Due Process Violation

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WI Court of Appeals – District II

Case Name: Gregory A. Anderson v. Wisconsin Department of Financial Institutions

Case No.: 2017AP1670

Officials: Neubauer, C.J., Gundrum and Hagedorn, JJ.

Focus: Due Process Violation

The constitution limits the power of the state to take someone’s property. At a minimum, constitutional due process requires the state to provide notice and an opportunity to be heard. This case concerns whether sufficient notice was provided when the Wisconsin Department of Financial Institutions (DFI) notified Gregory A. Anderson that he was liable for more than three million dollars due to his alleged involvement in unlawful securities transactions.

In its notice, DFI informed Anderson that he had thirty days to “request a hearing” or its allegations would be deemed proven and the threatened punishment would become fixed. Anderson—on day number thirty—mailed a certified letter requesting a hearing. DFI denied Anderson’s request for a hearing on the grounds that DFI needed to receive the request by the thirtieth day. No grace, no exceptions.

The notice Anderson received tracks the language of WIS. STAT. § 551.604(2) (2017-18). However, this recently modified statute (and hence, the notice) is less than clear on precisely what Anderson was supposed to do by the thirtieth day. While DFI offers a plausible reading in defense of its position, we conclude that the notice Anderson received was inadequate. If the state is going to take Anderson’s property, it must tell him with reasonable clarity what he needs to do and by when. The notice failed in this basic task and therefore violated Anderson’s due process protections. Accordingly, we reverse and remand.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.