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Declaratory Judgment – Certiorari Review Appropriate

By: Derek Hawkins//June 27, 2018//

Declaratory Judgment – Certiorari Review Appropriate

By: Derek Hawkins//June 27, 2018//

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WI Supreme Court

Case Name: Voters with Facts, et al. v. City of Eau Claire, et al.

Case No.: 2018 WI 60

Focus: Declaratory Judgment – Certiorari Review Appropriate

This case arises out of the approval of a redevelopment project in the City of Eau Claire (the “City”), which relied in part on funds derived from two tax incremental districts (“TIDs”): TID 8 and TID 10. Voters with Facts, et al. (“Plaintiffs”) challenged the legality of the City’s actions with regard to these TIDs. We review here a published decision of the court of appeals, Voters with Facts v. City of Eau Claire, 2017 WI App 35, 376 Wis. 2d 479, 899 N.W.2d 706 [hereinafter Voters], affirming the Eau Claire County circuit court’s dismissal of Plaintiffs’ complaint as to declaratory judgment, but reversing and remanding as to certiorari review.

On review, we consider two issues. First, we consider whether dismissal of Plaintiffs’ declaratory judgment claims was proper. We conclude that it was, because Plaintiffs have failed to state claims upon which relief can be granted: the first and second counts fail because the City Common Council’s findings of blight and the JRB’s “but for” assertions are legislative determinations that do not present justiciable issues of fact or law; the third count fails because it does not allege facts which plausibly establish that the City’s cash grant for TID 10 was used to reimburse the developer’s costs associated with demolishing historic buildings; and the fourth count fails because it does not allege facts which plausibly establish that cash grants are intended or used to pay owner-developers’ property taxes.

Second, we consider whether certiorari review is appropriate. We conclude that it is, because certiorari review is the appropriate mechanism for a court to test the validity of a legislative determination. The record before us, however, does not contain a municipal record sufficient to enable our review. Accordingly, we remand to the circuit court for certiorari review of Plaintiffs’ first and second claims. Thus, we affirm the decision of the court of appeals on other grounds.

Affirmed

Concur:

Dissent: R.G. BRADLEY, J., and KELLY, J., dissent (opinion filed).

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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.

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