2002 WI 106

NOTICE


 

 

 

 

 

No.     99-2306


This opinion is subject to further editing and modification.  The final version will appear in the bound volume of the official reports.

 


(L.C. No.        96 CV 00436, 96 CV 00438, 96 CV 00602, 96 CV 00605, 96 CV 00607)

 

STATE OF WISCONSIN                                                :                          IN SUPREME COURT

 

 

ABKA Limited Partnership, an Illinois limited partnership,

Petitioner-Appellant-Petitioner,

The Abbey Harbor Condominium Association,

Ltd., a Wisconsin nonprofit corporation,

 

Petitioner-Co-Appellant­ Petitioner,

 

v.

 

Wisconsin Department of Natural

Resources,                                                                                                               FILED

 

Respondent-Respondent­

Petitioner,                                                                               JUL 16, 2002

 


Geneva Lake Conservancy, Inc., and Oneida

County,


Cornelia G.Clark

Clerk of Supreme Court


 

Respondents-Respondents.

 

 

 

Wisconsin Realtors Association, Inc.,

Petitioner-Appellant-Petitioner,

v.

 

Wisconsin Department of Natural

Resources,

 

Respondent-Respondent­ Petitioner.


 

ABKA Limited Partnership, an Illinois limited partnership,

Petitioner-Appellant-Petitioner,

The Abbey Harbor Condominium Association,

Ltd., a Wisconsin nonprofit corporation,

 

Petitioner-Co-Appellant­ Petitioner,

 

v.

 

Wisconsin Department of Natural

Resources,

 

Respondent-Respondent­ Petitioner.

 

 

 

Wisconsin Association of Lakes, Inc.,

Petitioner-Appellant,

v.

 

Wisconsin Department of Natural

Resources,

 

Respondent-Respondent­ Petitioner.

 

 

 

Wisconsin Realtors Association, Inc.,

Petitioner-Appellant-Petitioner,

v.

 

Wisconsin Department of Natural

Resources,

 

Respondent-Respondent­ Petitioner.


 

 

 

 

REVIEW of a decision of the Court of Appeals.  Affirmed.

 

 

 

¶1   ANN WALSH BRADLEY, J.  This case comes before us upon three petitions for review of a court of appeals decision reversing the circuit court order that affirmed an administrative law judge (ALJ) decision allowing ABKA Limited Partnership to proceed with a "dockominium" project.1 The court of appeals concluded that the conversion of a marina to a dockominium form of ownership as proposed by ABKA and the Abbey Harbor Condominium Association violates the public trust doctrine because it transfers ownership of public waters to private individuals.

¶2  We agree with the court of appeals that the ALJ erred and that ABKA's conversion of its marina to a condominium form  of ownership violated the public trust doctrine.  However, we determine that the reason ABKA violated the public trust doctrine was because it attempted to convey condominium property contrary to  Wis. Stat. § 30.133  (1995-96),2  which  prohibits

 

 

 

 

 

 

1 See ABKA Ltd. P'ship v. DNR, 2001 WI App 223, 247 Wis. 2d

793, 635 N.W.2d 168 (reversing  an order of  the  Circuit Court for 

Walworth County, Michael S. Gibbs, Judge). The court of appeals defined "dockominium" as a "dockside community of privately owned boats moored in slips that are purchased for year-round living" or "[a] slip in such a community." Id. ¶44.

 

2 Wisconsin Stat. §  30.133 provides:


 

 

 

certain transfers of riparian rights.  Accordingly, albeit  with  a different rationale, we affirm the court of appeals.

I

¶3  Development of the Abbey Harbor marina began in 1962 after a permit was granted for the dredging of uplands and dry marsh abutting Lake Geneva.  Specifically, the permit was "to construct an enlargement of Geneva Lake as described herein, subject to the condition that the artificial waterway so constructed shall be a public waterway." The permit also stated that "a marina and boat-storage will be developed in the constructed waterway."

¶4    ABKA purchased the marina          in 1973.   Over time,                               and

 

after additional permits, the marina came to include 407 boat slips.  These permits provided:  "The Department may change or revoke this permit if the project . . . becomes detrimental to the public interest." Until 1995, the slips were rented to the public on a seasonal basis.

5  In 1995, ABKA filed a condominium declaration in order to convert the  marina into  the condominium form of ownership

 

Prohibition  against conveyance of riparian rights. (1) Beginning on April 9, 1994, no owner of riparian land that abuts a navigable water may convey, by easement or by a similar conveyance, any riparian right in the land to another person, except for the right to cross the land in order to have access to the navigable water. This right to cross the land may not include the right to place any structure or material in the navigable water.

 

All subsequent references to the Wisconsin Statutes are to the 1995-96 version unless otherwise indicated.


 

 

 

under Wis. Stat. ch. 703.   The declaration provided for the creation of 407 units, with a unit defined as a four-by-five-by­ six- inch "lock box" to be located in the Harbor House.   The configuration was similar to a set of small post-office boxes. The unit definition in the declaration also provided that each unit would include "as an appurtenance, standard riparian rights of owners of waterfront real estate under Wisconsin Law, and the use  of  an  assigned  boat  slip  corresponding  to  the  unit designation as a part of the common elements of THE ABBEY HARBOR CONDOMINIUM."

     ¶6    ABKA and the Department      of   Natural   Resources   (DNR)

 

agreed that ABKA would apply to the DNR for a permit authorizing the conversion of the marina into condominium property.  The DNR received an objection to the permit application, alleging that the  project  violated  Wis. Stat. ch.  30,  the  public  trust doctrine, and the Wisconsin Constitution.   Thus, a contested

case hearing was held before an ALJ, pursuant to Wis. Stat. ch.

 


227.

¶7   In addition to ABKA and the DNR, a number of other


 

entities and persons were made parties to the proceedings, including the Wisconsin Realtors Association, Inc., and the Wisconsin  Association  of  Lakes  (WAL).    The  Condominium Association became a co-applicant.

¶8    ABKA maintained that the DNR had no jurisdiction to regulate the conversion of its existing boat slips to a condominium form of ownership.  The ALJ disagreed.  Referring to the language in previous permits, the ALJ determined that "the


 

 

 

DNR has jurisdiction over this matter given the plain language in the permits ('The Department may change or revoke this permit if the project obstructs navigation or becomes detrimental to the  public  interest.'[])."  Also,  relying  on  the  DNR's regulatory authority pursuant to ch. 30, the ALJ determined that if all 407 boat slips were converted to private "dockominiums," the marina would exceed its reasonable use of the riparian frontage.   In addition, the ALJ determined that the blanket approval of such a conversion would be detrimental to the public interest within the meaning of Wis. Stat. § 30.12.3 Accordingly, the ALJ granted a permit, but required that 287 of the slips remain as rentals.  In reaching its decision, the ALJ observed,

"[t]o some degree the dockominium concept involves a legal fiction:  that ABKA is selling the lock-box condominium units, rather than the pier slips, for nearly $50,000."

¶9   The circuit court affirmed the ALJ, but the court of

 

appeals reversed.  The court of appeals did not address the question of DNR jurisdiction because it determined that ABKA had waived the right to challenge jurisdiction by agreeing to apply for a permit.  In addressing the merits of the case, the court

 

3 Wisconsin Stat. § 30.12(2) provides in part:

 

PERMITS TO PLACE STRUCTURES OR DEPOSITS IN NAVIGABLE WATERS; GENERALLY. The department, upon application and after proceeding in accordance with s.

30.02(3) and (4), may grant to any riparian owner a permit to build or maintain for the owner's use a structure otherwise prohibited under sub. (1), if the structure . . . is not  detrimental  to  the  public interest.


 

 

 

of appeals concluded that by permitting the conversion of the marina to private dockominiums as ABKA proposed, the DNR allowed control  over  navigable  waters  to  be  vested  in  private individuals in violation of the public trust doctrine.

¶10   The DNR,  ABKA  and  the Condominium Association jointly

 

(hereinafter  "ABKA"),  and  the  Realtors  Association  all petitioned this court for review.  Several entities filed briefs as amici curiae.

II

 

¶11 Chapter  30  embodies  a  system  of  regulation  of Wisconsin's navigable waters pursuant to the public trust doctrine.  Gillen v. City of Neenah, 219 Wis. 2d 806, 828, 580

N.W.2d 628 (1998); Waukesha County v. Seitz, 140 Wis. 2d 111,

 

409 N.W.2d 403  (Ct. App. 1987).   Although the public trust doctrine originally existed to protect commercial navigation, it has been expansively interpreted to safeguard the public's use of navigable waters for other purposes.  R.W. Docks & Slips v.

State, 2001 WI 73, 19, 244 Wis. 2d 497, 628 N.W.2d 781.4

 

¶12 Regulation and enforcement of this public trust rests with both the legislature and the DNR.  Borsellino v. DNR, 2000

WI App 27, 17, 232 Wis. 2d 430, 606 N.W.2d 255 (Ct. App. 1999).

 

The legislature has delegated to the DNR broad authority to regulate under the public trust doctrine and to administer ch.

 

 

 

4 For a detailed discussion of the evolution of the public trust doctrine, see Muench v. PSC, 261 Wis. 492, 53 N.W.2d 514 (1952).


 

 

 

30.   See State v. Town of Linn, 205 Wis. 2d 426, 443-44, 556

 

N.W.2d 394 (Ct. App. 1996).

 

¶13 Section 30.133, as a provision in ch. 30, is included in the public trust doctrine and forms part of the basis for the DNR's jurisdiction over ABKA's proposed condominium project.  It provides:

Prohibition  against  conveyance  of   riparian rights. (1) Beginning on April 9, 1994, no owner of riparian land that abuts a navigable water may convey, by easement or by a similar conveyance, any riparian right in the land to another person, except for the right to cross the land in order to have access to, the navigable water.  This right to cross the land may not include the right to place any structure or material in the navigable water.

 

¶14 In addition to making other assertions, ABKA renews its jurisdictional arguments in this court, contending that neither § 30.133 nor any other part of the public trust doctrine as embodied in ch. 30 confers jurisdiction on the DNR to regulate the change in ownership of its marina.  Similarly, the Realtors Association contends that the DNR does not have jurisdiction to "reopen" a valid permit under the public trust doctrine based only on a change in ownership.

¶15 Accordingly, this case presents a preliminary issue of the DNR's jurisdiction to regulate ABKA's conversion of its marina to a condominium form of ownership.  Whether the DNR has jurisdiction to regulate is a question of law subject to independent appellate review.  Rusk County Citizen Action Group, Inc. v. DNR, 203 Wis. 2d 1, 6, 552 N.W.2d 110 (Ct. App. 1996). We determine that the DNR has jurisdiction.


 

 

 

¶16    Contrary to what ABKA and the Realtors Association assert, this case is not about whether the DNR had authority to "reopen" a permit or whether ABKA had to seek a permit.  These assertions ignore the DNR's statutory authority to enforce the public trust doctrine, the reality of the regulation process, and the facts of this case.

¶17   Pursuant to Wis. Stat. § 30.03(4), the DNR may bring an enforcement action when it learns of a "possible  violation" of the public trust doctrine.   Specifically, § 30.03(4) provides:

(a) If the department learns of a possible violation of the statutes relating to navigable waters or a possible infringement of the public rights relating to navigable waters, and the department determines that the public interest may not be adequately served by imposition of a penalty or forfeiture, the department may proceed as provided in this paragraph, either in lieu of or in addition to any other relief provided by law.  The department may order a hearing under ch. 227 concerning the possible violation or infringement, and may request the hearing examiner to issue an order directing the responsible parties to perform or refrain from performing acts in order to fully protect the interests of the public in the navigable waters.

 

¶18   Thus, to summarize the import of this statute for our purposes here:   it provides that if the DNR "learns of a possible  violation of the statutes relating to navigable waters," it may pursue an enforcement action  "either in lieu of or in addition to any other relief provided by law."  The DNR may then request the ALJ to issue an order directing the responsible parties to "perform or refrain from performing acts."   Essentially, under § 30.03(4), the DNR has jurisdiction


 

 

 

to pursue any "possible violation" of the public trust doctrine as embodied in ch. 30, and it may request broad injunctive-type relief.

¶19    There were several possible violations of the public

 

trust doctrine, as is apparent from the issues addressed in the ALJ's decision.   ABKA's dockominium project may have been exceeding its reasonable use of the State's navigable waters, may have been  detrimental to the public interest as that concept is used in ch. 30, or, as illustrated by the arguments before the ALJ, may have run afoul of § 30.133.  In addition, as the ALJ determined, two of the permits that ABKA held specifically recognized DNR's jurisdiction to change or revoke the permit "if the project . . . becomes detrimental to the public interest."

¶20    The  DNR  explains  in  its  brief  that  despite its

 

authority under  § 30.03(4), in reality it often will agree with a party to proceed under the permit process:   "Encouraging persons to proceed with the disputed activities and await enforcement actions risks  inviting damage that cannot be undone by after-the-fact remedies."

¶21    This apparently is what happened in this case.   After

 

the DNR received information about ABKA's dockominium project, counsel for the DNR sent a letter to counsel for ABKA, the key portions of which were as follows:

As you know, the Department received information last week that boat slips at the Abbey Harbor adjacent to Lake Geneva were being sold as "condominiums." I discussed this with you on November 30, 1994, and indicated that if "condominium units" were defined in such a way that  they included  public  navigable waters

 

10


 

 

this would be a violation of the public trust doctrine and would be of concern to the Department.

 

. . . I advised you by phone message on December 5,

1994,that the Purchase Agreement did not address our

concerns about the definition of the condominium units

that I had previously discussed with you and asked

that  you  provide  to us the  "condominium plat and

condominium declaration."

 

     You supplied the Abby harbor Condominium Declaration . . . . Upon review of these materials,  it is clear there are significant problems with this condominium declaration since it includes, as part of the condominium units for which purchasers are purported    to be given fee simple title and control, portions of the public navigable waters of the State of Wisconsin.

 

 

     . . . .

 

We have referred this matter to the Attorney General's office and . . . [t]heir initial reaction to these documents is consistent with our interpretation. The State of Wisconsin will, if necessary, initiate action to stop the purported sale of public trust waters to private individuals and to have any transactions which may have already occurred invalidated.

 

The Department will also be reviewing the permits which have been issued for the marina structures in this area.  There are questions raised by these transactions and proposed transactions relative to who are "riparian owners or proprietors" who can continue to maintain pier structures in this marina area.

 

(Emphasis added.)

 

¶22 Pursuant to the DNR's request, ABKA made changes in its condominium declaration.  Relying on the DNR's approval of the declaration, ABKA continued with its project and agreed to proceed with the permit process.  However, the agreement with the  DNR provided:   "Nothing in this agreement limits the

 

 

11


 

 

authority  of the administrative law judge to hear and decide this  matter on any legal basis presented at the hearing or by any party or raised sua sponte by the administrative law judge." 

¶23  In the ensuing contested case hearing held according to  ch. 227, the DNR did not take the position that ABKA’s dockominium project violated §30.133, but intervening parties did.  The ALJ resolved the case by determining that ABKA had exceeded its  reasonable use of the water and that its dockominium project was detrimental to the public interest.  However, consistent with the possible bases for a violation of the public trust doctrine, the ALJ recognized that one of the issues was "whether the Condominium Declaration violates sec. 30.133, Stats."   

¶24  What ABKA's and the Realtors Association's arguments fail to recognize is that for the purposes of our determination of DNR jurisdiction,  it is of no consequence that ABKA proceeded with the permit process under § 30.12 or that the ALJ chose to base its decision on one ground or another.  The DNR's jurisdiction was triggered under § 30.03(4) because ABKA's conversion of its marina to a condominium form of ownership presented several possible violations of the public trust doctrine. 5 

 

 

5 The dissent, like ABKA and the Realtors Association, misunderstands the jurisdictional question, and therefore mischaracterizes the jurisdictional issue as solely one of "jurisdiction to require a new permit."  Dissent at 91.  The question is  not solely whether the DNR has jurisdiction to require a new permit,  but whether its authority was triggered by a possible violation of the public trust doctrine.


 

 

 

¶25 The court of appeals, in contrast, concluded that ABKA waived its right to challenge the DNR's jurisdiction by the act of applying for a permit.  We turn briefly to discuss the waiver issue.

¶26  None of the parties, including the DNR, supports the

 

court of appeals decision on waiver.  We agree with the parties that the court of appeals decision as to waiver was incorrect. "The jurisdiction of administrative agencies is always open for judicial review."  Kennedy v. DHSS, 199 Wis. 2d 442, 448, 544

N.W.2d 917 (Ct. App. 1996) (citing Union Indem. Co. v. Railroad

 

Comm'n, 187 Wis. 528, 538, 205 N.W. 492 (1925)).

 

¶27       The   only case the    court        of      appeals     cited      for its

 


waiver   rule   was   Sterlingworth   Condo.   Ass' n

 

Wis. 2d 710, 556 N.W.2d 791   (Ct. App.   1996).


v. DNR,

 

However,


205

 

the


 

portion of Sterlingworth the court of appeals cited stands only for the proposition that by electing to continue with a permit hearing rather than risking an enforcement action, the applicant accepts the burden of proof as to whether what the applicant seeks is detrimental to the public interest.  205 Wis. 2d at

726-27.  Nothing in Sterlingworth should be read for a rule that a party is unable to retain the right to challenge DNR jurisdiction upon filing of a permit application.

III

 

¶28 Having determined that the DNR had jurisdiction, we turn to the merits of this case.  Both the ALJ and the court of appeals majority discussed ABKA's condominium units as a "legal fiction."  In the ALJ's decision, 29 of the 92 findings of fact


 

 

 

addressed the condominium form of ownership and the rights of condominium owners as set forth in the condominium declaration. The ALJ concluded, however, that the condominium declaration was not a violation of § 30.133.

¶29 The central  issue we  address  is whether  the ALJ correctly concluded that ABKA's attempt to convey condominium property did not violate § 30.133. In addressing this issue, we must  interpret  and  apply  ch. 703,  Wisconsin's  condominium statute,  as  well  as  § 30.133.   The interpretation  and application of statutes is a question of law for this court's independent determination.  Auman v. School Dist. of Stanley­ Boyd, 2001 WI 125, 6, 248 Wis. 2d 548, 635 N.W.2d 762.

¶30 Our review of an agency decision is the same as the circuit court's.  Boynton Cab Co. v. DILHR, 96 Wis. 2d 396, 405,

291 N.W.2d  850  (1980).   We are not bound by  an agency's conclusions of law.  UFE Inc. v. LIRC, 201 Wis. 2d 274, 285, 548

N.W.2d 57 (1996). To the contrary, "(t]he court shall set aside or modify the agency action if it finds that the agency has erroneously     interpreted     a     provision     of     law." Wis. Stat. § 227.57(5).  Although we give due weight or great weight deference to agency conclusions of law when appropriate, here the interpretation of § 30.133 presents a question that is "clearly  one  of  first  impression"  and  thus  warrants  no deference. UFE, 201 Wis. 2d at 285.

¶31 In resolving the issue before us, we rely on several statutes in ch. 703, but principally the statute that defines a condominium "unit," Wis. Stat. § 703.02(15). Our interpretation


 

 

 

of the Wisconsin condominium statutes is aided by a comparison to the Uniform Acts, which Wisconsin has not adopted.  Applying these statutes and § 30.133 to ABKA's dockominium project, we conclude    that  the  ALJ  erred  in  approving  the  attempted conversion        because the project was a conveyance of riparian

rights in violation of § 30.133.

 

 

 

A.

 

¶32 A   "condominium" is defined as "property subject to a

 

condominium  declaration  established  under  this  chapter." Wis. Stat. § 703.02(4).  The declaration is "the instrument by which a property becomes subject to this chapter."§ 703.02(8).

¶33 The basic  types   of    ownership   interests  in   a

 

condominium consist of the "unit" and the "common elements." The "unit" is:

a part of a condominium intended for any type of independent use, including one or more cubicles of air at one or more levels of space or one or more rooms or enclosed spaces located on one or more floors  (or parts thereof) in a building.

 

§ 703.02(15).6 Common elements are "all of a condominium except its units." § 703.02(2).  A common element is a "limited common element" if  it  is  "identified in  a  declaration or  on  a condominium plat as reserved for the exclusive use of one or more but less than all of the unit owners." § 703.02(10).  A

 

 

 

 

6 "A unit   may   include 2   or   more   noncontiguous areas." Wis. Stat. § 703.02(15).


 

 

 

unit,   together  with  its  undivided   interest  in   the  common elements, constitutes real property.   Wis. Stat. § 703.04.

¶34 ABKA's declaration language as approved by the DNR defines a unit as a lock box that includes, as an appurtenance, riparian rights and the use of a boat slip. The "unit" is:

that separate area of· the condominium intended for independent, private use, comprised of a cubicle of space defined by a "Lock Box" located within the Harbor House as shown in the Condominium Plat . . . .

The dimensions of each unit shall be approximately four (4) inches in width, five (5) inches in height, and six (6) inches in length. Each unit shall include as an appurtenance, standard riparian rights of owners of waterfront real estate under Wisconsin Law, and the use of an assigned boat slip corresponding to the unit designation as a part of the common elements of THE ABBEY HARBOR CONDOMINIUM.

 

¶35 The declaration lists the common elements as:

 

all of THE ABBEY HARBOR CONDOMINIUM, real property, and real property interests, improvements and appurtenances as described in this Declaration, except the individual units . . . and shall include . . . the marina shoreline, sea wall and sidewalk along said shoreline . . . all  docks,  boardwalks,  piers  and pilings contained within the marina . . . the Harbor House,  outdoor  swimming  pool,  boat   launching ramp . . . and any and all other parts or elements of the condominium Property as described in this Declaration . . . .

 

The   section of  the declaration describing which elements are limited common elements includes the following provision:

Boat Slips. Each unit owner, as a limited common element appurtenant exclusively to his unit, shall have riparian rights to use of the space beside the pier or piers corresponding to his unit number as shown in the Condominium Plat, for use as a boat slip.


 

 

 

¶36 Examining the condominium statutes in light of ABKA's dockominiums,  we begin with the statutory definition of unit. As previously noted, the statutory definition of unit states that it is a "part of a condominium intended for any type of independent use, including one or more cubicles of air at one or more levels of space or one or more rooms or enclosed spaces located on one or more floors (or parts thereof)  in  a  building."

§ 703.02(15). Our focus is on the language  providing  that the

 

unit must be "intended for any type of independent use."

 

¶37 The   requirement in   § 703.02(15) that the  unit  be

 

"intended for any type of independent  use" must  be read with

 

Wis. Stat. §§ 703.05 and 703.09(1).  Section 703.05 states:

 


Ownership of units. the exclusive ownership unit.

 

Section 703.09(1) provides:


A unit owner is entitled to and possession of his or her


 

(1) A condominium declaration shall contain:

 

 

. . . .

 


(g) Statement of building and each of restricted as to use.


the  purposes  for  which  the the units     are  intended  and


 

Reading these statutes together, we derive a number of rules and principles.

¶38 First, the  types  of  uses for which condominiums may be

 

created are potentially broad, provided that the condominium otherwise complies with the other statutory requirements.  For example, the condominium form of ownership apparently has been applied to aircraft hangars as well as grain storage bins. 

 

Wisconsin Condominium Law Handbook §§ 12.22A and 12.22B, Supp. 12-2 (1997).

¶39  Second, despite the potential breadth of the statute, its application is limited by statutory language that the condominium unit be "intended for . . . independent use."  The reference to "independent use" does not operate only to describe the exclusive ownership interest in the unit.  If  that were so,  § 703.05 would be unnecessary.   Likewise, § 703.05  shows that the legislature used the term "exclusive," not "independent," to refer to an owner’s  separate ownership interest.  Accordingly, the phrase "independent use" refers to something more than the concept of exclusive ownership.

¶40  Third, the  purpose  for  which  the units are intended must be stated in the declaration.  That each unit must have a stated purpose also reinforces the conclusion that "independent use" in § 703.02(15) refers to something more than exclusive ownership of the unit.

¶41  Any condominium in Wisconsin must comply with these rules and principles.  In addition, it is axiomatic that the use for which units are intended along with their purpose as state in the declaration must comply with other applicable law.

¶42  Our interpretation  of  the  statutory  definition of "unit" and its application to this case is also aided by a comparison to the Uniform Condominium Act and its variant, the Uniform Common Interest Ownership Act.  The Uniform Acts have not been adopted in Wisconsin.

 

 

 

 

¶43  The Uniform Condominium Act provides that a "unit" is a "physical portion of the condominium designated for separate ownership or occupancy."  7 U.L.A. Part II, § 1-103(25), p. 217 (Master ed. 1997).  Similarly, the Uniform common Interest Ownership Act defines a "unit" as a "physical portion of the common interest community designated for separate ownership or occupancy." 7 U.L.A. Part I, § 1-103 (31), p. 482.

¶44  More   important for our purposes, these definitions  of unit define "condominium" and "common  interest  community"   as "real estate,"  which under the Uniform Acts is  "any leasehold or other estate or interest in, over, or under  land,"   and includes "parcels  with or without upper or lower boundaries, and spaces that may be filled  with air  or water."  7 U.L.A. Part II, § 1-103(7) and (21), p. 215-16;  7 U.L.A.  Part I,  § 1-103(7) and (26), pp. 479, 481 (emphasis added).  Thus,  under the Acts, a unit may be any physical portion of any interest in, over, or under land, including spaces filled with air or water.

¶45  Wisconsin’s definition  of  unit makes the unit a part of the condominium "property," which is defined in ch. 703 as "unimproved land, land together with improvements on it or improvements without the underlying land."   § 703.02(14). Thus, in addition to providing a qualitatively different definition of the type of property that may become a unit, Wisconsin’s condominium statutes are without reference to water or interests in it, unlike the Uniform Acts.

¶46  Wisconsin’s condominium statutes were enacted in 1963 and   modeled    after  the   Federal   Housing  Authority  Model  

 


 

 

Condominium  Statute of 1961.   Wisconsin Condominium Law Handbook at § 1.4, p. 1-5.  This model statute was designed primarily for high-rise developments. Id.

¶47  In 1977, the condominium statutes were replaced to provide more flexibility in the development, creation, and operation of condominiums.  Wisconsin Condominium Law Handbook at § 1.4, p. 1-5;  see also ch. 407, Laws of 1977.  Nonetheless, the key language in the definition of "unit" remained unchanged. See Wis. Stat. § 703.02(1) (1975).7   The statute has always required that the unit be intended for "independent use."

¶48  In short, Wisconsin's definition of unit, particularly when juxtaposed with the Uniform Acts, reveals no legislative intent to permit a boat slip to be conveyed as a condominium unit.  Considering this, and applying the rules and principles from the condominium statutes, we determine that four-by-five- by-six inch lock boxes are not "intended for any type of independent use" within the meaning of § 703.02(15).   Rather,

 

 

 

 

7 The definition formerly read in full:

 

"Unit" means a part of the property subject to this chapter intended for any type of independent use, including one or more cubicles of air at one or more levels of space, or one or more rooms or enclosed spaces located on one or more floors (or parts thereof) in a building, and with a direct exit to a public street or highway or to a common area or limited common area leading to such a street or highway.

 

Wis. Stat. § 703.02(1) (1975).


 

 

 

they are phantom units that do    not meet with the statutory  definition.

¶49  In  contrast  to  the lock boxes, ABKA's  boat    slips clearly are intended for a  type of  independent use:   docking a boat.  However, the slips  are   not   the   units   under  ABKA's declaration.  They are  limited  common  elements.   Under ABKA's declaration, the four-by-five-by-six inch  lock  boxes are  the units.8 Although the lock boxes  may   be  intended for  exclusive ownership  and possession by the unit owner, that  does  not  mean they are "intended for  any type of independent use"  within  the meaning of  the  statute.

¶50  That the lock boxes  are  not intended for  any type  of independent use is illustrated by  the fact  that  the declaration lacks  a  statement describing the purpose  or  use  of  the units apart  from their  appurtenant boat  slip.  The declaration states that  the  "units  and their appurtenant boat slips in  THE  ABBEY HARBOR CONDOMINIUM are  designated for  either  recreational  uses and  purposes or commercial uses and  purposes, as  set  forth  in Section 10 herein."  Section 10  provides:  "The   Condominium units  and appurtenances in  THE  ABBEY  HARBOR CONDOMINIUM are intended  for and restricted  to  marina, storage,  boat slip  and related  recreational  uses  as   governed  by   the  terms   and

conditions contained herein and the By-Laws of  the Association."

 

 

 

8 A photograph of the lock boxes is attached at the end of this opinion.   


 

 

 

¶51 It is a sham to suggest that these four-by-five-by-six inch lock boxes are being conveyed for such independent uses as stated in the declaration.  They exist for the purpose of conveying the common elements and appurtenant riparian rights. A unit cannot serve primarily as a conduit for another use.

¶52  Any assertion  that  the  four-by-five-by-six  inch cubicles are intended for any type of independent use is belied by ABKA's marketing materials for the dockominiums.  Marketing materials used by ABKA do not feature or even describe the lock boxes.   Rather, they refer to "slip ownership" and include a brochure promoting "a place on the lake . . . to call your own . . . ." The brochure prominently features a definition of "dockominium" as "individual ownership of the right to use the waterway bordered by a pier and catwalks held in joint dominion (as in a marina)."

¶53  We agree with the ALJ's finding:

 

Unlike  other  condominium units,  the  lock box itself does not inherently have much value.  The value of the "dockominiums," as the Abbey has marketed these unique condominium units, is largely due to the other amenities that are at this location and are part of the individual common area.

 

(Citations omitted.) The court of appeals majority also agreed. It concluded that "unlike most condominium units, the lock-box itself has no inherent value; rather, the appurtenant rights attached to the conveyance are the valuable commodity."  ABKA Ltd. P'ship v. DNR, 2001 WI App 223, 43, 247 Wis. 2d 793, 635

N.W.2d 168.


 

 

 

¶54  As WAL notes, ABKA at one time platted the boat slips themselves as the "units" for its condominium project.   This fact also persuades us that the lock boxes are not intended for any type of independent use by the owner.

¶55 In short, ABKA's condominium declaration as approved by the DNR fails to create valid units under § 703.02(15) because  the  units  defined  in  ABKA's  declaration  have  no independent use.  Because there are no valid units, there is not

a valid condominium conveyance of real property.

 

 

 

B.

 

¶56  Without  a   valid  condominium unit,   the   transfer of

 

riparian rights that ABKA's declaration purports to accomplish is in violation of § 30.133,which provides that "no owner of riparian land that abuts a navigable water may convey, by easement or by a similar conveyance, any riparian right in the land to another person, except for the right to cross the land in order to have access to the navigable water."  In analyzing why the transfer that ABKA has attempted violates § 30.133, some additional background on riparian rights law is necessary.

¶57  Riparian  owners are  those who  have  title to the ownership of land on the bank of a body of water.  Ellingsworth v. Swiggum, 195 Wis. 2d 142, 148, 536 N.W.2d 112 (Ct. App.

1995).  A riparian owner is accorded certain rights based upon

 

title to the ownership of shorefront property.  Sea View Estates Beach Club, Inc. v. DNR, 223 Wis. 2d 138, 157, 588 N.W.2d 667 (1998).  These rights are well defined and, though subject to


 

 

 

regulation, include the right to use the shoreline and have access to the waters, the right to reasonable use of the waters for domestic, agricultural and recreational purposes, and the right to construct a pier or similar structure in aid of navigation. See id.  A riparian owner is entitled to exclusive possession  to the extent necessary to reach navigable water and to have reasonable access for bathing and swimming. Id.

¶58 One water rights treatise explains, "every state has accepted at least some form of transferring riparian rights apart from the land that gave rise to the rights.  Water and Water Rights § 7.04,  p. 7-91 (Robert E.  Beck, ed. 2001). However, "most  courts have not accepted the full transferability of riparian rights."   Id. at 7-92.   Instead, "courts have evolved complex rules that vary from state to state to define the extent to which riparian rights might be transferred and to protect the interests of those who will be affected by the transfer even though not direct parties to the transfer." Id.

¶59  With that background on riparian rights law in mind, we turn to § 30.133 and the proper application of its language prohibiting the transfer of riparian rights "by easement or by a similar conveyance."  We begin by noting that riparian rights have been characterized to be, in some senses, like an easement:

Under common law in most states, the riparian rights are an interest in real estate, somewhat like an easement, that is, the right to use land.  Unlike an easement, however, riparian rights in many states can be severed from the uplands to which they were originally appurtenant, and can be sold to others.


 

 

 

Gurdon H. Buck, Dockominium Documents, C833 ALI-ABA 261, 264 (1993).  The way that the quoted source distinguishes riparian rights from an easement goes to the heart of § 30.133.

¶60  Section   30.133  was   the   legislature's response  to

 

Stoesser v.  Shore Drive  P'ship,  172 Wis. 2d 660,  668, 494

 

N.W.2d 204 (1993), in which this court concluded that "Wisconsin follows the general rule that riparian rights can be conveyed to non-riparian owners by easement."  The legislature did not agree with  the court's  conclusion.   The  fiscal analysis  in the drafting file for the act that created § 30.133 notes that while the statute would have little or no fiscal effects, it had "significant policy implications."

¶61  Wisconsin's   approach    under    § 30.133  has    been

 

identified as unique:

 

Many  people  assume  that  one  can  convey  the riparian rights apart from the land just as readily as one could convey riparian land without the appurtenant riparian rights.        More and more states have now come to accept that such grants are effective to some extent, with the effect varying, depending on whether the rights sought to be conveyed relate to consumptive or nonconsumptive uses.  Wisconsin, on the other hand, has  now  expressly  prohibited  the  conveyance  of riparian rights, effective April 9, 1994.  Presumably this means apart from the conveyance of riparian land.

 

Water   and  Water  Rights  at  § 7.04(a)(3),  pp.  7-97    7-98 (footnotes omitted)

¶62 Nonetheless, ABKA asserts that § 30.133 does not apply because its dockominium owners own riparian property in common. Similarly, the Realtors Association asserts that § 30.133 has

 

 

nothing to do with the condominium form of ownership.  We disagree with both assertions.

¶63 ABKA's argument implicitly recognizes that § 30.133 prohibits the conveyance of riparian rights apart from riparian property.  It relies on the premise that the purchasers of its phantom units own riparian  property in common in asserting it has not violated § 30.133.  However the purchasers of ABKA's phantom units  do  not  own  riparian  property in common because there has been an incomplete condominium conveyance under the condominium statutes under § 703.04,9 it is the "unit, together with its undivided interest in the common elements" that constitutes "real property."  Without a valid unit, the unit "owners" do not hold real property, and the declaration is left to convey nothing more than riparian rights unattached to any real property interest. 

¶64  Without a valid unit, that is, a unit with an independent use, what is left is an attempt to convey riparian rights not by easement, but "by a similar conveyance" in violation of § 30.133.  Under § 30.133, riparian rights must be conveyed as attached to something; here, they are attached to nothing.  ABKA is attempting to convey riparian rights qua riparian rights.  Conveyances of property and  property rights are circumscribed by state statutes and regulations.

______________________

9 Wisconsin stat. § 703.04 provides in full:

   

    A unit, together with its undivided interest in the common elements, for all purposes constitutes real property.


 

¶65  Here, contrary to what ABKA and the Realtors Association asserts, ABKA's conveyance of riparian rights to dockominium owners is in violation of §  30.133.10   The ALJ made an erroneous determination of law when it concluded to the contrary. See § 227.57(5).

¶66 Under the Uniform Acts and some other states' statutes, such forms of dockominiums may be permissible.  For example, the Ohio condominium statutes include the following provision:

"Unit," in the case of a water slip, means a part of the condominium property consisting of the land under a portion of the water in a water slip . . . and designated as a unit in the declaration . . . . "

 

Ohio Rev. Code Ann. § 5311.01(I)(2) (2002).

 

¶67 Such is not the state of the law in Wisconsin.  Our condominium statutes, unlike the Uniform Acts or the Ohio statute, require an independent use.   Unlike other states, Wisconsin also has § 30.133, which greatly limits the transfer of riparian rights separate from the shoreland to which the rights attach.  If the law is to change, the legislature must act.  It is free to amend the condominium statutes or § 30.133, though as always, within constitutional limits.

 

10 In stating that our decision stands for the proposition that "a condominium is essentially the equivalent of an easement," the dissent paints with far too broad a brush. Dissent at 111.  We do not determine that a condominium is "essentially the equivalent of an easement."  Our holding is much  narrower:  an attempt to transfer riparian rights attached to invalid condominium units is an attempt to transfer riparian rights by a conveyance similar to an easement, and thus a violation of § 30.133.


 

 

 

¶68  We  note that residential condominium units that provide for  the use  of boat  slips  are readily distinguishable from ABKA's lock boxes.  Residential condominium units are intended for a type of independent use.  Their true purpose, living space for human beings, may readily and accurately be stated in a condominium declaration.  Such  units would comply with the statutory definition of "unit," would allow  for  a valid condominium conveyance, and would create common  interest ownership  in  riparian  property.  Therefore, residential   units that  provide  for  the  use of a boat slip would not contravene §  30.133.

IV

¶69  In sum, we determine that the DNR had jurisdiction over ABKA's conversion of its marina to a dondominium form of ownership.  We also determine that the ALJ erred in approving this attempted conversion because it was a conveyance of riparian rights in violation of §  30.133.  Accordingly, albeit on different gournds, we affirm the court of appeals.

By the Court.-The decision of the court of appeals is affirmed. 

¶70  JON P. WILCOX, J. did not participate.


 

 

 


 

 

¶71  WILLIAM A. BABLITCH, J.     (concurring).   First, it is important to note what this case is not about.  It is not as one commentator stated--see Ray Rivard, Who Will Guard the Guards?, Lakeland Times (Minocqua, Wisconsin), June 21, 2002, at 11-12-­ about whether private docks and piers belong to the state or the private owner.   This case involves the concept of multi-owners of  one dock or pier, known as dockominiums, and it does not touch upon  individual     docks    and piers   as     they  are generally known today.

¶72  Also,  it is  not about  allowing a non-property owner to

 

cross private property to access the water, as alleged by the same concerned commentator. This case does not touch upon the right of private property owners to keep whomever they want off their property.

¶73  What this case is  about is the  right of joint riparian

 

owners who are part of a condominium to place a dockominium, owned jointly by the owners on the public waters abutting their property.  Most significantly, and why I concur, it is about whether condominium owners have a riparian zone significantly smaller than could exist under any other form of real property ownership, and thereby have a right to construct and operate a dock or docks that no other private landowner would be allowed.

¶74  I join the majority opinion, notwithstanding my belief that the majority opinion does not go far enough.  I would prefer the holding of the court of appeals: dockominiums are a per se violation of the public trust doctrine.  Putting it another  way,  I would  hold that the conveyance of dockage rights


 

 


pursuant to a condominium agreement is a conveyance that is forbidden under Wis. Stat. §  30.133(1). I reach this conclusion for a simple reason:  allowing one riparian owner to divide the owner's riparian zone and separately convey legal interest in the resulting "lots" will have significant detrimental effect on the  public waters of this state.   This concept was well expressed in the brief of the Wisconsin Association of Lakes, Inc., which stated:  "No statute has ever expressly authorized a riparian owner to fractionalize the riparian zone. . . . Until this case arose, no court had ever considered whether a riparian has an implied right to do so. . . . Subdivision of the riparian zone is beyond the reasonable use rights of riparian owners."

¶75  The  dissent  misses  the  mark  when  it  asserts,  in

 

passing, that the only change here was a change in ownership. That is akin to the old saw: "Besides that Mrs. Lincoln, how did you enjoy the play?"   The change in ownership is critical because the change involves going from one owner with riparian rights to potentially 407 owners with riparian rights of ownership in the dock.  That is a fact that the dissent minimizes, but to me it is the most significant of all.

¶76  State law as well as local ordinances mandate minimum

 

lot widths on lakes, varying from 65 feet to 200 feet or more. This of course greatly limits the number of piers and docks allowable on the shoreline. The concept of allowing a riparian owner to fractionalize the owner's riparian rights subverts this policy. Again, as stated by the Wisconsin  Association  of  Lakes,

 

 

 

 

Inc., "excessive fragmentation of the riparian zone is detrimental to the public interest." 

    ¶77   It is  axiomatic that the public  water  of this  state

belong to the public.  The public is entitled to the full reasonable use and enjoyment of these waters, including the enjoyment that comes with the natural beauty of the waters.  One can easily imagine the damage to the aesthetic appeal of our public waters if this concept is allowed.  Most lakes in this state are far smaller than the 5,262 acres of Geneva Lake.  Imagine the damage to the aesthetic appeal of allowing a single property owner on a 250-acre lake the right to  condominiumize his or her 200 feet of frontage and then provide his or her riparian rights of dockage to the  resultant numerous owners.  The court avoided the fundamental issue this time,  but it will be back.

¶77  It is a very  slippery slope ABKA invites us to navigate.  I would respectfully refuse the invitation.


 

 

¶79  DIANE S. SYKES, J. (dissenting).   A majority of this court, like the majority in the court of appeals, has completely invalidated the Abbey Harbor Condominium Declaration.   The majority in the court of appeals did so by declaring the entire "dockominium" concept to be a per se violation of the public trust doctrine. The majority here does so because it considers the condominium units to be invalid under the condominium statute's definition of "unit" Wis. Stat. § 703.02(15), so that they are nothing more than "sham" conduits for the illegal conveyance of riparian rights "by easement or by a similar conveyance"  in violation of the public trust principles embodied in Wis. Stat. § 30.133.

¶80  Although it does not explicitly say so, by invalidating the condominium declaration, the majority extinguishes the real property rights of the 185 condominium owners who purchased "dockominiums" at the Abbey Harbor Marina. According to the majority opinion, those persons--heretofore condominium owners--have paid for, mortgaged, recorded title to, paid taxes on, insured, and (for the last six years) possessed and used, precisely nothing, because what they might otherwise have reasonably assumed was real property (because the statutes say so) was actually nothing more than a collection of "phantom units" unrecognized by the law (because a majority of this court now says so).

¶81  Incredibly, the majority obliterates the property rights of these condominium owners in the context of a Chapter

227   judicial  review  of  a    DNR  permit  proceeding  under


 

 

Wis. Stat. § 30.12—a proceeding which the DNR had no statutory jurisdiction or authority to convene in the first place (more about that later).  The majority has  therefore  not  confined  itself to merely affirming or reversing a regulation, restriction, or condition on   a real  property  owner's use  or improvement of his property, which is the usual business of land use regulatory agencies like the DNR, and which ordinarily defines the legitimate   boundaries of judicial review of an agency's actions. The majority has instead used this permit proceeding as a vehicle to invalidate the entire condominium declaration itself, and therefore has eliminated each condominium owner's  entire real property interest.

¶82  The  majority has adopted an analysis that will in

large  part  be unrecognizable to the participants in this proceeding. Certainly the court has the discretion to  decide a case on grounds not advanced by the parties, but it should generally do so only when the law clearly requires it, which is hardly the case here.  In any event, doing so in this  case  is simply not credible.

¶83  The DNR never argued that Wis. Stat. § 30.133 outright prohibits these condominiums, much less provides a basis for its exercise of permit jurisdiction.  The Wisconsin Association of Lakes referenced  Wis. Stat. § 30.133 only in passing in its brief in this  court, and did not argue it here as grounds for denial of the permit.  The Lake Monona Sailing Club, in its amicus curiae brief, invoked the statute with a little  more fanfare, but not much.  The  administrative   law judge  ("ALJ")


 

 


firmly rejected any suggestion that Wis. Stat. § 30.133 was implicated at all--either as a basis for the DNR's permit jurisdiction or substantively.  And not a single party in this multiple-party,  hotly  contested  permit proceeding ever argued

that the condominium units at the Abbey Harbor Marina did not meet the definition of "unit" under Wis. Stat. § 703.02(15), or that the condominium declaration was otherwise invalid under Chapter 703.

¶84  Clearly, the majority disapproves of  "dockominiums," but apparently could not find anything persuasive in the arguments of those who oppose this particular form of marina ownership upon which to base its decision.  What else could explain the majority's excursion into a novel theory asserted by no one?  If anyone thought for a minute that these condominium units were invalid under  Wis. Stat. § 703.02 (15), we surely would have heard about it.   The DNR and the ALJ both rejected the idea that Wis. Stat. § 30.133 was at all significant: it occupies two numbered paragraphs of the ALJ's opinion, which otherwise contains 92  numbered paragraphs of factual findings and 26 numbered paragraphs of legal conclusions, as well as a lengthy analysis.

¶85  We accepted review in  this case on three highly important issues of state-wide impact, roughly paraphrased as follows:   1)   does the filing of a permit application with  an

administrative  agency  while  specifically  objecting  to  the

agency's jurisdiction and having obtained the agency's express agreement   that  the   jurisdictional  issue   is  not   waived,

 

 

 

nevertheless waive any objection to  the agency's jurisdiction;

2) does the DNR have jurisdiction or authority under Wis. Stat.

§ 30.12 to require the owner of a validly permitted marina to apply for a new permit when the ownership of the marina changes to condominium form; and 3) is the condominium form of ownership or the condominium  declaration in this case inconsistent with the public trust doctrine? The majority properly answers the first question "no."   The majority's resolution of the latter two issues is seriously flawed.

¶86  The majority omits some important factual and procedural background, and sidesteps much of the legal analysis necessary to a proper resolution of the  jurisdictional and public  trust doctrine issues in this case.  Abbey Harbor is a private, not public, marina, although it has always maintained a public  boat launch.  The marina's 407 boat slips were built pursuant to properly-issued permits that were not conditioned on maintaining seasonal rentals, not dependent in any way on the marina's ownership form, and not subject to any particular restrictions as to use or operation of the marina.

¶87  A majority  of boaters who rented slips did so year after year;  85 percent of the slips had been rented for more than one year,  42 percent for more than ten years, 20 percent for more than 15 years.  In addition to the docks, piers, and boat launch, the marina also includes 20 acres of upland real estate, a Harbor House, a seawall, a sidewalk, parking lots, a swimming pool, and 4,193 feet  of shoreline on a man-made lagoon

 

 

 

 

 

adjoining Lake Geneva that was created when the marina was first developed.

¶88  The condominium conversion involved a change of ownership only.  It did not involve a change in use or any physical changes whatsoever at the marina.   There is no change in the number, size, configuration, or layout of the marina or its docks, piers, or slips. No new docks, slips, piers, or structures of any kind were placed on the bed of the harbor as a result of the condominium conversion.  There is no effect on the size or type of boat that can be moored at the marina.  The conversion does not alter or impede navigational channels or safety in the harbor. It has no adverse environmental impact on wildlife, water quality or pollution, flood flow capacity, fisheries, or the natural scenic beauty of the lake.

¶89  The Abbey Harbor Condominium Declaration defines the condominium "units" as the individual lock-boxes in the Harbor House, together  with the standard riparian rights associated with ownership of  waterfront property.   It also  provides that

condominium owners own, as tenants in common, all of the real

property and improvements at the marina,  including the upland real estate, the shoreline, the seawall, the Harbor House, the sidewalk, the parking lots, the swimming pool, and the docks and piers, as condominium "common elements."  The slips are denominated as "limited common elements" for purposes of allocating the right of exclusive use of individual slips among the condominium unit owners.


 

 

 

¶90   The ALJ included all of   the fore going in his findings of  fact,  and we   are   required   to   review factual   findings deferentially.  See    Wis. Stat.  § 227.57(6) (reviewing     court "shall not  substitute its judgment    for that of the agency as to the weight of the evidence"  and does  not disturb factual findings that are supported by  "substantial   evidence    in the record").    "[T]he test is whether,     taking into account all   the evidence in the record,  'reasonable      minds could arrive at the  same conclusion as the agency.' "Responsible     Use of Rural and Agricultural Land v. Public  Service  Comm'n and DNR,     2000 WI 129,

20, 239 Wis. 2d  660, 676, 619 N.W.2d 888; see  also  Sea   View Estates Beach Club v. DNR, 223 Wis. 2d 138, 148, 588  N.W.2d  667 (Ct. App. 1998).

¶91  ABKA vigorously objected to the DNR's insistence that the condominium conversion required a new  permit, inasmuch as nothing was changing at the marina besides its ownership.  The parties negotiated the following compromise:  ABKA  would accede to  the  DNR's  demand that it apply for a new permit under Wis. Stat. § 30.12 (the condominium association would later  join  as co-applicant); ABKA's objection  to the DNR's  jurisdiction   to require a new  permit was expressly  preserved  and would be  an issue before the ALJ; ABKA was authorized  to  immediately begin selling 292 condominium units; 125 slips would be held back from sale and maintained as seasonal rentals pending the outcome  of the permit proceeding, and if the ALJ required a greater  number of set-asides for seasonal rental, ABKA would if necessary buy back the required number of condominium units.


 

 

 

¶92  At the time of the hearing, 185 condominium units at Abbey Harbor had been sold.  The permit issued by the ALJ and affirmed by the circuit court authorized only 120 condominium units, and required ABKA to set aside 287 slips for seasonal rental, for terms not exceeding five years, for a "reasonable fee."   The permit also imposed a requirement that the availability of rental slips be advertised "in the local newspaper of greatest circulation at least twice each spring," and that ABKA maintain a waiting list, and make that waiting list available for inspection by the DNR.

¶93 The threshold jurisdictional issue here is significant. Rather than deal with it directly, the majority manipulates it in order to facilitate the majority's preferred resolution, and then   has   the   audacity   to  suggest   that   this   dissent

"misunderstands the jurisdictional question."    Majority op. at

24 n.5.

94  I am  compelled, therefore, to quote from this court's order accepting review  insofar as  it states  the  jurisdictional issue:        "Has  the  legislature given the   DNR  authority in Wis. Stat. § 30.12 to require the owner of a permitted marina to apply for a new permit solely because of a change in the form of ownership   of           the property   to condominium?"   The majority has contorted           this very specific    jurisdictional  question into a

roving inquiry into whether there is generic DNR "jurisdiction to regulate" or "authority to regulate under the public trust doctrine" in order to give both the DNR  and the  majority  some


 

 

vaguely plausible jurisdictional cover.  Majority op. at ¶¶12,

 

15.

 

¶95  No matter how it maneuvers, however, the majority cannot escape the obvious: if there is no statutory permit requirement for a marina condominium conversion that involves no new placement of structures or deposits in public trust waters, then the entire administrative proceeding below was without jurisdiction, superfluous, and void.

¶96   It is an accepted principle of administrative law that

 

"'an administrative  agency  has  only  those  powers  as  are expressly conferred or necessarily implied from the statutory provisions under which it operates . . . . '"   Grafft v. DNR,

2000 WI App 187, 6, 238 Wis. 2d 750, 756, 618 N.W.2d 897 (quoting Brown County v. DH&SS, 103 Wis. 2d 37, 43, 307 N.W.2d

247 (1981)); see also Wis. Power & Light v. Public Serv. Comm'n,

 

181 Wis. 2d 385, 392, 511 N.W.2d 291 (1994). Any doubts as to the existence of an implied power of an administrative agency must be resolved against the existence of authority.  Grafft,

2000 WI App 187, 6.

 

¶97  Wisconsin Statute §  30.12 contains the legislature's grant  of  permitting  authority  to  the  DNR  pertaining  to structures and deposits on the beds of public trust waters:

30.12 Structures and deposits in navigable waters prohibited; exceptions; penalty. (1) GENERAL PROHIBITION.  Except as provided under subs. (4) and (4m), unless  a  permit  has  been  granted  by  the department pursuant to statute or the legislature has otherwise  authorized  structures  or  deposits  in navigable waters, it is unlawful:


 


(a) To deposit any material any structure upon the bed of any water where    no   bulkhead    line established; or


or place navigable has  been


 

(b) To deposit any material or place any structure upon the bed of any navigable water beyond a lawfully established bulkhead line.

 

(2)  PERMITS TO PLACE STRUCTURES OR DEPOSITS IN NAVIGABLE WATERS; GENERALLY.  The department, upon application and after proceeding in accordance with s.

30.02(3) and (4), may grant to any riparian owner a permit to build or maintain for the owner1 s use a structure otherwise prohibited under sub. (1), if the structure does not materially obstruct navigation or reduce the effective flood flow capacity of a stream and is not detrimental to the public interest.

 

Wis. Stat. § 30.12.   This statute obviously contains no requirement that pre-existing, properly-permitted  boat  slips must be "re-permitted" upon a change of ownership.   More specifically,  Wis. Stat. § 30.12  does  not  require  that  an already-permitted   marina   undergoing   conversion   to   the condominium form of ownership must obtain a new permit from the DNR where  the conversion  is a  legal transaction only  and involves no new placement of structures or deposits on the lake bed whatsoever.

¶98  The DNR permit proceeding at issue in this case was convened and conducted pursuant to Wis. Stat. §   30.12.   The permit at the heart of this case was issued pursuant to Wis. Stat. §    30.12.   Yet the majority refuses to engage in any analysis regarding the applicability of Wis. Stat. § 30.12.

¶99  Instead,  the  majority  concludes  that  the  DNR's

 

authority to require a new permit resides somewhere in "the

 

DNR's statutory authority to enforce the public trust doctrine"


 

 

and "the reality of the regulation process."  Majority op. at

 

16.    The  majority  then  proceeds  to  discover  the  DNR's permitting power in Wis. Stat.§  30.03(4), together with Wis. Stat. § 30.133, which it says "is included in the public trust doctrine and forms part of the basis for the DNR's jurisdiction over ABKA's proposed condominium project."  Majority op. at 13.

¶100  As to Wis. Stat. § 30.133, the majority's position  is remarkable,  since  no  one  else--not  even  the  Wisconsin Association of Lakes or the Lake Monona Sailing Club--relied on that statute as providing a jurisdictional basis for the DNR's requirement  that  ABKA  get  a  permit  for  its  condominium conversion.   Indeed, Wis. Stat. § 30.133 says nothing at all about permits.  As the majority correctly notes later in the opinion, Wis. Stat. § 30.133 was the legislative response to this court's decision in Stoesser v. Shore Drive P'ship, 172

Wis. 2d 660, 494 N.W.2d 204 (1993), and prohibits the transfer of riparian rights to non-riparians "by easement or by a similar conveyance."  Wis. Stat. § 30.133(1); majority op. at ¶¶13, 60. Whatever influence this statute might have on these proceedings, it cannot seriously be considered to confer upon the DNR any jurisdiction to require or issue permits when no new structures or deposits are being placed on the lake bed.

¶101  The majority refers to the statute's status as being "included in the public trust doctrine," as if to suggest that the public trust doctrine itself provides a jurisdictional basis for the DNR's power to require a permit.  Majority op. at 13. If that were true, then the DNR would have plenary power to


 

 

require a permit anytime it got a whiff of any activity that it thought might implicate the public trust doctrine, whether or not a permit was statutorily required or authorized.  This is a radical departure from traditional administrative agency law, which, as noted above, requires a legislative grant of authority or power for administrative agency action.

¶102 Neither can Wis. Stat. § 30.03(4)       serve as the source

 

of the DNR's authority to require a new permit.  That statute authorizes the DNR to initiate an enforcement action to enjoin "a possible violation of the statutes relating to navigable waters or a possible infringement of the public rights relating to navigable waters."  Wis. Stat. § 30.03(4).  It says nothing about permits.

¶103 Jurisdiction to initiate an enforcement action is not

 

the same as jurisdiction to require a property owner to obtain a permit.      If  the  DNR   had  grounds   to      initiate  an   enforcement action under Wis. Stat. § 30.03(4),    it certainly would have done so.       Had   the     DNR   taken the    majority's position  that  ABKA's condominium    conversion     constituted  a    violation     of Wis. Stat. § 30.133, it   might    have initiated  an  enforcement action      under        Wis.  Stat.  §  30.03(4) to  stop    it.    Had  the DNR taken          the court   of appeals' position  that ABKA's condominium conversion constituted a per se violation of the public's rights under       the  public  trust doctrine, it  might have   initiated  an enforcement action under Wis. Stat. § 30.03(4) to stop it.  It did neither.    Instead, the DNR invoked the permit provisions of Wis. Stat. § 30.12 and demanded that ABKA obtain a new permit,

 

11


 

 

even though the condominium conversion involved no new placement of structures or deposits on the lake bed.   The DNR had no authority to do so.  We are confined to reviewing what the DNR did, not what it might have done. The majority's jurisdictional conclusions are analytically bankrupt.

¶104 Having badly botched the jurisdictional issue, the majority then evades the significant public trust doctrine questions surrounding both the "dockominium" concept generally and the ALJ's permit in particular by simply invalidating the condominium declaration under the condominium statutes.  The majority concludes that the lock-boxes have insufficient "independent  use"   to  fit  the  definition  of  "unit"  in Wis. Stat. § 703.02(15),  which defines a condominium "unit" as "a part of a  condominium  intended for any  type  of independent

use, including one or more cubicles of air at one or more levels of space . . . . " Wis. Stat.  § 703.02(15)(emphasis added).

¶105 The majority’s interpretation of the statutory definition of "unit"    ignores    the   definition's use of the modifier "any," which means:  "in whatever  degree; to  some extent; at all . . . in any manner whatever."  Webster's Encyclopedic Dictionary of the English Language (rev. ed. 1996). The  majority  also  ignores  the  only  reported  case  that

specifically construes Chapter 703's definition of "unit," which interpreted the term expansively to include vacant condominium land upon which nothing had yet been constructed.   Aluminum Indus. v. Camelot Trails Condo. Corp., 194 Wis. 2d 574, 582-83,

535 N.W.2d 74 (Ct. App. 1995).


 

 

¶106 Finally, and perhaps most glaringly, the majority's interpretation of "unit" violates  the  explicit  rule  of construction contained in the condominium statutes:

SUBSTANTIAL CONFORMITY OF CONDOMINIUM INSTRUMENTS AND BYLAWS SUFFICIENT.   The provisions of any condominium instruments and bylaws filed under this chapter shall be liberally construed to facilitate the creation and operation of the condominium.  So long as the condominium instruments and bylaws substantially conform with the requirements of this chapter, no variance from the requirements shall affect the condominium status of the property in question nor the title of any unit owner to his or her unit, votes and percentage interests in the common elements and in common expenses and common surpluses.

 

 

Wis. Stat. § 703.30(2) (emphasis added);   see     also Rock Lake Estates Unit Owners Ass'n v. Lake Mills,  195 Wis.  2d 348,  359,

536 N.W.2d 415 (Ct. App. 1995)

¶107 Despite this legislative mandate of liberal construction favoring the creation of condominiums, the majority nevertheless  concludes  that the  condominium declaration "fails to create valid units under § 703.02(15) because the units defined  in  ABKA's declaration have  no  independent use." Majority op. at 55.   True, the lock-boxes are small, and therefore could  not  be  put to a significant use.  But the statute  explicitly sanctions  condominium units susceptible of any type of independent use, and the declaration must be liberally construed so as not to defeat the creation of the condominium.  The majority, however, concludes that "[b]ecause there are no valid units, there is not a valid condominium conveyance of real property." Id.


 

 

¶108 Having invalidated the condominium declaration, there is really no reason for the majority to go any further, but it does.  It concludes that the invalid condominium conveyance is tantamount to a conveyance of riparian rights "by easement or by a similar conveyance" contrary to Wis. Stat. § 30.133. But if the condominium conveyance is invalid under Chapter 703, how can it   possibly   form   the   basis   for   a   violation   of Wis. Stat. § 30.133?   Stated differently, how can a legally ineffective  condominium  conveyance  be  deemed  to  violate Wis. Stat. § 30.133?

¶109   The       majority    has    invalidated    the    condominium

conveyance and therefore extinguished the property interests of the condominium unit owners.  There is nothing left.  There is no need to inquire into whether a legally defective condominium conveyance nevertheless accomplishes a conveyance of riparian rights "by easement or by a similar conveyance" in violation of Wis. Stat. § 30.133, requiring the attention of the DNR and this court.

    ¶110  The majority, of course, must reach this issue.  Otherwise its jurisdictional house of cards comes down.  Having grounded the  DNR's  permit jurisdiction  in large part on the notion   that    there   is   a    potential         violation of Wis. Stat. § 30.133    present    here, the majority is bound to address the issue.  In order to apply Wis. Stat. § 30.133, however, we must assume that a valid condominium conveyance occurred.  It makes no sense to apply a statute that makes a certain sort of  conveyance  illegal to what the majority says is  

 

 


 

 

an already illegal conveyance; we have to assume an otherwise legal conveyance, and then apply the statute.

¶111 What the majority is really suggesting, then, is that

a   condominium is  essentially the  equivalent of  an   easement. This is preposterous.

¶112  A condominium constitutes a  fee  simple  interest in

real estate and by statute has the status of real property "for all purposes."  Wis. Stat. § 703.04 (emphasis added)("A unit, together with its undivided interest in the common elements, for all purposes constitutes real property.").   Under no credible legal analysis can a condominium be relegated to the status of a mere easement or like conveyance.

¶113 An   easement  is  an   encumbrance on   the  property  of

another.   "An easement  'is a permanent interest in another's land, with a right to enjoy it fully and without obstruction.'" Hunter v. McDonald, 78 Wis. 2d 338, 343, 254 N.W.2d 282 (1977). The "cases have repeatedly  defined  an  easement as 'a liberty, privilege or advantage in land, without         profit,   and existing distinct    from  the          ownership  of  the   soil.'"  Figliuzzi  v. Carcajou  Shooting  Club of  Lake  Koshkonong, 184 Wis. 2d 572, 582,

516 N.W.2d 410 (1994); see also Stoesser, 172 Wis. 2d at 667.

¶114 Noting that the condominium owners collectively own the land and improvements at the Abbey Harbor Marina, and that "[u]nder Wisconsin law it is clear that a person 'can not maintain an easement over his own land,'" the ALJ  concluded that the condominium  declaration "is not the conveyance by 'easement or similar conveyance' of riparian  rights  within  the  meaning of


 

 

sec. 30.133, Stats."   Although the ALJ denominated this as a finding of fact, I read it as a conclusion of law.

¶115 An  agency's  conclusions  of  law  are reviewed  by reference to one of three levels of deference: "great weight,"

"due weight,"   or  "de novo." RURAL v. PSC, 2000 WI 129, 21. "De novo review is appropriate where there is no evidence that the agency used any special knowledge or expertise, the issue is clearly one of first impression, or the agency's position on an issue has been inconsistent."  Id. at 22.  No one has suggested that the agency lacked expertise or was inconsistent in its

positions, and the issue of what constitutes an easement or like

 


conveyance

 

impression.


can   hardly  be   characterized   as   one   of   first


 

¶116 Accordingly,    at     least        due weight, or possibly                  great

 

weight deference is owed to the ALJ's conclusion that there is no violation of Wis. Stat. § 30.133 here. It is very difficult to   flunk either of these standards of review.   Due weight deference means that any reasonable legal interpretation by an agency will be upheld, unless the court finds a more reasonable interpretation.      Id. at 24 n.12.  That is, the agency's legal interpretation will be upheld even if there is a different, equally reasonable interpretation--in other words, a tie goes to

the agency.   Great weight deference means what it says: the

ALJ's  determination that Wis. Stat. § 30.133 was not violated must be upheld.  Any suggestion that a condominium is akin to an easement is far from reasonable.

 

 


 

¶117 Apparently the majority is not bothered one bit by the gaping holes in and circularity of its analysis.  Worse, by adopting this sua sponte, terribly misguided approach, the majority  has  completely  failed  to  address  the  critically important administrative and water law issues that were actually presented in this case, and therefore has left them for another day.1  There are a number of other "dockominium" marinas around the state.   Their legal status--called  into question by the court of appeals' opinion--remains  in substantial doubt.  The majority has not only trampled on the private property rights of the individual condominium owners in this case (not to mention ABKA's), it  has  done  significant  damage  to  the  law  of condominiums, administrative agency jurisdiction, and the public trust doctrine.  I dissent.

118 I am authorized to state that Justice DAVID T. PROSSER

 

joins this dissenting opinion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Both the ALJ's resolution of this case and the court of appeals' per se invalidation of the "dockominium" concept have significant implications for the public trust doctrine in this state, and also potentially for takings jurisprudence.   See ABKA, Ltd. P'ship v. DNR, Dec. No. 3-SE-95-0080  (DNR 1996); ABKA, Ltd. P'ship v. DNR, 2001 WI App 223, 247 Wis. 2d 793, 635

N.W.2d 168; see also, R.W. Docks & Slips v. State, 2001 WI 73,

244 Wis. 2d 497, 628 N.W.2d 781, cert. denied, 122 S.Ct. 617

(2001).