JUNEAU COUNTY, Petitioner-Appellant-Cross-Respondent, v. COURTHOUSE EMPLOYEES, LOCAL 1312, AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES, AFL-CIO, Highway Department Employees, Local 569, American Federation of State, County and Municipal Employees, AFL-CIO, Professional Employees, American Federation of State, County and Municipal Employees, AFL-CIO, Respondents-Respondents-Cross-Appellants.†
No. 96-2816
Court of Appeals of Wisconsin
Submitted on briefs April 23, 1997.—Decided January 15, 1998.
576 N.W.2d 565
†Petition to review granted.
On behalf of the respondents-respondents-cross-appellants, the cause was submitted on the brief of Bruce F. Ehlke of Shneidman, Myers, Dowling, Blumenfield, Ehlke, Hawks & Domer of Madison.
Before Eich, C.J., Dykman, P.J., and Roggensack, J.
ROGGENSACK, J. Juneau County appeals from the circuit court‘s conclusion that the declaratory judgment action which it filed on October 12, 1995, was maintained when Juneau County knew or should have known that the action was frivolous within the meaning of
BACKGROUND
On October 12, 1995, Juneau County filed an action for declaratory judgment in the circuit court of Juneau County. It sought declaration pursuant to
“Interest arbitration.” a. If in any collective bargaining unit a dispute relating to one or more issues, qualifying for interest arbitration under subd. 5s. in a collective bargаining unit to which subd. 5s. applies, has not been settled after a reasonable period of negotiation . . . either party, or the parties jointly, may petition the commission, in writing, to initiate compulsory, final and binding arbitration, as provided in this paragraph.2
In a collective bargaining unit consisting of school district professional employes, the municipal employer or the labor organization may petition the commission to determine whether the municipal employer has submitted a qualified economic offer.
The bargaining unit for “school district professional employes” was construed by this court to mean a unit comprised exclusively of those employees defined in
Because none of its employees were “school district professional employes” within the statutory meaning, the County contended that it was not required to submit issues to interest arbitration3 under
On November 15, 1995, Juneau County moved for judgment on the pleadings, asserting that the language of
On August 19, 1996, the circuit court entered an order concluding that summary judgment should be granted to the unions and that the County‘s maintaining this action for a declaratory ruling violated
DISCUSSION
Standard of Review.
Whether a claim is frivolous within the meaning of
Declaratory Judgment.
1. General Principles.
In 1927, the State of Wisconsin adopted the Uniform Declaratory Judgment Act. That Act is presently set forth at
(1) SCOPE. Courts of record within their respective jurisdictions shall have power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. No action or proceeding shall be open to objection on the ground that a declaratory judgment or decree is prayed for. The declaration may be either affirmative or negative in form and effect; . . . .
(12) CONSTRUCTION. This section is declared to be remedial; its purpose is to settle and to afford relief from uncertainty and insecurity with respect
to rights, status and other legal relations; and is to be liberally construed and administered.
The Wisconsin courts have interpreted the Uniform Declaratory Judgment Act as requiring four conditions precedent to maintaining a proper action:
(1) There must exist a justiciable controversy—that is to say, a controversy in which a claim of right is asserted against one who has an interest in contesting it.
(2) The controversy must be between persons whose interests are adverse.
(3) The party seeking declaratory relief must have a legal intеrest in the controversy—that is to say, a legally protectible interest.
(4) The issue involved in the controversy must be ripe for judicial determination.
Pension Management, Inc. v. DuRose, 58 Wis. 2d 122, 127-28, 205 N.W.2d 553, 555 (1973) (citation omitted).
It has long been held that the purposes of the Act are furthered by authorizing the court to take jurisdiction at a point in time that may be earlier than it would ordinarily do so. And in so doing, the Act provides relief, that is to some degree, anticipatory or preventive in nature. Fire Ins. Exch. v. Basten, 202 Wis. 2d 74, 85, 549 N.W.2d 690, 694 (1996). Unions have in the past used
2. Juneau County‘s Claim.
The dispute between Juneau County and the unions in the circuit court turned on whether the legislature removed the County‘s obligation to participate in compulsory interest arbitration when it аdded the phrase, “qualifying for interest arbitration under subd. 5s. in collective bargaining units to which subd. 5s. applies,” by 1993 Wis. Act 16.4
In its First Amended Complaint, on which the circuit court based its decision, Juneau County alleged that it was in the process of negotiating with the unions to bargain for a new contract, on behalf of its employees. It alleged that during the course of the negotiations, “The Negotiating Committee has advised defendants Local 1312 and Local 569 that Juneau County does not believe that sec. 111.70(4)(cm)6., Stаts., applies to Juneau County.” It further alleged that “[a]fter two negotiating sessions failed to produce a successor collective bargaining agreement, Local 569 filed a document with the Wisconsin Employment Relations Commission which purported to invoke the provisions of sec. 111.70(4)(cm)6., Stats., with respect to the pending contract negotiations.” Those allega-
Section 814.025, Stats.
1. General Principles.
Paragraph (3)(b) of
The party or the party‘s attorney knew, or should have known, that the action . . . was without any reasonable basis in law or equity and could not be supported by a good faith argument for an extension, modification or reversal of existing law.
Whether an action is frivolous is a mixed question of fact and law. Zinda, 191 Wis. 2d at 176, 528 N.W.2d at 63. Ascertaining what the party knew or should have known is a question of fact and whether the facts, once established, would lead а reasonable party or attorney to conclude that the claim is frivolous is a question of law. Id. The legal question to be resolved in a
When a party‘s claim can be determined only after research and deliberation, it is not frivolous. Kelly v. Clark, 192 Wis. 2d 633, 659, 531 N.W.2d 455, 464 (Ct. App. 1995). One party‘s contention that the other‘s action is frivolous reflects more about the nature of litigation than it does about the merits of the allegation. Id. at 650, 531 N.W.2d at 460. And finally, all claims are presumed to be nonfrivolous. Id. at 654, 531 N.W.2d at 462.
2. Juneau County‘s Claim.
After the circuit court concluded that subd. 6. was ambiguous, the unions moved for summary judgment. They submitted affidavits, which had numerous documents appended to them. The unions contend the documents are “legislative history.”5 The unions also contend that the circuit court was bound to accept these submissions as conclusive of legislative intent. Some of the unions’ submissions also contained past positions taken by Juneau County‘s current counsel, in regard to subd. 6. Based on the later doсuments, the unions argue that it was frivolous for Juneau County to take a position contrary to that which its attorneys had maintained in earlier writings. The circuit court ruled in the unions’ favor, in essence concluding that once the unions had provided all their documents and made
When courts are asked to construe a statute that is ambiguous, they attempt to determine the intent of the legislature. Legislative history, when evidence of such history is available, is only one tool which is used to determine legislative intent. Legislative intent is also determined from the words of the statute in relation to its context, scope, subject matter and the objective the legislature sought to accomplish. Truttschel v. Martin, 208 Wis. 2d 361, 365, 560 N.W.2d 315, 317 (Ct. App. 1997).
Here, many of the documents submitted in support of the unions’ mоtion for summary judgment are not legislative history, as that term is usually understood, because they were prepared several years after the enactment of the 1993 amendments to
Several of the documents the unions submitted were from the Legislative Fiscal Bureau, e.g., “Dispute Resolution Procedures for Municipal Employees,”
Therefore, we conclude that because the four-part test of Pension Management has been met, and the statute has not been previously litigated, it would have been inconsistent with the policy that underlies the statute to conclude that the initial filing of the action was frivolous. Additionally, as the action progressed to judicial resolution, the unions’ assertion that the action was frivolous, or that they would surely win, even if the court appeared likely to rule as the unions asserted, created no obligation to dismiss the action prior a judicial resolution. This is so because the relief available pursuant to a declaratory judgment action enables persons to order their affairs consistent with a rule of law established by a court. Here, the unions were offering evidence for the court‘s consideration, but it was for the court to declare the rule of law. Therefore, we conclude Juneau County did not maintain a frivolous action
CONCLUSION
Because the declaratory judgment action filed by Juneau County was properly begun under
By the Court.—Judgment affirmed in part and reversed in part.
DYKMAN, P.J. (dissenting). I differ with the majority because I conclude that the extrinsic aids relied upon by the trial court to determine the meaning of
The first extrinsic aid that lends meaning to
Repeal Sunset of Interest Arbitration Law for Non-protective Municipal Employes Including School District Professional Employes. Repeal the July 1, 1996, scheduled sunset of the interest arbitration procedures established under s. 111.70(4)(cm) of the statutes applicable to nonprotective municipal employes including school district professional employes. Nonprotective county employes would not be subject to these continuing procedures commencing July 1, 1996.
Legislative Fiscal Bureau, Comparative Summary of Assembly Bill 150 (Oct. 1995).
Delete provision which would have removed non-protective county employes, effective July 1, 1996, from coverage under the dispute resolution procedures of Subchapter IV of Chapter 111 of the statutes. [Because Engrossed AB 150 also repeals the July 1, 1996, scheduled sunset of the interest arbitration procedures under s. 111.70(4)(cm) of the statutes, this change would result in nonprotective county employes continuing to be subject to that law on and after July 1, 1996 . . . .]
Legislative Fiscal Bureau, Senate Republican Caucus Amendment: Modifications to Recommendations of the Assembly (June 27, 1995) (brackets in original).
I find it persuasive that in 1995, the Assembly wanted to discontinue interest arbitration for county employees, but reached a compromise with the Senate that left interest arbitration intact for them. “Adoption of an amendment is evidence that the legislature intends to change the provisions of the original bill.” 2A NORMAN J. SINGER, SUTHERLAND STATUTORY CONSTRUCTION § 48.18, at 369 (5th ed. 1992). I do not believe that the 1995 Assembly would have attempted to repeal interest arbitration for municipal employees had it already done so two years earlier.
Although I support a sunset of [the mediatiоn-arbitration law for counties], I am placed in the unfortunate position of not being able to veto its repeal without also vetoing the repeal of the sunset of the qualified economic offer (QEO) provisions of the mediation-arbitration law that currently apply to schools. I believe maintaining the QEO provisions for schools is critical to ensuring that schools can control spending. However, since the mediation-arbitration law will still apply to counties, it will continue to be difficult for them to manage their employe compensation costs. . . . I strongly encourage the Legislature to enact meaningful mediation-arbitration reform for counties.
(Emphasis added.) I do not believe that the Governor would have concluded that interest arbitration still applied to counties if the legislature had repealed it two years earlier.
Many of Wisconsin‘s counties have formed an association to advance their interests. The Executive Director of the Wisconsin Counties Association sent an advance memorandum to the members of the association on July 28, 1995. In his memorandum, he outlined the provisions of the 1995-97 biennial budget that he felt were of importance to Wisconsin‘s counties:
First, the Governor signed into law the binding arbitration provisions inserted into the budget by the Senate. Essentially, these provisions eliminate the sunset of binding arbitration . . . . The practical effect of the budget is that binding arbitration will
continue in its present form in relation to сounty contracts unless the Legislature takes some future action.
(Emphasis added.) I do not believe that the counties’ representatives would tell them that interest arbitration was still effective if the legislature had repealed it two years earlier.
The legislature has not exempted declaratory judgment actions from the requirements of
This lawsuit was not frivolous when Juneau County began it. A reasonable person could begin this lawsuit and assert that
Notes
“Interest arbitration.” If a dispute relating to one or more issues, qualifying for interest arbitration under subd. 5s. in collective bargaining units to which subd. 5s. applies, has not been settled after a reasonable period of negotiation and after mediation by the commission under subd. 3. and other settlement procedures, if any, established by the parties have been exhausted, and the parties are deadlocked with respect to any dispute between them over wages, hours and conditions of employment to be included in a new collective bargaining agreement, either party, or the parties jointly, may petition the commission, in writing, to initiate compulsory, final and binding arbitration, as provided in this paragraph.
