False Premise – Replacement Property

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WI Court of Appeals – District IV

Case Name: Delores Fischer v. City of Prairie Du Chen

Case No.: 2015AP2116

Officials: Kloppenburg, P.J., Lundsten, and Blanchard, JJ.

Focus: False Premise – Replacement Property

The City of Prairie du Chien displaced Delores Fischer from her house and lot in connection with a public project. Fischer purchased a replacement property. There is no dispute that the following two determinations made by the City were reasonable: (1) Fischer was entitled to receive $108,000 from the City as the fair market value for her house and lot, and (2) the cost of a comparable replacement dwelling available on the private market was $95,000. However, despite the fact that the $108,000 payment to Fischer exceeded the $95,000 cost for replacement housing, Fischer filed a claim with the City for an additional $35,600 as a “replacement housing payment” under a theory that we describe below. The City denied Fischer’s claim. Pursuant to WIS. STAT. § 32.20, Fischer filed this action seeking an order requiring the City to pay Fischer $35,600. The circuit court dismissed the action, and Fischer appeals. We reject the only argument that Fischer advances on appeal because we conclude, as did the circuit court, that her argument rests on a false premise. The false premise is that the $108,000 market valuation of the property was based on a higher and better use than residential use, namely, on commercial use of the property. In fact, the market valuation was entirely based on residential use, and was not based in whole or in part on some higher and better commercial use. Accordingly, we affirm the circuit court.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.