MBM Holdings LLC v. City of Glendale Wisconsin

CourtDistrict Court, E.D. Wisconsin
DecidedJanuary 23, 2020
Docket2:19-cv-00366
StatusUnknown

This text of MBM Holdings LLC v. City of Glendale Wisconsin (MBM Holdings LLC v. City of Glendale Wisconsin) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MBM Holdings LLC v. City of Glendale Wisconsin, (E.D. Wis. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

MBM HOLDINGS LLC and BRET EULBERG,

Plaintiffs, Case No. 19-CV-366-JPS

v.

ORDER CITY OF GLENDALE WISCONSIN and COLLIN JOHNSON,

Defendants.

1. INTRODUCTION Plaintiffs, property owners in the City of Glendale (the “City”), complain that Defendants, the City and its former building inspector Collin Johnson (“Johnson”), improperly issued a raze order for their property in violation of their rights under the Constitution and state law. (Docket #1). Defendants have filed a motion for summary judgment, (Docket #16), and that motion is fully briefed, (Response, Docket #24; Reply, Docket #25). For the reasons explained below, the motion will be granted, and this action dismissed. 2. STANDARD OF REVIEW Federal Rule of Civil Procedure 56 (“FRCP”) provides that the “court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see Boss v. Castro, 816 F.3d 910, 916 (7th Cir. 2016). A “genuine” dispute of material fact is created when “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). The Court construes all facts and reasonable inferences in a light most favorable to the non-movant. Bridge v. New Holland Logansport, Inc., 815 F.3d 356, 360 (7th Cir. 2016). In assessing the parties’ proposed facts, the Court must not weigh the evidence or determine witness credibility; the Seventh Circuit instructs that “we leave those tasks to factfinders.” Berry v. Chi. Transit Auth., 618 F.3d 688, 691 (7th Cir. 2010). The non-movant “need not match the movant witness for witness, nor persuade the court that [their] case is convincing, [they] need only come forward with appropriate evidence demonstrating that there is a pending dispute of material fact.” Waldridge v. Am. Hoechst Corp., 24 F.3d 918, 921 (7th Cir. 1994). 3. RELEVANT FACTS Plaintiff Bret Eulberg (“Eulberg”) is the sole member of MBM Holdings LLC (“MBM”), which in turn purchased an all but abandoned commercial building located at 1811 West Silver Spring Drive, within the City limits (the “Silver Spring” property). Eulberg is a jeweler by trade and had no expertise in construction related matters. He has no formal training in architecture, engineering, or electrical, plumbing, or HVAC trades. Johnson was employed by the City as the Director of Inspection Services and Flood Plain Administrator from May 2005 until May 2018. In that capacity, Johnson was responsible for enforcing building codes. An aside about Johnson. In September 2016, the City offered him a separation agreement, as certain City officials were unhappy with Johnson’s strict enforcement of building codes. Johnson declined the agreement. The City did not place any restrictions on Johnson’s terms of employment at that juncture. MBM purchased the Silver Spring property in September 2015. Eulberg only entered the building once before buying it, and did not have it professionally inspected, because it was so inexpensive that he felt he could absorb any repair costs. He also assumed that the building was up to code, though he made no effort to confirm that assumption. Eulberg was at least aware that the building had broken pipes and needed roof repairs. In May 2017, Eulberg leased the building to Charese Gardner (“Gardner”) at a below-market discounted rate. The discount was intended to provide Gardner ample funds to make needed repairs. The property was leased as-is, and Eulberg left Gardner to her own devices. At the same time Eulberg was unmindful of the fact that he needed an occupancy permit to occupy the building and was not aware that the Silver Spring occupancy was illegal. He also did not concern himself with any repairs or improvements to the building until January 2019. At that time, he and Gardner revised the lease terms which, as amended, required Gardner to make roof repairs in order to ensure that the building would comply with City occupancy permit requirements. Johnson drove past the Silver Spring property daily as part of his work for the City. In May 2017, he went in the property to check on a water meter break. Johnson took pictures of damaged pipes as it appeared to him that an unlicensed plumber had attempted to make repairs. In July 2017, Johnson noticed woodworking activity at the property, which required particular permits that had not been issued. Johnson met with Gardner and did an inspection of the building. Afterwards, Johnson e-mailed Gardner and Eulberg, informing them that the building was not habitable because of issues with plumbing, electricity and heating together with structural concerns with the roof, as well as mold. Johnson also requested another walkthrough of the building which would include the fire department. Eulberg left the matter to Gardner to deal with, as in his mind, it was effectively her building. Indeed, Eulberg was miffed by Johnson’s email because he felt the issues that were identified were present prior to him purchasing the property. The only issue he definitively objected to, however, was the alleged electrical problem, namely wires dangling from the ceiling. Eulberg testified that he believed those wires were internet cables, not electrical, based on his prior experience with internet network installations. On August 22, 2017, Johnson, the fire department, and Gardner conducted another inspection of the property. Eulberg chose not to attend, again citing his belief that it was Gardner’s problem, not his. Johnson took pictures of the building during the inspection. The pictures of the outside showed a dilapidated building which included some graffiti. The interior photos revealed allegedly illegal wiring (which, as noted above, Eulberg disputes) and structural issues. The interior also contained combustible materials installed by the previous owner which were not code compliant. Finally, the photos noted examples of water damage in the form of leaks, mold, rot, and damage to the electrical panel. The fire department, for its part, had concerns with ingress and egress from the building. The fire marshal told Eulberg that he would not send firefighters into the building if it caught fire because of those concerns. Johnson also documented signs of illegal occupancy, which included indications that a business would open up there soon. Overall, Johnson discovered substantial electrical, plumbing, heating, structural, occupancy, and health concerns with the property. Johnson testified that all of these issues would have been apparent to any inspector had Eulberg obtained an independent inspection before completing purchase of the property in question. At the time of the inspection, the Silver Spring building, excluding the land, was assessed at $260,400. Wisconsin law provides that if a building needs repairs costing more than fifty percent of its assessed value, it is a candidate for razing. Johnson concluded that the total cost of repairs would have exceeded half the building’s value. On August 25, 2017, Gardner met with City officials to discuss their concerns with the property and was informed that the building may be subject to a raze order. Eulberg declined to attend that meeting.

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MBM Holdings LLC v. City of Glendale Wisconsin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mbm-holdings-llc-v-city-of-glendale-wisconsin-wied-2020.