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SUPREME COURT
CASE NO.:
COMPLETE TITLE:
OF
WISCONSIN
2012AP2784
118th Street Kenosha, LLC,
Plaintiff-Appellant,
v.
Wisconsin Department of Transportation,
Defendant-Respondent-Petitioner.
ATTORNEYS:
For
the
defendant-respondent-petitioner,
the
cause
was
2014 WI 125
NOTICE
This opinion is subject to further
editing and modification.
The final
version will appear in the bound
volume of the official reports.
No.
2012AP2784
(L.C. No.
2011CV212)
STATE OF WISCONSIN
IN SUPREME COURT
FILED
Plaintiff-Appellant,
v.
Diane M. Fremgen
Clerk of Supreme Court
Defendant-Respondent-Petitioner.
Reversed and
remanded.
This is a review of a
of
Wisconsin
the
Kenosha
Department
County
of
Circuit
Court2
Transportation's
that
granted
("DOT")
motion
the
in
v.
DOT,
2013
WI
App
147,
We
352
No.
2012AP2784
property
had
direct
access
to
118th
Avenue
by
118th
Avenue.
In
2010
the
DOT
performed
three
acts
relevant to this case: the DOT (1) relocated 118th Avenue to the
east one block, thereby eliminating the commercial property's
direct access to 118th Avenue; (2) acquired a temporary limited
easement3 that authorized the DOT to construct a new doublethroated
driveway
connecting
the
commercial
property
to
74th
Place; and (3) constructed that new driveway onto 74th Place.
After the DOT finished these three acts, the commercial property
had two driveways to 74th Place, indirect access to 118th Avenue
via 74th Place, and no direct access to 118th Avenue.
The DOT
and
the
compensation
appraiser
DOT
for
the
determined
stipulated
that
$21,000
temporary
limited
that
commercial
the
was
easement
The
adequate
itself.
property's
An
value
No.
declined
caused
by
the
$400,000
commercial
because
the
property
relocation
to
lose
of
direct
2012AP2784
118th
Avenue
access
and
No.
(1)
2012AP2784
Stat. 32.09(6g)?5
(2)
Assuming
that
temporary
limited
easement
is
the
commercial
direct
access
and
property's
proximity
diminution
to
118th
in
value
Avenue
from
because
lost
the
by
its
loss
of
direct
access
and
proximity
to
118th
For
purposes
of
our
analysis,
we
assume,
without
No.
7
damages
2012AP2784
Wis.
Stat.
32.09(6g)
for
the
commercial
and proximity
to 118th Avenue
when 118th
narrow
Connell, 2010 WI 64, 48, 326 Wis. 2d 300, 786 N.W.2d 15.
8
We
affirm
the
circuit
court's
grant
of
the
DOT's
the
Avenue.
LLC's
We
loss
reverse
of
the
direct
court
access
of
and
appeals
proximity
and
to
remand
118th
to
the
FACTUAL BACKGROUND
No.
at
7300
118th
Avenue
2012AP2784
in
the
City
of
Kenosha,
just
property abutted 118th Avenue and the southern side abutted 74th
Place, a private road.
The
On
January
4,
2010,
the
DOT
acquired
temporary
purpose
of
constructing
new
double-throated
driveway
Sometime in
This new
the
commercial
with
two
points
of
direct
The record suggests the $21,000 was for the rental value
of the property encumbered by the temporary limited easement and
for the loss of landscaping that resulted from the temporary
limited easement.
No.
limited
easement
as
part
2012AP2784
greater
highway
Avenue]"
caused
decline by $400,000.
inadequate
itself.
the
commercial
property's
value
to
compensation
for
the
temporary
limited
easement
No.
2012AP2784
PROCEDURAL POSTURE
damages
caused
by
the
LLC's
loss
of
direct
access
and
The circuit
court
the
stated
that
32.09(6g)
"merely
identifies
damages
which are allowed if, and only if, caused by a taking by the
state." (Emphasis in original.)
Damages are
stipulated
judgment
that
preserved
each
party's
right
to
parties
agreed
that
$21,000
was
the
fair
value
of
the
circuit
limine.
court's
decision
granting
the
DOT's
motion
in
No.
temporary
easement
2012AP2784
was
integrally
connected
with
the
Id., 10.
Based on
Id.
held that the LLC's damages for the temporary limited easement
may include damages under 32.09(6g) for the LLC's loss of
direct access and proximity to 118th Avenue.
17
The
DOT
petitioned
this
court
Id., 11.
for
review,
and
we
easement
should
include
damages
under
Wis.
Stat.
41,
341
Wis. 2d 668,
816
N.W.2d 191
(citing
State
Ringer, 2010 WI 69, 24, 326 Wis. 2d 351, 785 N.W.2d 448).
v.
"A
No.
2012AP2784
2011 WI 103, 38, 338 Wis. 2d 34, 808 N.W.2d 372 (citing Ringer,
326 Wis. 2d 351, 24).
19
Wis.
To
Stat.
statute.
determine
whether
32.09(6g),
See
id.,
we
evidence
must
39.
was
interpret
"Statutory
admissible
and
under
apply
that
interpretation
and
Id.
(citing
Metro. Sewerage Dist., 2010 WI 58, 20, 326 Wis. 2d 82, 785
N.W.2d 409).
20
of the statute.
Court for Dane Cnty., 2004 WI 58, 45, 271 Wis. 2d 633, 681
N.W.2d 110 (citations omitted).
Cnty., 2003 WI 28, 8, 20, 260 Wis. 2d 633, 660 N.W.2d 656;
Wis. Stat. 990.01(1)).
consult
extrinsic
of
interpretation,
We do
such
as
ANALYSIS
10
No.
2012AP2784
under Wis. Stat. 32.09(6g) for the LLC's loss of direct access
and
proximity
to
118th
Avenue.
First,
the
DOT
argues
that
32.09(6g),
unsuitable"
easement.
for
which
the
calculating
DOT
argues
damages
for
is
a
"ineffective
temporary
and
limited
this
temporary
court
limited
to
hold
easement
that
are
rental-value
available
under
The DOT
damages
the
for
Wisconsin
11
No.
22
2012AP2784
argues that, under the facts of this case, the LLC's damages
under 32.09(6g) for the temporary limited easement may not
include
damages
for
the
LLC's
loss
of
direct
access
and
118th Avenue caused the LLC to lose direct access and proximity
to
118th
Avenue.
The
DOT
relies
on
Jantz
v.
State,
63
Wis. 2d 404, 217 N.W.2d 266 (1974), and More-Way North Corp. v.
State Highway Commission, 44 Wis. 2d 165, 170 N.W.2d 749 (1969),
for
the
proposition
that
damages
for
temporary
limited
easement may not include damages which were not caused by the
temporary limited easement.
23
Second, the DOT argues that the LLC's damages for the
32.09(6g)
for
the
LLC's
loss
of
direct
access
and
proximity to 118th Avenue because the DOT used its police power
to limit the LLC's direct access and proximity to 118th Avenue.11
11
12
No.
Relying on
2012AP2784
Commission, 21
Wis. 2d 363, 124 N.W.2d 319 (1963), and Chicago & Northwestern
Railway Co. v. Railroad Commission of Wisconsin, 178 Wis. 485,
188 N.W. 86 (1922), the DOT argues that relocating a public road
is an exercise of the police power.
Savings
&
Loan
Ass'n
v.
Department
of
Transportation,
54
via 74th Place after 118th Avenue was relocated, the DOT argues,
the LLC's damages for the temporary limited easement may not
include damages under 32.09(6g) for the LLC's loss of direct
access to 118th Avenue.
B. The LLC's Arguments
24
limited
The
LLC
argues
easement
should
that
its
include
damages
damages
for
the
under
temporary
Wis.
Stat.
"In
domain
followed . . . ."
to
argue
calculating
easement.
that
the
proceedings,
the
following
rules
shall
be
Subsection
provides
damages
32.09(6g)
for
the
proper
the
temporary
states
that
its
method
of
limited
method
for
No.
easement . . . ."
2012AP2784
the
word
"permanent"
immediately
before
the
word
"easement."
25
easement
may
include
damages
for
the
LLC's
loss
of
(6)(e)
"where
shown
to
exist."
The
LLC
argues
that
driveway.
Specifically,
32.09(6g)
provides
of
evaluation,
improvement . . . ."
26
assuming
the
completion
of
the
public
lost
direct
Additionally,
the
LLC
argues
that
it
access to 118th Avenue when 118th Avenue was relocated, and that
a
landowner
is
entitled
to
compensation
for
loss
of
direct
The
LLC quotes our prior cases that have stated a right to access a
public road abutting one's property "is a property right, the
14
No.
taking
of
which
requires
compensation,"
Narloch
2012AP2784
v.
DOT,
115
Wis. 2d 419, 430, 340 N.W.2d 542 (1983) (citation omitted), and
"the deprivation or restriction of an existing right of access
is
compensable
under
Wis.
Stat.
32.09(6)."
Nat'l
Auto
Truckstops, Inc. v. DOT, 2003 WI 95, 18, 263 Wis. 2d 649, 665
N.W.2d 198.
27
The
would not have been relocated if the DOT did not acquire a
temporary limited easement to build the double-throated driveway
that connected the commercial property to 74th Place.
reasons
that
its
appraiser
stated
in
an
affidavit
The LLC
that
the
emergency
preexisting
vehicles
single-lane
if
its
only
driveway
access
point
connecting
the
were
the
commercial
attempt
to
receive
damages
for
public
road's
the
28
DOT
exercised
Avenue.
its
police
power
when
it
relocated
118th
The LLC argues that the DOT used its eminent domain
15
No.
2012AP2784
to
National
Corp.
relocate
Auto
v.
118th
Avenue.
Truckstops,
Department
of
263
City
The
LLC
Wis. 2d 649,
Development
argues
Crown
of
that
in
Zellerbach
Milwaukee,
47
dedicated
Avenue.
to
the
State
its
legal
right
to
access
118th
from
public
highway
is
one
the
incidents
of
the
Hastings
Realty,
28
Wis. 2d
Inc.
Village
of
West
at
310
Milwaukee,
(quoting
Royal
266
271,
Wis.
Transit,
277,
63
v.
N.W.2d 62
Id. at 311
16
No.
31
2012AP2784
State
may
exercise
its
relocation of a highway.
police
power
to
authorize
the
491 ("The state has ample power, in the exercise of the police
power, to authorize the relocation of the highway in order to
protect the public . . . .") (citations omitted).
"Where access
and
reasonable
required."
Schneider
access
v.
remains,
State,
51
no
compensation
Wis. 2d 458,
462,
is
187
Wis. 2d 74, 80, 284 N.W.2d 887 (1979), we stated, "there must be
a taking before there can be a claim for just compensation."
In
More-Way
North
to
property
resulting
thereof.
Sec.
we
stated,
from
13,
"[M]ere
consequential
governmental
art.
I,
action
Wis.
is
damage
not
taking
Const., . . . does
not
from
Wis. 2d
at
170
taking
of
(quoting
property."
Wis.
Power
More-Way
&
Light
N.
Co.
Corp.,
v.
44
Columbia
project,
but
17
that
does
not
necessarily
No.
merge
each
project
into
one
single
compensable
2012AP2784
act.
We
the
actions
Wis. 2d at 411.
results
in
into
single
act . . . ."
Jantz,
63
damages
that
are
compensable
under
particular
v.
Green
Cnty.,
72
Wis. 2d 464,
471,
241
(1976).
Cf.
N.W.2d 167
No.
2012AP2784
benefits,
and
without
restriction
because
of
enumeration but without duplication, to the items of
loss or damage to the property enumerated in sub.
(6)(a) to (g) where shown to exist.
36
It
is
true
that
Wis.
Stat.
32.09(6g)
allows
for
The LLC
limited
easement,
32.09(6g)
allows
the
LLC
to
Avenue
under
32.09(6)(b)
and
(6)(e),
respectively.
of
temporary
the
easement"
limited
easement
caused
these
provided
the
damages.
LLC
with
Here,
the
additional
access to 74th Place, but the easement did not cause the LLC to
lose direct access and proximity to 118th Avenue.12
12
No.
37
2012AP2784
the
taking
Pipeline,
of
LLC,
2006
an
easement.
WI
App
See
245,
Hoekstra
13,
298
v.
Guardian
Wis. 2d 165,
726
that
v.
Wis. 2d 173,
occurred
ANR
696
"'because
Pipeline
Co.,
N.W.2d 194).
of'"
2005
We
an
WI
easement)
App
conclude
61,
that
(quoting
14,
281
32.09(6g)
As
assume,
without
deciding,
that
temporary
20
No.
2012AP2784
by
the
loss
of
direct
access
and
proximity
to
118th
Avenue.
39
In
so
doing,
we
first
turn
to
case
law
which
has
temporary
permanent
taking,
easement
nonetheless
did
not
endeavor
effect
to
an
further
actual
discuss
Wis. 2d at 176.
40
trial,
excluded
the
buyers'
circuit
fear
of
court
gas
Hoekstras' property.
pipelines
Id., 15.
evidence
reduced
that
the
At
prospective
value
of
the
WI
Similarly,
App
20,
in
346
Savage
v.
Wis. 2d 130,
American
828
Transmission
N.W.2d 244,
Co.,
American
transmission
line
that
was
already
on
Savage's
Id., 6.
No.
2012AP2784
The court of appeals reversed and concluded that because the new
easement precluded Savage from using the property as he could
have before, Savage could introduce evidence of damages caused
by the new easement's restrictions.
42
324
Id., 15-16.
Wis. 2d 417,
782
N.W.2d 729,
further
demonstrates
that
Poles were
from
1948.
Id.,
1,
under
32.09(6g),
the
4.
The
Id., 1.
Fields
were
Fields
sought
In proving their
entitled
only
to
damages caused by the new easement, not for the 1948 easement.
Id.
43
even
where
more
permanent
easement
taking
occurs,
damages
cause
the
diminution
in
value
of
the
LLC's
commercial
in
value
as
part
of
22
the
LLC's
damages
for
the
No.
2012AP2784
In the
However,
the
LLC
lost
the
commercial
property's
proximity and direct access to 118th Avenue when that road was
relocated.
Carazalla I, 269
at 595-97.
Id.
Id. at
opinion held that the circuit court did not err by allowing that
evidence.
Id. at 606-08.
23
No.
46
2012AP2784
Justice Currie's
unanimous
in
opinion
thus
concluded
that
calculating
II
that
Id.
compensation
for
taking
cannot
include
Similarly,
partial
taking
relocation.
in
of
Jantz,
land
Jantz
that
sought
occurred
damages
during
for
highway
States
Highway
Jantz,
63
41-45
Wis. 2d at
and
Maple
406.
Road
Jantz's
in
Washington
property
See
id.
had
County.
access
to
of
Id.
access
to
highway.
See
id.
The
DOT
built
Id.
Id.
Jantz's
No.
2012AP2784
argued,
however,
that
the
value
of
her
bar
and
Id.
grill
Id. at 406-07.
Id. at 407.
that evidence.
Id. at 412.
Id. at
Id. at 412.
Even if
were
somehow
"related
to
single
overall
highway
15
25
No.
2012AP2784
taking claim into a valid claim for damages based on the highway
Id. at 411.16
Likewise,
Schneider
v.
State,
51
Wis. 2d 458,
187
N.W.2d 172 (1971), like Carazalla II and Jantz, stands for the
proposition that
even in a
compensation
claim
for a partial
taking of land, the damages due are for the taking rather than
for
relocated
highway's
impacts
on
the
property.
In
In
highway.
Id.
Schneider
maintained
direct
Id.
Id.
Rather,
Schneider's
access
to
the
highway
was
See
reduced
the
highway
and
closed
151-Thompson
Road
Id.
16
the
Highway
26
No.
2012AP2784
Id.
at
463.
At
the
trial
on
the
amount
of
Id. at 464.
that damages for the partial taking of land could not include
damages for the diminution in value of Schneider's land that
resulted from the closing of Thompson Road and the designation
of Highway 151 as a controlled-access highway.
Id. at 465-66.
and
distinct"
from
Schneider's
loss
of
access
to
51
above
cases
and
Truckstops,
263
compensation
under
limited
easement
instead
primarily
Wis. 2d 649,
Wis.
should
Stat.
for
relies
the
32.09(6g)
include
damages
on
National
proposition
for
for
the
the
Auto
that
temporary
commercial
27
No.
Avenue.17
2012AP2784
As a result, we
28
No.
Id.
2012AP2784
on
in
the
portion
the
of
truckstop
land
taken,
losing
its
Id., 4-5.
the
only
partial
points
of
taking
direct
Id., 5.
At
trial over compensation due for the partial taking of land, the
circuit court excluded evidence that the truckstop declined in
value because of its loss of two points of direct access to the
highway.
53
Id., 7.
On
appeal,
we
held
the
circuit
court
erred
by
Id., 2.
must
determine
that
the
landowner
Id.
was
left
without
jury determined that the changed access was not reasonable, then
just compensation is due for the "deprivation or restriction of
[National Auto's] right of access."
Id.
evidence was admissible, was the fact that the property taken
contained the access points.
National Auto
29
No.
2012AP2784
National
distinguishable
Auto
from
Truckstops
the
present
is
case.
fundamentally
In
National
Auto
In the case at
In National Auto
present
case,
the
boundaries
and
size
of
the
In
LLC's
Unlike
the
taking
in
National
Auto
Truckstops,
the
direct
access
and
proximity
to
118th
Avenue.
In
the
present case, not only was no land taken, but by providing the
LLC
with
temporary
permanent
limited
additional
easement,
the
driveway
LLC
pursuant
gained
more,
to
not
the
less,
Therefore,
easement
commercial
does
property's
compensation
not
due
properly
diminution
in
for
include
value
this
damages
based
on
temporary
for
its
the
lost
Hence,
Auto Truckstops
Carazalla II,
Jantz,
Schneider, and
National
No.
2012AP2784
the
LLC
may
recover
taken
from
property
was
remained
intact,
easement."
and
the
the
its
damages
LLC,
claim
is
sought
its
here
property's
for
"the
when
no
boundaries
taking
of
an
relocated
easement.
road,
not
because
of
the
temporary
limited
and Schneider stand for the principle that damages for a partial
taking cannot include damages for the impact caused by loss of
access to a highway if the loss of access resulted from the
relocation
of
the
highway,
rather
than
from
the
taking.
recoverable.
However,
those
circumstances
are
glaringly
circuit court that the LLC's loss of direct access and proximity
31
No.
2012AP2784
The circuit
See Jantz, 63
taken
unchanged.
and
the
property's
boundaries
are
See
We agree.
It is just
facts, the temporary limited easement did not cause the LLC to
lose direct access and proximity to 118th Avenue; therefore, the
LLC's damages for the commercial property's diminution in value
32
No.
are
not
recoverable
in
its
32.09(6g)
2012AP2784
temporary
limited
easement claim.
59
evidence
of
damages
for
the
commercial
property's
circuit
court
did
not
err
by
excluding
that
evidence.
For
purposes
of
CONCLUSION
our
analysis,
we
assume,
without
Wis.
Stat.
32.09(6g)
for
the
commercial
No.
and proximity
to 118th Avenue
2012AP2784
when 118th
narrow
48.
62
We
affirm
the
circuit
court's
grant
of
the
DOT's
the
Avenue.
LLC's
We
loss
reverse
of
the
direct
court
access
of
and
proximity
appeals
and
to
remand
118th
to
the
the
Court.The
decision
34
of
the
court
of
appeals
is
No.
63
2012AP2784.ssa
(concurring).
I agree
with the majority opinion that the circuit court did not err in
granting the Department of Transportation's motion to exclude
evidence of the property's alleged diminution in value resulting
from the relocation of 118th Avenue.
64
case
does
present,
following questions:
and
the
court
does
not
decide,
the
action
unrelated
to
the
damages
award
at
issue
in
the
The
majority
limited
32.09(6g).
opinion
easements
assumes
(TLEs)
without
fall
deciding
within
Wis.
that
Stat.
whether
TLEs
are
compensable
under
Wis.
Stat.
No.
66
2012AP2784.ssa
It merely assumes
and
the
court
of
appeals,"4
and
flouts
this
court's
No.
2012AP2784.ssa
68
69
just
compensation.
Various
subsections
describe
just
under
varying
circumstances.
Subsection
(6g)
of
It provides as follows:
not only by the statutory text but also by the broader statutory
context.
contrary,
Wis.
Stat.
32.09
appears
to
govern
On
the
2014).
3
No.
domain.7
It
compensation
"partial"
explicitly
for
covers
"total"
takings
(Wis.
the
takings
Stat.
2012AP2784.ssa
determination
(Wis.
Stat.
32.09(6)),
of
just
32.09(5)),
and,
of
course,
Thus, the
Wis.
Stat.
32.09(6g)
applies
in
the
present
case
Lengthy
whether
that
statutory
subsection
is
designed
to
Footnote
reasons why
12
of
the
majority
opinion
offers
various
Most importantly, the "before and after" fair market value rule
for calculating damages for the taking of an easement does not
fit valuation of a TLE.
74
The
"before
and
after"
fair
market
value
rule
of
the
whole
property
immediately
before
the
date
of
titled
"Rules
governing
No.
75
2012AP2784.ssa
compensation.8
comparable sales.
An
meaning
to
avoid
results . . . ."12
should
be
absurd,
Thus,
the
interpreted
unreasonable,
text
of
reasonably,
Wis.
to
or
implausible
Stat.
32.09(6g)
avoid
absurd
or
forth
the
unreasonable results.13
77
The
leading
text
on
eminent
domain
sets
W.H. Pugh Coal Co. v. State, 157 Wis. 2d 620, 631, 460
N.W.2d 787 (1990).
9
Id., G32.08[7].
11
Id., G32.08[1][a].
12
No.
2012AP2784.ssa
the
property
is
the
instant case.
measure
of
compensation
that
was
The rental
used
in
the
The
majority
alongside
opinion's
its
assumption
assertion
that
that
the
the
statute
statute
seems
14
Id., G32.08[2][a].
16
Id., G32.03[7].
See also W. H. Pugh Coal Co., 157
Wis. 2d at 631 ("With a temporary taking, 'the proper measure of
compensation is the rental [value] that probably could have been
obtained,' in other words, 'the reasonable value of the
property's use.'" (Citations omitted.)).
6
No.
2012AP2784.ssa
court address head-on the question of whether and how Wis. Stat.
32.09(6g) applies to TLEs.
80
Another
point
of
confusion
raised
by
the
majority
apply,
compensation
the
property
for
the
taking
Wisconsin Constitutions.18
must
under
the
still
receive
United
States
just
and
confusion.
82
The result
More-Way
N.
Corp.
v.
State
Wis. 2d 165, 169, 170 N.W.2d 749 (1969).
18
Highway
Comm'n,
44
No.
just
compensation
in
the
present
case.
2012AP2784.ssa
agree
with
result.
83
that
No.
2012AP2784.ssa