Chris Hinrichs and Autovation Limited, Plaintiffs-Appellants-Petitioners, v. The DOW Chemical Company d/b/a Dow Automotive, Defendant-Respondent-Petitioner.
CASE NO.: 2017AP2361 (L.C. No. 2016CV1544)
SUPREME COURT OF WISCONSIN
January 9, 2020
2020 WI 2
REVIEW OF DECISION OF THE COURT OF APPEALS Reported at 386 Wis. 2d 351, 927 N.W.2d 156 (2019 - unpublished)
ORAL ARGUMENT: October 3, 2019
SOURCE OF APPEAL:
COURT: Circuit
COUNTY: Waukesha
JUDGE: Kathryn W. Foster
JUSTICES:
ANN WALSH BRADLEY, J., delivered the majority opinion of the Court, in which ROGGENSACK, C.J., ZIEGLER and DALLET, JJ., joined and REBECCA GRASSL BRADLEY, J., joined with respect to Parts I, II, and III. REBECCA GRASSL BRADLEY, J., filed an opinion concurring in part and dissenting in part.
NOT PARTICIPATING: KELLY and HAGEDORN, JJ.
ATTORNEYS:
For the defendant-respondent-petitioner, there were briefs filed by Patrick M. Harvey, Gabrielle Baumann Adams, and Husch Blackwell LLP, Milwaukee. There was an oral argument by Patrick M. Harvey.
For the plaintiff-appellant-petitioner, there were briefs filed by Terry J. Booth and Rogahn Jones LLC, Waukesha. There was an oral argument by Terry J. Booth.
This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.
IN SUPREME COURT
Chris Hinrichs and Autovation Limited, Plaintiffs-Appellants-Petitioners, v. The DOW Chemical Company d/b/a Dow Automotive, Defendant-Respondent-Petitioner.
ANN WALSH BRADLEY, J., delivered the majority opinion of the Court, in which ROGGENSACK, C.J., ZIEGLER and DALLET, JJ., joined and REBECCA GRASSL BRADLEY, J., joined with respect to Parts I, II, and III. REBECCA GRASSL BRADLEY, J., filed an opinion concurring in part and dissenting in part.
KELLY and HAGEDORN, JJ., did not participate.
REVIEW of a decision of the Court of Appeals. Affirmed.
¶1 ANN WALSH BRADLEY, J. In this case we are asked to address a multitude of issues that arise out of common law and statutory misrepresentation claims. Along the way, we discuss the economic loss doctrine together with its exceptions and examine statutes and their applications.
¶3 Hinrichs appeals the dismissal of his common law misrepresentation claims. Specifically, he contends that the court of appeals erred by applying the economic loss doctrine to bar such claims. He argues that the “fraud in the inducement” and “other property” exceptions to the economic loss doctrine apply and that as a result his common law claims should go forward.
¶4 Dow cross-petitioned for review of the court of appeals’ determination that Hinrichs’
¶5 In examining Hinrichs’ common law claims, we conclude that the “fraud in the inducement” exception to the economic loss doctrine does not apply to allow Hinrichs’ common law claims to go forward because the alleged misrepresentation is related to the quality and characteristics of the product in question and is thus not extraneous to the contract. We further conclude that the “other property” exception to the economic loss doctrine does not apply to allow Hinrichs’ common law claims to go forward because the JeeTops and adhesive are components of an integrated system.
¶6 With regard to Hinrichs’ statutory claim, we conclude first that the economic loss doctrine does not serve as a bar to claims made under
¶7 Accordingly, we affirm the decision of the court of appeals.
I
¶8 The facts set forth below are taken from Hinrichs’ complaint. Because we are reviewing the circuit court‘s determination of a motion to dismiss for failure to state a claim, we must assume that these facts are true.3
¶9 Hinrichs developed a product called JeeTops, which he manufactures and installs through his company, Autovation Limited. He obtained a patent for the JeeTops in 2010.
¶10 JeeTops are acrylic skylights installed aftermarket in the roofs of Jeep Wrangler vehicles equipped with a certain type of hardtop. The complaint describes the JeeTops as giving “front-seat passengers unparalleled views of the outdoors” and rear-seat passengers “unprecedented panoramic views.” After installation, “[t]he cumulative effect is to give the Wrangler‘s occupants the sensation of directly experiencing the environment through which they are driving.”
¶11 Installation of JeeTops is accomplished using an adhesive manufactured by Dow. The adhesive performs a dual role, attaching the JeeTops to the existing Jeep and maintaining a watertight seal.
¶12 In 2013, Mark Formentini, an agent for Dow, informed Hinrichs that Dow had a new primer available for use with the adhesive employed in installing JeeTops panels. Formentini
¶13 Shortly thereafter, Hinrichs relayed to Dow that customers were experiencing cracks in their JeeTops panels. Dow responded that the acrylic used in the JeeTops had been sent to its labs for testing.
¶14 After completing testing, Dow sent a report to Hinrichs claiming that the adhesive was properly functioning. The report further indicated that Dow found “[n]o evidence of any crazing or surface cracking . . . .”
¶15 Hinrichs continued purchasing and using Dow adhesives to install JeeTops, but customers continued to observe crazing and fracturing of the acrylic. By October of 2014, one-third of all JeeTops panel installations using the Dow adhesive system had failed.
¶16 Investigation eventually revealed that the Dow adhesive was attacking the integrity of the acrylic, which caused the panels to leak, and subsequently to craze and fracture. By this time JeeTops had received extensive negative publicity, high profile customers had stopped purchasing the product, and dealers had dropped JeeTops from their product lines.
¶17 In time Hinrichs was able to identify a suitable replacement adhesive, but by then the product had suffered a rash of negative publicity. As a result, Hinrichs alleges that despite the warm reception JeeTops initially received, he is unable to sell them because of the perception that they are unreliable.
¶20 Second, the circuit court determined that Hinrichs’
¶21 Hinrichs appealed and the court of appeals affirmed in part and reversed in part. The court of appeals affirmed the circuit court‘s determination that the economic loss doctrine bars Hinrichs’ common law misrepresentation claims. Like the circuit court, the court of appeals concluded that neither of the claimed exceptions to the economic loss doctrine applied. Hinrichs v. The DOW Chemical Co., No. 2017AP2361, unpublished slip op., ¶¶ 14-16 (Wis. Ct. App. Feb. 6, 2019) (per curiam).
¶22 However, the court of appeals reversed the circuit court‘s determination with regard to the
II
¶23 We are asked to review the court of appeals’ determination affirming in part and reversing in part the circuit court‘s grant of Dow‘s motion to dismiss for failure to state a claim. Whether a motion to dismiss was properly granted is a question of law this court reviews independently of the determinations rendered by the circuit court and court of appeals. Town of Lincoln v. City of Whitehall, 2019 WI 37, ¶ 21, 386 Wis. 2d 354, 925 N.W.2d 520.
¶24 A motion to dismiss tests the legal sufficiency of the complaint. Meyers v. Bayer AG, Bayer Corp., 2007 WI 99, ¶ 21, 303 Wis. 2d 295, 735 N.W.2d 448. Under our established methodology for review of a motion to dismiss, we accept all facts pleaded in the complaint as true. Id.
¶25 In our review, we are called upon to review the court of appeals’ determination that the economic loss doctrine bars Hinrichs’ common law misrepresentation claims. The application of the economic loss doctrine to a set of facts presents a question of law we review independently from the determinations of the circuit court and court of appeals. Insurance Co. of N. Am. v. Cease Elec. Inc., 2004 WI 139, ¶ 15, 276 Wis. 2d 361, 688 N.W.2d 462.
¶26 Next, we are asked to review the court of appeals’ conclusion that Hinrichs’ claim under
III
¶27 We address first whether the economic loss doctrine bars Hinrichs’ common law misrepresentation claims. For context, we initially set forth the legal principles underlying the economic loss doctrine. Subsequently, we address the applicability of the “fraud in the inducement” and “other property” exceptions to the economic loss doctrine in this case.
¶28 Second, we address whether the court of appeals properly determined that Hinrichs’
A
¶29 The economic loss doctrine is a judicially created doctrine with three primary purposes. Van Lare v. Vogt, Inc., 2004 WI 110, ¶ 17, 274 Wis. 2d 631, 683 N.W.2d 46 (citing Daanen & Janssen, Inc. v. Cedarapids, Inc., 216 Wis. 2d 395, 403, 573 N.W.2d 842 (1998)). First, the doctrine exists to “maintain the
¶30 We have described the economic loss doctrine as holding that “a commercial purchaser of a product cannot recover solely economic losses from the manufacturer under negligence or strict liability theories . . . .” Van Lare, 274 Wis. 2d 631, ¶ 18. “Economic loss” in the context of the doctrine is defined as “the loss in a product‘s value which occurs because the product is ‘inferior in quality and does not work for the general purposes for which it was manufactured and sold.‘” Insurance Co. of N. Am., 276 Wis. 2d 361, ¶ 23 (quoting Wausau Tile, Inc. v. Cty. Concrete Corp., 226 Wis. 2d 235, 246, 593 N.W.2d 445 (1999)). Both direct and consequential economic loss are encompassed within this definition. Daanen & Janssen, Inc., 216 Wis. 2d at 401.
¶31 The upshot of the economic loss doctrine is that it “requires transacting parties in Wisconsin to pursue only their contractual remedies when asserting an economic loss claim, in order to preserve the distinction between contract and tort.” Ins. Co. of N. Am., 276 Wis. 2d 361, ¶ 24 (quoting Digicorp, Inc. v. Ameritech Corp., 2003 WI 54, ¶ 34, 262 Wis. 2d 32, 662 N.W.2d 652).
B
¶32 We have recognized several exceptions to the economic loss doctrine, two of which are at issue here. See John J. Laubmeier, Demystifying Wisconsin‘s Economic Loss Doctrine, 2005 Wis. L. Rev. 225, 228 (2005). First, we address the “fraud in the inducement” exception. Subsequently, we turn to the “other property” exception.
¶33 This court has recognized “a narrow fraud in the inducement exception” to the economic loss doctrine. Kaloti Enters., Inc. v. Kellogg Sales Co., 2005 WI 111, ¶ 42, 283 Wis. 2d 555, 699 N.W.2d 205. We have emphasized the limited nature of this exception. See id.
¶34 As explained by the Michigan court of appeals, on whose opinion we relied in Kaloti Enters.,
Fraud in the inducement presents a special situation where parties to a contract appear to negotiate freely--which normally would constitute grounds for invoking the economic loss doctrine--but where in fact the ability of one party to negotiate fair terms and make an informed decision is undermined by the other party‘s fraudulent behavior.
¶35 Pursuant to this exception, “a fraud in the inducement claim is not barred by the economic loss doctrine where the fraud is extraneous to, rather than interwoven with, the contract.”
¶36 A misrepresentation relates to the quality or characteristics of the goods sold if it is expressly dealt with in the contract‘s terms. Id., ¶ 43. If not addressed explicitly in the contract, a misrepresentation is still related to the quality or characteristics of the goods sold, precluding the application of the “fraud in the inducement” exception, if the misrepresentation informs the reasonable expectations of the parties to the risk of loss in the event the goods purchased did not meet the purchaser‘s expectations. Id. (citations omitted).
¶37 Hinrichs urges us to apply the “fraud in the inducement” exception here to preclude application of the economic loss doctrine. He contends that his prior purchases of adhesive from Dow do not preclude a claim where a subsequent purchase is induced by a misrepresentation.
¶38 We disagree with Hinrichs. His argument ignores a fatal shortcoming: that the alleged misrepresentation regarding the
¶39 Therefore, we conclude that the “fraud in the inducement” exception to the economic loss doctrine does not apply to allow Hinrichs’ common law misrepresentation claims to go forward because the alleged misrepresentation is related to the quality and characteristics of the product in question and is thus not extraneous to the contract.
C
¶40 We turn now to the “other property” exception to the economic loss doctrine. Pursuant to this exception, the economic loss doctrine “does not bar a commercial purchaser‘s claims based on personal injury or damage to property other than the product, or economic loss claims that are alleged in combination with noneconomic losses.” Daanen & Janssen, Inc., 216 Wis. 2d at 402; Grams v. Milk Products, Inc., 2005 WI 112, ¶ 24, 283 Wis. 2d 511, 699 N.W.2d 167. In other words, the economic loss doctrine bars “the recovery of purely economic losses in consumer transactions through tort remedies where the only damage is to the product
¶41 To determine whether the “other property” exception applies, we apply a two part test. Id. First, we consider whether the defective product and the damaged property are part of an “integrated system.” Id., ¶ 7. If the product and damaged property are part of such a system, then any damage to that property is considered to be damage to the product itself. Id. That is, “once a part becomes integrated into a completed product or system, the entire product or system ceases to be ‘other property’ for purposes of the economic loss doctrine.” Selzer v. Brunsell Bros., Ltd., 2002 WI App 232, ¶ 38, 257 Wis. 2d 809, 652 N.W.2d 806 (citations omitted).6
¶43 The court of appeals here concluded that the JeeTops and the adhesive were components of an integrated system. Hinrichs, No. 2017AP2361, unpublished slip op., ¶ 15. It reasoned that “[t]hey became components of an integrated system once the adhesive was applied to bond the JeeTops to the motor vehicle. At that point, they were integral parts of a greater whole and did not serve an independent purpose.” Id. Accordingly, the court of appeals concluded that the “other property” exception did not apply. Id.
¶44 We agree with the court of appeals that the JeeTops and the adhesive formed an integrated system.7 Wausau Tile, 226 Wis. 2d 235, provides a useful analogy. In that case, Wausau Tile purchased cement from Medusa Corporation for use in manufacturing concrete paving blocks. Id. at 241. Wausau Tile claimed that the concrete it received from Medusa was defective and brought claims against Medusa sounding in both contract and tort. Id. at 242.
¶45 This court determined that the economic loss doctrine barred Wausau Tile‘s tort claims. Id. at 241. Rejecting Wausau Tile‘s argument that the “other property” exception applies, this court reasoned that “the pavers were integrated systems comprised of several component materials, including Medusa‘s cement.” Id. at 251. “[V]arious substances incorporated into finished products constitute integral components of those products.” Id. (citation omitted).
¶46 Similarly here, when the adhesive joins a JeeTops to the body of a Jeep, it creates an integrated system. An adhesive does not function on its own--its basic purpose is to integrate two parts by adhering them together. Like the court of appeals did, we see no relevant difference between the products here and others that courts have determined to be components of an integrated system, such as the cement in a concrete paving block in Wausau Tile, a window in a house,8 a gear in a printing press,9 a generator
¶47 Accordingly, we conclude that the “other property” exception to the economic loss doctrine does not apply to allow Hinrichs’ common law misrepresentation claims to go forward because the JeeTops and adhesive are components of an integrated system.
IV
A
¶48 We address next Hinrichs’ claim under
No person, firm, corporation or association, or agent or employee thereof, with intent to sell . . . merchandise . . . or with intent to induce the public in any manner to enter into any contract or obligation relating to the purchase, . . . shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, . . . an advertisement, announcement, statement or representation of any kind to the public . . . contain[ing] any assertion, representation or statement of fact which is untrue, deceptive or misleading.
¶49 This section is part of Wisconsin‘s Deceptive Trade Practices Act, the purpose of which is “to protect consumers from
¶50 As a threshold matter, we consider whether the economic loss doctrine bars claims made pursuant to
¶51 In Kailin, the court of appeals rejected an argument that
The legislature has plainly chosen in § 100.18 to provide protection and remedies for false advertising that do not exist at common law. The underpinnings of the economic loss doctrine--protecting parties’ freedom to allocate economic risk by contract, encouraging the purchaser to assume, allocate, or insure against that risk, and maintaining the fundamental distinction between tort and contract law--are either irrelevant to, or inconsistent with, that legislative choice.
Id.
¶53 For support, Dow turns to two federal district court cases. First, in MBI Acquisition Partners, L.P. v. Chronicle Publ‘g Co., 301 F. Supp. 2d 873, 885-86 (W.D. Wis. 2002), the court granted the defendants summary judgment on the plaintiff‘s
¶54 The federal court cases on which Dow relies are not binding on this court. State v. Wood, 2010 WI 17, ¶ 18, 323 Wis. 2d 321, 780 N.W.2d 63. Further, MBI Acquisition Partners, the one published case Dow cites in support, applied the economic loss doctrine to
¶56 Therefore, we conclude that the economic loss doctrine does not serve as a bar to claims made under
B
¶57 Having determined that the economic loss doctrine does not bar claims made pursuant to ¶58 To prevail on a claim under ¶59 In the seminal case on the subject, Automatic Merchandisers, a company was alleged to have engaged in a marketing scheme to sell vending machines at prices in excess of their actual value. 64 Wis. 2d at 660. The company placed classified advertisements in newspapers, and subsequently contacted those who responded to the advertisement at their homes with deceptive promotional materials and oral representations. Id. ¶60 In its analysis, the Automatic Merchandisers court examined “whether or not ¶61 Further, the court recognized that “the number of people involved is not controlling and that ‘the public’ may be only one person.” Id. at 664 (citing Ford Hydro-Electric Co. v. Town of Aurora, 206 Wis. 489, 240 N.W. 418 (1932)). “The use of the term ‘the public’ does not mean that the statements be made to a large audience.” Id. Indeed, the use of the term “contemplates the individual action of one member of the public.” Id. Rather than ¶62 Following Automatic Merchandisers, Wisconsin courts have consistently applied the “particular relationship” test in determining whether a plaintiff is a member of “the public” for purposes of ¶63 Dow contends that our previously established framework of analysis strays from the plain language of ¶64 We decline Dow‘s invitation to overrule Automatic Merchandisers. First, as Automatic Merchandisers states, the use of “the public” in ¶65 For example, in Automatic Merchandisers, the misrepresentation induced action when any individual member of the public entered into a private interaction with the vending machine company. See Automatic Merchs., 64 Wis. 2d at 660. If only one person saw the newspaper ad at issue, responded, and formed a relationship with Automatic Merchandisers, ¶66 Second, the doctrine of stare decisis12 militates against the precipitous change in the law that Dow seeks. Stare decisis is fundamental to the rule of law. Johnson Controls, Inc. v. Emp‘rs Ins. of Wausau, 2003 WI 108, ¶94, 264 Wis. 2d 60, 655 N.W.2d 227. Indeed, “[t]his court follows the doctrine of stare decisis scrupulously because of our abiding respect for the rule of law.” Id. ¶67 “Fidelity to precedent ensures that existing law will not be abandoned lightly. When existing law is open to revision ¶68 Our case law has identified several criteria for overturning prior cases. Johnson Controls, Inc., 264 Wis. 2d 60, ¶98. “First, changes or developments in the law have undermined the rationale behind a decision.” Id. “Second, there is a need to make a decision correspond to newly ascertained facts.” Id. “Third, there is a showing that the precedent has become detrimental to coherence and consistency in the law.” Id. We also consider “whether the prior decision is unsound in principle, whether it is unworkable in practice, and whether reliance interests are implicated.” Id., ¶99. ¶69 In this case, these criteria do not support overturning Automatic Merchandisers. As analyzed above, its interpretation is consistent with both the plain language and the purpose of ¶70 Accordingly, we reaffirm that one person can be “the public” for purposes of ¶71 We emphasize that we are not determining in this opinion whether Hinrichs is in fact a member of “the public,” but rather that we agree with the court of appeals that dismissal on that ground was in error. See Hinrichs, No. 2017AP2361, unpublished slip op., ¶22. Whether Hinrichs and Dow were in a “particular relationship” so as to remove Hinrichs from the realm of “the public” pursuant to ¶72 Finally, we address whether Hinrichs’ claim pursuant to ¶73 ¶74 Dow asserts that ¶75 However, we are not bound by Hinrichs’ apparent concession of law. See Fletcher v. Eagle River Memorial Hosp., Inc., 156 Wis. 2d 165, 179, 456 N.W.2d 788 (1990). Consequently, ¶76 By its terms, ¶77 Case law has previously indicated that ¶78 Further, considering the purpose of ¶79 “Section 100.18 has maintained its central importance in consumer protection for more than a century since its enactment.” John S. Greene, Navigating Wisconsin‘s Consumer Protection System, 90 Wis. Law. 22, 24 (Sept. 2017); see also James D. Jeffries, Protection for Consumers Against Unfair and Deceptive Business Practices in Wisconsin, 57 Marq. L. Rev. 559, 595-605 (1974). “The state, individual consumers, and business consumers regularly invoke Wis. Stat, section 100.18 to pursue claims of deceptive representations.” Greene, supra, at 24. ¶80 Consistent with this history and purpose, ¶81 “We have previously recognized that an individual who brings an action to enforce a statutory right may be acting as a ‘private attorney general’ to enforce the public‘s rights under the statute.” Watkins v. Labor and Indus. Review Comm‘n, 117 Wis. 2d 753, 764, 345 N.W.2d 482 (1984) (citing Shands v. Castrovinci, 115 Wis. 2d 352, 358, 340 N.W.2d 506 (1983)). Absent such a private right of action and the prospect of attorney fees, many victims of deceptive representations “would not be in an economic position to advance the private and public interest at stake.” Estate of Miller v. Storey, 2017 WI 99, ¶58, 378 Wis. 2d 358, 903 N.W.2d 759. We must look at ¶82 Heightened pleading requirements may prevent private, pro se parties from seeking redress for deceptive representations. Such a requirement would run counter to ¶83 Accordingly, we conclude that the heightened pleading standard set forth by ¶84 We therefore apply general pleading standards to determine if Hinrichs’ complaint states a claim. Thus, we must examine whether Hinrichs’ complaint pleads facts, which if true, would entitle him to relief. See Cattau v. Nat‘l Ins. Servs. of Wis., 2019 WI 46, ¶4, 386 Wis. 2d 515, 926 N.W.2d 756; Data Key Partners v. Permira Advisers LLC, 2014 WI 86, ¶21, 356 Wis. 2d 665, 849 Wis. 2d 693 (citing Strid v. Converse, 111 Wis. 2d 418, 422-23, 331 N.W.2d 350 (1983)). ¶85 Specifically with regard to a claim made pursuant to ¶87 Second, as the court of appeals determined, “the complaint sufficiently alleges that Dow made representations that were untrue, deceptive or misleading.” Hinrichs, No. 2017AP2361, unpublished slip op., ¶23. Specifically, the complaint alleges that “[t]he report prepared and produced by Dow claimed the Dow adhesive was properly functioning on the acrylic used by Mr. Hinrichs in the JeeTops panels . . . .” The complaint further alleges that this representation was untrue, deceptive, or misleading in that the Dow adhesive actually was the cause of the structural breakdown of the JeeTops panels. ¶88 Finally, the complaint amply alleges that the representation materially induced a pecuniary loss to Hinrichs. Hinrichs alleges that Dow‘s representations destroyed his ability to sell further JeeTops panels by negatively affecting the product‘s reputation. The complaint specifically references negative commentary on social media and elsewhere within the Jeep enthusiast community, as well as allegations that high profile customers stopped purchasing the product and that dealers dropped JeeTops from their product lines. ¶89 We therefore conclude that Hinrichs’ complaint states a claim under the general pleading standard. ¶90 In sum, with regard to Hinrichs’ common law claims, we conclude that the “fraud in the inducement” exception to the economic loss doctrine does not apply to allow Hinrichs’ common law claims to go forward because the alleged misrepresentation is related to the quality and characteristics of the product in question and is thus not extraneous to the contract. We further conclude that the “other property” exception to the economic loss doctrine does not apply to allow Hinrichs’ common law claims to go forward because the JeeTops and adhesive are components of an integrated system. ¶91 Concerning Hinrichs’ statutory claims, we conclude first that the economic loss doctrine does not serve as a bar to claims made under ¶92 Accordingly, we affirm the decision of the court of appeals. By the Court.—The decision of the court of appeals is affirmed. ¶95 The foundation for No . . . corporation . . . with intent to sell . . . any . . . merchandise . . . to the public . . . or with intent to induce the public . . . to enter into any contract or obligation relating to the purchase . . . of any . . . merchandise . . . shall make . . . or place before the public, or cause . . . to be made . . . or placed before the public, in this state . . . an advertisement . . . statement or representation of any kind to the public relating to such purchase . . . which advertisement, . . . statement or representation contains any assertion, representation or statement of fact which is untrue, deceptive or misleading. ¶97 In this case, the majority expands Automatic Merchandisers’ interpretation of “the public” beyond the plain meaning of ¶98 A textual approach to statutory interpretation gives language “its common, ordinary, and accepted meaning . . . .” State ex rel. Kalal v. Circuit Court for Dane Cty., 2004 WI 58, ¶45, 271 Wis. 2d 633, 681 N.W.2d 110. We presume the “legislature says in a statute what it means and means in a statute what it says there.” Milwaukee Dist. Council 48 v. Milwaukee Cty., 2019 WI 24, ¶25, 385 Wis. 2d 748, 924 N.W.2d 153 (quoting Connecticut Nat‘l Bank v. Germain, 503 U.S. 249, 253-54 (1992)); see also Kalal, 271 Wis. 2d 633, ¶39 (quoting the same). As a fundamental tenet of statutory interpretation, where possible, we render no ¶99 “[T]he ordinary and common meaning of a doubtful word may be established by the definition of a recognized dictionary.” In re Nottingham‘s Estate, 46 Wis. 2d 580, 588, 175 N.W.2d 640 (1970). ¶100 The majority‘s construction of “the public,” as used in ¶101 The majority broadens the meaning of a “representation” “made . . . or placed before the public” to encompass an email between two businesses in a commercial relationship. See majority op., ¶70.5 Under the majority‘s interpretation, “the public” means everyone and therefore has no meaning, which creates an avoidable surplusage problem: the majority causes “the public” to have no operative effect whatsoever in the statute. As the District Court for the Western District of Wisconsin has recognized, this court‘s ever-expanding construction of “the public” under No . . . corporation . . . with intent to sell . . . any . . . merchandise . . . shall make . . . in this state . . . an advertisement . . . statement or representation of any kind . . . relating to such purchase . . . which advertisement, . . . statement or representation contains any assertion, representation or statement of fact which is untrue, deceptive or misleading. The majority reads “the public” out of the statute entirely by “needlessly” giving that phrase “an interpretation that causes it . . . to have no consequence.” See Scalia & Garner, supra ¶98, at 174. ¶102 In cases with similar facts, other courts concluded that “the public” cannot mean two businesses in an ongoing commercial relationship. For example, the Uniek court held a distributor was not a member of “the public” within the meaning of ¶103 The majority perpetuates the judicially-created “particular relationship” test for determining whether a person is part of “the public” within the meaning of (“[W]e give effect only to what the legislature does, not what it tried to do.” (footnote omitted)). ¶105 Instead of analyzing the words the legislature actually wrote in ¶107 The plain meaning of “the public” under C
II
III
IV
Notes
Uniek, Inc. v. Dollar General Corp., 474 F. Supp. 2d 1034, 1036 (W.D. Wis. 2007).No person, firm, corporation or association, or agent or employee thereof, with intent to sell, distribute, increase the consumption of or in any wise dispose of any real estate, merchandise, securities, employment, service, or anything offered by such person, firm, corporation or association, or agent or employee thereof, directly or indirectly, to the public for sale, hire, use or other distribution, or with intent to induce the public in any manner to enter into any contract or obligation relating to the purchase, sale, hire, use or lease of any real estate, merchandise, securities, employment or service, shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in this state, in a newspaper, magazine or other publication, or in the form of a book, notice, handbill, poster, bill, circular, pamphlet, letter, sign, placard, card, label, or over any radio or television station, or in any other way similar or dissimilar to the foregoing, an advertisement, announcement, statement or representation of any kind to the public relating to such purchase, sale, hire, use or lease of such real estate, merchandise, securities, service or employment or to the terms or conditions thereof, which advertisement, announcement, statement or representation contains any assertion, representation or statement of fact which is untrue, deceptive or misleading.
We decline to adopt Hinrichs’ “product bargained for” analysis. Hinrichs does not identify any infirmity in the current test that would require us to depart from our prior case law. Further, we observe that the Wausau Tile court rejected a similar contention that the “integrated system” rule does not apply where a party buys only a component and not the fully integrated system. See Wausau Tile, 226 Wis. 2d at 252 n.10.
See Antonin Scalia & Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 391-96 (2012) (“[C]ollective intent is pure fiction because dozens if not hundreds of legislators have their own subjective views on the minutiae of bills they are voting on[.]“); see also Robert E. Keeton, Keeton on Judging in the American Legal System 210-11 (Lexis Pub. 1999) (“‘Legislative intent’ . . . is a legal fiction. Only a natural person can have a state of mind such as intent. No legal entity such as a legislature can have an ‘intent’ in a strictly factual sense.“).Any person suffering pecuniary loss because of a violation of this section by any other person may sue in any court of competent jurisdiction and shall recover such pecuniary loss, together with costs, including reasonable attorney fees, except that no attorney fees may be recovered from a person licensed under
