2011 WI App 105
court of appeals of wisconsin
published opinion
Case No.: |
2010AP1643 |
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Complete Title of Case: |
† Petition for Review filed |
Opinion Filed: |
June 14, 2011 |
Submitted on Briefs: |
May 24, 2011 |
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JUDGES: |
Hoover, P.J., Peterson and Brunner, JJ. |
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Appellant |
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ATTORNEYS: |
On behalf of the plaintiffs-appellants, the cause was submitted on the joint briefs of Thomas W. St. John, Ted A. Warpinski, Shannon A. Allen, Christopher M. Meuler of Friebert, Finerty & St. John, S.C., Milwaukee, and Jerome P. Tlusty, Jessica J. Tlusty of Tlusty & Kennedy, S.C., Schofield. |
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Respondent |
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ATTORNEYS: |
On behalf of the defendants-respondents, the cause was submitted on the joint brief of Thomas R. Schrimpf, Steven M. DeVougas of Hinshaw & Culbertson, LLP, Milwaukee, and Heidi L. Vogt, Philip C. Reid, Kelly J. Noyes of von Briesen & Roper, S.C., Milwaukee. |
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2011 WI App 105
COURT OF APPEALS DECISION DATED AND FILED June 14, 2011 A. John Voelker Acting Clerk of Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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Appeal No. |
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STATE OF |
IN COURT OF APPEALS |
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Amber Alsteen and 69 others, Plaintiffs-Appellants, Allen Betts and 76 others, Plaintiffs, State of Marathon Cheese Corp., Insurance Corporation and Subrogated Parties, v. Wauleco, Inc., a Wisconsin corporation and Sentry Insurance, a mutual company, Defendants-Respondents, Employers Insurance Company of Wausau, a Wisconsin Insurance company, Defendant. |
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APPEAL
from an order of the circuit court for
Before
¶1 PETERSON, J. Amber Alsteen and
sixty-nine others (collectively, Alsteen) appeal an order dismissing their
personal injury claims against Wauleco, Inc., and Sentry Insurance
(collectively, Wauleco). Alsteen alleges
that, while living in
¶2 We conclude the circuit court properly dismissed Alsteen’s
claim. In
BACKGROUND
¶3 The following facts are alleged in the fourth amended
complaint. From about 1940 to 1987, the
Crestline window factory operated at
¶4 From approximately 1946 to 1986, operations at the Crestline site included treatment of wood products with a preservative called “Penta.” Penta contains hazardous chemicals, including dioxins, pentachlorophenol, and benzene. These chemicals are known to be harmful to human health and are classified as possible carcinogens. They are capable of causing both cancerous and non-cancerous diseases when ingested, inhaled, or absorbed through the skin.
¶5 Over a forty-year period, Penta was routinely spilled and
discharged into the environment at the Crestline site. The Penta migrated into the
¶6 In May 2008, six neighborhood residents sued Wauleco, alleging personal injury and property damage caused by the release of Penta from the Crestline site. By the time the fourth amended complaint was filed in November 2009, the lawsuit included over 140 plaintiffs, each of whom had lived in or visited the River Street neighborhood at various times since 1939. These plaintiffs fell into three groups. One group alleged their exposure to Penta had caused them to develop various health problems, including Hodgkin’s lymphoma, non-Hodgkin’s lymphoma, breast cancer, liver cancer, brain cancer, stomach cancer, thyroid cancer, diabetes, thyroid disease, and neurological problems. Another group alleged Wauleco’s release of Penta had damaged their property. Alsteen is a member of the third group of plaintiffs, whose claims are the subject of this appeal. This third group did not allege any current adverse health effects caused by their exposure to Penta. Instead, they alleged their exposure to Penta “significantly increased their risk of contracting cancer” at some point in the future. As damages, they sought “future expenses related to medical monitoring.”
¶7 Wauleco moved to dismiss Alsteen’s claims. Wauleco argued that
DISCUSSION
¶8 “A motion to dismiss a complaint for failure to state a
claim tests the legal sufficiency of the complaint.” Watts v. Watts, 137 Wis. 2d 506,
512, 405 N.W.2d 305 (1987). This
presents a question of law that we review independently. Wausau Tile, Inc. v. County Concrete Corp.,
226 Wis. 2d 235, 245, 593 N.W.2d 445 (1999). In so doing, we accept the facts alleged in
the complaint as true and draw all reasonable inferences in favor of stating a
claim. Meyer v. Laser Vision Inst., LLC,
2006 WI App 70, ¶3, 290 Wis. 2d 764, 714 N.W.2d 223. “A complaint should not be dismissed for
failure to state a claim unless it appears certain that no relief can be
granted under any set of facts that a plaintiff can prove in support of [the]
allegations.” Watts, 137
¶9 Here, the circuit court properly dismissed Alsteen’s claim
because, even accepting the allegations in the fourth amended complaint as
true, the complaint does not state a claim.
We come to this conclusion for three reasons. First,
I. Actual injury
¶10 “A tort claim is not capable of enforcement until both a negligent act and an accompanying injury have occurred.” Hansen v. A.H. Robins, Inc., 113 Wis. 2d 550, 554, 335 N.W.2d 578 (1983). In other words, a plaintiff cannot state a claim unless he or she has suffered “actual damage.” Tietsworth v. Harley-Davidson, Inc., 2004 WI 32, ¶17, 270 Wis. 2d 146, 677 N.W.2d 233. Alsteen has not alleged any actual injury or damage caused by Wauleco’s release of Penta from the Crestline site. Consequently, she has failed to state a claim.
Increased risk of cancer is not an actual injury.
¶11 Alsteen alleges she has suffered an injury because her exposure
to Penta “has significantly increased her risk of contracting cancer” in the
future. However, she does not cite, and
our research has not revealed, any
¶12 Meracle v. Children’s Service Society of Wisconsin, 149
¶13 Alsteen cites Brantner v. Jenson, 121
[Brantner] established, to a reasonable degree of medical probability, that the individual defendant’s negligent conduct caused [him] permanent injury, that the injury converted a dormant condition into one causing pain, and that the pain might necessitate surgery, which [Brantner] reasonably believed … to involve a long recovery time and to itself involve extreme pain. … [T]he disclosure of the realistic possibility of back surgery as a natural consequence of the injuries under the facts of this case is sufficient to enable a jury to find to a reasonable certainty that [Brantner] has sustained, and will sustain, mental distress as a result of the defendant’s negligent conduct.
Id. at 667-68. Thus, Brantner holds that, when a plaintiff suffers physical injury due to an accident, the jury may consider the risk of possible future surgery in assessing emotional distress damages. Nothing in Brantner stands for the proposition that increased risk of future harm, without any present injury, is sufficient to state a claim for damages.
Mere exposure to a dangerous substance is not an actual injury.
¶14 In the alternative, Alsteen argues that mere exposure to Penta
was an “affront to [her] bod[y],” and therefore constitutes an actual
injury. She cites Babich v. Waukesha Memorial
Hospital, Inc., 205
¶15 Alsteen argues that, under Babich’s “contaminated source” rule, she has alleged an actual injury because she can offer proof that she was exposed to air, soil, and water contaminated with Penta. However, Babich does not stand for the proposition that mere exposure constitutes actual injury. The issue in Babich was not whether the plaintiff had alleged an actual injury—she was indisputably injured when the needle pierced her skin, and she also suffered emotional distress. Instead, the issue was whether public policy barred her emotional distress claim because her fear of HIV infection was unreasonable. Id. at 703-04, 707-09. In that context, we held that the plaintiff could only recover if she offered proof of exposure to a contaminated source. Id. at 706-07. We did not hold that mere exposure to a contaminated source could satisfy the requirement of actual injury.
¶16 Moreover, we have already rejected the argument that Babich’s
contaminated source rule applies in toxic tort cases. In Dyer v. Blackhawk Leather, LLC, 2008
WI App 128, ¶¶2-6, 313
[T]he analysis in Babich, by its own terms, is specific to needlesticks and HIV. We reached the result in that case by considering the public policy factors for cutting off liability in negligence cases. Simply identifying an object in any given case and labeling it a “contaminated source” ignores these public-policy factors.
Id., ¶26 (citation omitted).
¶17 Alsteen ignores the Dyer court’s explanation of why the
contaminated source rule does not apply in toxic tort cases. Instead, she focuses on a single statement
from Babich
that the contaminated source rule provides a useful tool “in a variety of
contexts.” Babich, 205
¶18 As the Dyer court acknowledged, needle
stick cases are fundamentally different from cases involving exposure to
environmental contaminants. See Dyer,
313 Wis. 2d 803, ¶26. In a needle stick
case, the plaintiff suffers an actual injury when the needle pierces his or her
skin. In contrast, asymptomatic
plaintiffs who are merely exposed to toxic chemicals do not suffer a
corresponding physical injury.
Additionally, while the instances in which an accidental needle stick
may arise are relatively rare, most people are exposed to a wide variety of
environmental contaminants, including carcinogens, on a daily basis. See
Buckley,
521
Medical monitoring is not an actual injury.
¶19 Alsteen also argues she has suffered an actual injury because
Wauleco’s conduct has invaded her “interest in avoiding diagnostic
examinations.” In other words, Alsteen
argues her “injury” is that she may have to undergo medical examinations in the
future. However, she does not explain
how this argument is consistent with
¶20 Moreover, as Wauleco notes, Alsteen’s argument turns tort law on its head by using the remedy sought—compensation for future medical monitoring—to define the alleged injury. She relies heavily on Ayers v. Township of Jackson, 525 A.2d 287, 310 (N.J. 1987), which reasoned that asymptomatic plaintiffs have a “legally protected interest” in avoiding medical examinations, and this interest can be injured by a defendant’s negligent conduct. Yet, this explanation simply does not make sense, as it conflates the damages the plaintiffs seek with their alleged injury.
¶21 Unlike the Ayers court, other courts have rejected medical monitoring plaintiffs’ attempts to conflate the concepts of injury and damages. For instance, the Michigan Supreme Court has explained:
It is no answer to argue, as plaintiffs have, that the need to pay for medical monitoring is itself a present injury sufficient to sustain a cause of action for negligence. In so doing, plaintiffs attempt to blur the distinction between “injury” and “damages.” While plaintiffs arguably demonstrate economic losses that would otherwise satisfy the “damages” element of a traditional tort claim, the fact remains that these economic losses are wholly derivative of a possible, future injury rather than an actual, present injury. A financial “injury” is simply not a present physical injury, and thus not cognizable under our tort system. Because plaintiffs have not alleged a present physical injury, but rather, “bare” damages, the medical expenses plaintiffs claim to have suffered (and will suffer in the future) are not compensable.
Henry v. Dow Chem. Co.,
701 N.W.2d 684, 691 (Mich. 2005).
Similarly, the Kentucky Supreme Court rejected the argument that medical
monitoring itself is an injury, reasoning, “With no injury there can be no
cause of action, and with no cause of action there can be no recovery. It is
not the remedy that supports the cause of action, but rather the cause of
action that supports a remedy.” Wood
v. Wyeth-Ayerst Labs., 82 S.W.3d 849, 855 (
¶22 Henry and Wood recognize that defining the
need for medical monitoring as an “injury” does nothing more than attach a
specific item of damages to what is actually a claim for increased risk of
future harm. Yet,
¶23 Perhaps recognizing her inability to articulate a plausible
injury, Alsteen cites Bowen v. Lumbermens Mutual Casualty Co.,
183
¶24 Importantly, though, the Bowen court did not eliminate the requirement that a plaintiff prove an actual injury to recover damages. Instead, the court recognized that, in an emotional distress case, a plaintiff’s severe emotional distress is the actual injury, and the plaintiff need not prove additional physical harm. See id. at 652-53 (“We conclude that the traditional elements of a tort action in negligence—negligent conduct, causation and injury (here severe emotional distress)—should serve as the framework for evaluating a bystander’s claim of negligent infliction of emotional distress.”) (emphasis added; footnote omitted).[4] Consequently, Bowen does not stand for the proposition that a tort plaintiff can state a claim for damages without alleging actual injury.
This case is not analogous to Northridge Co. v. W.R. Grace and
Co.
¶25 Alsteen attempts to analogize her medical monitoring claim to
the asbestos-related property damage claim in Northridge Co. v. W.R. Grace and
Co., 162 Wis. 2d 918, 471 N.W.2d 179 (1991). There, shopping mall owners sued the
manufacturer of Monokote, a fireproofing material used in their building,
alleging it was defective and dangerous because it contained asbestos. Id. at 922. The owners claimed “that the asbestos
contaminated the building and they suffered damages by incurring expenses for
inspection, testing and removal of the Monokote and by a diminished value of
the property.”
The essence of the plaintiffs’ claim is that Monokote releases toxic substances in the environment thereby causing damage to the building and a health hazard to its occupants. The plaintiffs claim that their property has been physically altered by the defendant’s product, whether or not such alteration is outwardly visible.
We conclude that the plaintiffs’ allegation that the defendant’s asbestos-containing product physically harmed the plaintiffs’ building is the type of injury which is actionable under claims for relief in strict products liability and negligence. The principles and policies underlying strict products liability actions, namely, public safety and risk sharing, justify recognizing the tort claims.
¶26 Alsteen argues that, if a property owner can recover for the
presence of asbestos in a building, she should be able to recover for ingesting
Penta. However, unlike Alsteen, the
shopping mall owners in Northridge alleged the asbestos in
their building actually damaged, physically altered, and harmed the
building.
II. Metro-North Commuter Railroad Co. v. Buckley
¶27 The United States Supreme Court’s reasoning in Buckley,
521
¶28 The Buckley Court cited several policy factors in support of its
conclusion. First, it recognized that
medical monitoring claims present “special ‘difficult[ies] for judges and
juries’” who will be forced to identify which costs are “the extra monitoring costs, over and above
those otherwise recommended[.]” Id.
at 441 (citation omitted). This problem
is compounded by “uncertainty among medical professionals about just which
tests are most usefully administered and when.”
Moreover, tens of millions of individuals may have suffered exposure to substances that might justify some form of substance-exposure-related medical monitoring. … And that fact, along with uncertainty as to the amount of liability, could threaten both a “flood” of less important cases (potentially absorbing resources better left available to those more seriously harmed) and the systemic harms that can accompany “unlimited and unpredictable liability” (for example, vast testing liability adversely affecting the allocation of scarce medical resources).
Id. at 442 (citations omitted). Third, the Court was concerned that allowing liability for medical monitoring would impose costs without corresponding benefits, due to the existence of alternative sources of payment and the possibility that plaintiffs would use their awards on something other than medical monitoring. Id. at 442-43.
¶29 Alsteen attempts to distinguish Buckley on three
grounds. First, she argues that, because
Buckley’s claim arose under FELA, a federal statute, Buckley is not relevant
in a case applying
¶30 Second, Alsteen contends Buckley is inconsistent with
Wisconsin law “because, unlike FELA,
¶31 Third, Alsteen contends Buckley is distinguishable because its holding is limited to plaintiffs seeking medical monitoring damages as a lump sum instead of a court-supervised fund. However, judging by the fourth amended complaint, Alsteen appears to seek lump sum damages. She has not committed to accepting a court-supervised fund. At most, her appellate brief contains the equivocal statement that “[d]epending on the nature and extent” of the medical monitoring award, a court-supervised fund “is likely to be … appropriate.”
¶32 Moreover, the policy concerns identified in Buckley also apply in the context of a court-supervised medical monitoring fund. Specifically, the Court’s concerns regarding the difficulty of assessing damages, unlimited and unpredictable liability, and secondary sources of payment apply regardless of the form the medical monitoring remedy takes.[5] Thus, even if Alsteen were seeking medical monitoring damages in the form of a court-supervised fund, Buckley would support dismissal of her claim.
III.
Other jurisdictions
¶33 Case law from other jurisdictions also supports dismissal of
Alsteen’s claim. In the fourteen years
since Buckley, multiple courts have issued opinions rejecting medical
monitoring claims absent actual, present injury. While rejection of asymptomatic plaintiffs’
medical monitoring claims is not universal,[6]
the following cases that declined to recognize such claims are instructive.
¶34 In Henry, 701 N.W.2d 684, the Michigan Supreme Court addressed a
fact situation very similar to this case.
There, plaintiffs alleged that the defendant negligently released dioxin
into the flood plain where the plaintiffs lived and worked. Id. at 685-86. The plaintiffs did not allege that the dioxin
exposure had caused any disease or injury; instead, they sought medical
monitoring damages based on an increased risk of cancer and other
diseases. Id. at 686. The court rejected the plaintiffs’ claim,
concluding they had not alleged a present physical injury—mere exposure to a
toxic substance and increased risk of future harm did not constitute injuries
under
We would be unwise, to say the least, to alter the common law in the manner requested by plaintiffs when it is unclear what the consequences of such a decision may be and when we have strong suspicions, shared by our nation’s highest court, that they may well be disastrous.
Id. at 697. Ultimately, the court deferred to the
legislature to create a new claim, based on its ability to gather information
from a broader array of potential stakeholders.
¶35 The Alabama Supreme Court has also refused to eliminate the
common law requirement of present injury in the context of medical monitoring
claims. See Hinton v. Monsanto Co., 813 So. 2d 827 (Ala. 2001). The court noted that
We do not intend to minimize the concerns that [asymptomatic
plaintiffs] face and we do not deny that they have suffered a wrong at the
hands of a negligent manufacturer, assuming the plaintiffs’ allegations can be
proven. However, we find it
inappropriate … to stand
Id. at 831-32. Similarly, in Wood, 82 S.W.3d at 859, the Kentucky Supreme Court considered whether to permit a medical monitoring claim in the absence of present injury and concluded, “Traditional tort law militates against recognition of such claims, and we are not prepared to step into the legislative role and mutate otherwise sound legal principles.”
¶36 The
¶37 As in
By the Court.—Order affirmed.
[1] As
an alternative basis for the circuit court’s decision, Wauleco argues public
policy bars Alsteen’s claim. Because we
conclude Alsteen failed to state a claim, we need not consider whether public policy
precludes imposing liability. See Gross v. Hoffman, 227
[2] If Alsteen ultimately develops a disease due to her exposure to Penta, she will then have a personal injury claim that may include reimbursement for medical examinations. Recognizing this fact, the circuit court dismissed Alsteen’s medical monitoring claim without prejudice “to the extent [Alsteen] subsequently manifest[s] illness or injury allegedly related to [her] alleged exposure.”
[3] Alsteen concedes she has not asserted an emotional distress claim.
[4] Again, Alsteen has not asserted an emotional distress claim, nor does she allege she has suffered severe emotional distress.
[5] Furthermore,
allowing recovery in the form of a court-supervised fund raises a different set
of concerns regarding the burdens inherent in administering such a fund. See
Henry
v. Dow Chem. Co., 701 N.W.2d 684, 698-99 & n.23 (
[6] See Paz v. Brush Eng’d Materials, Inc.,
949 So. 2d 1, 6 (