DEKK Property Development, LLC v. Wisconsin Department of Transportation

2023 WI 30
Wisconsin Supreme Court·Decided April 18, 2023·No. 2020AP002146·Published·Cited by 1 cases

Opinion

2023 WI 30

SUPREME COURT OF WISCONSIN CASE NO.: 2020AP2146

COMPLETE TITLE: DEKK Property Development, LLC, Plaintiff-Respondent-Petitioner, v.

Wisconsin Department of Transportation, Defendant-Appellant.

REVIEW OF DECISION OF THE COURT OF APPEALS Reported at 400 Wis. 2d 548, 971 N.W.2d 201 (2022 – unpublished)

OPINION FILED: April 18, 2023 SUBMITTED ON BRIEFS: ORAL ARGUMENT: November 1, 2022

SOURCE OF APPEAL:

COURT: Circuit COUNTY: Kenosha JUDGE: Anthony G. Milisauskas

JUSTICES: KAROFSKY, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., ANN WALSH BRADLEY, ROGGENSACK, DALLET and HAGEDORN, JJ., joined. REBECCA GRASSL BRADLEY, J., filed a concurring opinion. NOT PARTICIPATING:

ATTORNEYS:

For the plaintiff-respondent-petitioner, there were briefs filed by Alan Marcuvitz, Andrea Roschke, Smitha Chintamaneni, Adam S. Bazelon, and von Briesen & Roper, S.C., Milwaukee. There was an oral argument by Alan Marcuvitz.

For the defendant-appellant, there was a brief filed by Hannah S. Jurss, assistant attorney general, with whom on the brief was Joshua L. Kaul, attorney general. There was an oral argument by Hannah S. Jurss, assistant attorney general.

2023 WI 30

NOTICE

This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.

No. 2020AP2146 (L.C. No. 2019CV1226)

STATE OF WISCONSIN : IN SUPREME COURT DEKK Property Development, LLC,

Plaintiff-Respondent-Petitioner, FILED

v. APR 18, 2023

Wisconsin Department of Transportation, Sheila T. Reiff Clerk of Supreme Court

Defendant-Appellant.

KAROFSKY, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., ANN WALSH BRADLEY, ROGGENSACK, DALLET and HAGEDORN, JJ., joined. REBECCA GRASSL BRADLEY, J., filed a concurring opinion.

REVIEW of a decision of the Court of Appeals. Modified, and as modified, affirmed.

¶1 JILL J. KAROFSKY, J. This controversy stems from a driveway closure——specifically, the Wisconsin Department of Transportation's (DOT's) closure of a driveway connecting DEKK Property Development, LLC's (DEKK's) property to State Trunk Highway (STH) 50. DEKK is seeking compensation for the closure.

The case potentially raises two questions: (1) whether DEKK may seek compensation for the driveway closure in a "right-to-take"

No. 2020AP2146

action under Wis. Stat. § 32.05(5)(2021-22),1 and (2) if so, whether DOT must compensate DEKK for the closure. We hold that DEKK may not bring its claim under § 32.05(5), and thus we do not reach the second question. Section 32.05(5) provides a means to challenge DOT's right to take property described in a jurisdictional offer issued under § 32.05(3), and here DOT's jurisdictional offer to DEKK did not describe any removal of access to STH 50. Therefore, the circuit court2 should have granted DOT's summary judgment motion and dismissed DEKK's claim. Because this procedural issue is dispositive, we do not decide the question of whether DEKK might be owed compensation had it challenged the driveway closure via a different avenue.

I. BACKGROUND

¶2 DEKK owns approximately four acres of property (the Property) in Kenosha County near the southeast corner of STH 50 and County Highway (CTH) H. The following is an aerial photo of the Property.3 STH 50 runs east-west along the top of the photo,

and CTH H runs north-south on the left. There is one driveway from the Property to STH 50, which DOT seeks to close, and one

1All subsequent references to the Wisconsin Statutes are to the 2021-22 version unless otherwise indicated.

2The Honorable Anthony G. Milisauskas of the Kenosha County Circuit Court presided.

3This aerial photo is from an appraisal report DOT commissioned before issuing an offer to purchase a portion of DEKK's property that abuts CTH H. We have added labels for CTH H and STH 50 to aid the reader in understanding the layout of the Property.

No. 2020AP2146

driveway from the Property to CTH H, which will remain available for use.

STH

50

CTH

H

¶3 In 1961, the former owners of a portion of the property deeded to Kenosha County (acting as an agent for DOT) "the Right of Access, including all existing, future, or potential common law . . . rights of access" to STH 50, along with a tract of land adjacent to STH 50. This tract included the land on which the contested STH 50 driveway is located. The deed included the following exception:

Except there is reserved the right of access to said highway by means of one restricted driveway same to be

No. 2020AP2146

used only for barber shop purposes for the term of fifteen years from date of this conveyance and then to become a private driveway conforming to the regulations of the State Highway Commission. Said driveway is to be constructed with its eastern limits along the east line of the owner's property line in conformance with State Highway Commission policy.

There is little information on any subsequent use or development

of the STH 50 driveway in the record.

¶4 In 2019, DOT sought to acquire another part of the Property——a strip of land abutting CTH H——as part of a project to improve STH 50. After DOT decided to acquire the CTH H parcel, it commissioned an appraisal of the parcel as required by Wis. Stat. § 32.05(2)(a). The appraisal report assessed the CTH H parcel, and explained that DOT was not seeking to acquire any access rights. The report noted that the driveway between the Property and STH 50 (located on a different part of the Property than the CTH H parcel) would have to be closed. It also noted that DOT would not compensate DEKK for the STH 50 driveway because the commercial building that the driveway formerly served had been demolished, and redevelopment of the property would "likely require new driveway approvals in an alternate location farther from the intersection."

¶5 After DOT provided the appraisal report to DEKK, DEKK emailed DOT to ask about the lack of compensation for the STH 50 driveway closure. A DOT real estate specialist explained that "at the time of acquisition the current driveway will still remain in place," and that any revocation of the access point

would be "non-compensable now because it has not happened yet, and if it ever did, it would be through police power."

No. 2020AP2146

¶6 DOT then issued a jurisdictional offer to DEKK as required by Wis. Stat. § 32.05(3). In the jurisdictional offer, DOT offered to purchase the CTH H parcel for $272,100. It did not offer to purchase any access rights, allocate compensation for any loss of access rights, or reference any driveway closures. The jurisdictional offer included a Transportation Project Plat, which denoted the property interests DOT sought to acquire. We include the relevant portion of the Plat below:

The CTH H parcel is identified on the left side of the Property. Arrows point to the part of the parcel DOT sought to purchase in fee simple (indicated by diagonal lines), the part on which it sought a temporary limited easement (indicated by dots), and the part on which it sought a permanent limited easement (too small

No. 2020AP2146

to be visible on this Plat). DEKK does not challenge the purchase of the land or easements.

¶7 After DOT issued the jurisdictional offer, DEKK filed an action under Wis. Stat. § 32.05(5) in the Kenosha County Circuit Court. DEKK did not challenge the acquisition of the CTH H parcel, but instead challenged "DOT's right to remove DEKK's rights of access to STH 50." Both DOT and DEKK moved for summary judgment.

¶8 Shortly after the filing of the summary judgment motions, but before the circuit court's decision, DOT sent a letter to DEKK providing "official notice" that it "plan[ned] to remove the existing driveway from State Highway 50 . . . during an upcoming improvement project." The letter explained that under Wis. Admin. Code § Trans 231.03(2), the number of driveways serving a property along a state trunk highway shall be the "minimum" deemed necessary "for reasonable service to the property without the undue impairment of safety, convenience,

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