Aesthetic & Cosmetic Plastic Surgery Center, LLC v. Wisconsin Department of Transportation

2014 WI App 88, 853 N.W.2d 607, 356 Wis. 2d 197, 2014 WL 3407693, 2014 Wisc. App. LEXIS 560
CourtCourt of Appeals of Wisconsin
DecidedJuly 15, 2014
DocketNo. 2013AP2052
StatusPublished
Cited by4 cases

This text of 2014 WI App 88 (Aesthetic & Cosmetic Plastic Surgery Center, LLC v. 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
Aesthetic & Cosmetic Plastic Surgery Center, LLC v. Wisconsin Department of Transportation, 2014 WI App 88, 853 N.W.2d 607, 356 Wis. 2d 197, 2014 WL 3407693, 2014 Wisc. App. LEXIS 560 (Wis. Ct. App. 2014).

Opinion

FINE, J.

¶ 1. This case involves relocation expenses sought by a business whose property was taken by the Wisconsin Department of Transportation. The Department appeals the declaratory judgment entered in favor of Aesthetic and Cosmetic Plastic Surgery Center, LLC, declaring that Aesthetic was entitled to a two-move relocation plan. The Department claims that the circuit court should have dismissed Aesthetic's complaint because Aesthetic's declaratory-judgment action is barred by the State's sovereign immunity. We agree and therefore reverse.

I.

¶ 2. Wisconsin Stat. § 32.20 is the dispositive statute and is thus the lens through which we must examine the facts underlying this appeal. It provides:

[200]*200Procedure for collection of itemized items of compensation. Claims for damages itemized in ss. 32.19 and 32.195 shall be filed with the condemnor carrying on the project through which condemnee's or claimant's claims arise. All such claims must be filed after the damages upon which they are based have fully materialized but not later than 2 years after the condemnor takes physical possession of the entire property acquired or such other event as determined by the department of administration by rule. If such claim is not allowed within 90 days after the filing thereof, the claimant has a right of action against the condemnor carrying on the project through which the claim arises. Such action shall be commenced in a court of record in the county wherein the damages occurred. In causes of action, involving any state commission, board or other agency, excluding counties, the sum recovered by the claimant shall be paid out of any funds appropriated to such condemning agency. Any judgment shall be appealable by either party and any amount recovered by the body against which the claim was filed, arising from costs, counterclaims, punitive damages or otherwise may be used as an offset to any amount owed by it to the claimant, or may be collected in the same manner and form as any other judgment.

(Emphasis added.) Therefore, as material here, the legislature has decreed that:

(1) Claims for relocation expenses under Wis. Stat. § 32.19 "must be filed after the damages upon which they are based have fully materialized," Wis. Stat. § 32.20 (emphasis added); and
(2) If the agency does not allow a claim "within 90 days," the claimant may then sue in court, and either party may appeal from an adverse judgment. Id.

[201]*201II.

¶ 3. The Department wanted Aesthetic's building in connection with a road-improvement project in Milwaukee County, and negotiated the matter with Aesthetic's sole owner, Lorelle Kramer, M.D. The circuit court found that as a result of those negotiations the Department "served its Jurisdictional Offer," see Wis. Stat. § 32.06(3), on August 15, 2012, "to purchase" Aesthetic's property. The Offer proposed the following terms:

• The Department would "occupy and [Aesthetic] will vacate" the property on "11/30/2012";
• The Department would pay $940,000 for the property;
• The $940,000 did not include "additional items of damage listed in s. 32.19 Wis. Stats.";
• With respect to the "additional items of damage listed in s. 32.19 Wis. Stats.," "[i]f any such items are shown to exist [Aesthetic] may file claims as provided in s. 32.20 Wis. Stats."
• "This offer, if accepted by [Aesthetic], shall constitute a binding contract."

¶ 4. Aesthetic accepted the Department's Jurisdictional Offer on September 5, 2012, and, as a result, sold the property to the Department on October 1, 2012. The circuit court found that the Department served Aesthetic "with a ninety (90) day notice providing that [Aesthetic] must vacate the subject property by December 31, 2012." Aesthetic did not vacate the property by that date, and the Department sought a writ of assistance on January 11, 2013. The circuit court granted the writ on February 15, 2013. The circuit [202]*202court found that Aesthetic vacated the property "on or around February 17, 2013."

¶ 5. As material, Wis. Stat. § 32.19, which is referenced in both Wis. Stat. § 32.20 and the Department's Jurisdictional Offer to Aesthetic, sets the underlying policy in § 32.19(1): "The legislature declares that it is in the public interest that persons displaced by any public project be fairly compensated by payment for the property acquired and other losses hereinafter described and suffered as the result of programs designed for the benefit of the public as a whole." Thus, the section requires that agencies that take property for a public purpose "make fair and reasonable relocation payments" to those displaced. § 32.19(3).1

[203]*203¶ 6. The Department of Administration promulgated regulations to guide agencies with the power to [204]*204take property for a public use. See Wis. Admin. Code § ADM 92.001 (March 1986) ("The purpose of this chapter is to implement ss. 32.185 to 32.27, Stats., by establishing minimum standards for providing relocation payments and services to a person who moves from a... business ... because of acquisition for a public project, and to assure that such persons do not suffer disproportionate costs as a result of projects designed to benefit the public as a whole."). Thus, an agency that takes property is directed to assist the relocation needs of a displaced business. See Wis. Admin. Code § ADM 92.38 ("An agency shall provide relocation assistance to a person as specified under this chapter and commensurate with individual need, whenever the acquisition of property for a project will result in the displacement of a person.); §ADM 92.40 ("An agency shall provide displaced persons with the following services: (1) Advice on eligibility requirements and the availability of relocation payments and services.") (paragraphing altered). Wis. Admin. Code § ADM 92.24 provides:

The purpose of a relocation plan is to assure that an agency will provide adequate relocation payments [205]*205and services and to determine whether displaced persons can be satisfactorily relocated. The department [of Administration] may not approve a relocation plan unless an agency submits evidence and assurances that relocation payments and services provide the following:
(2) Displaced business[es] ... shall have an opportunity to occupy a comparable replacement and shall be assisted in reestablishing with a minimum of delay and loss of earnings.

Wisconsin Admin.

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Bluebook (online)
2014 WI App 88, 853 N.W.2d 607, 356 Wis. 2d 197, 2014 WL 3407693, 2014 Wisc. App. LEXIS 560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aesthetic-cosmetic-plastic-surgery-center-llc-v-wisconsin-department-of-wisctapp-2014.