Townsend v. Neenah Joint School District

2014 WI App 117, 856 N.W.2d 644, 358 Wis. 2d 618, 2014 Wisc. App. LEXIS 876
CourtCourt of Appeals of Wisconsin
DecidedOctober 22, 2014
DocketNo. 2013AP2839
StatusPublished
Cited by4 cases

This text of 2014 WI App 117 (Townsend v. Neenah Joint School District) 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
Townsend v. Neenah Joint School District, 2014 WI App 117, 856 N.W.2d 644, 358 Wis. 2d 618, 2014 Wisc. App. LEXIS 876 (Wis. Ct. App. 2014).

Opinion

BROWN, C.J.

¶ 1. When one thinks of a "class action," what comes to mind is an attorney filing a claim on behalf of many claimants, most of whom the attorney does not even know, much less represent. In Wisconsin, that type of class action, the type with unnamed claimants, is never possible against the government because claimants against the government must give notice of their identities and their claims before filing suit. By definition unnamed claimants cannot identify themselves and their claims before filing suit.

¶ 2. Not all class actions, however, are the type with unnamed claimants. Some class actions are on behalf of a large number of individual, named claimants asserting similar claims. Nothing in Wisconsin law bars [622]*622this other type of class action, sometimes called a "mass action," against the government, so long as the claimants gave notice of their claims before suing.

¶ 3. This appeal is a class action of the second type, with numerous named plaintiffs. We think lumping all mass actions as typical class actions was what led the trial court to transform the rule barring unnamed-claimant actions into a heightened proof requirement for the notice of claim in this case. In this opinion we will explain what the statutes and case law say about multiple-party claims against governmental entities in Wisconsin. We will also clarify the two prongs of the notice of claim statute, and the standard of proof under both prongs, which is "substantial compliance." When we clarify those matters, we see why this decision must be reversed.

Facts

¶ 4. This case is a lawsuit brought by teachers in the Neenah Joint School District concerning the District's decision to amend the teachers' retirement plan. In April 2013, six teachers employed by the District filed a complaint "on behalf of themselves and all other persons similarly situated" asserting legal claims for damages arising out of changes to the District's retirement plan. The teachers alleged that changes to the retirement plan in 2012 "effectively terminated the [prior retirement plan] and, in its place, provided a retirement benefit that is wholly insignificant in comparison."

¶ 5. The teachers asserted that before filing the lawsuit, they served the District with notice of their claims as required by Wis. Stat. § 893.80(ld) (2011-12).1 They attached a copy of their notice of claim to the [623]*623complaint, along with a copy of the District's letter denying the claim.

¶ 6. The notice of claim document begins by naming two particular claimants, Robert Townsend and Bruce Moriarty, who purport to submit the claims "on their own behalfs and as representatives of the teachers" whose identifying information and damage claims are itemized on a spreadsheet attached to the notice as an exhibit. The notice states that the "claim is submitted as a class action claim pursuant to Wxs. Stat. § 803.08," with Townsend and Moriarty serving as class representatives. In the next paragraph the notice states that "[t]he teachers identified on [the attached list] submit this claim as a class pursuant to Wis. Stat. § 803.08." It asserts that each individual in the class is similarly situated to Townsend and Moriarty and has a claim that "mirror [s]" those of Townsend and Moriarty. The notice then sets forth factual allegations and legal arguments and states a claim for "$61,120,687.68 less actuarial discounts" in compensatory damages. Of particular importance to this court, the document is signed by an attorney "for Claimants and Class." (Emphasis added.) It is unclear from the record whether all of the teachers on the list attached to the notice of claim knew that they were on the list. However, it is clear that all of the people on the list were notified once the claim was submitted and were informed that they could opt out.

¶ 7. The District's letter denying the claims is addressed to Moriarty and Townsend. It states that the District "voted... to disallow in its entirety the claim... for Neenah Joint School District faculty." It further states:

Please be advised that no action on this claim may be brought against the Neenah Joint School District after six months from the date of service of this notice pursuant to [Wis. Stat. § 893.80].

[624]*624It indicates that a copy was sent to "Claimant's Attorney."

¶ 8. The District moved to dismiss the lawsuit on several grounds, including that the notice of claim was defective. The District asserted that of the six plaintiffs in the lawsuit, only two, Townsend and Moriarty, were "identified" in the notice of claim. The District acknowledged that the notice "included" an attached exhibit listing the names and amounts of "purported class members." The District asserted, however, that nowhere in the notice of claim did Townsend and Moriarty assert "authority to file the notice of claim on behalf of the purported class members" or "efforts ... to contact the individual potential class members to receive such necessary authority." The District cited Wis. Stat. § 893.80 and case law requiring that the notice of claim must "at the minimum identify the claimants and show that the claims are being made by their authority." Hicks v. Milwaukee Cnty., 71 Wis. 2d 401, 407, 238 N.W.2d 509 (1976). The District argued that § 893.80 bars the actions of any of the plaintiffs who were not the named claimants in the notice of claim (i.e., everyone other than Townsend and Moriarty).2

¶ 9. The plaintiffs responded that the notice of claim "substantially complied" with the requirements of Wis. Stat. § 893.80 for all of the plaintiffs because the District had actual notice of all of the claims and was [625]*625not prejudiced by any alleged defect in the notice.3 The plaintiffs also argued that the District should be es-topped from asserting deficiency in the notice of claim as a defense because, the plaintiffs alleged, the District's actions induced the plaintiffs to believe that their notices had been received. According to the plaintiffs, "if not for the actions of [the District], all class members could have filed a separate notice of claim if [the District] had not informed them that they were included in" the denied notice of claim.

¶ 10. In reply, the District argued that "substantial compliance" is only effective with respect to the first subsection of the statute, Wis. Stat. § 893.80(ld)(a). As for the second subsection, § 893.80(ld)(b), the District argued, substantial compliance "has no application." Instead, the District claimed that under Hicks, the notice was not effective if it failed to "show that the claims are being made by... authority" of the claimants.

¶ 11.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
2014 WI App 117, 856 N.W.2d 644, 358 Wis. 2d 618, 2014 Wisc. App. LEXIS 876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsend-v-neenah-joint-school-district-wisctapp-2014.