Dells Fireworks, Inc., Anthony Cornellier and Diane M. Cornellier appeal from a summary judgment permanently enjoining them from selling or delivering fireworks except under certain conditions. They also appeal from an order finding them in contempt of that injunction. 1 The trial court concluded that Dells Fireworks, Inc. and the Cornel-liers (collectively, "Dells Fireworks") had violated § 167.10(2) and (3), Stats., which regulates the sale and use of fireworks, and the City of Wisconsin Dells ordinance which mirrors the statute. Section 167.10(2) and (3) limits and defines the situations in which fireworks may be sold, used or possessed. With certain exceptions, sales are prohibited except to persons holding permits under the statute. 2
BACKGROUND
Dells Fireworks, Inc. has its place of business in the City of Wisconsin Dells. The City of Wisconsin Dells filed a complaint against Dells Fireworks, Inc. and Diane and Anthony Cornellier (both of whom are officers, directors, shareholders and employees of the corporation) alleging that the Cornelliers sold certain specified types of fireworks to four individuals who did not have user permits issued by the city as required by § 167.10(3)(a), Stats., but instead had "alleged permits" which Dells Fireworks sold them for two dollars at the time of purchase. 4 The complaint alleges that these sales were violations of the statute and the city ordinance and that the defendants have been asked to stop making such sales but have refused and are continuing to make such sales. The complaint seeks a forfeiture for each ordinance violation and an injunction against future violations.
The answer admits that "certain fireworks" were sold to the four individuals; denies that fireworks permits were sold to them; and affirmatively alleges that the four individuals are members of the WFA and that, on information and belief, members of the WFA have valid permits issued by the appropriate municipalities to discharge fireworks in eighteen locations in the state. The answer alleges, on information and belief, that the "items recited in the plaintiffs complaint do not constitute 'fireworks' as defined by [§ 167.10(1), Stats.]." 5
Wisconsin Dells moved for summary judgment and each side submitted affidavits and other documents. The trial court determined there were no issues of fact and that Wisconsin Dells was entitled to summary judgment enjoining Dells Fireworks from selling or
On June 7, 1994, Wisconsin Dells moved for an order finding Dells Fireworks in contempt for violating the injunction. On June 17, 1994, Dells Fireworks moved for an order setting aside the injunction and dismissing this case on the ground that on June 16, the trial court in the separate forfeiture action against Diane Cornellier had dismissed the charges. The basis for dismissal was that she was exempt from the requirements of § 167.10(2) and (3), Stats., because of a federal license. The trial court in this action denied Dells Fireworks' motion, stating that the decision in the other branch was not binding.
After an evidentiary hearing on the contempt motion, the trial court found that the defendants had violated the injunction by continuing to use WFA memberships so as to circumvent the statutory permit requirements and that this conduct was intentional and not in good faith. The trial court imposed various penalties and remedies. Details of the contempt hearing and order will be discussed later in the opinion.
We review a grant of summary judgment
de novo
by applying the same standards employed by the trial court.
Brownelli v. McCaughtry,
The resolution of this appeal involves an interpretation of § 167.10, STATS., which is a question of law that we review
de novo. See Tahtinen v. MSI Ins. Co.,
The trial court's decision to grant an injunction is a discretionary one and the scope of the injunction is also within the trial court's discretion.
See State v. Seigel,
Definition of Fireworks
We first address Dells Fireworks' contention that the trial court should have held an evidentiary hearing to determine whether the fireworks described in the complaint — which include firecrackers, bottle rockets, Artillery Shells and Saturn Missiles — are "fireworks" as defined in § 167.10(1), Stats.
Section 167.10(1), Stats., defines fireworks as anything "manufactured, processed or packaged for exploding, emitting sparks or combustion which does not have another common use," and then lists certain exclusions from this definition. 6 The trial court decided that Dells Fireworks had conceded this in its answer because it admitted it sold "certain fireworks" to the four individuals. We agree with Dells Fireworks that because of the specific allegation in the answer — that "the items recited in the plaintiffs complaint do not constitute 'fireworks’ as defined by [§ 167.10(1)]" — the answer cannot be considered a concession on this issue. However, we do not reverse the grant of summary judgment on this ground because we conclude that Dells Fireworks has made a judicial admission on this issue.
At the evidentiary hearing on the motion for contempt, counsel for Wisconsin Dells called Anthony Cornellier as a witness. Cornellier was asked to review a document entitled "Dells Fireworks, Inc. Order Blank Class C Fireworks"
7
which lists sixty-six items. Firecrackers, bottle rockets, Saturn Missiles and Artillery
When a party or his counsel makes a clear, deliberate and unequivocal statement of fact, that is a judicial admission and is binding on the party.
Kuzmic v. Kreutzmann,
Effect of Federal License
Since Dells Fireworks does not point to any other factual disputes, we turn to its arguments that the trial court incorrectly interpreted the requirements under § 167.10(2) and (3), Stats., for selling fireworks. Section 167.10(2) and (3) provides in relevant part:
(2) Sale. No person may sell or possess -with intent to sell fireworks, except:
(a) To a person holding a permit under sub. (3)(c);
(b) To a city, village or town; or
(c) For a purpose specified under sub. (3)(b)2. to 6.
(3) Use. (a) No person may possess or use fireworks without a user's permit from the [municipality]....
(b) Paragraph (a) does not apply to:
6. A possessor or manufacturer of explosives in possession of a license or permit under 18 USC 841 to 848 if the possession of the fireworks is authorized under the license or permit.
First, Dells Fireworks argues that it may sell fireworks to anyone because of its federal license.
8
Dells Fireworks concedes that the federal statute does not preempt state law in this field,
see
18 U.S.C. § 848, and that the question is what § 167.10(2) and (3), STATS., requires. According to Dells Fireworks, because the third category of permitted sales under § 167.10(2)(c) is
Section 167.10(3)(b), Stats., lists those situations for which a permit is not needed to use or possess fireworks. Because of its federal permit, Dells Fireworks may use and possess fireworks without having a user's permit from the municipality in which it uses or possesses fireworks. It may also, because of the reference in § 167.10(2)(c) to subsec. (3)(b)6, sell to federal licensees even though the federal licensees do not have user's permits from the relevant municipalities. However, if the purchaser is not a federal licensee, the purchaser must either hold a valid user's permit meeting the requirements of § 167.10(3)(a) and (c) or must be a municipality. There are, in short, only three categories of permissible purchasers under § 167.10(2): permit holders, municipalities, and federal licensees. All other sales are prohibited. 9 Nowhere is there an exemption from this requirement because the seller holds a federal license.
Validity of Permits
Dells Fireworks also argues that the four individuals to whom it sold fireworks each had a valid user's permit because they were members in the WFA, which had a valid user's permit for a number of municipalities. It is undisputed that these four individuals did not have permits issued by the City of Wisconsin Dells, the municipality in which they purchased the fireworks
According to Dells Fireworks, because user permits may be issued to "[a] group of resident or nonresident individuals" under § 167.10(3)(c)6, Stats., every member of the group — in this case, WFA — is a permit holder by virtue of WFA's permit. We agree with the trial court's analysis and reject this interpretation as inconsistent with the language of the statute.
Under § 167.10(3)(c)6, Stats., the permit is issued to a group, not to the individuals that make up the group. Therefore, it is the group, WFA, which holds the permit, not the members of the WFA. WFA, according to its membership forms, is a non-profit corporation. Since, as a corporation, WFA can only act through individuals,
see City of Kiel v. Frank Shoe Mfg. Co.,
A statute must be construed to promote its purpose and objective.
City of Appleton v. Brunschweiler, 52
Wis. 2d 303, 306,
We conclude that Wisconsin Dells was entitled to judgment that the sales to the four individuals violated § 167.10(2) and (3), STATS., because the purchasers did not have valid user permits.
Propriety of Injunction
We hold that the injunction was a proper exercise of the trial court's discretion. The court could reasonably conclude from the undisputed evidence that Dells Fireworks would continue the unlawful sales unless enjoined.
The specific terms of the injunction were also a proper exercise of the court's discretion. The injunction prohibited sales to persons that did not have valid permits issued pursuant to § 167.10(3), STATS., (or pursuant to a local ordinance in conformity therewith), unless the purchaser was in one of the other permissible categories, which the injunction specified. The injunction also prohibited the delivery or possession of fireworks within Wisconsin Dells to anyone that did
Dells Fireworks contends that even if the injunction was proper when entered, the trial court should have "abandoned it" when the branch presiding over the forfeiture action against Diane Cornellier dismissed that action. According to Dells Fireworks, that court's decision that the federal license exempted her from compliance with the statute is the "law of the case" in this action.
The law of the case doctrine has no application in this context. The doctrine is typically applied to require a trial court to follow all legal rulings made by the appellate court in subsequent proceedings before the trial court in the same case.
Univest Corp. v. General Split Corp.,
CONTEMPT
Dells Fireworks challenges the trial court's finding of contempt on the ground that it did comply with the trial court's explanation of the injunction and the explanation of Wisconsin Dells’ counsel as reported in a newspaper. Dells Fireworks also contends that the trial court improperly found it in contempt for acts that took place outside the city limits of Wisconsin Dells. Finally, Dells Fireworks challenges certain of the conditions imposed by the court as sanctions.
We do not set aside the trial court's findings of fact unless they are clearly erroneous. Section 805.17(2), STATS. However, to the extent the determination of contempt involves an interpretation of the injunction, that is a question of law that we review
de novo. See Levy v. Levy,
At the contempt hearing, two individuals testified that after the entry of the injunction, Dells Fireworks sold them certain fireworks after they purchased WFA
The WFA membership forms signed by these two individuals differed from those attached to the complaint. Instead of stating that "membership specifically allows possession of the fireworks while transporting them from the point of sale to the locations listed on this permit," these forms stated: "You are authorized to possess these fireworks as an agent of the Wisconsin Fireworks Association and solely for purposes of delivering them to a licensed site so that they may be discharged as part of our group celebration." The modified forms also did not contain the provision denying liability on the part of WFA for any injury.
The trial court found that these two sales were not to WFA but to the individuals, and that the use of these WFA membership forms by Dells Fireworks was not in good faith, was intentional, and was for the purpose of avoiding the requirements of the law and the injunction.
The trial court found that Dells Fireworks had violated the injunction by a sale to another individual, Chad Long. Long testified that he obtained a blank permit from Dells Fireworks, as he had done on at least one prior occasion when Diane Cornellier explained that he could buy fireworks if a town official signed the permit. As filled in by Long, the permit gives him permission to use Class C fireworks in the Town of Lyndon or to protect crops from predatory animals. Long had the permit signed by the Lyndon town chairman. He took the signed permit back to Dells Fireworks' place of business, presented it to Diane Cornellier and paid for
The trial court found that this permit was defective on its face. As an individual, Long obviously could not belong to any category of permit holder except that of an agricultural producer. This is true even under Dells Fireworks' interpretation of the statute because he did not have a membership in the WFA. The court implicitly found that Diane Cornellier knew that Long was not an agricultural producer purchasing fireworks to protect crops. This finding is supported by the record and is not clearly erroneous. The trial court found that this transaction demonstrated, if not an intentional violation of the injunction, then a reckless disregard of the injunction and the law.
The trial court imposed a penalty of $400 for each of the two violations that involved WFA members and $200 for the violation involving Long, pursuant to § 167.10(9)(b), STATS. 10 The court ordered that the fireworks that were held for sale and sold in violation of the injunction be seized pursuant to § 167.10(8). The court also ordered that all sales made to an organization or to a group of resident or non-resident individuals be for an amount not less than $250 in the form of a draft or a check drawn on the account of the organization and that delivery be made to the business office of the organization.
Dells Fireworks claims that, in granting the injunction, the trial court stated that it could make sales as long as the fireworks were delivered outside the city limits; and that the attorney for the city said the same thing, as reported in a local newspaper.
There is no merit to Dells Fireworks' contention. Dells Fireworks refers to only a portion of the comments the trial court made in explaining the injunction it was about to enter. A complete reading of the court's comments leaves no doubt that Dells Fireworks could not sell fireworks to a person who did not have a valid permit (or was exempt from the permit requirement) regardless of where delivery or possession took place. And that is exactly what the injunction says.
The same is true of the comments attributed to Wisconsin Dells' counsel. 11 In parts of the article not cited by Dells Fireworks, the city's counsel is reported to say that the injunction differentiates between sale and delivery and that the injunction permits fireworks to be sold only to persons with a permit; he then describes the requirements for permits.
There is also no merit to Dells Fireworks' contention that the trial court is erroneously enforcing the injunction "extraterritorially" in finding a violation of the injunction because of the sale to Chad Long. This
Dells Fireworks' final challenge is to the requirements imposed on sales to organizations having permits. These sales must involve at least $250, with payment on drafts or checks containing the organization's name, and delivery must be to the organization's business office. These remedial sanctions for contempt are a proper exercise of the trial court's discretion. The issue of WFA members' authority to purchase fireworks was fully argued on the summary judgment motion and the trial court explained in detail its reasoning on this issue in its oral decision granting summary judgment. The evidence at the contempt hearing supports the court's finding that Dells Fireworks intentionally violated the injunction by selling to individuals who purchased memberships by means of the modified forms. The requirements the court imposed for sales to organizations are designed to prevent continuing manipulation of membership in WFA or other organizations. The trial court could reasonably conclude that absent such requirements, Dells Fireworks would continue to devise methods for selling to individuals who do not have valid permits and are not authorized agents of an organization that does.
Notes
Dells Fireworks, Inc. and the Cornelliers filed a notice of appeal from both the summary judgment and the oral contempt finding. We dismissed that part of the appeal taken from the oral contempt finding because an appeal can be taken from a finding of contempt only from a written order or judgment.
See Ramsthal Advertising Agency v. Energy Miser, Inc.,
Section 167.10(2) and (3), STATS., provides in part:
(2) Sale. No person may sell or possess with intent to sell fireworks, except:
(a) To a person holding a permit under sub. (3)(c);
(b) To a city, village or town; or
(c) For a purpose specified under sub. (3)(b)2. to 6.
(3) Use. (a) No person may possess or use fireworks without a user's permit from the mayor of the city, president of the village or chairperson of the town in which the possession or use is to occur or from an official or employe of that municipality designated by the mayor, president or chairperson....
(b) Paragraph (a) does not apply to:
1. The city, village or town, but municipal fire and law enforcement officials shall be notified of the proposed use of fireworks at least 2 days in advance.
2. The possession or use of explosives in accordance with rules or general orders of the department of industry, labor and human relations.
3. The disposal of hazardous substances in accordance with rules adopted by the department of natural resources.
4. The possession or use of explosive or combustible materials in any manufacturing process.
5. The possession or use of explosive or combustible materials in connection with classes conducted by educational institutions.
6. A possessor or manufacturer of explosives in possession of a license or permit under 18 USC 841 to 848 if the possession of the fireworks is authorized under the license or permit.
(c) A permit under this subsection may be issued only to the following:
1. A public authority.
2. A fair association.
3. An amusement park.
4. A park board.
5. A civic organization.
6. A group of resident or nonresident individuals.
7. An agricultural producer for the protection of crops from predatory birds or animals.
Section 167.10(5), STATS., permits municipalities to adopt ordinances regulating fireworks; the ordinances may be more restrictive than the statute but not less restrictive. The record does not contain a text of the ordinance, but appellants tell us in their brief that the ordinance is exactly the same as § 167.10.
18 U.S.C. §§ 841-848 regulate the interstate importing, manufacturing, distributing and storing of explosive materials and require a license to engage in these activities.
Anthony Cornellier is alleged to have made a sale to one of the individuals and Diane Cornellier is alleged to have made the other three sales.
Section 167.10(1), STATS., provides in pertinent part:
DEFINITION. In this section, "fireworks" means anything manufactured, processed or packaged for exploding, emitting sparks orcombustion which does not have another common use, but does not include any of the following:
(e) A cap containing not more than one-quarter grain of explosive mixture, if the cap is used or possessed or sold for use in a device which prevents direct bodily contact with a cap when it is in place for explosion.
(f) A toy snake which contains no mercury.
(i) A sparkler on a wire or wood stick not exceeding 36 inches in length or 0.25 inch in outside diameter which does not contain magnesium, chlorate or perchlorate.
(j) A device designed to spray out paper confetti or streamers and which contains less than one-quarter grain of explosive mixture.
(k) A device designed to produce an audible sound but not explode, spark, move or emit an external flame after ignition and which does not exceed 3 grams in total weight.
(l) A device that emits smoke with no external flame and does not leave the ground.
(m) A cylindrical fountain not exceeding 100 grams in total weight with an inside tube diameter not exceeding 0.75 inch, designed to sit on the ground and emit only sparks and smoke.
(n) A cone fountain not exceeding 75 grams in total weight, designed to sit on the ground and emit only sparks and smoke.
See note 5.
Class C is a classification of fireworks designated by the department of transportation. This classification is not relevant to our decision.
Dells Fireworks does dispute that it may not sell to a minor under § 167.10(3)(h), STATS.
Section 167.10(4), Stats., does permit certain other sales by wholesalers. This provision is not at issue on this appeal.
Section 167.10(9)(b), Stats., provides:
A person who violates sub. (2), (3) or (6) or an ordinance adopted under sub. (5) shall forfeit not more than $1,000.
The trial court, over objection, accepted the newspaper article into evidence "for whatever probative value it may have," but did not refer to it in its oral decision. Because of our conclusion that the comments attributed to Wisconsin Dells' counsel accurately describe the injunction, we need not decide whether the article could properly be considered in deciding whether Dells Fireworks violated the injunction.
