Wisconsin
Lawyer
Vol. 81, No. 10, October
2008
2007 - 08 Significant Supreme Court Decisions
The authors highlight what they
believe are the most
significant decisions issued by the Wisconsin Supreme
Court during its 2007- 08 term.
by Beth
Ermatinger Hanan & Daniel S. Elger
For many years, Daniel W. Hildebrand contributed to Wisconsin legal
literature by annually describing the state appellate court decisions
he viewed to be
most significant. Attorney Hildebrand passed away in late 2007; these
authors,
both former supreme court clerks, are attempting to pick up the
Hildebrand torch.
The cases described here were decided by the Wisconsin Supreme Court
during its 2007-08 term, ending June 30, 2008. The cases are arranged
by
category (first civil, then criminal) and within these categories by
order of release.
Civil Cases
Intervention. In Helgeland v. Wisconsin
Municipalities,1 the supreme court
determined that eight Wisconsin municipalities lacked the right, as a
matter
of law, to intervene in an action brought by current and former state
employees and their same-sex domestic partners seeking state benefits.
The state
employees claimed that they were entitled to employee benefits
available to similarly situated heterosexual state
employees and
their spouses. The municipalities sought to intervene because they
believed an adverse
decision would significantly affect their finances. Additionally, the
municipalities
disagreed with the Department of Employee Trust Fund's (DETF's)
strategy and handling of the
lawsuit.
Wisconsin Statute section 803.09 sets out the elements of both
mandatory and
permissive intervention. The circuit court denied the municipalities'
motion to intervene
on either basis, and the court of appeals affirmed. In a 4-3 majority
opinion written
by Chief Justice Abrahamson, the supreme court held that the
municipalities had no
mandatory right to intervene under section 803.09(1) because they
made no showing that their
interest in the lawsuit was sufficiently "special, personal, or
unique" when compared to
the interest asserted by the DETF. Further, the circuit court had
properly exercised
its discretion in refusing permissive intervention under
section 803.09(2).
To determine whether intervention should be granted as a matter of
right, courts use
a flexible and highly fact-specific approach. Using this approach, the
supreme court
decided that the municipalities' interests were insufficiently related
to the case. The
municipalities failed to show that their interests were more immediate
or unique than
any entity could claim in virtually any action challenging the
constitutionality of a
state statute or that any employer could claim in an action that might
affect the cost of
employee benefits. Moreover, the municipalities' interests were
substantially similar
to those of the DETF and would be adequately represented. From a policy
perspective,
permitting intervention as a matter of right in constitutional
challenges to statutes
would thwart the efficient administration of justice and enable
numerous deep-pocket
entities to prevent parties from conducting and concluding their own
lawsuits.
Summary Judgment. In AccuWeb Inc. v. Foley &
Lardner,2 the court reiterated the
summary judgment standard of review in a legal malpractice framework and
made its
own factual findings. In a unanimous 6-0 decision the supreme court
reversed the court
of appeals, which had affirmed the circuit court, and held that AccuWeb
had
demonstrated genuine issues of material fact sufficient to avoid
summary judgment on the issues
of harm resulting from a lost patent and the amount of business
valuation damages.
The respondent law firms failed to meet their burden to demonstrate
that a
reasonable jury would not find sufficient evidence to award damages, in
an amount supported by
the evidence. Viewing the summary judgment submissions in the light
most favorable
to AccuWeb, the supreme court held that the loss of the patent -
allegedly because one
or more lawyers failed to remind AccuWeb to renew the patent -
created a risk to
AccuWeb's business. Further, a jury could determine that the risk
resulted in a diminution of
the value of AccuWeb's business. An expert's report connecting the loss
of the patent to
the risk that competitors would learn of its expiration and thereby use
the technology
previously protected by the patent supported a decreased valuation of
AccuWeb.
Significantly, the supreme court accepted testimony by two AccuWeb
officers (testimony that the
lower courts had rejected) to support the claim that the patent had
enabled a certain level
of company profit, and that the profit potential had been lost. Without
the patent,
AccuWeb was less attractive to potential purchasers. The court
expressly did not require
AccuWeb to show actual infringement of the patented technology to
survive summary judgment.
The court recognized value in the ability to license or assign the
invention
protected by the patent. Because AccuWeb lost that ability to license
or assign, the lapse of
the patent was a loss that a jury could reasonably find to constitute
sufficient evidence
of damages. Justice Ziegler did not participate.
Marital Property. The supreme court takes relatively few
family law cases. But
in Steinmann v. Steinmann,3 the
court upheld an award of maintenance to the ex-husband and
a division of marital property under the couple's marital property
agreement (MPA).
To reach that result, the court primarily relied on the
erroneous-exercise-of-discretion standard of review and a clarification
of tracing and transmutation principles.
Further, the court declined to treat the MPA's provisions as creating a
presumption of
indivisibility equal to the presumption of indivisibility under Wis.
Stat. section 767.255.
Justice Butler wrote for a unanimous court. Justice Ziegler did
not participate.
Tony and Rose Steinmann were married for 10 years. They had a
limited MPA. The
couple and Rose's company, DSI, received from a vendor lawsuit a
settlement of $1.35
million, which ultimately was deposited into a savings account held by
Rose. The Steinmanns
jointly used a portion of the settlement to buy a second residence and
also used the
savings account to purchase joint interests in other real estate and
personal vehicles. They
also used planes, boats, and a vehicle owned by DSI.
Beth Ermatinger Hanan, U.W. 1996, is an
appellate and trial practitioner and is managing member of Gass Weber
Mullins LLC, Milwaukee.
She also is vice chair of the Wisconsin Judicial Council.
Daniel S. Elger, Marquette 2005, is
an associate in the firm, practicing in commercial litigation and
products liability.
The primary reason for supreme court review was that both parties
urged that the
holding in Derr v. Derr4 should
be limited to cases involving gifted and inherited
property. In Derr, the court explained that tracing and
transmutation (or donative intent)
determinations are inquiries that can assist in ascertaining the
identity and character of
property. Although tracing does not generally reveal whether property
is divisible, the
existence of donative intent can help determine the character of
property as divisible
or not. To the extent that the decision in Gardner v.
Gardner5 implied that transmutation
applied only to gifted and inherited properties, the Steinmann
court overruled it. The court discerned no compelling policy reason to
render transmutation or donative
intent principles inapplicable to property initially classified as
individual under an MPA.
The court rejected Rose's tracing argument on factual and equitable
grounds.
First, Rose had not demonstrated that the funds in the savings account
used to purchase the
real estate were hers alone, because the record established that the
savings account
contained cash deposits from Tony, proceeds from the sale of jointly
owned property, and
Tony's share of the lawsuit settlement. Even if Rose had traced the
funds as wholly hers,
making the purchased real estate her individual property under the MPA,
tracing did not
establish that the property either was indivisible or could not be
reclassified. Likewise,
the MPA did not prevent either later reclassification or
chapter 767 equitable division
of property that had been jointly titled. Indeed, the MPA permitted the
parties to
change its terms by written instrument. As a result, the court upheld
the transmutation
analysis based on the deeds that jointly titled the subject property.
Concerted Action. The supreme court took a rare opportunity
to interpret Wis.
Stat. section 895.045(2), the concerted action statute. In
Richards v. Badger Mutual Insurance
Co.,6 the court considered whether
three people involved in the purchase of beer
for underage drinkers were part of another common scheme or plan,
namely, a plan to
consume beer to the point of intoxication and the subsequent decision
of one of them to
drive while intoxicated. Had the three people been found to have had
such a common
plan, Richards, the widow of a driver whose car was struck by defendant
Zimmerlee, could
have recovered under joint and several liability. Ultimately, however,
a 4-3 majority led
by Justice Roggensack ruled that there was no common plan that caused
injury to Richards.
Schrimpf approached his older coworker, Pratchet, to buy beer for
Schrimpf
and Zimmerlee, both of whom were minors. Pratchet agreed, so the three
of them drove to
a grocery store where Pratchet purchased an 18-pack of beer with
Zimmerlee's money.
The three people split up for a few hours, but later Schrimpf and
Zimmerlee reconnected.
They brought the 18-pack with them to a party, where both drank some of
the beer. Early
the next morning, Zimmerlee drove from the party with Schrimpf as a
passenger. After
driving only half a block, their car collided with one driven by
Christopher Richards,
killing him instantly.
Just before trial, the parties entered into a settlement agreement.
They asked
the circuit court to decide whether Schrimpf, Zimmerlee, and Pratchet
had acted in
accord with a common scheme or plan that caused damage to the
plaintiff. The court held
the defendants jointly and severally liable, pursuant to Wis. Stat.
section 895.045(2).
On review, the supreme court traced the history of joint and several
liability
in Wisconsin and the further restrictions placed on such liability by
section 894.045.
Citing Danks v. Stock Building Supply
Inc.,7 the court acknowledged that
section 894.045(2) only comes into play after a defendant is
deemed liable and then applies only to
those liable defendants who acted in concert. Under Collins v.
Eli Lilly Co.,8 the action
that harmed Richards must have been the action that was undertaken to
further the
defendants' agreement. Considering other case
law,9 treatises, and the
Restatement (2d) of
Torts § 876, the court concluded that section 895.045(2)
represents the codification of
the concerted action theory of liability.
Applying the factual predicates of concerted action liability, the
majority held
that although Pratchet was a part of the plan to purchase beer, that
plan and Pratchet's
participation ended. After the beer was purchased, Schrimpf's and
Zimmerlee's conduct
was merely parallel. The facts revealed no common plan to drink until
intoxicated and then
to drive. Accordingly, Schrimpf was not liable under a concerted action
theory.
Open Records. In a case concerning the application of
Wisconsin's open records
law, WIREdata Inc. v. Village of
Sussex,10 the plaintiff made a series
of open records
requests to three municipalities seeking access to their property
assessment records.
The municipalities had contracted with private, independent assessors
to complete their
property assessments. Before the municipalities responded to WIREdata's
initial
request, WIREdata made a further "enhanced" request for the
data in the format that was
created and maintained by the assessors in a computerized database;
however, these requests
never reached the municipalities themselves.
WIREdata filed three separate mandamus actions against the
municipalities and
the corresponding assessors before any records were produced. The
municipalities
eventually provided WIREdata with the information it requested in PDF
form. This data complied
with the initial requests but not with the enhanced requests.
First, the supreme court held that WIREdata did not properly
commence the
mandamus actions because the open records requests had not been denied
before filing. The
full records, in written form, were offered to WIREdata within weeks of
its requests, and
the municipalities were working diligently toward ascertaining the
legal and technical
requirements of producing the records. When requests are complex,
municipalities should
be afforded a reasonable time to respond.
Second, WIREdata's requests were sufficient as to time and subject
matter because
the municipalities were able to fulfill the requests using the PDFs
ultimately
produced. Third, a municipality's independent contractor is not an
authority under the open
records law and thus not a proper recipient of an open records request.
The statutory
definition of authority clearly envisions a public or
governmental entity as the proper body
to respond to an open records request.
Finally, the municipalities did not violate the open records law.
The PDF files
satisfied WIREdata's open records requests, as the initial requests
were worded. Because
the enhanced requests were not submitted to the municipalities, those
requests were not
enforceable. Moreover, requesters need not be given access to an
authority's
electronic databases to examine or copy them or extract information. It
is sufficient for an
authority to provide a copy of the relevant data in an appropriate
format.
Arbitration Awards. Despite the very limited opportunity to
vacate
arbitration awards, in Racine County v. International Ass'n of
Machinists & Aerospace
Workers,11 the supreme court affirmed
a circuit court order that did vacate such an award. An
arbitrator sided with the union in a dispute with the county involving
the retirement and
rehiring of family court social service workers as independent
contractors. The arbitrator's
award included an order limiting who the director could hire. A 4-3
supreme court
majority agreed that the arbitral award was contrary to Wis. Stat.
section 767.405, which allows
a family court services director to employ staff for mediation and
placement study
services. In addition, the award conflicted with constitutional
separation of powers
principles, in part because the director reports to the local circuit
court judges.
Finally, vacation of the award was proper under Wis. Stat.
section 788.10 because the
arbitrator exceeded her authority by not considering
section 767.405 and relevant case law.
The director advised several family court social workers of the
possibility of
early retirement or layoff. He told two of them that their positions
would be eliminated
but that they might be rehired on a contract basis. The social workers
were covered under
a collective bargaining agreement (CBA) between Racine County and the
International
Association of Machinists and Aerospace Workers (IAM). Two of the
social workers retired
between late 2003 and early 2004. Both of them, along with a
previously retired social
work manager, were rehired by the director as independent contractors
at or near their
prior pay and duties. Shortly after their rehire, the IAM grieved the
matter and
arbitration ensued.
The arbitrator candidly acknowledged that her ruling made no attempt
to either
interpret or apply statutory law. Instead, she relied on the CBA to
conclude that the
county had improperly displaced three positions from the bargaining
unit and had replaced
those positions with independent contractors to take the positions off
the tax levy.
Writing for the majority, Justice Crooks acknowledged the very
limited scope of
review of an arbitration award. Nonetheless, under Wis. Stat.
section 788.10(1)(d), when
an award exceeds the power of the arbitrator, the reviewing court must
overturn it. As
an initial matter, the award violated the statutory provisions enabling
the director,
under supervision of the local judiciary, to fill positions and provide
statutorily-mandated services to families. The court reasoned that a
CBA and an ensuing arbitral award may
not trump such statutory, judicial branch authority or risk violating
separation of powers.
A CBA provision that would abrogate a statutory function of the
judicial branch is
invalid and unenforceable.
The court also found that the arbitrator exhibited a manifest
disregard for the law
by making no attempt to apply or interpret the relevant statute when
the county raised
the statute as an issue. An arbitrator exceeds his or her authority by
manifestly
disregarding the law or by making an award that is illegal or that
violates a strong public
policy.
Economic Loss Doctrine. Expanding the reach of the economic
loss doctrine, a
4-3 majority in Below v.
Norton12 held that the doctrine bars
common-law claims for
intentional misrepresentation in real estate transactions, whether such
claims occur in
the context of residential sales or noncommercial sales. The court drew
no distinction
between the terms residential and noncommercial.
Below purchased a house from the Nortons. In the property condition
report,
the Nortons noted that they were not aware of any defects with the
house's plumbing
system, save for a minor problem. After the deal closed, Below learned
that the sewer line
that ran between the house and the street was broken. Below filed an
action against
the Nortons alleging intentional misrepresentation, among other causes
of action.
The supreme court had previously applied the economic loss doctrine
to bar both
negligence and strict liability claims in the context of consumer goods
transactions.13 The economic loss doctrine
also has been held to bar recovery for solely economic losses
in an intentional misrepresentation
case.14 Additionally, the court had held
that the
economic loss doctrine can bar some common-law misrepresentation claims
in real
estate transactions.15
The court also relied on the decisions in Linden v. Cascade
Stone
Co.16 and Wickenhauser v.
Lehtinen17 to reach its holding. The
Linden court held that the economic loss doctrine barred the
negligence claims of two homeowners against certain
subcontractors who were negligent in performing work under a written
construction contract. Linden involved residential real estate.
In Wickenhauser, the court applied the
fraud-in-the-inducement exception to the economic loss doctrine in the
context of a noncommercial
real estate transaction. The court noted that in Wickenhauser,
the court drew no distinction between the terms residential and
noncommercial.
After concluding that common-law claims for intentional
misrepresentation in
real estate transactions are barred by the economic loss doctrine, the
court was careful
to note that Below was left with a potential remedy under Wis. Stat.
section 100.18.
Scheduling Orders. In Hefty v.
Strickhouser,18 the supreme court
ruled that a
circuit court can enter a scheduling order setting a time frame for
responding to a
summary judgment motion different from that provided by Wis. Stat.
section 802.08(2). Local
circuit court rules cannot, however, depart from the provisions of
section 802.08(2).
The circuit court entered a scheduling order after the parties
submitted a
scheduling questionnaire. As is customary, the order indicated that a
summary judgment motion
needed to be filed by a certain date. The order also attached a
then-existing Walworth
County local rule entitled "Standard Summary Judgment
Procedure." This local rule provided
20 days after service of a summary judgment motion for a respondent to
serve and file
a response brief and supporting documentation. The scheduling order
also stated that
failure to abide by the order may result in sanctions.
After Strickhouser filed a summary judgment motion, Hefty filed her
response five
days after the deadline provided by the local rule attached to the
scheduling
order. Strickhouser moved to strike the response, and at the hearing
Hefty's attorney
indicated that he simply followed section 802.08(2) to
determine the date to file and serve a
response. As a sanction for the late filing, the circuit court struck
Hefty's summary
judgment response and granted summary judgment to Strickhouser. The
court of appeals
reversed and remanded, and the supreme court affirmed.
Wisconsin Statute section 802.10 provides that Wisconsin courts
have discretion
to control their dockets and calendar practice. This discretion
includes setting of the
time to file motions and the appropriateness and timing of summary
judgment adjudication
under section 802.08. This discretion also includes the court's
ability to use scheduling
questionnaires to satisfy the requirement that the circuit court
consult with the
parties before entering a scheduling order.
The language of section 802.08(2) indicates that scheduling
orders may trump
section 802.08(2). In entering a scheduling order that departs
from section 802.08(2),
the court need not explain on the record its reasons for doing so. The
Hefty court withdrew language to the contrary from
Hunter v. AES Consultants
Ltd.19
Notably, however, local circuit court rules may not trump the
deadlines in
section 802.08(2). The court invalidated that portion of the local
rule that established
a response deadline different from that set in section 802.08(2).
Here, because the
court's scheduling order attempted to apply a void rule by attaching it
to an order, the
scheduling order's deadline for responding to a motion for summary
judgment was invalid.
The circuit court could have imposed the same 20 day time frame
for responding to a
summary judgment motion by specifying the response time in the
scheduling order itself.
Because the circuit court's sanction of the plaintiff was premised on a
violation of a
deadline based on a void local rule, the supreme court concluded that
the circuit court had
applied an improper standard of law in granting Strick-houser's summary
judgment motion.
Failure to Warn. In Hornback v. Archdiocese of
Milwaukee,20 former Kentucky school
students who allegedly were abused by their Catholic-school teacher
brought claims
of negligent failure to warn against two Wisconsin dioceses in which
the teacher,
Kazmarek, had previously been employed.
The plaintiffs alleged that the Archdiocese of Milwaukee and the
Diocese of
Madison knew or should have known of Kazmarek's propensity for sexually
abusing children, and
as such were negligent when they failed to take certain steps to
prevent his future
abusive conduct. Specifically, the plaintiffs claimed a negligent
failure to warn
unforeseeable third parties of Kazmarek's propensity for abuse and a
failure to refer him to police.
Justice Butler wrote for a unanimous court in concluding that the
plaintiffs
had failed to state a claim for relief against the Madison Diocese.
Even if the
plaintiffs had stated a viable negligence claim, recovery would be
precluded on public
policy grounds. To allow recovery would send the court down a slippery
slope with no just
stopping point.
The court viewed the plaintiffs' claims as alleging breach of a
general duty of
care, not of a particular duty to warn. In doing so, the court declined
to adopt a
California version of a negligent referral claim, especially because
here there was no allegation
of an affirmative misrepresentation by the defendant. Mere knowledge of
past sexual
abuse, or presumed knowledge of a continued sexual propensity, is not
enough to establish
negligence. Requiring a broad notification to potential employers
around the country,
as plaintiffs urged, would create a vast obligation dramatically
exceeding any approach
to failure to warn recognized in Wisconsin or anywhere else. Moreover,
the Hornback plaintiffs alleged that specific victims were
unforeseeable. But foreseeability of
specific victims is particularly relevant when an affirmative
obligation, such as the duty
to warn, is sought. The lack of awareness of particular victims and the
expansive duty
to warn distinguished this case from Gritzner v.
Michael R.21
Finally, the court addressed the public policy implications of
sustaining
Hornback's claims against the Diocese, even though the court seldom
considers such policy factors
at the motion-to-dismiss stage. To permit recovery on the sweeping
claim of failure to
warn unforeseeable victims effectively would require employers to warn
all prospective
employers about any bad acts of ex-employees. Such a rule would begin a
descent down a
slippery slope with no sensible stopping point and impose huge
affirmative burdens on former
employers without limitation on the type of knowledge or the presence
of any
relationship between the past and potential employer.
The court was evenly divided over whether to dismiss or maintain the
claims
against the Archdiocese of Milwaukee and therefore affirmed the court
of appeals' dismissal
of those claims. Justice Prosser did not participate.
Criminal Cases
Sentencing. In State v.
Straszkowski,22 the court clarified
the standards for
read-in charges in Wisconsin. In a unanimous decision authored by Chief
Justice Abrahamson,
the court held that no admission of guilt from a defendant is required
(or should be
deemed made) for a read-in charge to be considered for sentencing
purposes and to be
dismissed. The court specifically withdrew language from any case law
intimating that when a
charge is read in, a defendant must admit or is deemed to admit the
read-in charge for
sentencing purposes. To avoid confusion in cases in which the defendant
does in fact admit
guilt of the read-in charge, the court instructed Wisconsin lawyers and
judges to avoid
the terminology admit or deemed
admitted in referring to or explaining a defendant's
agreement to read in a dismissed charge.
In addition, circuit courts should advise a defendant that the court
may
consider read-in charges when imposing sentence but that the maximum
penalty of the charged
offense will not be increased; that a circuit court may require a
defendant to pay
restitution on any read-in charges; and that the state is prohibited
from future prosecution
of the read-in charge.
In this case, Straszkowski had sought to withdraw his guilty plea of
second-degree sexual assault of a child, arguing that his plea was not
entered knowingly and
intelligently because he was unaware that a charge dismissed but read
in under a plea
agreement is deemed admitted for purposes of sentencing the defendant
on the charge to which
the defendant pleaded guilty. The court was unconvinced because nowhere
did the circuit
court conclude that Straszkowski admitted (or was deemed to have
admitted) the read-in
charge or that Straszkowski was guilty of the read-in charge.
Ultimately, the court
affirmed denial of Straszkowski's motion to withdraw his guilty plea.
Dog Sniff Searches. In State v.
Arias,23 the court analyzed whether a
dog sniff of
a vehicle was a search under the Wisconsin Constitution and whether
conducting the
dog sniff unreasonably prolonged Arias's seizure. Schillinger, a minor,
was pulled over
by Officer Rennie for suspicion of driving a vehicle that contained
intoxicants; Arias was
a passenger. After calling for back-up, Rennie approached the car,
explained why he
had made the stop, and took Schillinger's license. Schillinger's breath
test revealed
no trace of alcohol, and the officer asked if Schillinger had any drugs
in the car.
Rennie then had his police dog perform a sniff around the exterior of
the car, which
ultimately led to a further search of the vehicle's interior, where
drugs and a switchblade
were found. Arias was charged and convicted on several criminal counts
following this
investigatory stop. Arias appealed, and the supreme court accepted
review on certification.
Writing for a 4-3 majority, Justice Roggensack held that a dog
sniff of the
exterior of a vehicle located in a public place does not constitute a
search under the
Wisconsin Constitution. The court followed Fourth Amendment
jurisprudence of the U.S. Supreme
Court in interpreting the right to be free of unreasonable searches
under the Wisconsin
Constitution. A person has no reasonable expectation of privacy in the
air space surrounding
a vehicle that he or she is occupying in a public place, and a dog
sniff is much less
intrusive than other activities held to be
searches.24
The court next considered whether Arias's seizure was unreasonable.
The court
first determined that the traffic stop was extended by 78 seconds, or
the time between
Rennie's questions to Schillinger and the conclusion of the dog sniff.
The circuit court had
erroneously concluded that the traffic stop was extended by
approximately 38 minutes from
the conclusion of the dog sniff to Arias's ultimate arrest. The 38
minutes that
Schillinger and Arias were detained following the dog sniff was
occupied by Rennie's search of
the vehicle, his pat-down searches, and the activities flowing from the
search, not the
time to complete the dog sniff. Thus, the supreme court assessed only
the 78-second
extension of Arias's detention in deciding whether the controlled
substance investigation was
reasonable under all the circumstances.
The 78-second intrusion on Arias's liberty caused by the dog sniff
was reasonable.
The dog sniff was part of the on-going traffic stop of Schillinger that
occurred because
she was a minor and was transporting alcohol that Arias had placed in
her vehicle. The
dog sniff furthered the public's interest in preventing the flow of
illegal drugs. In
addition, Rennie diligently pursued his investigation in a manner that
could quickly
confirm or dispel his suspicions relative to the stop. From the time
Rennie observed beer
being loaded into a minor's vehicle until the release of the dog, only
4 minutes, 10 seconds
- a reasonable amount of time - elapsed.
Admission of Bank Records. Admission of bank records via
affidavits from
records custodians violates neither statutory procedure nor the
defendant's constitutional
right of confrontation. In State v.
Doss,25 the defendant Doss was
charged with
unlawfully retaining funds from her father's estate, in violation of
Wis. Stat.
section 943.20(1)(b) and (3)(c). She argued that certain bank
records should not have been allowed into
evidence because the circuit court had admitted the records without
testimony of
supporting witnesses. In a unanimous decision authored by Justice
Butler, the supreme court
upheld the admission.
Doss argued that she was not provided adequate notice under Wis.
Stat.
section 891.24, which concerns evidence from financial institution
books. Doss said she should have
received notice that the bank records would be introduced, not through
live testimony
of records custodians but by affidavit. As a matter of first
impression, the court held
that the plain text of section 891.24 does not impose the notice
requirement urged by
Doss. The statute only requires that the books be open to the
inspection of all parties to
the action or proceeding. In contrast, the plain text of the more
general
authentication provision, Wis. Stat. section 909.02(12), does
contain a notice requirement. The
three days' notice Doss received before trial was reasonable.
Doss also argued that the lack of in-person authenticating testimony
implicated
her Confrontation Clause rights. She argued that given the testimonial
nature of the
disputed records, the state did not produce required evidence of
unavailability of the
declarants who signed the affidavit, nor did it provide a prior
opportunity for Doss to
cross-examine them. The court held that both federal and state supreme
court precedent
supported the conclusion that the affidavits were
nontestimonial.26 Moreover, the
Confrontation Clause should be interpreted in light of its historic
context, focused on
testimonial statements by witnesses giving testimonial evidence against
an accused. In contrast,
the affidavit merely fulfilled a statutory procedure for verifying
nontestimonial
bank records and did not supply substantive evidence of guilt. As long
as section 891.24
is followed, a bank record custodian's affidavit prepared for
litigation is a
certification of authenticity for foundational purposes only, falls
under Crawford's business record exception, and is not
testimonial for Confrontation Clause purposes.
Endnotes
Wisconsin
Lawyer