Miller Brands-Milwaukee, Inc. v. Case

457 N.W.2d 896, 156 Wis. 2d 800, 1990 Wisc. App. LEXIS 434
CourtCourt of Appeals of Wisconsin
DecidedMay 31, 1990
Docket89-0984
StatusPublished
Cited by4 cases

This text of 457 N.W.2d 896 (Miller Brands-Milwaukee, Inc. v. Case) 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.

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Miller Brands-Milwaukee, Inc. v. Case, 457 N.W.2d 896, 156 Wis. 2d 800, 1990 Wisc. App. LEXIS 434 (Wis. Ct. App. 1990).

Opinions

DYKMAN, J.

The Department of Revenue (DOR) appeals from a summary judgment declaring that trade spending,1 as defined by Miller Brands-Milwaukee, Inc., does not violate Wisconsin's tied-house law, sec. 125.33(l)(a), Stats. We address four issues: (1) whether the affidavit supporting Miller's motion contains sufficient evidentiary facts for summary judgment, (2) whether this is a proper case for declaratory judgment, (3) whether sec. 125.33(l)(a) prohibits trade spending, and (4) if so, whether the statute unconstitutionally prohibits trade spending.

We conclude that the factual allegations contained in the affidavit are sufficient and that declaratory relief is proper. We also conclude that trade spending violates [806]*806sec. 125.33(l)(a), Stats., and that the statute survives Miller's constitutional challenges. Accordingly, we reverse.

BACKGROUND

Miller is a wholesaler of fermented malt beverages in Wisconsin subject to ch. 125, Stats. It sells its products to retailers holding Class "B" licenses under sec. 125.26. DOR is responsible for investigating possible violations of ch. 125. Sec. 125.145.

In February 1988, a DOR special agent met with Miller's attorneys and told them that the department had received a complaint that Miller had violated sec. 125.33(1)(a), Stats., by engaging in trade spending and that he had been authorized to investigate that complaint.

Miller then sought declaratory relief under sec. 806.04, Stats., requesting that the court determine whether trade spending violates sec. 125.33(l)(a), Stats., and, if so, whether the statute unconstitutionally prohibits trade spending. Miller moved for summary judgment. The court granted the motion, declaring that trade spending did not violate sec. 125.33(1)(a).

SUFFICIENCY OF THE AFFIDAVIT

DOR contends that the affidavit supporting Miller's motion for summary judgment is insufficient. The affidavit was made by Miller's attorney. Where, as here, a party is a corporation, counsel may make the affidavit on behalf of his corporate client. Kroske v. Anaconda American Brass Co., 70 Wis. 2d 632, 641-42, 235 N.W.2d 283, 287 (1975).

[807]*807DOR argues that Miller's affidavit cannot support the motion for summary judgment because it does not contain sufficient evidentiary facts. Affidavits in support of a motion for summary judgment must contain evidentiary facts. Hopper v. Madison, 79 Wis. 2d 120, 130, 256 N.W.2d 139, 143 (1977). We disregard those portions of the affidavits that contain allegations of ultimate facts or conclusions of law. Id. We agree with DOR that the affidavit does contain allegations of ultimate fact and conclusions of law. We will disregard those portions of the affidavit.2

The remaining portions of the affidavit contain allegations of máterial evidentiary facts. First, the affidavit alleges that, at a meeting between a DOR special agent and Miller's attorneys, the agent informed Miller that:

[T]he Department of Revenue had received a complaint that Miller Brands-Milwaukee, Inc. had engaged in trade spending and thereby had violated the provisions of Wis. Stat. sec. 125.33(1) and that [the agent] had been authorized by the Department to investigate these alleged violations . . ..

Second, the affidavit states that " 'Trade spending' consists of the practice whereby sales people or other [808]*808employees of a beer wholesaler purchase beverages for customers at Class "B" licensed retail premises." Finally, the affidavit observes that "the price paid for the beverages is the price charged to the public by the retailer. Although customers are encouraged to sample products distributed by the wholesaler, the offer to purchase is not withdrawn if the customer chooses a different drink."

We understand from this affidavit that Miller has engaged in the practice of trade spending — i.e., its sales agents or employees have purchased beverages for customers of Class "B" retailers — and that the department sought to investigate the practice to determine whether it violated sec. 125.33(l)(a), Stats.

DOR submitted no affidavits in opposition to the motion for summary judgment. Because DOR submitted no counter-affidavits, we must accept the evidentiary facts in Miller's affidavit as uncontroverted. Jones v. Sears Roebuck & Co., 80 Wis. 2d 321, 326, 259 N.W.2d 70, 72 (1977).

DECLARATORY JUDGMENT

We next consider whether the issues presented are ripe for declaratory relief. Declaratory relief cannot be granted absent a justiciable controversy. Loy v. Bunderson, 107 Wis. 2d 400, 410, 320 N.W.2d 175, 182 (1982); sec. 806.04, Stats. To be justiciable, the issue involved in the controversy must be ripe for judicial determination, among other things. Loy, 107 Wis. 2d at 410, 320 N.W.2d at 182. A matter is not ripe for declaratory relief unless the declaration "is conclusive upon the controversy submitted to the court." Id. at 411, 320 N.W.2d at 182. ” 'It is not a judicial function' to declare rights based on 'issues that are fictitious, colorable, or hypothetical.' ” [809]*809Sipl v. Sentry Indemnity Co., 146 Wis. 2d 459, 466-67, 431 N.W.2d 685, 688 (Ct. App. 1988) (quoting E. Borchard, Declaratory Judgments 84-85 (2nd ed. 1941)).

DOR argues that the issues presented are not ripe for judicial determination because insufficient facts exist regarding the nature and scope of Miller's trade spending activities. Our response to this issue depends on how we interpret sec. 125.33(1)(a), Stats. Cf. Town of Walworth v. Fontana-on-Geneva Lake, 85 Wis. 2d 432, 440, 270 N.W.2d 442, 446 (Ct. App. 1978) (holding that plaintiff stated cause of action because, under one interpretation of the statute, the plaintiff would be entitled to declaratory relief).

We conclude below that sec. 125.33(l)(a), Stats., prohibits trade spending. A violation of the statute is not dependent on the amount of money a wholesaler spends or on the number of beverages it buys. The uncontroverted facts show that Miller's sales agents or employees have purchased beverages for customers of Class "B" retailers. In light of our interpretation of sec. 125.33(l)(a), we conclude that the affidavit provides enough facts regarding Miller's trade spending practice that we can apply the statute.

DOR also argues that declaratory judgment is not proper because no prosecution is pending against Miller. See secs. 125.33 and 125.11, Stats. (Wholesalers may be prosecuted for violations of sec. 125.33(1)(a), Stats.). DOR says that it has only sought to investigate Miller's potential violation of ch. 125 and that it might not take further action.3 Though no prosecution is pending, [810]*810Miller is a potential defendant and need not wait to be prosecuted before seeking declaratory relief.

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Miller Brands-Milwaukee, Inc. v. Case
457 N.W.2d 896 (Court of Appeals of Wisconsin, 1990)

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