CSO Servicing Corp. v. City of Eau Claire

536 N.W.2d 731, 196 Wis. 2d 77, 1995 Wisc. App. LEXIS 911
CourtCourt of Appeals of Wisconsin
DecidedJuly 25, 1995
Docket94-3253
StatusPublished
Cited by3 cases

This text of 536 N.W.2d 731 (CSO Servicing Corp. v. City of Eau Claire) 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
CSO Servicing Corp. v. City of Eau Claire, 536 N.W.2d 731, 196 Wis. 2d 77, 1995 Wisc. App. LEXIS 911 (Wis. Ct. App. 1995).

Opinion

*80 CANE, P.J.

CSO Servicing Corporation and Oak-wood Investments, Inc., appeal a summary judgment granted in favor of the City of Eau Claire. CSO asserts that the trial court erred in granting summary judgment, asserting that its claim based on promissory estoppel and the alleged circumstances constituting the land contract with the City do not fall under the rubric of the exclusive remedies pursuant to § 66.05, Stats., the razing of buildings statute. Because we conclude that § 66.05(3), Stats., applies to remedies pertaining to raze orders only, we reverse and remand for further proceedings on CSO's promissory estoppel action.

BACKGROUND

Oakwood Investments owned the property in question, which included an apartment building. After Oakwood conveyed the property on a land contract to Steven Kernan, it assigned its land contract vendor's interest to CSO. The City subsequently expressed an interest in purchasing the property. Consequently, the city council adopted a resolution to buy the property using community development block grants. It is alleged that CSO's president and the housing division administrator engaged in a telephone conversation in which the City wanted to acquire the property for the purposes of constructing a parking lot at a purchase price of $26,000. Allegedly, the telephone conversation also included discussion of CSO clearing title problems in order to convey clear title.

In order to clear the property's title, CSO commenced a land contract foreclosure against Kernan. Shortly thereafter, a foreclosure judgment was rendered. While the land contract foreclosure action was pending, the City issued an order to Kernan to vacate *81 the apartment building due to numerous health and safety violations pursuant to § 66.05, Stats. The City issued a condemnation order, and CSO did not challenge the razing of the building. Eventually, the building was razed.

Following the building's demolition, the City attempted to purchase the property at a substantially lower price because it was a vacant lot. CSO refused and initiated this lawsuit, essentially claiming that under the doctrine of promissory estoppel, the City was bound to its original purchase price of $26,000.

The City moved for summary judgment on three grounds, including: (1) CSO was barred because it did not appeal the condemnation order; (2) there are no facts supporting promissory estoppel; and (3) promissory estoppel is precluded by the statute of frauds. The trial court granted summary judgment to the City based on the first ground. It ruled that § 66.05, Stats., governed CSO's remedies and because CSO did not challenge the razing order under § 66.05, it was barred from asserting any claim against the City. The trial court did not address the City's contention that the statute of frauds barred the action or whether the facts support an action for promissory estoppel. CSO appeals.

DISCUSSION

When reviewing a grant of summary judgment, we independently apply the same methodology as the trial court. Kloes v. Eau Claire Cavalier Baseball Ass'n, 170 Wis. 2d 77, 83, 487 N.W.2d 77, 79-80 (Ct. App. 1992).

We first examine the complaint to determine whether a claim has been stated and then the *82 answer to ascertain whether it presents a material issue of fact. If they do, we then examine the moving party's affidavits to determine whether a prima facie case for summary judgment has been made — in this case a defense which would defeat the plaintiffs claim. If it has, we look to the opposing party's affidavits to determine whether any material facts are in dispute which would entitle the opposing party to a trial. If there is no genuine issue of fact, we proceed to decide whether the moving party is entitled to judgment as a matter of law.

Schultz v. Industrial Coils, Inc., 125 Wis. 2d 520, 521, 373 N.W.2d 74, 74-75 (Ct. App. 1985) (citations omitted; emphasis in original). Summary judgment is appropriate where there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. See Green Spring Farms v. Kersten, 136 Wis. 2d 304, 315, 401 N.W.2d 816, 820 (1987).

The issue presented involves the construction and application of the razing and removal of buildings statute, § 66.05, Stats., which is a question of law that we review without deference to the trial court. State v. Pham, 137 Wis. 2d 31, 33-34, 403 N.W.2d 35, 36 (1987). The purpose of statutory construction is to give effect to the legislative intent. Zimmerman v. DHSS, 169 Wis. 2d 498, 504, 485 N.W.2d 290, 292 (Ct. App. 1992). When determining legislative intent, we first examine the language of the statute itself and will resort to extrinsic aids only if the language is ambiguous. Id. at 504-05, 485 N.W.2d at 292.

CSO contends that it suffered damages because the City refused to honor promises upon which CSO relied, not because the building on its property was razed pursuant to § 66.05, Stats. Specifically, CSO *83 bases its claim upon the equitable theory of promissory estoppel and the alleged circumstances constituting the land contract with the City. Thus, CSO contends the exclusive remedies pursuant to § 66.05 are inapplicable. We agree.

Statutes must be construed to promote their purpose and objective. Appleton v. Brunschweiler, 52 Wis. 2d 303, 306, 190 N.W.2d 545, 547 (1971). Section 66.05, Stats., was designed to protect the public by permitting municipalities to raze and remove buildings found to be old, dilapidated or dangerous and considered a safety hazard. Milwaukee v. Greenberg, 163 Wis. 2d 28, 42, 471 N.W.2d 33, 38 (1991); § 66.05(1)(a), Stats. Section 66.05(3), Stats., sets forth the procedure for the owner or affected party to challenge the reasonableness of the building inspector's razing order. The pertinent language of § 66.05(3) states:

Anyone affected by any such order shall within the time provided by s. 893.76 [30 days] apply to the circuit court for an order restraining the inspector of buildings or other designated officer from razing and removing the building or part thereof and restoring the site to a dust-free and erosion-free condition or forever be barred. The hearing shall be held within 20 days and shall be given preference.

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Bluebook (online)
536 N.W.2d 731, 196 Wis. 2d 77, 1995 Wisc. App. LEXIS 911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cso-servicing-corp-v-city-of-eau-claire-wisctapp-1995.