      Dixon had complained to his counselor
    and filed four written grievances in
    connection with the dismissed claims in
    Count II of his complaint, but he was
    denied relief with respect to all four
    grievances. With respect to three of
    those grievances, Dixon never appealed
    the denial of relief to the Director (the
    next step in the grievance process). As
    to the fourth grievance, although Dixon
    eventually exhausted his administrative
    remedies, he did not exhaust them until
    after he had filed his complaint in
    federal court. This fourth grievance thus
    does not support his federal
    complaintbecause exhaustion of
    administrative remedies is a precondition
    to the filing of a sec. 1983 suit by a
    prisoner. See Perez, 185 F.3d at 535
    (holding that exhaustion of
    administrative remedies is a precondition
    to suit). Therefore, three of his claims
    relating to Count II were not pursued to
    the final step of the administrative
    process and, as to the fourth, the
    process was not completed before the sec.
    1983 complaint was filed. The
    requirements of sec. 1997e were therefore
    not met and those claims were properly
    dismissed.
    
      Because Dixon exhausted his
    administrative remedies with respect to
    his claims in Count I and also exhausted
    his administrative remedies with respect
    to one claim in Count II, Dixon received
    a trial on those claims. Now, he presents
    a sort of single source theory--that the
    exhaustion of those claims preserves the
    unexhausted claims in Count II because
    all of his claims arise ultimately from
    the failure of the prison system to
    protect him from the Vice Lords.
    Essentially, Dixon is arguing that all of
    his claims were really one claim. This
    argument was raised for the first time in
    Dixon's reply brief. As a general rule,
    we do not consider arguments raised for
    the first time in a reply brief. See
    Coffey v. Van Dorn Iron Works, 796 F.2d
    217, 221 (7th Cir. 1987) ("We will not
    consider argument raised for the first
    time in the appellant's reply brief.").
    Even if we were to consider the argument,
    it has no merit. If all of the claims in
    Count I and Count II were one claim, then
    that one claim was decided against Dixon
    at the trial on the exhausted claims in
    his complaint. Hence, Dixon is not
    entitled to another trial on the
    unexhausted claims in Count II. On the
    other hand, if the unexhausted claims
    were separate claims, then Dixon failed
    to meet the requirements of sec. 1997e as
    to those claims. In either case, the
    dismissal of the unexhausted claims in
    Count II of his complaint may be
    affirmed. 
    
      With respect to his claims in Count III
    that prison officials beat him, Dixon
    filed two grievances. He did not appeal
    the dismissal of the first grievance to
    the Director. Thus, as we have indicated,
    Dixon failed to exhaust his
    administrative remedies with respect to
    that grievance and that claim was
    properly dismissed under sec. 1997e.
    Dixon was granted relief of sorts on his
    second grievance, in which he sought a
    transfer. However, although he was
    granted a transfer, Dixon was never in
    fact transferred. The state argues that
    Dixon did not exhaust this second
    grievance because he should have done
    something administratively to compel the
    prison to meet its obligation to transfer
    him. The state suggested that Dixon could
    have filed another grievance requesting
    the transfer. The state asserts that,
    even if the grievance were deemed
    untimely, Dixon could have shown good
    cause for his delay in filing the
    grievance. 
    
      Requiring a prisoner who has won his
    grievance in principle to file another
    grievance to win in fact is certainly
    problematic. Although the time spent in
    exhausting administrative remedies is
    tolled for purposes of limitations on
    filing a federal complaint, see Johnson
    v. Rivera, 272 F.2d 519, 522 (7th Cir.
    2001) (holding that "in the ordinary
    case, a federal court relying on the
    Illinois statute of limitations in a sec.
    1983 case must toll the limitations
    period while a prisoner completes the
    administrative grievance process"), this
    would be cold comfort to a prisoner
    caught in some never-ending cycle of
    grievances. For, if a prisoner who wins
    on his initial grievance must file one
    further grievance to get practical
    relief, what is to prevent the prison
    system from repeatedly failing to follow
    through and requiring the prisoner to
    endlessly seek a real resolution? During
    oral argument, counsel for the state
    conceded that any intentional pursuit of
    such a scenario by state officials with
    the aim of frustrating the process could
    not be tolerated. But counsel represented
    that under the grievance process in
    Illinois, Dixon could appeal directly to
    the Director after waiting for thirty
    days to be transferred, thus bypassing
    the initial steps required for the filing
    of a new grievance. See 20 Ill. Admin.
    Code sec. 504.850(a) (1998) (stating that
    "if after receiving a response . . ., the
    committed person still feels that the
    problem, complaint or grievance has not
    been resolved to his or her satisfaction,
    he or she may appeal in writing to the
    Director within 30 days after receipt of
    the response"). If state counsel's
    representation is reliable, sec. 1997e
    requires that Dixon continue to pursue
    the grievance process and appeal to the
    Director the prison system's failure to
    transfer him.
    
      In Pozo v. McCaughtry, 286 F.3d 1022,
    2002 WL 596190 (7th Cir. 2002), we held
    that a prisoner, in order to satisfy the
    exhaustion requirement of sec. 1997e,
    must complete the administrative process
    "by following the rules the state has
    established for that process." Literally,
    this language might seem to control the
    present case since the state rules
    governing the grievance process may be
    construed to require a direct appeal to
    the Director if relief was granted in
    theory but not promptly translated into
    practice. Under Pozo, sec. 1997e may
    require that this course be pursued,
    provided the ultimate result is not
    practical frustration of Dixon's remedy.
    For present purposes, we will adopt this
    approach, subject to the reservations
    that we have noted. Therefore,
    interpreting sec. 1997e in the manner
    generally indicated by Pozo seems
    appropriate, provided that there is a
    "possibility of some relief for the
    action complained of" by Dixon. Booth v.
    Churner, 532 U.S. at 731, 121 S. Ct. at
    1824. 
    
      In addition, requiring Dixon to appeal
    directly to the Director would furnish
    the Director with an opportunity to learn
    of possible infirmities in the prison
    grievance system and to correct any such
    infirmities--one of the purposes of sec.
    1997e. See Porter v. Nussle, 534 U.S.
    516, 122 S. Ct. at 988 (stating that the
    exhaustion requirement might lead to
    improvement in the prison administrative
    system). On the other hand, if counsel's
    representation does not point accurately
    to an avenue of prompt relief (for
    example, if even a direct appeal to the
    Director would prove futile), Dixon would
    have shown that administrative remedies
    were not really available in the Illinois
    prison system. This would follow from the
    fact that there was no "possibility of relief"
    in a situation in which practical
    resolution of a grievance was
    indefinitely deferred. But that has not
    yet been shown to be the situation here,
    and we have been assured that prompt
    relief in fact as well as in principle
    would have been available by appeal to
    the Director. Therefore, the dismissal of
    Dixon's claims in Count III for failure
    to exhaust his administrative remedies
    may be affirmed.
    
    III.
    
      For the foregoing reasons, we AFFIRM the
    judgment of the district court dismissing
    Dixon's claims for failure to exhaust
    administrative remedies.
    
    
    FOOTNOTES
    
    /1 This, of course, is not to say that (if the
    statute of limitations and other potential obsta-
    cles permit) Dixon might not file a new complaint
    under sec. 1983, with respect to which adminis-
    trative exhaustion presumably would not be re-
    quired since Dixon is no longer a prisoner. See
    Kerr v. Puckett, 138 F.3d 321 (7th Cir. 1998)
    (holding that sec. 1997e(e) applies only to
    prisoners).
    
    

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