Merrill Park LLC v. Party Sealed by Judge Morales-42

Court of Appeals of Wisconsin·Decided July 7, 2026·No. 2024AP002465·Unpublished

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. July 7, 2026 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. 2024AP2465 Cir. Ct. No. 2023SC33499

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT I

MERRILL PARK LLC C/O HACM,

PLAINTIFF-APPELLANT,

V.

PARTY SEALED BY JUDGE MORALES-42,

DEFENDANT-RESPONDENT.

APPEAL from an order of the circuit court for Milwaukee County: REYNA I. MORALES, Judge. Affirmed in part, reversed in part and cause remanded with directions.

¶1 DONALD, C.J.1 Merrill Park LLC c/o the Housing Authority of the City of Milwaukee (HACM) (hereinafter, Merrill Park) appeals an order of the 1 This appeal is decided by one judge pursuant to WIS. STAT. § 752.31(2)(a) (2023-24). All references to the Wisconsin Statutes are to the 2023-24 version. No. 2024AP2465

circuit court which dismissed in full its claims against its former tenant, Creelthous Burse. Merrill Park argues that the inclusion of an abandonment clause in its lease agreement with Burse did not constitute a violation of WIS. STAT. § 704.44(2m); that, even if it did constitute a violation, the result of that violation would be a periodic tenancy governed by the provisions of WIS. STAT. ch. 704; and that, under such periodic tenancy, Burse was required to establish that she suffered a pecuniary loss based on that violation in order to be entitled to damages.

¶2 Merrill Park contends that the circuit court erred when it waived Burse’s burden of proving damages, and concluded that her damages included all unpaid rent and costs under the lease agreement. In addition, Merrill Park argues that the circuit court erred when it failed to address Merrill Park’s argument that WIS. ADMIN. CODE ch. ATCP 134 does not apply to Merrill Park because it is a government housing provider. For the following reasons, we affirm in part and reverse in part the order of the circuit court, and remand with directions.

BACKGROUND

¶3 On October 11, 2023, Merrill Park served its then-tenant, Creelthous Burse, with a 30-day termination notice alleging that, at the time of issuance, Burse was delinquent in the payment of rent by $5,728. Burse failed to cure the notice within the 30-day notice period.

¶4 Merrill Park subsequently initiated an eviction action on December 21, 2023. On January 17, 2024, Merrill Park and Burse appeared at the initial return date and the commissioner issued a writ of restitution of the premises which was ultimately executed by the sheriff’s department on February 13, 2024.

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¶5 Merrill Park thereafter sought to recoup the amount it claimed Burse owed; however, Burse raised legal challenges as to the validity of the lease agreement. Specifically, Burse argued that the abandonment clause in the lease constituted a voidable lease provision, in violation of WIS. STAT. § 704.44(2m) and WIS. ADMIN. CODE § ATCP 134.08, meaning that Burse did not owe the balance alleged by Merrill Park. Burse also brought a counterclaim against Merrill Park, arguing that, because the lease agreement was void due to a violation of § 704.44(2m) and WIS. ADMIN. CODE § ATCP 134.08, Burse was entitled to the return of all funds she paid to Merrill Park under the lease agreement, along with double damages and attorney’s fees under WIS. STAT. § 100.20(5).

¶6 After briefing and oral argument, the circuit court found that the abandonment clause in the lease agreement to be a voidable lease provision in violation of WIS. STAT. § 704.44(2m) and WIS. ADMIN. CODE § ATCP 134.08. The court therefore found the entire lease agreement to be void and unenforceable, and fully denied Merrill Park’s claims for unpaid rent and fees. Apart from declaring the lease void, the court did not explain its reasoning or make findings regarding Merrill Park’s other arguments. The court also fully denied Burse’s counterclaim in full. Merrill Park now appeals.

STANDARD OF REVIEW

¶7 The issues herein generally involve statutory interpretation, which is a question of law that we review de novo. Zubek v. Edlund, 228 Wis. 2d 783, 788, 598 N.W.2d 273 (Ct. App. 1999). The remaining issues involve the application of statutes to undisputed facts and contract language presented before the circuit court; the application of a statute to a set of undisputed facts is another issue that we review de novo. State v. P.G. Miron Constr. Co., 181 Wis. 2d 1045,

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1052, 512 N.W.2d 499 (1994). “Further, when interpreting administrative regulations, we use the same rules of interpretation as we apply to statutes.” DaimlerChrysler v. LIRC, 2007 WI 15, ¶10, 299 Wis. 2d 1, 727 N.W.2d 311.

DISCUSSION

I. The circuit court correctly determined that the abandonment clause in the lease agreement violated WIS. STAT. § 704.44 and WIS. ADMIN. CODE § ATCP 134.08.

¶8 Merrill Park argues that the circuit court’s sole basis for denying Merrill Park’s request for judgment for unpaid rent and other costs was its conclusion that the abandonment clause in the lease was a violation of WIS. STAT. § 704.44(2m). That statute provides that any residential lease is void and unenforceable if it “[a]uthorizes the eviction or exclusion of a tenant from the premises, other than by judicial eviction procedures as provided under [WIS. STAT.] ch. 799.”2

¶9 The abandonment clause in Merrill Park’s lease agreement states:

If RESIDENT abandons the Premises before expiration or termination of this Lease, its extension or renewal, or if the tenancy is terminated for RESIDENT breach of this Lease, MANAGEMENT AGENT shall make reasonable efforts to rent the Premises and apply any rent received, less costs of renting, to RESIDENT obligations under this Lease. RESIDENT shall remain liable for any deficiency.

2 WISCONSIN STAT. § 704.44(2m) is identical to WIS. ADMIN. CODE § ATCP 134.08. WISCONSIN STAT. § 100.20(5) “supplies the teeth” to WIS. ADMIN. CODE ch. ATCP 134, Kaskin v. John Lynch Chevrolet-Pontiac Sales, Inc., 2009 WI App 65, ¶9, 318 Wis. 2d 802, 767 N.W.2d 394, and anyone who suffers a pecuniary loss because of a violation of WIS. ADMIN. CODE ch. ATCP 134 “shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney fee.”

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If RESIDENT is absent from the Premises for two successive weeks without notifying MANAGEMENT AGENT in writing of this absence, MANAGEMENT AGENT may deem the Premises abandoned unless rent has been paid for the full period of the absence.

If RESIDENT personal property is left on the Premises after RESIDENT vacates or abandons the Premises, RESIDENT shall be deemed to have abandoned the property and MANAGEMENT AGENT shall deal with it as provided by the law, [WIS. STAT. §] 704.05(5)[.]

¶10 Merrill Park points out that the clause was never even at issue as it relates to Burse’s tenancy or the eviction action against her. Merrill Park argues that the language of the clause clearly does not “authorize the eviction or exclusion of a tenant from the premises,” except by through the statutory eviction process.

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