937 N.W.2d 63
Wis. Ct. App.2019Background
- Christus Lutheran Church owned property abutting State Trunk Highway 15 that DOT planned to partially acquire for a highway reconstruction project.
- DOT’s August 2016 appraisal (Single Source, Inc.) valued the land and temporary easement and concluded there would be no severance damages; the appraisal-supported initial offer totaled about $133,400.
- After internal DOT review, DOT issued a revised jurisdictional offer of $403,200 (March 2017) that added $159,574 in severance damages and other line items not included in the appraisal.
- Christus declined to accept the offer, advised DOT to proceed with condemnation, and then filed suit under Wis. Stat. § 32.05(5) challenging the jurisdictional offer as not "based upon an appraisal."
- The circuit court granted summary judgment to DOT; the Court of Appeals reversed, holding the jurisdictional offer was invalid because the appraisal failed to value a statutorily compensable item (severance damages).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the jurisdictional offer was "based upon" an appraisal under Wis. Stat. § 32.05(2)(b) and (3)(e). | The appraisal did not form a supporting part of the offer because it omitted severance damages and the total offer far exceeded the appraisal. | An appraisal need not match the offer exactly; DOT may administratively revise an appraisal-based offer (and the owner could seek a second appraisal). | Reversed: offer not "based upon" the appraisal because the appraisal failed to value "all property proposed to be acquired"—it omitted severance damages later included in the offer. |
| Whether a large dollar variance alone renders an offer invalid. | Large variance (approx. $270,000) shows the appraisal no longer supports the offer. | Otterstatter permits upward adjustments; variance alone does not invalidate an offer. | The court did not decide variance-alone rule; resolved on omission of a statutorily compensable item. Otterstatter remains good law for modest adjustments, but appraisal must still value all statutory compensation items. |
Key Cases Cited
- Otterstatter v. City of Watertown, 378 Wis. 2d 697 (2017 WI App 76) (appraisal must be a supporting part of jurisdictional offer; modest deviations may be permissible)
- Justmann v. Portage Cty., 278 Wis. 2d 487 (2005 WI App 9) (describing the "before and after" measure of damages in partial takings)
- Brenner v. New Richmond Reg'l Airport Comm'n, 343 Wis. 2d 320 (2012) (condemnation proceedings must follow Chapter 32 statutory procedures)
- Arrowhead Farms, Inc. v. Dodge Cty., 21 Wis. 2d 647 (1963) (negotiation by condemnor is a jurisdictional prerequisite)
- Standard Theaters, Inc. v. DOT, 118 Wis. 2d 730 (1984) (statutory provisions that favor landowners to be liberally construed)