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Regulatory takings standard takes center stage

By: Erika Strebel, [email protected]//November 1, 2016//

Regulatory takings standard takes center stage

By: Erika Strebel, [email protected]//November 1, 2016//

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The litigators in a dispute over regulatory takings will be on the hot seat Thursday, when justices will question whether they should make it easier for Wisconsin residents to get compensation if their property loses value as a result of a government regulation.

Wisconsin common law only lets property owners get compensation if the regulation has deprived the property of all its economic use and value.

READY, SET, ARGUE

Here’s a list of the cases the Wisconsin Supreme Court is scheduled to hear this month:

Thursday 9:45 a.m., Voces de la Frontera Inc. v. David Clarke: The case involves Milwaukee County Sheriff David Clarke’s public records dispute with an immigrant-advocacy group that filed a record request asking for copies of all federal immigration-detainer forms he had received during a particular four-month period. He eventually released the forms but only after blacking out certain information. Clarke has argued that federal law prevents him from releasing the documents in full. He is now appealing a decision affirming a trial judge’s order that he release the records.

10:45 a.m., McKee Family I LLC v. City of Fitchburg: The questions before the court in this case include whether the developers of a proposed luxury-apartment complex had a vested right in their development site for the project before the city rezoned the property and whether that rezoning amounted to an unconstitutional taking.

Nov. 9

9:45 a.m., Dennis Teague v. Brad Schimel: The case involves three plaintiffs who allege that the state’s Department of Justice is knowingly distributing inaccurate information every time it makes reference to them in criminal-history reports it has released. The Dane County Circuit Court had dismissed the lawsuit, which had alleged equal-protection and constitutional violations. The District 4 Court of Appeals affirmed that decision, noting the plaintiffs had failed to state any statutory or constitutional violations.

10:45 a.m., Randall Melchert v. Pro Electric Contractors: This civil lawsuit out of Waukesha County involves a dispute between the owners of a Brookfield property who sued a government contractor over damage caused by the installation of a traffic signal in 2012. The owners are appealing trial court and appeals court rulings that had found that the state’s immunity statutes for government contractors shielded Pro Electric from liability. The court has ordered the parties to also discuss whether the Wis. Stat. 182.0175(2), the Diggers Hotline statute, created a ministerial duty, or a duty to obey instructions with no room for discretion.

1:30 p.m. State v. Jeffrey Lepsch: A jury in 2013 convicted Jeffrey Lepsch of a double homicide in downtown La Crosse. He appealed the conviction, for which he is serving two life sentences, to the Court of Appeals, contending the jurors were improperly sworn-in outside his presence and that the jurors were subjectively and objectively biased. The Court of Appeals disagreed, and Lepsch asked the Supreme Court to review the case.

Nov. 10

9:45 a.m., State v. Thornton Talley: The case involves a defendant who was found to be sexually violent and committed in 2005. He later petitioned for discharge in 2011 and 2012. His first petition was denied by both the trial court and the District 4 Court of Appeals, and the high court declined to review his appeal. Talley is now appealing the trial court’s and district court’s denials of his petition from 2012.

10:45 a.m., Lela Operton v. LIRC: The Labor and Industry Review Commission is challenging an appeals court decision that found a former Walgreens clerk should not have been denied unemployment benefits because the mistakes she made at a cash register did not constitute substantial fault, a new standard by which benefits can be denied.

In place of that basic rule, the appellant in McKee Family LLC v. City of Fitchburg is arguing in favor of a slightly more generous standard used by federal courts ever since the landmark case of Penn Central Transportation Co v. City of New York. In general, that standard gives judges more leeway to weigh various factors and try to strike a balance when deciding what compensation landowners should receive when government action results in a loss of property value.

The case now before the Wisconsin Supreme Court stems from a dispute between a property owner, McKee, and the city of Fitchburg over two lots near Wilshire Drive and Chappel Valley Road.

The former owners of the land had the site rezoned in 1994 to pave the way for a large development district consisting of four buildings containing 128 luxury apartments and a clubhouse, swimming pool and underground parking. McKee later acquired the lots with plans to pursue the same project.

Fitchburg officials helped fan the new owners’ hopes by giving the plans an initial approval and taking steps toward issuing a building permit. But the project was not popular with neighbors, and the Fitchburg Common Council had the property rezoned months later.

The change put several new restrictions on the project. Perhaps most obnoxious to McKee, it allowed only 28 apartments to be built on the two lots.

McKee sued in 2010, alleging the rezoning amounted to an unconstitutional taking of its vested rights. Complicating its case, though, was the fact that a building permit had never been issued for the original project.

McKee has not yet had success. Dane County Circuit Court Judge John Albert found in April 2014 that the company, without a building permit, could not have a vested right in the former zoning classification.

Wisconsin’s District 4 Court of Appeals reached the same conclusion.

McKee appealed again, this time to the state Supreme Court, which agreed in April to accept the case.

The League of Wisconsin Municipalities and the Wisconsin Realtors Association have submitted amicus briefs in the case. The league is urging the court to keep the current standard, whereas the association is arguing for the court to adopt the more generous federal standard.

McKee will be the second case before the court on Thursday.

The justices will also be hearing oral arguments from the parties in Voces de La Frontera v. David Clarke.

Milwaukee County Sheriff David Clarke is appealing a court of appeals decision affirming a trial judge’s order that he not black out information before releasing federal immigration-detainer forms to an immigrant-advocacy group.

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