CCH Investments LLC v. American Transmission Company LLC

CourtCourt of Appeals of Wisconsin
DecidedApril 4, 2024
Docket2023AP000896
StatusUnpublished

This text of CCH Investments LLC v. American Transmission Company LLC (CCH Investments LLC v. American Transmission Company LLC) 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
CCH Investments LLC v. American Transmission Company LLC, (Wis. Ct. App. 2024).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. April 4, 2024 A party may file with the Supreme Court a Samuel A. Christensen petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2023AP896 Cir. Ct. No. 2021CV2004

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

CCH INVESTMENTS LLC,

PLAINTIFF-APPELLANT,

V.

AMERICAN TRANSMISSION COMPANY LLC AND ATC MANAGEMENT INC.,

DEFENDANTS-RESPONDENTS.

APPEAL from a judgment of the circuit court for Dane County: RYAN D. NILSESTUEN, Judge. Affirmed.

Before Blanchard, Graham, and Nashold, JJ.

¶1 GRAHAM, J. CCH Investments LLC appeals a final judgment entered following a jury trial in this WIS. STAT. § 32.06(10) (2021-22) just No. 2023AP896

compensation action.1 The purpose of the trial was to determine the amount of just compensation to which CCH is entitled for the taking of a transmission line easement on its property by American Transmission Company LLC and ATC Management Inc. (collectively, “ATC”). On appeal, CCH argues that the circuit court’s decisions on two of its pretrial motions in limine were erroneous, and that it is entitled to a new trial. Specifically, CCH argues that the court erred by allowing references to the term “compensation” during the trial, and by allowing ATC to testify about its intended use of the easement. We reject CCH’s arguments and affirm.

BACKGROUND

¶2 CCH has owned a parcel of commercial real estate in Waunakee since 2012. At the time CCH purchased the parcel, it was encumbered by a transmission line easement that had been in place since 1915 (the “1915 easement”). Pursuant to the 1915 easement, ATC had erected a steel lattice transmission tower on a corner of the parcel, and it had run electrical transmission wires between the tower on CCH’s parcel and the towers on other parcels. The precise boundaries of the 1915 easement are not delineated and, during the circuit court proceedings, the parties disputed the meaning of certain terms of the 1915 easement and the extent to which it encumbers CCH’s property rights. However, those disputes are not directly material to the issues in this appeal.2

1 All references to the Wisconsin Statutes are to the 2021-22 version. 2 By its terms, the 1915 easement granted ATC the perpetual right to “enter upon said premises” for the purpose of erecting and maintaining a transmission tower and running electrical wires along a specified centerline, which ran parallel to the parcel’s eastern and northeastern boundaries. The parties here disputed, among other things, whether the 1915 easement granted ATC the right to rebuild the existing tower and transmission lines, and the width of the right of (continued)

2 No. 2023AP896

¶3 In 2021, as part of a project to rebuild and upgrade the transmission line that passes through CCH’s parcel, ATC exercised its eminent domain authority to acquire an updated easement (the “new easement”). The record reflects that ATC intends that the new easement will replace the 1915 easement, and that, upon the completion of this case, ATC will relinquish the 1915 easement.

¶4 The new easement follows the same general path that the 1915 easement follows along the eastern and northeastern boundaries of the parcel. However, unlike the 1915 easement, the width and boundaries of the new easement are precisely delineated—the new easement is .68 acres and encumbers approximately 22 percent of CCH’s parcel.

¶5 In the course of rebuilding the transmission line, ATC took down the steel lattice tower and replaced it with a steel monopole tower. The new monopole tower is in a slightly different location than the location of the prior lattice tower, approximately 14 feet closer to the boundary of CCH’s parcel.

¶6 CCH did not dispute ATC’s right to take the new easement; however, the parties could not reach an agreement about the amount of just compensation to which CCH is entitled. Pursuant to WIS. STAT. § 32.08(5) and (6), the county condemnation commission issued a just compensation award. CCH appealed the commission’s award to the circuit court pursuant to WIS. STAT. § 32.06(10), seeking a jury determination regarding just compensation.

way granted by the 1915 easement. The circuit court ultimately interpreted the terms of the 1915 easement as allowing ATC to remove and replace the tower and wires on the centerline described in the 1915 easement, and as granting ATC access to the portion of the CCH parcel beyond the centerline that was reasonable and necessary for the purposes for which the 1915 easement was granted. CCH does not challenge these pretrial rulings in this appeal.

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¶7 Throughout the course of this litigation, the parties have disputed the amount by which the new easement reduced the value of CCH’s parcel—an issue that was tied directly to the parties’ disputes regarding the extent to which the 1915 easement burdened CCH’s property rights. CCH’s position has been that the new easement is significantly more burdensome than the 1915 easement, and that the taking resulted in a significant decrease in the fair market value of CCH’s parcel. CCH’s appraiser, Scott MacWilliams, opined that the CCH parcel lost approximately 8 percent of its fair market value as a result of the new easement. By contrast, ATC’s position has been that the new easement is not substantially different from the 1915 easement, and that the taking resulted in only a modest reduction of the fair market value of CCH’s parcel, as compared to the fair market value of the parcel as burdened by the 1915 easement. ATC’s appraiser, Kevin Zarem, opined that the CCH parcel lost approximately 1.2 percent of its fair market value as a result of the new easement.

¶8 Shortly before the trial, the parties filed various motions in limine, and the circuit court’s rulings on two of CCH’s motions are the subject of this appeal. The first of CCH’s motions sought to preclude “jury instructions, testimony, and exhibits regarding the effect of the special verdict.” The second sought to preclude “testimony relating to the manner or frequency with which the easement will be used.” The parties filed written briefs for and against the motions, which the circuit court addressed during a pretrial hearing. We discuss the parties’ arguments and the court’s rulings at greater length in the discussion below.

¶9 CCH’s just compensation action proceeded to trial. Consistent with the special verdict set forth in WIS JI—CIVIL 8101, the jury was asked to determine “the fair market value of the entire property owned by CCH” as of the

4 No. 2023AP896

date of the taking and “the fair market value of the remaining property owned by CCH … immediately after ATC acquired the new easement on [the date of the taking], as if the transmission line project was completed by [that date].” Based on the jury’s answers to these questions, the circuit court determined that the value of CCH’s property decreased by $17,345, and it entered judgment accordingly. CCH appeals.3

DISCUSSION

¶10 As noted, CCH challenges two of the circuit court’s pretrial rulings regarding its motions in limine on appeal. It argues that the court erred when it allowed witnesses and counsel to use the term “compensation,” and when it allowed a witness to testify about ATC’s intended use of the transmission line easement. We review a decision to admit or exclude evidence under an erroneous exercise of discretion standard. Gaethke v. Pozder, 2017 WI App 38, ¶23, 376 Wis. 2d 448, 899 N.W.2d 381.

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Bluebook (online)
CCH Investments LLC v. American Transmission Company LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cch-investments-llc-v-american-transmission-company-llc-wisctapp-2024.