260 North 12th Street, LLC v. State of Wisconsin Department of Transportation

2010 WI App 138, 792 N.W.2d 572, 329 Wis. 2d 748, 2010 Wisc. App. LEXIS 737
CourtCourt of Appeals of Wisconsin
DecidedSeptember 14, 2010
DocketNo. 2009AP1557
StatusPublished
Cited by3 cases

This text of 2010 WI App 138 (260 North 12th Street, LLC v. State of Wisconsin Department of Transportation) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
260 North 12th Street, LLC v. State of Wisconsin Department of Transportation, 2010 WI App 138, 792 N.W.2d 572, 329 Wis. 2d 748, 2010 Wisc. App. LEXIS 737 (Wis. Ct. App. 2010).

Opinion

KESSLER, J.

¶ 1. In this condemnation case, a jury awarded 260 North 12th Street, LLC, and Basil E. Ryan, Jr. (collectively, "Ryan"), $2,001,725 for property [753]*753that was taken pursuant to eminent domain as part of a highway construction project. This was more than the $1,348,000 that was originally granted to Ryan, but less than the nearly $3.5 million that Ryan was seeking. Ryan seeks a new trial and presents four arguments in favor of granting a new trial: (1) evidence concerning environmental contamination and remediation should not have been admitted; (2) Ryan's two expert witnesses should not have been precluded from testifying; (3) the trial court erroneously admitted "speculative and inadmissible" evidence concerning remediation; and (4) Ryan's proffered jury instructions should have been used instead of the instructions given. (Capitalization and bolding omitted.) We reject his arguments and affirm the judgment.

BACKGROUND

¶ 2. The Wisconsin Department of Transportation ("DOT") wanted to acquire a parcel of land owned by Ryan that was located near a planned freeway interchange construction project in downtown Milwaukee. The DOT supplied Ryan with an appraisal of his property. Ryan retained an expert, Lawrence R. Nicholson, who prepared an appraisal report on the value of Ryan's property as of February 24, 2005. The parties did not agree on the value of Ryan's property.

¶ 3. The DOT later obtained the property using the statutory condemnation process. Ryan was awarded $1,348,000 for the property on March 30, 2005. Ryan filed this action in the trial court pursuant to Wis. Stat. § 32.05(11) (2005-06),2 appealing the amount of compensation he received.

[754]*754¶ 4. The trial court, the Hon. Francis T. Wasielewski presiding, entered the first scheduling order on December 13, 2005 ("2005 Scheduling Order"). Among other matters, the 2005 Scheduling Order required Ryan to disclose all lay and expert witnesses, and produce a written report from each expert named, both by February 15, 2006, and required the DOT to make the same disclosures by May 1, 2006.3 The 2005 Scheduling Order further provided: "Witnesses not timely named and described shall not be called as witnesses at trial, except for good cause shown." (Bolding in original.)

¶ 5. In February 2006, pursuant to the 2005 Scheduling Order, Ryan filed his list of witnesses, which [755]*755identified only two experts: Nicholson, who appraised the property on March 24, 2005, and a "Surveyor/ Engineer (to be named)" from "Kapur & Associates." Ryan's witness list also stated that he "reserve [d] the right... to name witnesses to be called in rebuttal" and "to call any witnesses whose testimony becomes necessary as a result of facts learned through discovery." In May 2006, the DOT filed its list of witnesses, which identified seventeen potential expert witnesses, including Scott L. MacWilliams, who appraised the property on May 3, 2006.

¶ 6. The 2005 Scheduling Order was amended several times over the next eighteen months. For instance, on May 31, 2006, the trial court approved a stipulation and order amending the 2005 Scheduling Order deadlines for completing discovery and other matters; however, there was no change to the already passed dates for disclosure of lay and expert witnesses. Later, on September 26, 2006, the trial court again modified the scheduling order, adjusting the dates of the pretrial conference, discovery completion and the pretrial report so that the parties could participate in mediation; however, there was no change to the already passed dates for disclosure of lay and expert witnesses. On April 13, 2007, the trial court issued an amended scheduling order which again modified the deadline for completing discovery, ordered Ryan to appear for his deposition, resolved other discovery issues and modified the dates for the pretrial conference and pretrial report. It did not make any change to the already passed deadlines to disclose lay and expert witnesses.

¶ 7. The Hon. Michael B. Brennan was assigned the case effective August 2007, due to judicial rotation. Shortly thereafter, the trial court was notified that Ryan's attorney intended to withdraw and Ryan would [756]*756be seeking new counsel. As a result, the trial court issued an order suspending the April 13, 2007 scheduling order, anticipating that Ryan would secure counsel and a new scheduling conference would be set. The trial court's order explicitly stated: "It is the present understanding of the [c]ourt that the deadlines for disclosure of lay and expert witnesses, which deadlines have been met in this matter, will not be reset at that new scheduling conference."

¶ 8. On January 10, 2008, Ryan appeared in court without an attorney, but indicated that he anticipated securing counsel by the end of January. Judge Brennan entered a revised scheduling order that set deadlines for Ryan to respond to specific discovery requests and for both parties to file dispositive motions, complete discovery and submit final pretrial reports. The final pretrial was scheduled for July 9 and the jury trial was set for August 4. The January 10, 2008 scheduling order did not mention or alter the already expired deadlines for disclosing witnesses.

¶ 9. Ryan secured legal counsel in March 2008. At the end of March the parties reached a stipulation pursuant to which Ryan would have about three more weeks to respond to discovery requests; the trial court approved the stipulation and amended the scheduling order accordingly. Once again, the amended order did not mention or alter the long-passed deadlines to name witnesses.

¶ 10. On May 15, 2008, over two years after the parties filed their lists of expert witnesses, Ryan moved for partial summary judgment, seeking to exclude MacWilliams's appraisal and its references to remediation costs, on several grounds. First, Ryan argued that "contamination and remediation costs should not be allowable in condemnation proceedings as a matter of [757]*757law because of the separate statutory schemes addressing those issues." Therefore, Ryan argued, MacWilliams's appraisal should be excluded at trial because it considered potential contamination and remediation costs.4 In the alternative, Ryan sought to exclude the appraisal's references to adjustments to the property's value that were based on remediation costs.

¶ 11. Second, Ryan asserted that some or all of MacWilliams's report should be excluded because it was based on speculation. Ryan argued that MacWilliams's methodology concerning a remediation cost discount was flawed. In support of this argument, Ryan relied on written opinions of two experts, Jason Messner and Joe Michaelchuck, who were retained by Ryan to review MacWilliams's site conditions adjustment and the environmental data, respectively.

¶ 12. Third, Ryan argued that if contamination and remediation evidence were to be admitted, it should be limited to $10,000, the amount of the deductible Ryan would have had to pay to clean up the property after receiving a Petroleum Environmental Cleanup Fund Award ("PECFA"). This argument was also premised on assertions made by Messner and Michaelchuck.

¶ 13. In response, the DOT moved to strike Messner and Michaelchuck as witnesses in the case, as well as their written reports.

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2010 WI App 138, 792 N.W.2d 572, 329 Wis. 2d 748, 2010 Wisc. App. LEXIS 737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/260-north-12th-street-llc-v-state-of-wisconsin-department-of-wisctapp-2010.