United America, LLC, Plaintiff-Respondent-Petitioner, v. Wisconsin Department of Transportation, Defendant-Appellant.
2018AP2383
Supreme Court of Wisconsin
May 18, 2021
2021 WI 44
Jay R. Tlusty
L.C. No. 2014CV78
REVIEW OF DECISION OF THE COURT OF APPEALS Reported at 392 Wis. 2d 335, 944 N.W.2d 38 PDC No: 2020 WI App 24 - Published
OPINION FILED: May 18, 2021
ORAL ARGUMENT: January 11, 2021
SOURCE OF APPEAL: COURT: Circuit COUNTY: Lincoln JUDGE: Jay R. Tlusty
JUSTICES: DALLET, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., ANN WALSH BRADLEY, ROGGENSACK, HAGEDORN, and KAROFSKY, JJ., joined. REBECCA GRASSL BRADLEY, J., filed a dissenting opinion.
ATTORNEYS:
For the plaintiff-respondent-petitioner, there were briefs filed by Joseph R. Cincotta, Milwaukee. There was an oral argument by Joseph R. Cincotta.
For the defendant-appellant, there was a brief filed by Clayton P. Kawski, assistant attorney general; with whom on the brief was Joshua L. Kaul, attorney general. There was an oral argument by Clayton P. Kawski.
An amicus curiae brief was filed on behalf of Eminent Domain Services, LLC by Erik S. Olsen and Andrew D. Weininger, Madison.
NOTICE This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.
DALLET, J., delivered the majority opinion of the Court, in which ZIEGLER, C.J., ANN WALSH BRADLEY, ROGGENSACK, HAGEDORN, and KAROFSKY, JJ., joined. REBECCA GRASSL BRADLEY, J., filed a dissenting opinion.
REVIEW of a decision of the Court of Appeals. Affirmed.
I. BACKGROUND
¶2 United America operated a gas station and convenience store on its land that abuts the intersection of Highway 51 and Northstar Road.3 A paved driveway connected to Northstar Road provided the only access to United America‘s facilities.4 Customers traveling on Highway 51 patronized United America‘s business by turning onto Northstar Road at what was once an at-grade intersection.
¶3 That convenient access from Highway 51 to United America‘s facilities disappeared, however, when the DOT initiated a project to change the grade at the intersection, making Northstar Road a bridge over Highway 51. Despite United America‘s requests for on- and off-ramps to maintain convenient access between Highway 51 and United America‘s facilities, the DOT declined to include those ramps, resulting in a longer, indirect route to reach United America‘s business. Because of that added inconvenience, Highway 51 traffic largely stopped patronizing United America‘s business. United America‘s revenue subsequently suffered and its property‘s value decreased. United America sought compensation from the DOT for that diminished property value under
¶4 United America timely commenced an action in the circuit court against DOT, alleging that
¶5 The DOT appealed and the court of appeals reversed. United Am., LLC v. DOT, 2020 WI App 24, 392 Wis. 2d 335, 944 N.W.2d 38. The court of appeals concluded that, considering the context and this court‘s precedent predating enactment of
II. ANALYSIS
¶6 We review de novo the interpretation and application of
¶7 We begin by identifying the disputed language. Section 32.18 provides:
Where a highway improvement project undertaken by the department of transportation . . . causes a change of the grade of such . . . highway in cases where such grade was not previously fixed by city, village or town ordinance, but does not require a taking of any abutting lands, the owner of such lands at the date of such change of grade may file with the department of transportation . . . a claim for any damages to said lands occasioned by such change of grade. . . . [Upon denial of that claim,] such owner may . . . commence an action against the department of transportation . . . to recover any damages to the lands shown to have resulted from such change of grade.
(Emphases added.) The parties agree that United America is an abutting landowner to a DOT project that caused a change in grade, that Northstar Road‘s grade was not previously fixed by municipal ordinance, that no taking occurred, and that the change of grade occasioned United America‘s diminution in value. Thus, we face a single issue of statutory interpretation: is a diminution in value a cognizable injury within the class of “damages to the lands“?
¶8 United America claims that it is and argues for a liberal reading of
¶9 The DOT counters that United America‘s arguments miss the forest for the trees by focusing on the language surrounding the critical limiting phrase—“damages to the lands“—rather than that phrase itself. The DOT explains that the court of appeals did not add in the “structural or physical” limitation; that
¶10 We conclude that the diminution in property value occasioned by a change in an abutting highway‘s grade is not an injury compensable under
A
¶11 Under common law, a landowner cannot recover for consequential injuries, including a diminution in property value, resulting from the exercise of state police power, such as changing a highway‘s grade.6 See Nick v. State Highway Comm‘n, 13 Wis. 2d 511, 514-15, 109 N.W.2d 71 (1961) (explaining that a diminution in value due to an exercise of state police power is not recoverable); Jantz v. DOT, 63 Wis. 2d 404, 409, 217 N.W.2d 266 (1974) (affirming that a change in grade is an exercise of police power for which consequential injuries are not compensable). The legislature, however, has enacted limited and specific exceptions to that rule, including
¶12 Although the legislature did not define “lands,” its definition of “property” in
¶14 That distinction is especially revealing here because, despite our precedent defining “damages to property” to include a property‘s diminution in value, the legislature opted for a different term in
¶15 That inference is confirmed by the text of another closely related provision,
¶16 Yet no similar provision exists for a diminution in value in non-taking scenarios; nowhere does any statute identify
¶17 To summarize our plain-meaning analysis, the legislature indicated in two ways that
B
¶18 Although our plain-meaning interpretation of
¶19 The legislature, however, altered that result by deviating from the proposal in three significant ways. See id. First, instead of one provision that applied whether or not a taking occurred, the legislature enacted
C
¶20 United America‘s textual argument to the contrary incorrectly focuses on the general term “any damages” while ignoring the limiting phrase “to the lands.” Although “any damages,” without context, appears to express a general lack of “distinction or limitation” on the type of compensable injuries, the text of
D
¶21 Given the plain meaning of
III. CONCLUSION
¶22 We conclude that the plain meaning of “damages to the lands” in
By the Court.—The decision of the court of appeals is affirmed.
¶23 REBECCA GRASSL BRADLEY, J. (dissenting). “The fundamental maxims of a free government seem to require; that the rights of personal liberty and private property, should be held sacred.” Wilkinson v. Leland, 27 U.S. 627, 634 (1829) (Story, J.) (emphasis added). Ignoring the plain text of
I
¶24 In 2004, Raj Bhandari, through his limited-liability company United America, entered into a land contract for the purchase of real estate abutting the intersection of Highway 51 and Northstar Road in Lincoln County. For a number of years, United America operated a gas station and convenience store on the property where the at-grade intersection allowed for direct
America‘s business. In 2006, before deciding whether to fully pay off the land contract and remain on the property, Bhandari contacted a representative at DOT to ask whether it had any plans to change the intersection. The representative responded that a change in the intersection would not happen in Bhandari‘s lifetime or in the representative‘s lifetime.1
¶25 Despite DOT‘s assurances to Bhandari, in 2013 DOT began a highway improvement project, which ultimately changed the grade at the Highway 51/Northstar Road intersection and converted Northstar Road to a bridge over Highway 51. DOT refused to provide for on- and off-ramps that would preserve convenient access to United America‘s business at the intersection, despite Bhandari imploring DOT to do so. As a result, individuals attempting to access United America‘s gas station and convenience store from Highway 51 were forced to take a circuitous route and drive miles out of the way to reach United America‘s property. United America‘s business suffered a dramatic loss of revenue, and the value of its property plummeted.
¶26 Pursuant to
[T]he subject lands were damaged as a result of the change of grade to the highway abutting the property, and not by the DOT‘s use of police power to control the flow of traffic along its right of way. . . . The decisions of the DOT to change the grade of the highway abutting the Plaintiff‘s property, and not include exit and entrance ramps resulted in damages to the Plaintiff‘s property, through a diminution in the value of the Plaintiff‘s property due to a loss of convenient access to the flow of traffic from US Highway 51. These were clearly foreseeable damages when the DOT made its decisions regarding the highway improvement project.
The circuit court found that United America suffered $528,500 in damages due to DOT‘s change-of-grade project. Specifically, United America‘s “before-value” was $600,000, but its “after-value” following DOT‘s change-of-grade project sank to $71,500. The circuit court arrived at this determination with the benefit of a “substantial amount of financial information provided to the Court through appraisals,” finding United America‘s appraiser to be the “most credible.”
¶27 DOT appealed the decision and the court of appeals reversed, concluding that
II
¶28 In relevant part,
Where a street or highway improvement project undertaken by the department of transportation . . . causes a change of the grade of [a] street or highway in cases where such grade was not previously fixed by city, village or town ordinance, but does not require a taking of any abutting lands, the owner of such lands at the date of such change of grade may file with the department of transportation . . . a claim for any damages to said lands occasioned by such change of grade. . . . [If DOT denies the claim], such owner may within 90 days following such denial commence an action against [DOT] . . . to recover any damages to the lands shown to have resulted from such change of grade.
(Emphasis added.) The majority reads the text of this statute in an insupportably strained and narrow manner. According to the majority, United America‘s diminution in property value does not qualify as “damages to the lands” under
¶29 Resolution of this case rests upon the interpretation of two key statutory phrases: (1) “any damages,” and (2) “to the lands.” “[S]tatutory 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 Cnty., 2004 WI 58, ¶45, 271 Wis. 2d 633, 681 N.W.2d 110. Under its most reasonable interpretation, the phrase “any damages” means precisely what it says: “any damages,” without exception.
¶30 As a general matter, “loss” is commonly understood as “the disappearance or diminution of value.” Loss, Black‘s Law Dictionary 1132 (11th ed. 2019) (emphasis added). “Damages” broadly includes compensation for a “loss,” which includes the “diminution of value” of an individual‘s property, both real and personal. The purpose of compensating an individual for loss is to “make whole the damage or injury suffered by the injured party.” See White v. Benkowski, 37 Wis. 2d 285, 290, 155 N.W.2d 74 (1967). As this court explained decades ago regarding land rights, “the measure of damages . . . will be the difference between the present value of the land and its value as affected by the execution of the proposed projects“—in this case, DOT‘s change-of-grade project. State v. Adelmeyer, 221 Wis. 246, 262-63, 265 N.W. 838 (1936).
¶31 While the statutory meaning of “damages” is broad, it is not unlimited. “Any” damages must be “to the lands” in order to be recoverable under
¶32 The majority improperly reads an exception into the text in order to narrow the meaning of “any damages.” Doing so violates the general-terms canon of statutory construction, under which “[g]eneral terms are to be given their general meaning.” Antonin Scalia & Bryan A. Garner, Reading Law: The Interpretation of Legal Texts 101 (2012); Benson v. City of Madison, 2017 WI 65, ¶25, 376 Wis. 2d 35, 897 N.W.2d 16. Under this canon, “general words (like all words, general or not) are to be accorded their full and fair scope. They are not to be arbitrarily limited.” Scalia & Garner, supra, at 101. “[T]he presumed point of using general words is to produce general coverage—not to leave room for courts to recognize ad hoc exceptions.” Id. Unlike the court of appeals, the majority in this case deems it unnecessary to decide “the full scope of ‘damages to the lands.‘” Majority op., ¶10. Nevertheless, it arbitrarily construes “any damages” to exclude “a property‘s diminution in value.” Id. There is no textual basis to support this exclusion.
¶33 The error of the majority‘s circumscription of the statutory text is illustrated by another case in which the federal courts interpreted a similarly broadly-worded statute “allowing the government to seize ‘any property, including money,’ that had been used for an illegal gambling business.” Scalia & Garner, supra, at 103 (citing United States v. South Half of Lot 7 & Lot 8, Block 14, Kountze‘s 3rd Addition to the City of Omaha, 910 F.2d 488 (8th Cir. 1990)). In that case, the government initiated forfeiture actions against real estate allegedly used for an illegal gambling business. South Half, 910 F.2d at 489. The trial court construed “any property” to exclude
¶34 While the scope of “any damages” recoverable under
¶35 The majority brushes off
¶36 In both instances, the majority violates the interpretive-direction canon, under which “[d]efinition sections and interpretation clauses are to be carefully followed.” Scalia & Garner, supra, at 225; see Wisconsin Citizens Concerned for Cranes & Doves v. DNR, 2004 WI 40, ¶6, 270 Wis. 2d 318, 677 N.W.2d 612 (modified by statute on other grounds) (“Words that are defined in the statute are given the definition that the legislature has provided.“). “It is very rare that a defined meaning can be replaced with another permissible meaning of the word on the basis of other textual indications; the definition is virtually conclusive.” Scalia & Garner, supra, at 228. While the legislature‘s definition of “lands” may be inconvenient for the majority‘s analysis, that does not give the majority license to ignore it.
¶37 Applying the statutory definition of “lands,” the dramatic loss in the value of
¶38 Rather than applying the plain language of
¶39 The majority makes the same mistake in relying upon
¶40 The majority‘s statutory analysis takes a circuitous path, meandering into eminent domain statutes that have no application in the absence of a taking, in order to interpret “any damages to lands” to mean something other than what it plainly says. This methodology violates the ordinary-meaning canon of statutory interpretation, “the most fundamental semantic rule of interpretation.” Scalia & Garner, supra, at 69. “Words are to be understood in their ordinary, everyday meanings—unless the context indicates that they bear a technical sense.” Id.; see Wisconsin Ass‘n of State Prosecutors v. WERC, 2018 WI 17, ¶52, 380 Wis. 2d 1, 907 N.W.2d 425. Statutes, like “all other legal instruments” are “of a practical nature, founded on the common business of human life, adapted to common wants, designed for common use, and fitted for common understandings.” Scalia & Garner, supra, at 69 (quoting Joseph Story, Commentaries on the Constitution of the United States 157-58 (1833)). Judges “should not make” interpretation “gratuitously roundabout and complex.” Id. at 70. To the detriment of property owners, the majority adopts a complicated and roundabout analysis that suffocates the ordinary meaning of the statutory words. Much of the majority‘s analysis altogether avoids the plain language of
¶41 This conclusion fully squares with our prior cases. In Jantz, a property owner brought suit when the state highway department took .38 acres of land to widen Highway 41-45 in Washington County and changed the grade of Maple Road in order to build an overpass across Highway 41-45. Jantz, 63 Wis. 2d at 407-08. Jantz owned a bar and grill abutting Highway 41-45 and Maple Road, and the value of her property suffered as a result of DOT‘s project. Importantly, Jantz did not bring suit under
[Section] 32.18 applies as to any claim for damages due to change of grade of Maple Road. . . . Claims of compensable damages due to loss of view, loss of direct access, loss of income and change of grade were based on the before-taking and after-taking test under sec. 32.09(6). That test does not apply because sec. 32.09(6) does not apply. . . . If appellant qualified as an owner of abutting property to the relocated Maple Road, any claim for damages caused by the change of grade of Maple Road would lie under the provisions of sec. 32.18.
Id. at 411 (emphasis added) (citations omitted). In other words, Jantz‘s claim should have been brought under
¶43 Strangely, the majority insists that “nowhere does any statute identify
¶44 In the past, this court characterized
¶45 Applying the plain meaning of the statutory language, “any damages to the lands” means precisely what it says, but the majority‘s interpretation of
