2011 WI 71
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Supreme Court of Wisconsin |
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Case No.: |
2009AP775 |
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Complete Title: |
E-Z Roll Off, LLC, Plaintiff-Appellant, v. Defendant-Respondent-Petitioner. |
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REVIEW OF A DECISION IN THE COURT OF APPEALS 2010 WI App 76 Reported at: 325 (Ct. App. 2010 – Published) |
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Opinion Filed: |
July 13, 2011 |
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Submitted on Briefs: |
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Oral Argument: |
February 2, 2011 |
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Source of Appeal: |
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Court: |
Circuit |
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County: |
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Judge: |
Patrick F. O’Melia |
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Justices: |
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Concurred: |
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Dissented: |
ROGGENSACK, J. dissents (Opinion filed). ABRAHAMSON, C. J. joins dissent. |
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Not Participating: |
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Attorneys: |
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For the
defendant-respondent-petitioner the cause was argued by Michele M. Ford,
For the plaintiff-appellant
there were briefs and oral argument by James
B. Connell, Crooks,
2011 WI 71
notice
This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports.
REVIEW of a decision of the Court of Appeals. Reversed.
¶1 MICHAEL J. GABLEMAN, J. This is a review of a
published decision of the court of appeals reversing the circuit court order
granting summary judgment in favor of
¶2 E-Z Roll Off, LLC (E-Z), which was paying a fee of $54.00 to Oneida County for each ton of municipal solid waste it delivered to the Facility, brought suit against Oneida County alleging that the agreement created an illegal restraint of trade in violation of Wis. Stat. § 133.03(1) (2005-06).[2] The circuit court, the Honorable Patrick F. O'Melia presiding, held that E-Z could not bring suit because E-Z had not filed a timely notice of claim in accordance with Wis. Stat. § 893.80(1)(a). The court of appeals reversed, holding that antitrust actions brought pursuant to Wis. Stat. § 133.18 are exempt from the notice of claim requirements found in § 893.80(1). The question before us therefore is whether the notice of claim requirements found in § 893.80(1) apply to antitrust actions brought pursuant to § 133.18. If the notice of claim requirements apply, we must next consider whether E-Z satisfied these requirements.
¶3 We hold that antitrust actions brought pursuant to Wis. Stat. § 133.18 are not exempt
from the notice of claim requirements found in Wis. Stat. § 893.80(1). Additionally, we hold that E-Z did not meet
the requirements of § 893.80(1)(a)
when it failed to give
I. BACKGROUND
¶4 E-Z was founded in 1996 by its owners Todd and Paula
Laddusire. It was in the business of
collecting solid waste from residential and commercial customers. From 1996 to 2003, E-Z was one of several
companies that hauled solid waste to the Facility. During this time,
¶5 On June 25, 2003,
¶6 The parties dispute the point in time when E-Z learned of
¶7 It is undisputed that on February 17, 2004, the Laddusires met
with Sexton to present their concerns regarding
¶8 In April 2004, E-Z filed a written complaint with the Wisconsin
Department of Agriculture, Trade and Consumer Protection (DATCP). The complaint alleged that the agreement
between
¶9 On May 4, 2004, the DATCP forwarded the complaint to Sexton, who
responded by letter on May 20. In his
response letter, Sexton disputed each of E-Z's charges and went on to state
that the contract bidding process had been conducted in accordance with
appropriate state statutes. Additionally, Sexton stated that E-Z, along
with any other business entity, would have had the right to submit a bid during
the bidding process.
¶10 On September 28, 2005, E-Z filed a "Notice of Injury" and
"Statement of Claim" with the Oneida County Clerk of Courts. In its Notice of Injury, E-Z asserted that it
was injured when
¶11 On April 20, 2006, E-Z filed suit against
¶12 On September 29, 2008, Oneida County filed a motion for summary
judgment, arguing that E-Z failed to comply with the notice of claim
requirements found in Wis. Stat. § 893.80(1). Specifically,
¶13 E-Z appealed and, in a published decision, the court of appeals
reversed the judgment of the circuit court.[7] Applying the three-factor test set forth in Town
of Burke v. City of Madison, 225 Wis. 2d 615,
625, 593 N.W.2d 822
(Ct. App. 1999), the court of appeals concluded that (1) Wis. Stat. § 133.18 contained a specific statutory
scheme for antitrust actions,[8] E-Z Roll Off, 325 Wis. 2d 423, ¶18; (2) applying the notice of claim requirements
to antitrust actions brought pursuant to § 133.18 would hinder the legislature's preference
for prompt resolution of antitrust claims,
Id., ¶24;
and (3) the purposes of providing a notice of claim would not be furthered if
the notice of claim requirements were applied to antitrust actions.
¶14
II. STANDARD OF REVIEW
¶15 This case comes before us on summary judgment. "We review the grant of a motion for
summary judgment de novo, and apply the methodology specified in Wis. Stat.
§ 802.08. That is, we determine
whether there is any genuine issue as to any material fact, and if not, which
party is entitled to judgment as a matter of law." Borek Cranberry Marsh, Inc. v. Jackson Cnty.,
2010 WI 95, ¶11, 328
¶16 This case also involves the interpretation of the notice of claim
statute, found in Wis. Stat. § 893.80,
and the interpretation of the antitrust damages statute, found in Wis. Stat. § 133.18. The interpretation of a statute is a question
of law that we review de novo. Hocking
v. City of Dodgeville, 2010 WI 59, ¶17,
326
¶17 Whether a governmental entity had actual notice of a plaintiff's claim
presents a mixed question of fact and law.
Olsen v. Twp. of Spooner, 133
¶18 Whether a governmental entity suffered prejudice is also a mixed
question of fact and law. Olsen,
133
III. DISCUSSION
¶19 This case requires us to examine two issues. First, we consider whether antitrust claims brought pursuant to Wis. Stat. § 133.18 are exempt from the notice of claim requirements found in Wis. Stat. § 893.80. Second, we consider whether E-Z satisfied the notice of claim requirements set forth in § 893.80(1). We discuss each issue in turn.
A. Antitrust Claims Brought Pursuant to
¶20 In order to commence a lawsuit against a governmental entity, a
claimant must, as a precursor to actually filing suit, serve written notice of
the circumstances of the claim within 120 days after the happening of the
event.[9]
¶21 We initially recognized in Department of Natural Resources v.
City of Waukesha, 184
¶22 A number of cases following Auchinleck created additional
exceptions to the notice of claim requirements.
See Gillen v. City of Neenah, 219
¶23 In Town of
¶24 The three factors articulated in Town of Burke have since become the accepted framework by which our appellate courts have considered exceptions to the notice of claim requirements found in Wis. Stat. § 893.80. See Ecker Bros. v. Calumet Cnty., 2009 WI App 112, ¶6, 321 Wis. 2d 51, 722 N.W.2d 240; Oak Creek Citizen's Action Comm. v. City of Oak Creek, 2007 WI App 196, ¶7, 304 Wis. 2d 702, 738 N.W.2d 168; Nesbitt Farms, LLC v. City of Madison, 2003 WI App 122, ¶9, 265 Wis. 2d 422, 665 N.W.2d 379. We find the Town of Burke test appropriate and therefore apply it to determine whether antitrust actions brought pursuant to Wis. Stat. § 133.18 are exempt from the notice of claim requirements found in § 893.80.
1. Specific Statutory Scheme
¶25 The first factor we consider is "whether there is a specific
statutory scheme for which the plaintiff seeks exemption" from the notice
of claim requirements found in Wis. Stat. § 893.80. Town
of
¶26 In the instant case, the court of appeals relied on our decision in
Gillen v. City of Neenah to conclude that the statutory scheme for antitrust actions
brought pursuant to Wis. Stat. § 133.18
takes precedence over the general notice of claim requirements of § 893.80(1). We disagree.
In Gillen, we held that when a statute allows a claimant to seek
immediate injunctive relief, that statute irreconcilably conflicts with the
general notice of claim provisions of Wis. Stat. § 893.80,
"which requires a plaintiff to provide a governmental body with a notice
of claim, and to wait 120 days or until the claim is disallowed before filing
an action." Gillen, 219
¶27 As illustrated in Gillen, our appellate courts have generally concluded that a specific statutory scheme conflicts with the notice of claim requirements found in Wis. Stat. § 893.80 when the specific statute contains a more restrictive limitations period than the 120-day notice of claim requirements. See id. at 821-22 (specific statute allowed immediate injunctive relief); Auchinleck, 200 Wis. 2d at 592 (specific statute allowed an action to be commenced within 20 days); Town of Burke, 225 Wis. 2d at 625 (specific statute required an action to be commenced within 90 days); Little Sissabagama, 208 Wis. 2d at 266 (specific statute required an action to be commenced within 90 days); Oak Creek Citizen's Action Comm., 304 Wis. 2d at 709 (specific statute required clerk to take action within 15 days and common council to take action within 30 days).
¶28 While we find the reasoning of Gillen to be instructive, we
conclude that its holding is inapplicable to the present case. In contrast to the plaintiffs in Gillen,
E-Z does not seek immediate
injunctive relief under § 133.16.
Rather, E-Z seeks declaratory relief and damages under Wis. Stat.
§ 133.18.[11] Unlike immediate injunctive relief, which
"is designed to prevent injury," Gillen, 219
¶29 We therefore hold that § 133.18 does not contain a specific statutory scheme in conflict with the notice of claim requirements found in § 893.80.[14]
2. Legislative Preference for Prompt Resolution
¶30 The second factor we consider is "whether enforcement of Wis.
Stat. § 893.80
would hinder a legislative preference for a prompt resolution of the type of
claim under consideration." Town
of
¶31 Wisconsin Stat. § 133.18(5) requires that "[e]ach civil action under this chapter and each motion or other proceeding in such action shall be expedited in every way and shall be heard at the earliest practicable date." This language demonstrates the legislature's preference for the prompt resolution of antitrust claims brought pursuant to Wis. Stat. § 133.18. E-Z argues that applying the notice of claim requirements found in Wis. Stat. § 893.80 to antitrust actions brought pursuant to § 133.18 hinders prompt resolution of such claims. As the circuit court correctly recognized, applying the notice of claim requirements to antitrust actions brought pursuant to § 133.18 promotes, rather than hinders, the legislature's preference for expediency in the adjudication of such claims.
¶32 This is so because ordinarily a plaintiff has six years to seek
damages pursuant to Wis. Stat. § 133.18. See § 133.18(2).
However, if a plaintiff advances a claim against a governmental entity,
it is subject to the notice of claim requirements. See
¶33 Accordingly,
we hold that enforcing the general notice of claim requirements found in Wis.
Stat. § 893.80 promotes, rather than hinders, the legislature’s preference
for prompt resolution of such claims.
3. Furthering the Purposes of the Notice of Claim Statute
¶34 The third factor we consider is "whether the purpose for which
§ 893.80(1) was
enacted would be furthered by requiring that a notice of claim be
filed." Town of
¶35 E-Z argues that the legislative purpose of
Wis. Stat. § 893.80(1)
was furthered when
¶36 We find E-Z's argument unpersuasive. First, applying the notice of claim statute to antitrust actions brought pursuant to Wis. Stat. § 133.18 clearly allows governmental entities a greater opportunity to investigate and evaluate potential claims by requiring claimants to file their notice of claim within 120 days of the event giving rise to the claim. If the notice of claim statute were not applied to § 133.18 antitrust actions, claimants would have six years to file their complaint.
¶37 The additional sixty-eight months during which claimants could
bring their actions would obviously hamper a governmental entity's ability to
investigate and evaluate claims. See,
e.g., Olsen, 133
¶38 Second, applying the notice of claim statute to antitrust actions brought pursuant to Wis. Stat. § 133.18 allows governmental entities a greater opportunity to compromise and budget for potential settlement or litigation. If the notice of claim statute were not applied to antitrust actions brought pursuant to § 133.18, governmental entities would no longer be provided with a 120-day period in which to review the claim before the claimant could file suit. We are compelled by the nature of E-Z's argument to note the obvious: it is easier for a governmental entity to compromise with a claimant when the governmental entity has the 120-day period required by the notice of claim statute in which it may review the claim and negotiate with the claimant prior to the commencement of litigation. Further, this period grants governmental entities 120 days in which to adjust budgets to account for potential settlement or litigation. As a result, the purposes for which the notice of claim statute was enacted would be fulfilled if parties filing antitrust actions pursuant to § 133.18 were required to follow the general notice of claim requirements.
¶39 Applying the three-factor Town of Burke test, we conclude that Wis. Stat. § 133.18 antitrust actions are not exempt from the notice of claim requirements set forth in Wis. Stat. § 893.80. We therefore next discuss whether E-Z satisfied the notice of claim requirements.
B. Notice of Claim Requirements
¶40 Under
(a) Within 120 days after the happening of the event giving rise to the claim, written notice of the circumstances of the claim signed by the party, agent or attorney is served on the . . . governmental subdivision . . . . Failure to give the requisite notice shall not bar action on the claim if the . . . subdivision . . . had actual notice of the claim and the claimant shows to the satisfaction of the court that the delay or failure to give the requisite notice has not been prejudicial to the . . . subdivision . . . ; and
(b) A claim containing the address of the claimant and an itemized statement of the relief sought is presented to the appropriate clerk or person who performs the duties of a clerk or secretary for the defendant . . . subdivision . . . and the claim is disallowed.
¶41 First, we consider whether the notice of claim was filed within 120
days of the "happening of the event."
1. 120-Day Notice Requirement
¶42 Wisconsin Stat. § 893.80(1)
requires that E-Z serve its notice of claim on Oneida County "[w]ithin 120
days after the happening of the event giving rise to the
claim . . . ."
¶43 We
need not decide when E-Z's cause of action began to accrue because, in either
case, E-Z's notice of claim was untimely.
E-Z filed its notice of claim with the Oneida County Clerk of Court on
September 28, 2005, well over 120 days after both the date on which the
agreement was executed (June 25, 2003), as well as the date E-Z contended it
learned of the agreement (February 2004).
¶44 E-Z
also argues that each time it paid a higher tipping fee than Waste Management,
a new cause of action accrued to E-Z.
Consistent with this assertion, E-Z argues that the notice of claim that
it filed on September 28, 2005, was timely because the notice was filed within
120 days of E-Z having paid a higher tipping fee than Waste Management.
¶45 In
support of this assertion, E-Z cites Zenith Radio Corp. v. Hazeltine
Research, Inc., 401 U.S. 321 (1971).
In that case, the United States Supreme Court concluded that in the
context of a continuing conspiracy to violate the federal antitrust laws,
"each time a plaintiff is injured by an act of the defendant a cause of
action accrues to him to recover the damages caused by that act and that, as to
those damages, the statute of limitations runs from the commission of the
act."
¶46 E-Z,
however, fails to cite any authority applying the continuing violations
doctrine to the notice of claim statute under
¶47 E-Z filed its notice of claim with the Oneida County Clerk of Court on September 28, 2005, well over 120 days after both the date on which the agreement was executed (June 25, 2003), as well as the date E-Z contended it learned of the agreement (February 2004). Having concluded that E-Z did not satisfy the first sentence of Wis. Stat. § 893.80(1)(a), we must next consider whether the actual notice and prejudice exception contained in Wis. Stat. § 893.80(1)(a) applies.
2. E-Z Failed to Show That
¶48 An exception to the general 120-day rule exists when a claimant
demonstrates that two conditions are met: (1) the governmental entity "had
actual notice of the claim," and (2) the governmental entity has not been
prejudiced by the delay or failure to give notice.
¶49 In Olsen v. Spooner Township we held that prejudice
"refers to a delay which results in the inability of claimants to
adequately defend their case." 133
¶50 The circuit court found that E-Z set forth no facts showing that
¶51 E-Z bore the burden to produce evidence that the delayed notice of
claim did not harm
¶52 The circuit court cautioned the parties early in the litigation
that the issue of prejudice would require substantial discovery. When the circuit court denied
The determination as to whether E-Z is barred from bringing this action for failing to comply with the notice of claims requirements is a complex issue that would likely necessitate extensive factual support. Specifically, failing to comply with the time limits in § 893.80 does not serve as an automatic bar to an action. Even if plaintiff fails to satisfy these time requirements, an action still survives if the plaintiff can show that the defendant had actual notice of the claim and that the defendant was not prejudiced by a delay of, or failure to provide, the requisite notice. § 893.80(1)(a). The determination of whether the County had actual notice of the claim and whether any prejudice exists are intensive factual issues that will likely require extensive discovery.
Despite having received such guidance from the circuit court, E-Z inexplicably failed to conduct any discovery on the issue of prejudice.
¶53 E-Z could have asked Sexton a number of questions to determine
whether
IV. CONCLUSION
¶54 We hold that antitrust actions brought pursuant to Wis. Stat. § 133.18 are not exempt
from the notice of claim requirements found in Wis. Stat. § 893.80(1). Additionally, we hold that E-Z did not meet
the requirements of § 893.80(1)(a)
when it failed to give
By the Court.—The decision of the court of appeals is reversed.
¶55 PATIENCE DRAKE ROGGENSACK, J. (dissenting). Appellate courts apply a three-part test to determine whether the notice requirement of Wis. Stat. § 893.80(1) (2009-10)[18] applies to the claim under review. Oak Creek Citizen's Action Comm. v. City of Oak Creek, 2007 WI App 196, ¶7, 304 Wis. 2d 702, 738 N.W.2d 168. I conclude that E-Z Roll Off, LLC (E-Z) makes a restraint of trade claim under ch. 133 of the Wisconsin Statutes that meets the three-part test for an exception to the requirements of § 893.80(1): (1) ch. 133 provides a specific statutory scheme for the identification and resolution of claims; (2) compliance with § 893.80(1) would hinder the legislature's preference for prompt action on ch. 133 claims; and (3) the purposes for which § 893.80(1) was enacted would not be furthered by requiring a notice of claim to be filed for ch. 133 claims. Accordingly, I would affirm the court of appeals and I respectfully dissent from the majority opinion.
I. BACKGROUND
¶56 E-Z was in the solid waste hauling business.[19] It provided waste containers to residential,
commercial and construction customers.
E-Z hauled the waste it collected to the
¶57 E-Z paid a $54 per ton tipping fee for its use of the landfill,
less a $10 per ton discount when E-Z brought a sufficient volume of waste to
¶58 Apparently, the lower tipping fee accorded to Waste Management was part of the June 25, 2003 contract[20] between Waste Management and Oneida County wherein Waste Management agreed to transport municipal solid waste for Oneida County for $24.50 per ton and Oneida County agreed to charge Waste Management only a $5.25 tipping fee rather than the usual $54 per ton rate.
¶59 On February 17, 2004, the Laddusires, who own E-Z, met with
Bart Sexton, the Oneida County Solid Waste Director, to complain about the high
tipping fee E-Z was paying and to request a reduction of its tipping fee. Sexton refused their request, and in April
2004 E-Z filed a written complaint with the Wisconsin Department of
Agriculture, Trade and Consumer Protection (Consumer Protection agency). Although the Consumer Protection agency
forwarded E-Z's complaint to
¶60 On September 28, 2005, E-Z filed a "Notice of
Injury" with Oneida County, in which it alleged that the preferential
tipping fee that Oneida County granted to Waste Management was a violation of
Wis. Stat. § 133.03(1). It alleged that it had lost past and future
earnings due to the lower prices that Waste Management was able to charge its
customers because of the lower tipping fee that Waste Management was accorded
by
¶61 E-Z filed this action on April 20, 2006.
II.
DISCUSSION
A.
Standard of Review
¶62 The
circuit court dismissed E-Z's claim on summary judgment. We review summary judgment using the same
methodology as did the circuit court and the court of appeals. Grygiel v. Monches Fish & Game Club,
Inc., 2010 WI 93, ¶12, 328
B.
E-Z's Contention
¶63
E-Z contends that
¶64 Stated
otherwise, E-Z alleges that if Waste Management had been required to pay the
$54 per ton tipping fee as E-Z was, Waste Management would have had to increase
the prices it offered to customers for whose business E-Z was competing. It is argued that the lower tipping fee
permitted Waste Management to compete unfairly with E-Z.
¶65 In regard to Wis.
Stat. § 893.80(1), E-Z does not argue that it timely filed a notice of
claim. Rather, E-Z contends that it is
not required to comply with § 893.80(1) because its ch. 133 claim falls
outside of the scope of § 893.80(1)'s command, and further, even if it
were required to comply with § 893.80(1),
C.
Statutory Concerns
1.
Notice of claim
¶66 Wisconsin
Stat. § 893.80(1) provides in relevant part:
Except as provided in subs. (1g), (1m), (1p) and (8),[22] no action may be brought or maintained against any . . . political corporation, governmental subdivision or agency thereof . . . for acts done in their official capacity or in the course of their agency or employment upon a claim or cause of action unless:
(a) Within 120 days after the happening of the event giving rise to the claim, written notice of the circumstances of the claim signed by the party, agent or attorney is served on the . . . political corporation, governmental subdivision or agency . . . under s. 801.11. Failure to give the requisite notice shall not bar action on the claim if . . . the claimant shows to the satisfaction of the court that the delay or failure to give the requisite notice has not been prejudicial to the defendant . . .; and
(b) A claim containing the address of the claimant and an itemized statement of the relief sought is presented to the appropriate clerk . . . and the claim is disallowed.
¶67 Although
we once stated that Wis. Stat. § 893.80(1) applies to all types of
actions, not just to tort actions, DNR v. City of Waukesha, 184
¶68 Based
on our analysis in Auchinleck, a three-part test has evolved by which
courts assess whether the claimant is required to comply with Wis. Stat.
§ 893.80(1) for the claim presented.
"(1) whether there is a specific statutory scheme for which the plaintiff seeks exemption; (2) whether enforcement of § 893.80(1), Stats., would hinder a legislative preference for a prompt resolution of the type of claim under consideration; and (3) whether the purposes for which § 893.80(1) was enacted would be furthered by requiring that a notice of claim be filed."
2.
¶69 E-Z claims anticompetitive conduct that it alleges is regulated by ch. 133, specifically Wis. Stat. § 133.03(1). Section 133.03(1) addresses anticompetitive contracts in restraint of trade. Section 133.03(1) provides in relevant part: "Unlawful contracts; conspiracies. (1) Every contract . . . in restraint of trade or commerce is illegal." It is this § 133.03(1) claim that the circuit court dismissed on summary judgment because the notice of claim provisions of Wis. Stat. § 893.80(1) had not been met. Accordingly, I consider the viability of E-Z's ch. 133 claim in light of § 893.80(1) and the requisite three-part test for exceptions thereto.
a. Specific statutory scheme
¶70 Chapter
133 sets out a specific statutory scheme that addresses anticompetitive conduct
that is quite comprehensive. First, it
defines those who are covered by the prohibitions contained therein.
¶71 The
enforcement of a claim for relief due to an alleged restraint of trade by
contract has been specifically provided for by the legislature in Wis. Stat.
§ 133.03(1). Not only is such a
claim proscribed, but the legislature has specified various types of relief
that a court can award. See e.g.,
Wis. Stat. § 133.14 (illegal contracts are void); Wis. Stat. § 133.16
(injunctive relief, temporary and permanent, and attorney fees may be
accorded); and Wis. Stat. § 133.18 (damages and attorney fees are
available). Accordingly, I conclude that
E-Z's § 133.03(1) claim is part of a specific statutory scheme and
therefore, it satisfies the first part of the requisite test for an exception
to the directives of Wis. Stat. § 893.80(1).[23]
b.
Preference for prompt resolution
¶72 The
next step is to assess whether enforcement of Wis. Stat. § 893.80(1) would
contravene a legislative preference for prompt resolution of ch. 133 claims.
¶73 Furthermore, Wis. Stat. § 133.16
provides for both temporary and permanent injunctive relief. It directs, "pending the filing of the
answer . . . [a court] may, at any
time, upon proper notice, make such temporary restraining order or prohibition
as is just." We have noted that a
statutory scheme that provides for immediate injunctive relief is inconsistent
with Wis. Stat. § 893.80(1)'s
requirements. Gillen, 219
c. Purposes underlying Wis. Stat. § 893.80(1)
¶74 The third part of the test for assessing a claimed exception to the
directives of Wis. Stat. § 893.80(1)
is whether the purposes underlying § 893.80(1)
would be furthered by requiring that a notice of claim be filed. The purposes underlying § 893.80(1) are to
permit timely investigation of claims so that the facts are not stale and to
facilitate settlement of those that are meritorious. Thorp v. Town of Lebanon, 2000 WI 60, ¶¶23, 28, 235
¶75 In addition, in this step, it is worth noting that Wis. Stat. § 133.18(4) provides,
"A cause of action arising under this chapter does not accrue until the
discovery, by the aggrieved person, of the facts constituting the cause of
action." The circuit court
concluded that the "event" that gives rise to the obligation to give
notice within 120 days is the June 2003 signing of the contract between Waste
Management and
¶76 Furthermore, if Wis. Stat. § 893.80(1) were applied to E-Z's claim, it never could have employed the statutes that the legislature enacted to promote competition and to restrict restraints of trade. A defendant could simply say that the complaining party learned of the violation too late and as a result, the defendant is not required to do anything about it. Surely, that is not what the legislature sought to achieve either under § 893.80(1) or ch. 133.
¶77 Therefore, I conclude that E-Z has satisfied the third part of the requisite test for an exception to the directives of Wis. Stat. § 893.80(1). Accordingly, I conclude that E-Z's Wis. Stat. § 133.03(1) claim is excepted from § 893.80(1)'s notice requirements.
III. CONCLUSION
¶78 I conclude that E-Z makes a restraint of trade claim under ch. 133 of the Wisconsin Statutes that meets the three-part test for an exception to the requirements of Wis. Stat. § 893.80(1): (1) ch. 133 provides a specific statutory scheme for the identification and resolution of claims; (2) compliance with § 893.80(1) would hinder the legislature's preference for prompt action on ch. 133 claims; and (3) the purposes for which § 893.80(1) was enacted would not be furthered by requiring a notice of claim to be filed for ch. 133 claims. Accordingly, I would affirm the court of appeals and I respectfully dissent from the majority opinion.
¶79 I am authorized to state that Chief Justice SHIRLEY S. ABRAHAMSON joins this dissent.
[1] E-Z Roll Off, LLC v.
Cnty. of
[2] All subsequent references to the Wisconsin Statutes are to the 2005-06 version unless otherwise indicated.
[3] "Tipping fees are
disposal charges levied against collectors who drop off waste at a processing
facility. They are called 'tipping' fees
because garbage trucks literally tip their back end to dump out the carried
waste." United Haulers Ass'n,
Inc. v. Oneida-Herkimer Solid Waste Mgmt. Auth., 550
[4] As we discuss in ¶20, in order to sue a governmental entity, a plaintiff must file a "notice of the circumstances of the claim" within 120 days of the event giving rise to the claim and must also file a separate "claim containing the claimant's address and relief sought." For the sake of clarity, we use the phrase "notice of claim" to refer to the "notice of the circumstances of the claim" required by Wis. Stat. § 893.80(1)(a). Further, we use the phrase "statement of claim" to refer to the "claim containing the address of the claimant and an itemized statement of the relief sought" found in Wis. Stat. § 893.80(1)(b).
[5] Judge Kinney retired during the pendency of this action and Judge O'Melia presided over the motion for summary judgment.
[6]
Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce is illegal. Every person who makes any contract or engages in any combination or conspiracy in restraint of trade or commerce is guilty of a Class H felony, except that, notwithstanding the maximum fine specified in s. 939.50(3)(h), the person may be fined not more than $100,000 if a corporation, or, if any other person, may be fined not more than $50,000.
[7] E-Z Roll Off,
325
[8] As we explain in Part III.A.1., a "specific statutory scheme" exists when the terms of a specific statute conflict with the general notice of claim requirements found in Wis. Stat. § 893.80(1)(a).
[9] Wis. Stat. § 893.80(1) reads in relevant part:
(1) Except as provided in subs. (1g), (1m), (1p) and (8), no action may be brought or maintained against any volunteer fire company organized under ch. 213, political corporation, governmental subdivision or agency thereof nor against any officer, official, agent or employee of the corporation, subdivision or agency for acts done in their official capacity or in the course of their agency or employment upon a claim or cause of action unless:
(a) Within 120 days after the happening of the event giving rise to the claim, written notice of the circumstances of the claim signed by the party, agent or attorney is served on the volunteer fire company, political corporation, governmental subdivision or agency and on the officer, official, agent or employee under s. 801.11. Failure to give the requisite notice shall not bar action on the claim if the fire company, corporation, subdivision or agency had actual notice of the claim and the claimant shows to the satisfaction of the court that the delay or failure to give the requisite notice has not been prejudicial to the defendant fire company, corporation, subdivision or agency or to the defendant officer, official, agent or employee; and
(b) A claim containing the address of the claimant and an itemized statement of the relief sought is presented to the appropriate clerk or person who performs the duties of a clerk or secretary for the defendant fire company, corporation, subdivision or agency and the claim is disallowed.
We discuss exceptions to this general rule in Part III.B.2.
[10] A claim may be disallowed in
two ways. First, the governmental entity
may serve a written notice of disallowance on the claimant.
[11] The prayer for relief
contained in E-Z's complaint requests only (1) a declaratory judgment that the
agreement is in violation of Wis. Stat. § 133.03(1), and (2) damages,
attorneys fees, and costs pursuant to Wis. Stat. § 133.18. E-Z made no request for an injunction under
Wis. Stat. § 133.16. The circuit
court clarified this at the summary judgment hearing:
[Counsel for E-Z]: . . . We're asking, Your Honor, for injunctive relief so this method of operation stops and stops immediately.
[The Court]: See, I didn't read your complaint as asking for injunctive relief, but perhaps I missed that.
[Counsel for E-Z]: Let me find it. Well, maybe it would be better stated as to——as to declaratory relief, that is declaring the contract by illegal I think is the way I phrased it in my complaint.
[12] "Declaratory
relief" is "a binding adjudication that establishes the rights and
other legal relations of the parties without providing for or ordering
enforcement." Black's Law
Dictionary 846 (7th ed. 1999). In
contrast, "injunctive relief" entitles a party to "a court order
commanding or preventing an action,"
[13] Wisconsin Stat.
§ 133.18(1)(b) states that "[n]o damages, interest on damages, costs
or attorney fees may be recovered under this chapter from any local
governmental unit or against any official or employee of a local governmental
unit who acted in an official capacity."
Subsection (1)(b) is seemingly in tension with § 133.18(6), which
caps the amount of monetary damages a plaintiff may recover in a suit against a
governmental entity. The circuit court,
relying on subsection (1)(b), struck E-Z's request for treble damages, costs,
and attorney fees under § 133.18(1)(a).
However, the circuit court expressly reserved the question of whether
the language of subsection (1)(b) "precludes recovery of any
monetary damages against [
[14] The court of appeals also
relied on Nesbitt in holding that Wis. Stat. § 133.18 actions
constituted a specific statutory scheme.
Nesbitt Farms, LLC v. City of
[15] The "continuing
violation doctrine" holds that "each time a plaintiff is injured by
an act of the defendants a cause of action accrues to him to recover the
damages caused by that act and that, as to those damages, the statute of
limitations runs from the commission of the act." Zenith Radio Corp. v. Hazeltine Research,
Inc., 401
[16] Wisconsin Stat. § 893.80(1)(a) provides that a claimant must give notice "[w]ithin 120 days after the happening of the event giving rise to the claim . . . ." (Emphasis added.) We recognize that the general rule under Wis. Stat. § 990.001(1) is that we are to interpret the singular word "event" to include the plural "events" unless this "would produce a result inconsistent with the manifest intent of the legislature." The manifest intent of the legislature in Wis. Stat. § 893.80 is not to expose governmental entities to potentially infinite periods of liability. We therefore conclude that the general rule in § 990.001(1) is inapplicable in the instant case.
[17] "We attempt, whenever
possible, to give reasonable effect to every word in a statute, avoiding both
surplusage and absurd or unreasonable results." Hocking v. City of Dodgeville,
2010 WI 59, ¶18, 326
[18] All subsequent references to the Wisconsin Statutes are to the 2009-10 version unless otherwise indicated. (The 2005-06 are applicable to the notice question presented; however, the 2009-10 statutes referenced herein are the same as the 2005-06 version of § 893.80(1) in all relevant parts.)
[19] E-Z went out of business in May, 2008.
[20] Compl., ¶3.
[21] Compl., ¶¶3,4,6,7.
[22] None of these listed exceptions apply here.
[23] In concluding that ch.
133 contains a specific statutory scheme, the court of appeals relied on Gillen v. City of Neenah, 219
Furthermore, by considering only a single statutory section, specifically Wis. Stat. § 133.18, rather than the entire statutory scheme set out in ch. 133 that proscribes anticompetitive conduct, the majority's focus is too narrow. For example, a Wis. Stat. § 133.03(1) claimant could seek both damages under § 133.18 and a temporary and/or permanent injunction under Wis. Stat. § 133.16. Under the majority's reasoning, would that ch. 133 claim be an exception to the notice of claim provisions of Wis. Stat. § 893.80(1) given our decision in Gillen?
[24] The majority concludes that it does not need to determine what "event" gave rise to the obligation to give notice, and consequently when the cause of action began to accrue. The majority so concludes because even if it accepted E-Z's argument that the cause of action did not accrue until it learned of the agreement in February, 2004, more than 120 days passed between when the cause accrued and E-Z's filing of the notice of claim in September 2005. Majority op., ¶43.
[25] Although