South Milwaukee Savings Bank (South Milwaukee) appeals from the trial court's grant of summary judgment to the former Milwaukee County Clerk of Courts in South Milwaukee's suit alleging that an employee of the clerk of courts office violated § 806.10(3), Stats., by failing to docket, at the proper time, a judgment granting South Milwaukee money damages which, in turn, impaired South Milwaukee's collection attempts.
1
South Milwaukee argues that the trial court erred in deciding that: (1) the two-year statute of limitations found in § 893.93(2)(a), Stats., not the six-year statute of limitations in § 893.93(l)(a), Stats., applies to actions under § 806.10(3); (2) South Milwaukee's cause of action accrued on September 27, 1994, the day after the clerk's office received the judgment, and not when South Milwaukee discovered the
On October 13, 1993, South Milwaukee filed an action against Nikolau-Rooney Real Estate Investment Corporation for a money judgment on a promissory note and guarantee of the note. South Milwaukee also sued John W. Rooney, Jr., because he signed a personal guarantee for the corporation's loan. On September 26, 1994, the circuit court granted summary judgment in favor of South Milwaukee in its suit against both the corporation and Rooney, and awarded $304,105.91 in damages.
After the hearing, South Milwaukee's attorney gave the trial court a proposed order and judgment which the trial court reviewed and signed. South Milwaukee's attorney then obtained the court file, went to the Milwaukee County judgment clerk's office at approximately 3:30 p.m., and paid the appropriate judgment and docketing fees. The clerk's office entered the judgment, but for reasons never explained, failed to docket the judgment until the following day despite the fact that the clerk's office was open until 5:00 p.m. 4
The judgment encumbered two rental properties owned by Rooney. Although Rooney was out of the country when the trial court issued its judgment, his wife was present in the courtroom and heard the trial court's decision. After the trial court granted summary judgment in favor of South Milwaukee, Mrs. Rooney went home and retrieved two quitclaim deeds dated September 12, 1994, that allegedly conveyed Rooney's interest in the property to her. Mrs. Rooney, armed with her two quitclaim deeds, returned to the court
Evidence submitted in support of the summary judgment motion revealed that in September of 1994, the clerk's office was in the process of implementing a computerized system for recording, entering, and docketing judgments. The old "manual system" required two steps: (1) the judgment would be presented, the appropriate fee paid, and the clerk would sign the judgment and formally enter it; and (2) the docketing clerk would type the judgment into what eventually became the Judgment Docket. Depending on the circumstances, the entire process could take between one and three days. 5
Additionally, despite the statutory mandate that judgments be docketed "at the proper time," the clerk's office devoted only a few hours a day to docketing judgments. On the day South Milwaukee's judgment was entered the clerk's office stopped docketing judgments at 3:20 p.m. and did not begin again until the following day.
Unaware of the delayed docketing, South Milwaukee proceeded in its attempt to collect the debt owed to it by Rooney. To satisfy the debt, South Milwaukee obtained an execution on its judgment and purchased the Rooney rental properties at a Sheriffs sale for
Unbeknown to South Milwaukee, Mrs. Rooney borrowed $78,000 from Wauwatosa Savings Bank (Wauwatosa) and gave the bank a mortgage on the rental properties as security. When it learned of the mortgage, South Milwaukee filed an action against Mrs. Rooney and Wauwatosa seeking a determination of the priority of South Milwaukee's lien as to Wauwa-tosa's mortgage; and if Wauwatosa held the superior position, a determination that the deed transfer was fraudulent; further, South Milwaukee requested the appointment of a receiver to sell the property to satisfy the mortgage and apply the balance to South Milwaukee's claim.
In the priority lien suit, summary judgment was granted in favor of Wauwatosa because Wauwatosa held a priority lien interest as a good faith purchaser. South Milwaukee contends that if the original judgment would have been docketed before Mrs. Rooney filed the quitclaim deeds, South Milwaukee would have had a priority position over Wauwatosa. South Milwaukee started this action against the respondent arguing that pursuant to § 806.10(3), STATS., the clerk's office failed to docket the judgment "at the proper time" and South Milwaukee was entitled to treble damages. The statute in question reads:
Every clerk of circuit court-who enters a judgment or decree and enters upon the judgment and lien docket a date or time other than that of its actual entry or neglects to enter the same at the proper time shall be liable in treble damages to the party injured.
Section 806.10(3), Stats., 1995-96 (emphasis added). The trial court granted the respondent's motion for summary judgment on several grounds. It found that: (1) the two-year and not the six-year statute of limitations applied; (2) South Milwaukee's cause of action accrued on September 27,1994 and not at a later date; therefore, the statute of limitations had run on this claim; (3) the wording of § 806.10(3), Stats, that docketing be done "at the proper time" was ambiguous and actually meant "as soon as practicable" and within a "reasonable" time; and (4) applying this interpretation of the language, the respondent complied with the statute by docketing the South Milwaukee judgment on September 27,1994. This appeal follows.
II. Analysis.
South Milwaukee's appeal requires this court to determine the proper interpretation and application of a Wisconsin statute. The interpretation of a statute is a question of law which we review
de novo
without deference to the circuit court's decision.
See Erdman v. Jovoco, Inc.,
Because our interpretation of the statute requires us to reverse the trial court and apply the six-year statute of limitations, South Milwaukee has stated a
A. The six-year statute of limitations applies to actions brought under § 806.10(3), Stats.
South Milwaukee maintains that the circuit court erred in finding that the two-year statute of limitations contained in § 893.93(2)(a), Stats., governs actions under § 806.10(3), Stats. Instead, it argues the six-year statute of limitations should apply. We agree.
In
Jovoco,
the Wisconsin Supreme Court addressed the issue of whether a two-year, or a six-year statute of limitations governed a Wisconsin statute that prohibited employers, except under certain conditions, from deducting amounts from an employee's wages, absent written authorization from the employee. In deciding that the six-year statute of limitations applies here, we replicate the supreme court's analysis in
Jovoco
in which the supreme court determined that the six-year statute of limitations applied to a wage statute. This analysis requires us to interpret the statute in question, to ascertain its intended purpose, and to decide whether the statute redressed a public wrong or remedied an individual harm.
See Jovoco,
1. The plain language of § 806.10(3), Stats., does not indicate which statute of limitations to apply.
The plain language of §806.10(3), Stats., as applied to the statutes of limitations found in § 893.93, Stats., creates a legitimate debate over which is the proper statute of limitations. Section 893.93(l)(a) imposes a six-year statute of limitations on actions upon liabilities "created by statute when a different limitation is not prescribed by law." Section 806.10(3) plainly creates and imposes liability upon any clerk who fails to docket a judgment at the proper time. By contrast, § 893.93(2)(a) imposes a two-year statute of limitations upon an action by a private party upon a statute penalty. Since South Milwaukee is a private party and § 806.10(3) imposes treble damages, these facts make § 806.10(3) a statute penalty. Therefore, the plain language of § 806.10(3) is of little help in deciding which statute of limitations must be applied. Because the statutory language does not indicate which statute of limitations to apply, we next consider the statute's intended purpose, and determine whether it redresses a public wrong or remedies an individual harm.
2. Section 806.10(3), Stats., like the wage statute at issue in Jovoco, remedies an individual harm.
In
Jovoco,
the supreme court noted that the two-year statute of limitations under § 893.93(2)(a), Stats., had previously only been interpreted to apply to state anti-trust actions.
See Jovoco,
181 Wis, 2d at 760,
The
Jovoco
court found that anti-trust statutes were designed to benefit the public; whereas the wage statute was designed to benefit individuals.
See id.
at 761-62,
Using the teachings of Jovoco, the parties draw an elaborate set of contrasts and comparisons between § 806.10(3), Stats., and the Wisconsin anti-trust laws and wage statutes in arguing that § 806.10(3) either redresses a public wrong or remedies an individual harm. South Milwaukee contends that § 806.10(3), like the wage statute, attempts to remedy a harm to the individual and thus the six-year statute of limitations should apply. Conversely, the respondent submits that § 806.10(3) is punitive-remedial and exclusively statutory, like the anti-trust laws, and the two-year statute of limitations should apply.
Following the court's reasoning in
Jovoco,
we find insufficient similarities between § 806.10(3), STATS., and Wisconsin anti-trust law to apply the two-year statute of limitation which governs anti-trust lawsuits. We find South Milwaukee's comparison of § 806.10(3) to the wage statute at issue in
Jovoco
to be more persuasive than the respondent's. Although true that § 806.10(3) has some of the characteristics of anti-trust statutes, because it provides for treble damages which suggests a punitive intent, and the general public may derive some benefit from the statute's operation, § 806.10(3) does not provide public and private enforcement mechanisms, and does not create criminal penalties like the anti-trust statutes. In addition, we
3. The two-year statute of limitations must he narrowly construed.
Moreover, unless the legislature clearly requires the application of a specific statute of limitations, case law requires application of the six-year statute of limitations. Reviewing courts must interpret statutes of limitations so that "no person's cause of action will be barred unless clearly mandated by the legislature."
Saunders v. DEC International, Inc.,
B. The clerk's office violated § 806.10(3), STATS., when it received South Milwaukee's judgment and failed to docket it until the following day.
Next, we address the issue of whether the clerk's office violated § 806.10(3), Stats. The trial court found that the language, "at the proper time," was ambiguous because it was capable of more than one interpretation, and resorted to outside rules of construction and legislative history in determining that the statute permitted docketing "as soon as practicable," or within a "reasonable" time. 7 South Milwaukee claims that "at the proper time" is unambiguous, and means that the clerk's office is required to docket judgments "immediately." We need not decide whether the statute is ambiguous because, under either interpretation, we conclude that, under the facts of this case, the delayed docketing violated the statute.
Ordinarily a court "must apply statutes as they are written, unless to do so would lead to an absurd result that did not reflect the legislature's intent."
State v.
There can be no doubt that if we accept South Milwaukee's interpretation, the clerk's office violated the statute because the judgment was not docketed immediately. On the other hand, the respondent urges us to find that the statutory language, "at the proper time," allows the clerk twenty-four hours to docket a judgment. The respondent relies on the Office of Court Operations in the Director of State Courts' Office (Office) for this contention, and argues that the Office's interpretation must be afforded great weight. We disagree.
The Office has not interpreted § 806.10(3), Stats. In several reports and in the model record keeping procedures generated by the Office there is a recommendation that judgments be docketed "within twenty-four hours (same day preferred)." However, nowhere in the reports or the model procedures is there a specific mention of § 806.10(3), nor do the reports or the model procedures interpret this statute. We view the Office's suggestion that courts docket judgments within twenty-four hours "to avoid being sued for treble damages" to be merely a warning to clerks with no precedential value.
8
We do not read the "twenty-four
1. In determining if the docketing statute, § 806.10(3), Stats., has been violated, we look at all of the individual circumstances in each case.
We conclude that in determining if the docketing statute has been violated we need to look at the individual circumstances presented in each case. Thus, we next consider the trial court's and the respondent's interpretation of the language, "reasonable" or "as soon as practicable," to the circumstances present here to determine whether there is a violation under this interpretation.
Whether we interpret §806.10(3), Stats., to require the clerk's office to docket judgments as soon as practicable or within a reasonable time, as posited by the respondent, here the clerk's office did neither. To determine whether the clerk's office docketed South Milwaukee's judgment within a "reasonable" time or "as soon as practicable," we must give those words their commonly understood meaning.
Greenebaum v. Department of Taxation,
By the Court. — Order reversed and cause remanded with directions.
Notes
Also listed in the complaint as defendants are "unknown docketing clerk" and Rod Lanser. No clerk has ever been identified, and no claims are raised regarding Rod Lanser. Thus, we assume that the former Milwaukee County Clerk of Courts is the sole defendant in this suit.
The respondent argued, and the trial court agreed, that § 806.10(3)'s legislative history indicates that "at the proper time" means "as soon as practicable" and "reasonable." Respondent argued that an analysis of § 806.10(3)'s legislative history revealed that in the 1800's our legislature passed two laws, which appeared to he overlapping or duplicative, requiring the clerk to docket judgments "as soon as practicable" and "at the proper time," respectively. The two statutes existed side by side until 1897 when a revisor's bill eliminated the former. The respondent argued that despite eliminating this section, the revisor did not, and could not, intend any substantive change in ’ the statute's meaning. Because the revisor could not have intended any substantive change in the statute's meaning, the respondent argued that the two statutes must be interpreted together so that "at the proper time" means "as soon as practicable." The trial court agreed with the respondent that statutory history and "statutory common sense" dictate that "at the proper time" means "as soon as practicable," and the trial court then concluded that "as soon as practicable" is consistent with "reasonable."
As an initial matter, we decline to address an argument raised by the respondent for the first time on appeal that the docketing date is irrelevant because the-unrecorded conveyances remain valid against a judgment creditor. The respondent concludes that the time of docketing is irrelevant because the unrecorded quitclaim deed executed by Rooney rendered the judgment obtained against him ineffective. The respondent concedes that under § 706.08(l)(a), Stats., conveyances that are not recorded are void against any subsequent good faith purchasers for value; however, the respondent argues that an unrecorded conveyance remains valid against a judgment creditor, because a judgment creditor is not a good faith purchaser for value. Because South Milwaukee is a judgment creditor, not a good faith purchaser, the respondent concludes that the unrecorded quitclaim deed is valid against South Milwaukee and precludes recovery. Therefore, the Respondent reasons, if the judgment itself is ineffective, the time that the clerk's office actually docketed the judgment is irrelevant and could not have harmed South Milwaukee.
As a general rule, we refuse to consider issues raised for the first time on appeal.
See Wirth v. Ehly,
This court takes judicial notice of the fact that the filing clerk's office in the Milwaukee County Clerk of Courts' office closes at 5:00 p.m. This has been the practice for many years.
We are advised that under the current computerized system, the judgment is entered and docketed at the same time by the same clerk. The clerk's office did not switch to the new system until January of 1995. At the time at issue in this case, both systems were in place and the old system was being phased out. The judgment in question was entered and docketed using the old manual process.
Because we find that South Milwaukee's action is governed by the six-year statute of limitations and the instant action was timely filed, we need not determine exactly when South Milwaukee's cause of action accrued. Accordingly, we will not consider whether the application of the discovery rule is proper.
Cf. Gross v. Hoffman,
See supra n.2.
In addition, we see limited relevance to reports written by the Office that involve suggested docketing practices in Rock and Clark Counties, comities significantly smaller than Milwaukee County.
Further, we observe that the twenty-four hour rule must have been only a suggested practice and not a statutory interpretation because the "rule" would be certain to be violated over weekends and holidays when judgments are filed in the clerk's office at the close of the business day. In addition, the respondent has argued that the judgment was docketed at 9:01 a.m. the morning after it was entered, "within one working hour (or at most two) of its entry." Counting only "working hours" against the twenty-four hour rule avoids the problem created by weekends and holidays; however, considered together, the respondent's arguments would render § 806.10(3), STATS., nearly meaningless. If we are required to afford the clerk's office a twenty-four hour window in which to docket judgments, and we may only count working hours in determining whether a judgment was docketed at the proper time, the clerk's office would have three working days to docket the judgment. We conclude that such an interpretation is overly broad and unreasonable, given the legal significance attached to docketed judgments.
During the time left in the day, we note that Mrs. Rooney had ample time to go home from the courthouse, retrieve her quitclaim deeds, return to the courthouse, and have the deeds recorded before 5:00 p.m.
Finally, we decline to address South Milwaukee's argument that the trial court improperly expanded the record without notice because that issue is now moot.
