Court of Appeals overturns city’s attempt to shut down Family Dollar store

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Gimbel, Reilly, Guerin & Brown has won a verdict in FAMILY DOLLAR STORES OF WISCONSIN LLC and Lonnie McCaffety, Agent, Petitioners-Appellants, v. CITY OF MILWAUKEE and City of Milwaukee Common Council, Respondents-Respondents.

In the case, the Court of Appeals District 1 overturned a city of Milwaukee attempt to shut down a Family Dollar store near 27th and Kilbourn, which is in a predominantly low income neighborhood and serves many people who receive Supplemental Nutrition Assistance Program (SNAP) benefits.

The court ruled on Oct. 11 that the city denied Family Dollar its due process rights by providing insufficient notice of the alleged basis for the license denial and the failure to hold a “fair and impartial hearing” before the City’s Licensing Committee. The court also ruled that the city’s decision was “arbitrary, representing its will rather than its judgment” since many other similar licensees were renewed or temporarily suspended for much more egregious conduct.

Thanks to an injunction granted at the time the suit was filed in 2020, the store has remained open for business. The Court of Appeals have now sent the case back to the Circuit Court “with the direction to order the City to vacate its decision not to renew Family Dollar’s licenses.”