Cobb v. Milwaukee County

208 N.W.2d 848, 60 Wis. 2d 99, 1973 Wisc. LEXIS 1320
CourtWisconsin Supreme Court
DecidedJune 29, 1973
Docket461
StatusPublished
Cited by6 cases

This text of 208 N.W.2d 848 (Cobb v. Milwaukee County) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cobb v. Milwaukee County, 208 N.W.2d 848, 60 Wis. 2d 99, 1973 Wisc. LEXIS 1320 (Wis. 1973).

Opinion

Hanley, J.

The parties submitted the following as the issue presently before this court on appeal: Do the *109 restrictions in the documents conveying title and transferring control of park lands from the city to the county preclude the construction of a state. highway on such lands ?

However, by letter dated May 3, 1973, this court requested the parties to respond to the following four questions:

1. Do the plaintiffs have standing to maintain a derivative action on behalf of a municipal corporation?

2. Is the deed condition a covenant which can be enforced by injunction, or is the city’s remedy for violation of the condition a forfeiture of the county’s title?

3. Is injunction a proper remedy for protecting the city’s interest in the submerged lands which have been leased to the county?

4. Does the proposed freeway use violate the use restrictions in the lease?

Standing to maintain a derivative action.

The six plaintiffs are all residents of Milwaukee county with four of the plaintiffs residing in the city of Milwaukee. The action is brought on their own behalf as taxpayers and also on behalf of the city of Milwaukee who is a named defendant.

The law as it relates to the question of standing to bring an action on behalf of a municipality has been most succinctly stated in 18 McQuillin, Municipal Corporations (3d ed. rev. 1963), pp. 33-36, sec. 52.17. It is there stated that:

“Actions on behalf of municipality.

“Taxpayers may sometimes sue on behalf óf a municipal corporation, to enforce causes of action in its favor, when its officers refuse to do so, and may sometimes take up and carry forward pending litigation which the officers wrongfully abandon, sue to set aside default judgments, or prosecute appeals from judgments against the municipality. Thus, taxpayers may bring suit to *110 recover property belonging to the municipality, or for any money which has been paid out or released without authority of law, or to enforce a cause of action belonging to the municipality against a person having money or property belonging to the municipality or who is otherwise liable to suit, provided conditions required by the particular court or state are complied with.
“The right of taxpayers to sue upon behalf of a city is generally subject to the following conditions and exceptions: (1) the municipality itself must have a clear right and power to sue; (2) a taxpayer cannot sue third persons in behalf of the municipality unless the bringing of such action is a duty devolving upon the municipal authorities, as to which they have no discretion and which they have refused to perform; (3) either a demand must have been made that suit be brought by the public officers of the municipality, or it must be alleged and shown that such demand would be unavailing; and (4) the action does not lie where it would be grossly inequitable to enforce the claim, nor where the basis thereof is a claim of the taxpayer’s rather than that of the municipality. However, the remedy of the taxpayer, in such cases, may not be necessarily confined to a direct action against those against whom the municipality has a cause of action.
“The basis of this class of actions is not that there is necessarily a personal and direct pecuniary loss to the taxpayer, but that the public moneys, rights or property are about to be squandered or surrendered, and that such moneys, rights or property belong to the body of taxpayers, and are simply held in trust by the unfaithful public officers. So a resident taxpayer may sue its officers who have squandered or dissipated its funds, or paid them out for an unlawful or unauthorized purpose, to recover such funds for the benefit of the municipality, where its proper law officer neglects and refuses to prosecute such an action.”

In support of this proposition, McQuillin cites Linden Land Co. v. Milwaukee Electric Railway & Light Co. (1900), 107 Wis. 493, 83 N. W. 851. This court in Linden took great care to point out the very subtle *111 distinction which exists between the type of action brought in the present case — a derivative action — and the more typical taxpayers’ action. At pages 503 and 504, the court stated:

“These cases [taxpayers’ actions] go on the principle that the money or property so squandered or about to be squandered is the money of the taxpayers, and hence every taxpayer has a substantial interest in it, which he is entitled to have protected. Upon similar principles a taxpayer’s right to enforce a cause of action of the corporation is upheld where the corporate officials wrongfully refuse or neglect to perform that duty. Estate of Cole: Mulberger v. Beurhaus, 102 Wis. 1. Here the basis of the right is not that there is necessarily a personal and direct pecuniary loss to the taxpayer, but that the public moneys, rights, or property are about to be squandered or surrendered, and that such moneys, rights, or property belong to the body of taxpayers, and are simply held in trust by the unfaithful public officials. This is well illustrated in the case of Estate of Cole, just cited, where real and personal property was willed in remainder to a city in trust for the establishment of a public library and a home for the aged poor, and a controversy arose between the executors and the city, in the county court, as to whether certain expenditures upon the property should be charged against the life tenant of the property, or against the corpm of the estate. The county court decided against the city, and, the city officials declining to appeal, a taxpayer intervened and took the appeal to the circuit court; and his right to do so was sustained by this court. Here no taxpayer could be said, in strictness, to have suffered a direct or pecuniary injury by the decision of the county court, or the failure to appeal therefrom; but the illegal diminution of the trust property was a distinct invasion of the' property of the corporation, in which each individual taxpayer or member of the corporation had a substantial interest, notwithstanding the property could only be used for the purposes of the trust and its entire loss would not necessarily result in increased taxation. So understood, the case is in entire harmony with the general principles laid down in the other cases in this court.”

*112 In the instant case, the right and power of the city of Milwaukee to enforce the restrictions contained in both its deed to and contract with Milwaukee county is clear and not subject to realistic challenge. On appeal, the city of Milwaukee does not dispute the fact that they have a duty to prosecute such an action against Milwaukee county from allowing the state to enter the lands involved in this action nor do they contend that they are by some manner clothed with any discretion.

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Cite This Page — Counsel Stack

Bluebook (online)
208 N.W.2d 848, 60 Wis. 2d 99, 1973 Wisc. LEXIS 1320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cobb-v-milwaukee-county-wis-1973.