HOFFER PROPERTIES, LLC, Plаintiff-Appellant-Petitioner, v. STATE of Wisconsin, DEPARTMENT OF TRANSPORTATION, Defendant-Respondent.
No. 2012AP2520
Supreme Court of Wisconsin
Decided February 4, 2016
2016 WI 5 | 874 N.W.2d 533
Oral argument September 8, 2015.
For the defendant-respondent, the cause was argued by Abigail C.S. Potts, Assistant Attorney General, with whom on the brief was Brad D. Schimel, Attorney General.
There was an amicus curiae brief by Erik Samuel Olsen, Joseph J. Rolling, Andrew Weininger and Eminent Domain Services, LLC, Madison, on behalf of Eminent Domain Services, LLC.
¶ 1. MICHAEL J. GABLEMAN, J. This is a review of an unpublished decision of the court of appeals affirming a grant of partial summary judgment to the Department of Transportation (DOT).1 Pursuant to
¶ 2. Hoffer does not claim that the $90,000 was inadequate compensation for the .72 acre itself. Hoffer concedes that DOT properly designated STH 19 as a controlled-access highway.3 Additionally, Hoffer agrees that the designation of a highway as “controlled-access” is a valid exercise of the police power and further agrees that such exercises are not compensable under the eminent domain statutes.4 Hoffer argues, however, that because there was a partial taking of some portion of its property under eminent domain, the damages attributable to the loss of direct access to STH 19 are compensable pursuant to the partial takings subsection of the just compensation statute,
¶ 3. Hoffer appealed the amount of compensa
¶ 4. The court of appeals affirmed, concluding that under our holding in Surety Savings & Loan Ass‘n v. DOT, 54 Wis. 2d 438, 195 N.W.2d 464 (1972), when DOT acts pursuant to the controlled-access highway statute “the inquiry is merely whether alternate access was provided.” Hoffer Props., LLC v. DOT, No. 2012AP2520, unpublished slip op., ¶ 7 (Wis. Ct. App. May 1, 2014) (citing Surety Savings, 54 Wis. 2d at 444-45). The court of appeals determined thаt the circuit court‘s grant of summary judgment was proper because DOT provided alternate access to Hoffer‘s property. Id.
¶ 5. We consider two issues. First, whether DOT is duly authorized by
¶ 6. First, we hold that
I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY
¶ 7. Hoffer Properties, LLC, owns the subject property, a 9.90 acre parcel of land located west of Watertown. The property‘s northern boundary is State Trunk Highway 19. Prior to 2008, the property had
¶ 8. In 2008, DOT undertook a highway improvement project that involved relocating STH 26, which was to intersect with STH 19 to the west of Hoffer‘s property. DOT determined that it was necessary to change the access points to STH 19 in the vicinity of the relocated STH 26 as part of the project. To that end, on December 29, 2008,7 DOT eliminated Hoffer‘s direct access to STH 19. DOT acquired through eminent domain both .72 acre of Hoffer‘s land as well as a temporary limited easement in order to create alternate access to Hoffer‘s property. DOT tendered to Hoffer $90,000 for this taking. Hoffer‘s existing direct access to STH 19 was replaced by extending Frоhling Lane (a north-south roadway that intersects with STH 19) westward to Hoffer‘s property. DOT constructed a new driveway north from this extension to restore vehicular access to Hoffer‘s property.8 Hoffer‘s replacement access requires vehicles to travel roughly 1,000 feet to reach STH 19.
¶ 9. On May 29, 2009, Hoffer appealed the amount of compensation it received to the Jefferson County circuit court pursuant to the eminent domain statutes,
¶ 11. Following a hearing, the circuit court denied Hoffer‘s motions and granted partial summary judgment to DOT. The circuit court found that the elimination of Hoffer‘s direct access to STH 19 was a noncompensable exercise of the police power and that reasonable access had been given as a matter of law. Thereafter, the circuit court granted Hoffer‘s motion to dismiss the action but preserved Hoffer‘s right to appeal.
¶ 12. On appeal, Hoffer argued that our holding in National Auto Truckstops required DOT to compensate the owner of abutting land if 1) DOT eliminates the property‘s direct access to a controlled-access highway; and 2) a jury determines that the replacement access is unreasonable. In an unpublished per curiam opinion, the court of appeals affirmed the circuit court. Hoffer Props., LLC, No. 2012AP2520, unpublished slip op. The court of appeals distinguished National Auto Truckstops by noting that the highway at issue there was not a controlled-access highway. Id., ¶ 6. The court of appeals determined that Surety Savings controlled, and “reject[ed]
¶ 13. Hoffer petitioned this court for review, which we granted on February 10, 2015.
II. STANDARD OF REVIEW
¶ 14. This case requires us to construe the controlled-access highway statute,
III. STATUTORY INTERPRETATION
¶ 15. Statutory interpretation “begins with the language of the statute. If the meaning of the statute is plain, we ordinarily stop the inquiry.” State ex rel Kalal v. Circuit Court for Dane Cty., 2004 WI 58, ¶ 45, 271 Wis. 2d 633, 681 N.W.2d 110. “Statutory language is given its common, ordinary, and accepted meaning, except that technical or specially-defined words or phrases are given their technical or special defini
IV. DISCUSSION
¶ 16. We first discuss whether the elimination of an abutting property owner‘s direct access to a controlled-access highway is an exercise of the police power duly authorized by
property owner may bring an inverse condemnation claim pursuant to
A. ELIMINATION OF AN ABUTTING PROPERTY OWNER‘S DIRECT ACCESS TO A CONTROLLED-ACCESS HIGHWAY IS A DULY AUTHORIZED EXERCISE OF THE POLICE POWER
¶ 17. The
¶ 18. The primary distinction between the power of eminent domain and the police power of the state most relevant to the present case is that government takings by eminent domain are compensable under
1. DOT Exercises the Police Power When It Designates a Highway “Controlled-Access”
¶ 19. By means of
¶ 20. It is this designation of a highway as “controlled-access” that must be “necessary in the interest of public safety, convenience and the general welfare....”
2. The Effect of a Controlled-Access Highway Designation on the Rights of Users and Abutting Property Owners
¶ 21.
¶ 22. The controlled-access highway statute is unique in its operation against abutting property owners,13 and consequently the legislature limited DOT‘s authority to exercise the police power and make a “controlled-access” designation. The legislature prescribed elaborate procedures, including public notice and hearing, which DOT must follow to designate a highway “controlled-access.” Furthermore, the legisla
3. Hoffer‘s Direct Access was Eliminated Pursuant to an Exercise of the Police Power
¶ 23. Hoffer concedes that “DOT can deprive or restrict an abutting owner‘s right of access to a highway ‘without compensation under any duly au
¶ 24. Hoffer is mistaken. Its proposed construction is at odds not only with the plain language of the statutes, but with the clear holdings of our case law. There are three reasons why Hoffer‘s proposed interpretation cannot be correct.
¶ 25. First,
¶ 26. Second,
¶ 27. Third,
¶ 28. In the present case, DOT conducted the required traffic engineering surveys, investigations, and studies to designate STH 19 “controlled-access.” DOT held a public hearing on the matter on May 4, 2002, at the Milford Town Hall in Jefferson County after giving notice by three separate publications in two separate Jefferson County newspapers. It found that the potential traffic on STH 19 exceeded 2,000 vehicles per day and that it was necessary in the interest of public safety, convenience, and the general welfare to designate STH 19 “controlled-access.” In sum, DOT did everything necessary to validly designate STH 19 “controlled-access.” Upon that designation Hoffer lost its right to be compensated pursuant to
¶ 29. In light of the foregoing, we conclude that DOT‘s replacement of Hoffer‘s direct access with circuitous access to a controlled-access highway was done pursuant to an exercise of the police power duly authorized by
B. IN CONTROLLED-ACCESS HIGHWAY CASES ABUTTING PROPERTY OWNERS ARE PRECLUDED FROM SEEKING COMPENSATION UNDER WIS. STAT. § 32.09(6)(B) FOR DAMAGE TO THE PROPERTY RESULTING FROM A CHANGE IN ACCESS
¶ 30. As noted above, when DOT designates a highway “controlled-access,” an abutting owner‘s right to compensation pursuant to
involves only the right to enter and leave the property without being forced to trespass across the land of another. It does not include any right to develop property with reference to the type of access granted or to have access at any particular point on the boundary lines of the property.
Surety Savings, 54 Wis. 2d at 444 (emphasis added). The controlled right of access is also subject to “such
1. A Taking Occurs Only if the Access Provided Deprives the Abutting Property Owner of All or Substantially All Beneficial Use of the Property
¶ 31. A taking must occur before a viable claim for compensation can arise. Howell Plaza, Inc. v. State Highway Comm‘n, 92 Wis. 2d 74, 80, 284 N.W.2d 887 (1979) (hereinafter Howell Plaza II). No compensable
¶ 32. This does not mean, however, that the provision of alternate access to a controlled-access highway precludes the abutting property owner from compensation in all possible contexts. Changes in access to a controlled-access highway may support a claim pursuant to
¶ 33. If the access DOT provides to a controlled-access highway deprives the abutting property owner of all or substantially all beneficial use of the property, DOT has taken the property and the change in access may support an inverse condemnation claim pursuant to
¶ 34. We recognize that this is a high standard for owners of property abutting a controlled-access highway to meet. Controlled-access highways are, however, limited and unique, and the legislature granted DOT authority to regulate access to them under the police power in whatever way DOT deems necessary and desirable provided the abutting prop
2. It is Presumed that the Legislature Purposefully Omitted a Reasonableness Standard from the Controlled-Access Highway Statute
¶ 35. An analysis of the surrounding statutes in
¶ 36. These statutes command that if DOT does not provide reasonable access to the highway by means of frontage roads when undertaking a freeway
¶ 37. The legislature, however, omitted this command from
3. The Cases Hoffer Relies on Are Eminent Domain Cases, Not Police Power Cases
¶ 38. Hoffer attempts to distinguish Surety Savings and its predecessors, in which we held that abutting property owners could not recover diminution of value damages caused by changes in access to the highway, by arguing that those cases were abrogated by the decisions in National Auto Truckstops, 2003 WI 95, 263 Wis. 2d 649, 665 N.W.2d 198, and Seefeldt v. DOT, 113 Wis. 2d 212, 336 N.W.2d 182 (Ct. App. 1983). We disagree.
¶ 39. Both cases are easily distinguishable. In the present case DOT was exercising the police power pursuant controlled-access highway statute, while in National Auto Truckstops and Seefeldt it was not. In National Auto Truckstops, the highway at issue (Highway 12) had not been designated “controlled-access.” Thus, unlike the present case, the change in National
¶ 40. Seefeldt is similarly unhelpful to Hoffer. Preliminarily, as a court of appeals case, Seefeldt could not alter the holding of Surety Savings. See Cook v. Cook, 208 Wis. 2d 166, 189, 560 N.W.2d 246 (1997) (“The supreme court is the only state court with the power to overrule, modify or withdraw language from
¶ 41. Unlike in National Auto Truckstops or Seefeldt, in the present case, DOT exercised the police power pursuant to the controlled-access highway statute to replace Hoffer‘s direct access with circuitous access. As we have explained previously,
C. HOFFER WAS FULLY COMPENSATED FOR ALL DAMAGE CAUSED BY THE TAKING OF THE .72 ACRE
¶ 42. Hoffer has never articulated how the diminution of value caused by the loss of direct access to STH 19 relates to the compensation due for the taking of the .72 acre.21 Our formulation of Hoffer‘s argument is as follows: the taking of the .72 acre and
the termination of Hoffer‘s direct access to STH 19 are not two distinct acts, but rather a single “taking.” According to Hoffer this single taking resulted in a diminution in value of its property for which it is owed compensation. Thus, (the argument runs), the elimination of its direct access is compensable under
¶ 43. Hoffer mistakenly styles its argument upon eminent domain when in actuality it prosecutes a separate and distinct claim based upon a challenge to DOT‘s exercise of the police power.22 Hoffer is not challenging the reasonableness of the $90,000 valuation of the .72 acre of land taken pursuant to eminent domain; rather, it is challenging the kind of remedies available for the state‘s legitimate exercise of the police power. Hoffer attempts to characterize this argument as a matter of compensation, but it is really a matter of whether it had a property interest in direct access to the highway.
¶ 44. Our decisions in 118th Street and Jantz v. DOT, 63 Wis. 2d 404, 217 N.W.2d 266 (1974) illustrate why Hoffer‘s argument is unavailing.
¶ 45. In 118th Street,23 we held that “compensation for a taking cannot include damages for a lost necessitated a partial taking from the subject property” and again characterized the termination of its direct access to STH 19 as an “aspect” of the taking.
¶ 46. Here—just like the property owners in 118th Street and Jantz—Hoffer did not lose its direct access points to the highway because of the taking of the .72 acre of its land; rather, it lost its direct access points due to DOT‘s decision to restrict access to STH 19 as part of the STH 26 relocation project. Two separate acts occurred: (1) the taking of Hoffer‘s .72 acre, and (2) the elimination of Hoffer‘s direct access points to STH 19 pursuant to the police power. None of Hoffer‘s access points were on the land taken. Hoffer has consistently argued that the diminution of value to the property was caused by the loss of direct access
V. CONCLUSION
¶ 47. First, we hold that
By the Court.—The decision of the court of appeals is affirmed.
¶ 48. REBECCA G. BRADLEY, J., did not participate.
¶ 50. I do not, however, join Justice Gableman‘s long, complex opinion.
¶ 51. The lead opinion is, for example, unnecessarily replete with discussion of when the elimination of direct access to a controlled access highway may support a claim for inverse condemnation,25 “depriv[ing] the abutting owner of all or substantially all beneficial use of the property.”26
¶ 52. The parties’ references to inverse condemnation are cursory, not full or adversarial. As a result, I would not discuss inverse condemnation. “The rule of law is generally best developed when matters are tested by the fire of adversarial briefs and oral arguments.” Maurin v. Hall, 2004 WI 100, ¶ 120, 274 Wis. 2d 28, 682 N.W.2d 866 (Abrahamson, C.J. & Crooks, J., concurring) overruled on other grounds by Bartholomew v. Wis. Patients Comp. Fund, 2006 WI 91, 293 Wis. 2d 38, 717 N.W.2d 216.
¶ 53. For the reasons set forth, I do not join the lead opinion and I write separately.
¶ 54. I am authorized to state that Justice ANN WALSH BRADLEY joins this opinion.
¶ 55. DAVID T. PROSSER, J. (dissenting). The petitioner in this case, Hoffer Properties, LLC
¶ 56. The circuit court answered the question differently. It denied Hoffer a jury, concluding as a matter of law that no compensation is required if DOT provided any replacement access to the owner. This position is supported by the State in its brief: “Under Wisconsin law, damage resulting to property through the exercise of the police power is not compensable. There is no compensable taking when direct access to a controlled-access highway is denied as long as other access is given or otherwise exists.”
¶ 57. The lead opinion concludes that “when DOT changes an abutting property owner‘s [direct] access to a controlled-access highway but other access is given or exists, the abutting property owner is precluded from compensation . . . as a matter of law and no jury determination of reasonableness is required.” Lead op., ¶ 6. The lead opinion adds that “[r]easonableness is the wrong standard to apply” because the provision of “some” access preserves the property owner‘s right of access; thus, no taking occurs. Id.
¶ 58. The implications of this decision are stark. Henceforward, juries are precluded from ever finding that the alternative access provided to replace direct access to a controlled-access highway is unreasonable. By transforming a traditional fact question into a question of law, the court justifies depriving prop
¶ 59. Because I disagree with the lead opinion‘s analysis and conclusions, I respectfully dissent.
I
¶ 60. State Trunk Highway 19 (STH 19) is a Wisconsin highway that stretches from a point near Mazomanie in Dane County to the point where it reaches STH 16 on the east side of Watertown in Jefferson County. Its total length is about 60 miles. On June 14, 2002, the DOT designated 13.76 miles of STH 19 as “controlled-access” highway, pursuant to ¶ 61. Hoffer owned a 9.90-acre parcel of land abutting STH 19. This parcel is located south of STH 19. It is separated from Frohling Lane to its east by another parcel of land. When STH 19 became a “controlled-access” highway in 2002, Hoffer retained direct access to STH 19 by means of two driveways. ¶ 62. Then, as the lead opinion notes, in 2008 the DOT undertook a highway improvement project that relocated STH 26 so that it intersected with STH DOT eliminated Hoffer‘s direct access to STH 19. DOT acquired through eminent domain both .72 acre of Hoffer‘s land as well as a temporary limited easement in order to create alternate access to Hoffer‘s property. DOT tendered to Hoffer $90,000 for this taking. Hoffer‘s existing direct access to STH 19 was replaced by extending Frohling Lane (a north-south roadway that intersects with STH 19) westward to Hoffer‘s property. Id. ¶ 63. The DOT remedied its elimination of Hoffer‘s direct access by extending Frohling Lane to the west, through the entire width of Hoffer‘s property, so that Hoffer would have access to his house and business from the south after a new driveway was constructed, and the large parcel to the west of Hoffer‘s property would have access to STH 19 by way of this new road. The extension of Frohling Lane is now called Groth Lane. ¶ 64. “Hoffer‘s replacement access requires vehicles to travel roughly 1,000 feet to reach STH 19.” Id. The owners/occupiers of the adjacent parcel to the west presumably must travel a considerably longer distance to reach STH 19. ¶ 65. To reach Hoffer‘s property, a person traveling east on STH 19 must turn right on Frohling Lane, drive to the end of the lane, turn right on Groth Lane, find the driveway for Hoffer‘s property, and then turn right into that driveway. Thus, as a practical matter, the distance to be travelled is not the only consideration in evaluating whether an alternative access is reasonable. Multiple factors may have to be taken into account. ¶ 67. My problem is not with the result in this case. My problem is with the law created in this case—approving the fact that a jury was never permitted to hear evidence and make a judgment. The lead opinion says in essence that there is no place for a jury in thesе situations—that the result would be the same if the new access required vehicles to travel 10,000 feet—closer to two miles—instead of 1,000 feet, to reach STH 19. The lead opinion says that “reasonableness” is the wrong standard to apply in such situations because whatever the DOT deems “necessary or desirable” cannot be found unreasonable as a matter of law. In my view, this is ill-advised new law. ¶ 68. This court has stated that “a person who owns property abutting a public street has a right of access, or right of ingress and egress, to and from the street. . . . [A]lthough this right is subject to reasonable regulations in the public interest, it is a property right, the taking of which requires compensation.” Nat‘l Auto Truckstops, Inc. v. State, Dep‘t of Transp., 2003 WI 95, ¶ 39, 263 Wis. 2d 649, 665 N.W.2d 198 (quoting Narloch v. State, Dep‘t of Transp., 115 Wis. 2d 419, 430, 340 N.W.2d 542 (1983)). For this proposition, Narloch cited Schneider v. State, 51 Wis. 2d 458, 463, 187 N.W.2d 172 (1971). Schneider, in turn, had cited Carazalla v. State, 269 Wis. 593, 70 N.W.2d 208, 71 ¶ 69. Paragraph (b), however, also contains a qualification to the principle: compensation is required for “[d]eprivation or restriction of [an] existing right of access to [a] highway from abutting land, provided that nothing herein shall operate to restrict the power of the state . . . to deprive or restrict such access without compensation under any duly authorized exercise of the police power.” (Emphasis added.) Deprivations and restrictions pursuant to ¶ 70. Put bluntly, the state does not have to pay compensation for depriving a landowner of direct access to a controlled-access highway. It does not follow, however, that reliance on the police power precludes altogether any need for compensation. Although paragraph (b) See Carazalla, 269 Wis. at 608b. Some access must be provided to avoid the necessity of compensation. The issue presented by this opinion is whether no compensation is required if DOT provides any alternative access—even if that alternative access is plainly unreasonable—so long as the property owner cannot meet the requirements for inverse condemnation. ¶ 71. The State‘s position is uncompromising: “[D]amage resulting to property through the exercise of the police power is not compensable. There is no compensable taking when direct access to a controlled-access highway is denied as long as other access is given or otherwise exists.” The lead opinion adopts this position. We assume that one of the uses of the convenient phrase “police power” is to justify those small diminutions of property rights which, although within the letter of constitutional protection, are necessarily incident to the free play of the machinery of government. It may be that the extent to which such diminutions are lawful without compensation is larger when the harm is inflicted only as incident to some general requirement of public welfare. But, whether the last-mentioned element enters into the problem or not, the question is one of degree, and sooner or later we reach the point at which the constitution applies and forbids physical aрpropriation and legal restrictions alike, unless they are paid for. Bent v. Emery, 53 N.E. 910, 911 (Mass. 1899) (emphasis added). ¶ 73. Hoffer persuasively demonstrates that the spirit conveyed by Justice Holmes has run through Wisconsin law in cases involving controlled-access highways. Hoffer cites Schneider, 51 Wis. 2d 458; Surety Savings & Loan Ass‘n v. State (Division of Highways), 54 Wis. 2d 438, 195 N.W.2d 464 (1972); Jantz v. State (Division of Highways), 63 Wis. 2d 404, 217 N.W.2d 266 (1974); and Seefeldt v. State, Department of Transportation, 113 Wis. 2d 212, 336 N.W.2d 182 (Ct. App. 1983). These cases were preceded by Carazalla, 269 Wis. 593, and Nick v. State Highway Commission, 13 Wis. 2d 511, 109 N.W.2d 71, 111 N.W.2d 95 (1961). These cases will be discussed in chronological order. ¶ 74. In Carazalla, Justice George Currie provided a broad statement of the law: The general rule is that damage resulting to property through the exercise of the police power is not compensable. We consider the following statement appearing in 11 McQuillin, Mun. Corp. (3d ed.), p. 319, sec. 32.27, to be particularly pertinent to the facts of the instant case: “The question of what constitutes a taking is often interwoven with the question of whether a particular act is an exercise of the police power or of the power of eminent domain. If the act is a proper exercise of the police power, the constitutional provision that private property shall not be taken for public use, unless compensation is made, is not applicable.” Limited-access highways and their effect upon the rights of abutting property owners to compensation are the subject of three excellent law-review articles in which are cited the court decisions bearing on the question. The authors of all three articles agree that the limiting of access to a public highway through governmental action results from the exercise of the police power, and that in the case of a newly laid out or relocated highway, wherе no prior right of access existed on the part of abutting landowners, such abutting landowners are not entitled to compensation. On the other hand, the authorities cited in these articles hold that where an existing highway is converted into a limited-access highway with a complete blocking of all access from the land of the abutting owner, there results the taking of the pre-existing easement of access for which compensation must be made through eminent domain. However, if the abutting landowner‘s access to the highway is merely made more circuitous, no compensation should be paid according to the authors of these articles . . . . In the Carazalla, 269 Wis. at 608a-608b (emphasis added; footnotes omitted). In my view, Carazalla implied that alternative access that is merely “more circuitous” is reasonable. It does not address what might be unreasonable. ¶ 75. Petitioner acquired property in Waukesha County abutting STH 30, a controlled access highway, also known as Bluemound Road. There had never been driveways from the parcel directly onto Highway 30. The petitioner was denied access to Highway 30. Justice Timothy Brown wrote: An impairment of the use of property by the exercise of police power, where the property itself is not taken by the state, does not entitle the owner of such property to a right to compensation. The law on this subject remains as we stated it in State ex rel. Carter v. Harper (1923), 182 Wis. 148, 153, 196 N.W. 451,—a zoning case, “. . . incidental damage to property resulting from governmental activitiеs, or laws passed in the promotion of the public welfare, is not considered a taking of the property for which compensation must be made.” The situation here bears a close analogy to the enactment and the effect of a zoning statute. . . . . Neither in 1951 nor thereafter . . . did the state, through its highway commission, take any portion of Reinders’ land. No doubt the control of his access to Highway 30 impaired the value of his land, the Nick, 13 Wis. 2d at 514-15 (first alteration in original; emphasis added). ¶ 76. Justice George Currie concurred, recognizing that Wisconsin‘s less-generous position on compensation appeared to represent a minority view: Courts which hold that compensation must be paid to the abutting landowner in all cases where all direct-access rights to an existing highway are barred by statute, even though indirect access exists by means of service roads or connecting highways, consider that access rights constitute property distinct and apart from the land to which they appertain. The writer of this opinion believes this to be erroneous and that highway-access rights are but one оf a bundle of rights which appertain to a parcel of real estate. . . . If by reason of providing a frontage road, or the existence of a previously existing connecting highway, there is reasonable access to the controlled-access highway, no taking requiring compensation should be held to have occurred. Id. at 517-18 (Currie, J., concurring) (emphasis added). ¶ 77. In Nick, the court approved “incidental damage” to property by exercise of the police power. In addition, “more circuitous” access to a controlled-access highway is very likely to satisfy Justice Cur ¶ 78. Justice Connor T. Hansen wrote: The creation of a controlled-access highway is a proper exercise of the police power. This court has held that the exercise of the police power allows injury to property without compensation. Where access to a highway is controlled under the exercise of the police power and reasonable access remains, no compensation is required. . . . The right of access or of ingress and egress of an abutting property owner is a property right the taking of which requires compensation. However, there was no issue in this case concerning the adequacy of access from the Schneider property by the frontage road. Since the state provided reasonable access to and from the Schneider property by a frontage road there was no taking requiring compensation. . . . . . . . Deprivation of direct access to a highway does not constitute a taking of property provided reasonable access remains. Schneider, 51 Wis. 2d at 462-63 (emphasis added; citations omitted). ¶ 79. The court in Schneider used the phrase “reasonable access” five times in stating the law, implying that “unreasonable access” does not satisfy the law. ¶ 80. Justice Leo Hanley wrote for the court: The sole issue presented on this appeal is whether appellants should be compensated for damages suffered because of the termination of their right to direct access to U.S. Highway 41. . . [I]njury to property resulting from the exercise of the police power of the state does not necessitate compensation. . . . The designation of a highway as a controlled-access highway is an exercise of the police power. This court has frequently held . . . that there is no compensable taking when direct access to a controlled-access highway is denied, where other access is given or otherwise exists. Since the department in this case granted reasonable access to a service road when it terminated direct access to the highway, under the foregoing rules of law, the appellants are not entitled to compensation for the termination of their direct access. . . . There is no suggestion that the frontage road access furnished is inadequate or unreasonable. . . . . We conclude that appellants have no right to be compensated, under the provisions of Surety Savings, 54 Wis. 2d at 442-44, 446 (emphasis added; citations omitted). ¶ 81. It should be noted that the makeup of the Surety Savings court was exactly the same as the makeup of the Schneider court and that the Surety Savings opinion cites Carazalla, Nick, and Schneider with approval. Where a property owner suggests that alternative access is not reasonable, the court cannot ignore the issue. ¶ 82. In Jantz Justice Robert W. Hansen quoted Schneider v. State at length, including this statement: “It [Schneider] repeats that the ‘. . . [d]eprivation of direct access to a highway does not constitute a taking of property provided reasonable access remains. . . .‘” Jantz, 63 Wis. 2d at 410 (all alterations but first in original) (quoting Schneider, 51 Wis. 2d at 463). The Jantz majority again invoked the “reasonable access” test two years after the Surety Savings case. ¶ 83. Judge Clair Voss of the court of appeals wrote: Initially, appellants had access to U.S. Highway 41. When U.S. Highway 41 was declared a controlled-access highway, the appellants’ access was reduced to reasonable access. Now, the appellants allege that even this reasonable access is being taken away as the result of the taking of appellants’ real estate in conjunction with the upgrading of U.S. Highway 41 to freeway status. In general terms, the issue is whether the appellants have suffered a loss. However, the real issue is whether the state can use a two-stage approach to deprive landowners of their reasonable access to a highway without compensating them for this loss. We find that the appellants have suffered a loss because of this two-stage taking and, thus, should be compensated. Seefeldt, 113 Wis. 2d at 213-14 (emphasis added).27 ¶ 85. This summary of the case law is simply inconsistent with the lead opinion. Consequently, either this summary is wrong or the lead opinion is making new law. I believe the lead opinion is making new law. ¶ 86. The lead opinion appears a bit uncomfortable with its decision to abandon “reasonable” access. It tries to hide the severity of its ruling by offering the fig leaf of inverse condemnation. This remedy is simply not adequate. ¶ 87. Generally, a property owner who brings an inverse condemnation claim under ¶ 88. But even property owners burdened by plainly unreasonable access will struggle to demonstrate that the remaining access renders the property substantially useless for all reasonable purposes. No ¶ 89. In my view, whether alternative access is reasonable or unreasonable is a matter of degree, the determination of which should be submitted to a jury. “[W]hether a change in access is ‘reasonable’ . . . is a question for a jury.” Nat‘l Auto Truckstops, 263 Wis. 2d 649, ¶ 21; Narloch, 115 Wis. 2d at 433-34; Bear v. Kenosha Cnty., 22 Wis. 2d 92, 96, 125 N.W.2d 375 (1963). ¶ 90. The right to trial by jury in these cases is embedded in ¶ 91. There is a great chasm between reasonable access and access so deficient that it constitutes inverse condemnation. The lead opinion permits government officials to push property owners into that chasm without compensation. That is contrary to the spirit with which our statutes ought to be administered. It is ominous when the check of trial by jury disappears, as well. ¶ 92. For the reasons stated, I respectfully dissent.
II
Nick v. State Highway Commission (1961)
Schneider v. State (1971)
Surety Savings & Loan Ass‘n v. State (Division of Highways) (1972)
Seefeldt v. State, Department of Transportation (1983)
III
Notes
In accordance with
Wis. Stat. § 32.09(6)(b) , DOT can deprive or restrict an abutting owner‘s right of access to a highway “without compensation under any duly authorized exercise of the police power.” The only way that DOT can acquire an abutting owner‘s access rights under the police power and without the payment of compensation is by declaring the highway in [sic] to be a controlled-access highway under§ 84.25 .
The legislature declares that the effective control of traffic entering upon or leaving intensively traveled highways is necessary in the interest of public safety, convenience and the general welfare. The department is authorized to designate as controlled-access highways the rural portions of the state trunk system on which, after traffic engineering surveys, investigations and studies, it shall find, determine and declare that the average traffic potential is in excess of 2,000 vehicles per 24-hour day. Such designation of a portion of any state trunk highway in any county as a controlled-access highway shall not be effected until after a public hearing in the matter has been held in the county courthouse or other convenient public place within the county following notice by publication of a class 3 notice, under
ch. 985 , in a newspaper published in the county. If the department shall then find that the average traffic potential is as provided by this subsection, and that the designation of the highway as a controlled-access highway is necessary in the interest of public safety, convenience and the general welfare, it shall make its finding, determination and declaration to that effect, specifying the character of the controls to be exercised. Copies of the finding, determination and declaration shall be recorded with the register of deeds, and filed with the county clerk, and published as a class 1 notice, underch. 985 , in the newspaper in which the notice of hearing was published, and the order shall be effective on such publication. Not more than 1,500 miles of highway shall be designated as controlled-access highways under authority of this section.
