Category: Courts of Appeals

Court of Appeals Decision: Aamaans Properties, Inc. v. DOT (Inverse Condemnation)

In Aamaans Properties, Inc. v. DOT (2017AP1220), the Court of Appeals District IV held that a property owner is not entitled to compensation when the Department of Transportation (DOT) relocates a nearby highway but does not physically take the property or legally change its use.

Aamaans owned a property on a road that closely intersected with Highway 26 and developed the property into a sort of travel station with a gas station and restaurant. In 2011, DOT relocated Highway 26 so that it no longer connected with the road where the Aamaans property was located. The relocation increased travel time from the highway to the property by over a mile, decreasing the property’s value as a convenient travel stop. The restaurant closed and the assessed value of the property dropped by hundreds of thousands of dollars.

Aamaans argued that the relocation of the highway was a compensable inverse condemnation. However, the court ruled that compensable takings must be either a physical taking of property or a regulatory taking wherein all practical use of the property becomes restricted by law. Here, DOT did not physically take Aamaans’s property. Furthermore, the relocation of the highway did not impose any legal restrictions causing the property to lose all practical uses. Therefore, Aamaans was not entitled to compensation for his property’s loss of value.

Court of Appeals Decision: DSG Evergreen Family Limited Partnership v. Town of Perry (Eminent Domain)

In DSG Evergreen Family Limited Partnership v. Town of Perry (2017AP2352), the Court of Appeals District IV held that the plaintiff had no private right of action against the town and claim preclusion applied, barring this eminent domain case.

The Town of Perry took property from DSG in an eminent domain action. The land taken included a road, and the condemnation petition required the town to replace the road at a different location. DSG argued that the new road did not meet the “same construction standards” as the former road, violating the petition.

The appeals court held that DSG had no private right of action requiring the town to comply with certain construction standards under Wis. Stat. § 82.50(1) in completing the new road. Furthermore, DSG had no private right of action under the town’s ordinances.

The appeals court further held that claim preclusion applied because DSG failed to bring up its road construction standards argument in previous proceedings regarding just compensation for the eminent domain condemnation of its property.

Court of Appeals Decision: The Lamar Company, LLC v. DOT (Litigation Expenses for Condemnation)

In The Lamar Company, LLC v. DOT (2017AP1001), the Court of Appeals District IV held that Lamar was not entitled to litigation expenses under Wisconsin’s eminent domain statutes because the outdoor advertising statutes do not include the award of litigation costs.

Wisconsin’s outdoor advertising statutes in Wis. Stat. § 84.30 provide a procedure for determining just compensation when the Department of Transportation (DOT) removes a sign. In previous cases, the Supreme Court has held § 84.30 is the exclusive remedy for outdoor advertising just compensation disputes like Lamar’s. § 84.30 does not provide for litigation expenses.

However, § 84.30 directs DOT and sign owners to follow an alternate procedure in § 32.05 if the parties cannot agree on just compensation. § 32.05 allows for litigation expenses. DOT initiated an action under § 32.05 in this case.

Lamar argued that it should have been allowed litigation expenses because it was subject to following the § 32.05 procedures. However, relying on the Supreme Court decision in Vivid, Inc. v. Fiedler (1998), the appeals court held that litigation expenses were not due because § 84.30 is the exclusive remedy for outdoor advertising cases. While the appeals court acknowledged Lamar’s argument that this reading of the statute creates an inequity, the court said such an issue should be addressed by the legislature or Supreme Court.

Court of Appeals Decision: Troy Paulson v. DNR (Wetland Permit)

In Troy Paulson v. DNR (2018AP696), the Court of Appeals District III upheld a Department of Natural Resources (DNR) decision to deny Paulson a wetland permit because he failed to timely file for judicial review under Wis. Stat. Ch. 227.

Paulson was seeking a wetland general permit under Wis. Stat. § 281.36(3g) to fill in a wetland on his property. The statute states that DNR has 30 days to issue a decision or request more information on the general permit, otherwise the permittee can continue with the wetland project. DNR may extend the 30-day deadline if weather prevents an accurate on-site inspection.

In this case, DNR notified Paulson 29 days after he submitted his application that they would use a weather extension. Ten days after DNR finally conducted the on-site inspection, DNR issued a decision denying Paulson’s permit. Almost a year after DNR denied his permit, Paulson commenced the instant case against DNR, arguing that DNR did not issue its decision within the 30-day time limit.

The appeals court held that because Paulson’s request for review of a DNR decision falls under the procedures in Ch. 227, Paulson should have filed his lawsuit within 30 days of the DNR decision, as required by Wis. Stat. § 227.53(1)(a)(2m). Because Paulson failed to timely file for judicial review, the court lacked competency to proceed on the case, and case was properly dismissed.

Court of Appeals Decision: Joan A. Kelly v. Amanda E. Berg (Dog Bite Liability)

In Joan A. Kelly v. Amanda E. Berg (2017AP2033), the Court of Appeals District III, based on policy concerns, denied double damages to a plaintiff injured by a dog bite.

In 2015, WCJC supported reforms to Wisconsin’s long standing dog bite liability statute (Wis. Stat. § 174.02(1)(b)) in 2015 Act 112. Act 112 clarified that owners are only be liable for double damages for injuries caused by their dog if a dog bites a person with “sufficient force to break the skin and cause permanent physical scarring or disfigurement” if the owner knew the dog had previously done so. That is, both bites must break the skin and cause permanent scarring or disfigurement, and the owner must have known of the first bite.

Under prior law, dog owners were liable for double damages for dogs that cause injury to people, domestic animals, or property if the dog had previously done so. The prior law did not take into account the severity or type of the damage done. For instance, a dog could cause minor property damage, which would count as the first bite, and then cause physical damage to an individual on the second bite. The owner would be liable for double damages for the second incident despite the innocuous nature of the first damage.

This case occurred before Act 112, so plaintiff Kelly sought double damages when her neighbor Berg’s dog bit her. Kelly claimed Berg’s dog had caused previous “injury to property” by digging holes under her fence, and that Berg’s knowledge of this previous injury entitled Kelly to double damages.

However, the appeals court limited Berg’s liability under the previous Wis. Stat. § 174.02(1)(b) on public policy grounds. The court mentioned several factors limiting liability that applied in this case:

  1. The injury to Kelly was too remote from Berg’s negligence because Berg simply failed to predict her dog’s extraordinary, unprovoked attack.
  2. The recovery of double damages would be out of proportion and an unreasonable burden related to Berg’s limited negligence.
  3. The recovery of double damages would have no “just stopping point” because any minor damage would be considered attributable to Berg’s negligence.

Although owner Berg was not held liable for double damages under the 2013-14 statutes that govern this case, the case demonstrates the importance of Act 112 reforms in limiting these types of cases that had the potential to hold owners liable for dog bite injuries that are unpredictable and out of their control.

Court of Appeals Decision: Michael Bukovic v. LIRC (Worker’s Compensation)

In Michael Bukovic v. LIRC (2017AP1612), the Court of Appeals District III held that the plaintiff was not entitled to worker’s compensation fees because he was acting outside the course of his employment.

Bukovic worked at CPF, Inc., a machine and fabrication shop, and was injured in an explosion while trying to transfer gas from a CPF tank to his own personal tank. Bukovic intended to use the gas for a welder at his home. While CPF allows employees to purchase items from its inventory, Bukovic never asked to purchase the gas, nor was transferring gas between tanks a standard practice that took place on site.

The appeals court upheld the Labor and Industry Review Commission’s decision that Bukovic was not “performing services growing out of and incidental to his…employment” (Wis. Stat. § 102.03(1)(c)1.) when he transferred the gas without permission and caused the explosion. Thus, Bukovic was not entitled to worker’s compensation.

Court of Appeals Decision: M. Samir Siddique v. UW Board of Regents (Attorney Fees Under Wis. Equal Access to Justice Act)

In M. Samir Siddique v. UW Board of Regents (2017AP1443), the Court of Appeals District I held that a plaintiff is not considered a “prevailing party” entitled to attorney fees if the defendant voluntarily changes its conduct.

Siddique received sanctions for misconduct from UW Milwaukee after violating university policy in an incident involving student government organizations. Siddique appealed to the Board of Regents. After the Board of Regents upheld the UW Milwaukee decision, Siddique filed an action in circuit court. While the circuit court case was pending, Siddique had graduated, so UW Milwaukee voluntarily agreed to dismiss its discipline decision.

The issue in the instant appeal is whether Siddique is entitled to attorney fees as a “prevailing party” under the Wisconsin Equal Access to Justice Act (WEAJA). The WEAJA states that circuit courts must award fees to the “prevailing party in any action by a state agency” (Wis. Stat. § 841.245(3)).

Citing federal cases dealing with a federal law similar to the WEAJA, the appeals court ruled that a party is not considered a “prevailing party” if the defendant voluntarily changes its conduct outside of the court. In this case, UW Milwaukee decided to dismiss the discipline decision before the trial court decided on the merits of the case. Thus, there was no “judicially sanctioned change in the legal relationship” (see Buckhannon Board & Care Home, Inc. v. West Virginia Department of Health & Human Resources) between the university and Siddique, and Siddique was not a “prevailing party” entitled to fees.

Court of Appeals Decision: Lamar Central Outdoor, LLC v. DOT (Billboard Nonconforming Use)

In Lamar Central Outdoor, LLC v. DOT (2017AP1823), the Court of Appeals District IV held that the enlargement of a nonconforming outdoor advertising sign along an interstate highway caused it to lose its nonconforming status, making it illegal and subject to removal.

The sign in this case was erected on a state highway in 1991. When the highway became an interstate in 1996, the sign became legal but nonconforming according to state law. Lamar acquired the nonconforming sign in 1999 and later added extensions to it. In 2012, Lamar sought a permit from the Department of Transportation (DOT) to remove vegetation obstructing the sign. From the photographs in Lamar’s permit application, DOT recognized that the sign had been enlarged by the extensions in violation of Wis. Admin. Code § TRANS 201.10(2)(e), causing it to lose its nonconforming status. DOT ordered Lamar to remove the sign.

Lamar argues that DOT cannot order the removal of the sign because:

  1. DOT had insufficient evidence that the sign was enlarged beyond legal limits.
  2. Enlarging the sign is not prohibited under Wisconsin law and administrative code.
  3. If enlargement is illegal, Lamar should have had the right to cure the violation.
  4. DOT did not engage in the proper rulemaking process in order to enforce removal of the sign, since it previously treated extensions inconsistently.
  5. Common law says that only enlargement changing the use of the sign would invalidate its legal nonconforming use.

The court rejected all of Lamar’s arguments as follows:

  1. The photographs of the enlarged sign in addition to Lamar’s internal records provided ample evidence to DOT that the sign was illegally enlarged.
  2. Wisconsin law and administrative code do prohibit enlarging legal but nonconforming signs. Wis. Stat. § 84.30(14) gives DOT the authority to promulgate rules related to outdoor advertising. Wis. Admin. Code § TRANS 201.10(2)(e) states that nonconforming signs may not be enlarged after the effective date of state law. The court construed the “effective date of state law” as 1996, when the highway became an interstate, making the enlargements after Lamar acquired the sign in 1999 illegal.
  3. Stat. § 84.30(11) provides that owners of “signs erected…in violation” have the right to 60 days to cure the violation. However, the court construed the text of § 84.30(11) to apply only to signs in violation at the time of their erection, not to signs with violations occurring later.
  4. DOT was not required to promulgate a rule to enforce the removal of Lamar’s sign because its change in enforcement brought it into conformity with the statutes. This “error-correcting exception” to the requirement for agency rulemaking applies in this case because DOT’s order to remove Lamar’s sign was consistent with Wis. Stat. § 84.30(11).
  5. The statutes and DOT regulations control this case, not common law.

Court of Appeals Decision: Damien Berg v. Bradley Maxfield, M.D. (Medical Negligence)

In Damien Berg v. Bradley Maxfield, M.D. (2017AP1448), the Court of Appeals District IV upheld summary judgment dismissing patient Berg’s medical negligence claim against Dr. Maxfield.

Dr. Maxfield performed a voiding cystourethrogram (VCUG) procedure on Berg but did not interpret any remarkable results from the images. Berg consulted another doctor, who found a mass of plastic tubing on Berg’s bladder, which had to be surgically removed.

Berg filed a negligence action against Dr. Maxfield, believing initially that Dr. Maxfield failed to remove plastic tubing during the VCUG. However, in depositions, Dr. Maxfield and the two doctors who found the tubing and performed Berg’s removal surgery all testified that the tubing found in Berg could not have been from the VCUG Dr. Maxfield performed.

When Dr. Maxfield moved for summary judgment, Berg asked for more time to investigate Dr. Maxfield’s liability based on the previous deposition testimony. Berg also requested permission for an additional expert. The appeals court denied Berg’s claims and upheld the circuit court’s grant of summary judgment in favor of Dr. Maxfield, stating that Berg could reasonably have discovered previously that the tubing found in his bladder was not from Dr. Maxfield’s negligence in performing the VCUG. Furthermore, Berg cited no legal authority that would grant him more time to investigate other potential negligence by Dr. Maxfield.

 

Court of Appeals Decision: Joshua Balde v. Olivia Haas (Vehicle and Property Coverage)

In Joshua Balde v. Olivia Haas (2017AP2173), the Court of Appeals District III held that, in a coverage dispute related to a UTV accident, coverage from the property insurer was not due because another insurer covered the UTV.

Mt. Morris Mutual Insurance Co. issued an insurance policy on the property where the accident occurred. The Mt. Morris policy defined an insured as someone permissibly operating motor equipment on the property “if there is no other insurance covering the liability available to them.”

Wisconsin Mutual Insurance Co. issued an insurance policy on the UTV. However, since its policy only applied excess coverage over other applicable insurance policies, Wisconsin Mutual argued it is not an “available” insurance as stated in the Mt. Morris policy.

The court sided with Mt. Morris because the plain language of its policy states that the UTV driver is not an insured because the Wisconsin Mutual policy was “available” to her.