Helgeland v. Wisconsin Municipalities
Helgeland v. Wisconsin Municipalities
Concurring in Part
¶ 48. (concurring in part; dissenting in part). This is an intervention case. It has nothing to do with whether the State or municipalities should or should not be required to provide married employee benefits to unmarried employees in life partnerships. Unfortunately, however, the interesting and challenging issues concerning intervention will probably he lost in the desire to portray these opinions as something they are not.
¶ 49. The majority starts with White House Milk Co. v. Thomson, 275 Wis. 243, 81 N.W.2d 725 (1957), as the keystone for its conclusion that the municipalities are not entitled to intervention as of right. Majority,
Nevertheless, even if it were conceded to be a proper party, the co-operative cannot prevail on this appeal without demonstrating that the trial court abused its discretion in denying the application for intervention. Schatzman v. Greenfield (1956), 273 Wis. 277, 281, 77 N.W (2d) 511; Fish Creek Park Co. v. Bayside (1956), 273 Wis. 89, 93, 76 N.W. (2d) 557; and Muscoda Bridge Co. v. Worden-Allen Co. (1928), 196 Wis. 76, 98, 219 N.W 428.
White House, 275 Wis. 2d at 248. We cannot know what the White House court would have done with our present statute using our present standard of review.
¶ 51. I recognize the three cases the majority cites for its conclusion that "White House continues to be the law." Majority, ¶ 25 n.16 (citing City of Madison v. Wisconsin Employment Relations Com'n, 2000 WI 39, ¶ 11 nn.8, 11, 234 Wis. 2d 550, 610 N.W.2d 94; North Side Bank v. Gentile, 129 Wis. 2d 208, 215-16, 385 N.W.2d 133 (1986); Bence v. City of Milwaukee, 84 Wis. 2d 224, 234, 267 N.W.2d 25 (1978)). But in City of Madison, the issue was whether a non-party could intervene in an appeal after the time for filing a notice of appeal had passed. Whether the intervention was permissive or as of right was not relevant. The court's remand was: "The court of appeals on remand must determine whether the PFC has the right to intervene in this appeal, or if the PFC may permissively intervene." City of Madison, 234 Wis. 2d 550, ¶ 11. North Side Bank interpreted Wis. Stat. § 806.04(11) (1983-84), the Uniform Declaratory Judgments Act. The court did not mention Wis. Stat. § 803.09, the then and present intervention statute. The issue in North-Side Bank was whether a bankruptcy trustee could pursue a declaratory judgment action without all of the bankrupts' creditors being joined in the action. Bence,
¶ 52. For these reasons, I would not rely on White House. Instead, I would use Wisconsin opinions interpreting our present statute, and, because of the similarity between Wis. Stat. § 803.09(1) and Fed. R. Civ. E 24(a)(2), appropriate federal appellate decisions. I begin with a State case, Wolff v. Town of Jamestown, 229 Wis. 2d 738, 601 N.W.2d 301 (Ct. App. 1999).
¶ 53. In Wolff, the trial court denied the Town of Jamestown's motion to intervene in a lawsuit between Grant County and the Wolffs. Id. at 740. The Town asserted that the County might settle the case in which the Wolffs sought a conditional use permit in a way that might increase costs for the Town. Id. at 747-49. We identified Wolff as an intervention-as-of-right case under Wis. Stat. § 803.09(1), subject to a de novo review. Wolff, 229 Wis. 2d at 742-43.1 use the same standard of review here because this case is also an intervention-as-of-right case.
¶ 54. In Wolff, we recognized that there was no precise formula for determining whether a potential intervenor meets the requirements of Wis. Stat. § 803.09(1). Id. at 742. We are to evaluate the motion "practically, not technically, with an eye toward disposing of lawsuits by involving as many apparently concerned persons as is compatible with efficiency and due process." Id. at 742-43 (citation omitted). We Eire to
¶ 55. I agree with the majority that at least three of the eight proposed intervenor municipalities have interests that fulfill the first three elements of Wis. Stat. § 803.09(1). And I agree that Armada Broadcasting, Inc. v. Stirn, 183 Wis. 2d 463, 476, 516 N.W.2d 357 (1994), sets out the factors we should use to determine whether the State adequately represents the municipalities. Those factors are: (1) Is there a showing of collusion between the representative and the opposing party? (2) Is the representative's interest adverse to that of the proposed intervenor? (3) Has the representative failed in the fulfillment of his or her duty? Id.
¶ 56. The test for inadequate representation is not precise. Wolff, 229 Wis. 2d at 742. Armada itself relied on Milwaukee Sewerage Comm'n v. DNR, 104 Wis. 2d 182,189, 311 N.W.2d 677 (Ct. App. 1981), which in turn relied on federal precedent. Federal courts have recently explained that the "trilogy of grounds for rebutting the adequate representation presumption is only illustrative." B. Fernandez & Hnos., Inc. v. Kellogg USA, Inc., 440 F.3d 541, 546 (1st Cir. 2006) (citation omitted). I conclude that Wis. Stat. § 803.09(1), like Rule 24(a)(2) of the Federal Rules of Civil Procedure, should be interpreted as including illustrative examples of the grounds required to rebut the presumption of adequate representation.
¶ 57. Here, the municipalities express a fear that the attorney general, because she has expressed opinions related to the issue on appeal, will not pursue this case with the vigor and enthusiasm they expect of her. They would raise issues that she has not raised or presumably will not raise. The majority writes several pages of explanation in an attempt to convince the
¶ 58. The majority claims that only the conduct of a party and not that of the party's attorney may be analyzed to determine whether an original party to the litigation can adequately represent the intervening party's interests. Majority, ¶ 24. Were that true, there would be no need for the majority to spend six paragraphs explaining why the attorney general's comments were not really what they seemed to be. Majority, ¶¶ 25-30. Were that true, the majority would have disposed of the issue by writing that the attorney general is not a party, and therefore her statements are irrelevant. The problem with the majority's criticism is twofold. First, Wis. Stat. § 803.09(l) does not refer only to parties. In relevant part, it reads, "unless the movant's interest is adequately represented by existing parties." The operative word is "represented."
¶ 59. Attorneys general only become involved in litigation if they are required to do so or choose to do so. The conduct of the litigation is uniquely in the hands of the attorney general. This is much different from the
¶ 60. The second problem with the majority's assertion that we may not analyze the attorney general's comments is that the test for intervention as of right is broad. As I initially noted, there is no precise formula for analyzing a proposed intervention under Wis. Stat. § 803.09(1). We are to make a practical, not technical, analysis, and we favor intervention so that as many apparently concerned persons can participate as possible. The only limits are efficiency and due process. Wolff, 229 Wis. 2d at 742-43.1 see no efficiency or due process problems here. For me, it is practical to allow the municipalities to participate here because it just does not hurt anything. Trying to keep interested parties out of a lawsuit is like trying to teach a pig to sing. All that does is waste your time and annoy the pig.
¶ 61. A good way to create mistrust is to deny participation in government. Of course, there is an endpoint to participation; lawsuits cannot be open to whoever wants to participate or only chaos wins. But here, the only factor keeping the municipalities from participation as a party is the majority's conclusion that, despite statements by the State's attorney which at least raise doubts, the statements do not amount to much. Perhaps they do not, but I believe that there is a reasonable perception that the attorney general has taken a position contrary to the one she advocates on the merits of this litigation. Given the de novo standard of review we use in cases like this, the lack of a precise formula to decide cases like this, the supreme court's endorsement of a "minimal showing" by proposed inter-venors, the lack of impact on the existing parties and considering the matter practically and not technically with an eye toward maximizing participation, I conclude that I would allow the municipalities to intervene here. Accordingly, I respectfully dissent to the majority's opinion which holds otherwise.
¶ 62. But my observation that there must be an endpoint to intervention applies to the legislature's motion to intervene. We are asked to hold that whenever the legislature wishes to advocate a position on legislation, it is entitled to party status as a matter of
All references to the Wisconsin Statutes are to the 2003-04 version unless otherwise noted.
The Judicial Council's Note was referring to Wis. Stat. § 260.205 (1973), which differs from Wis. Stat. § 260.19 (1955). Still, using the clear standard of review the court used in White House, it is apparent that, until 1976, Wisconsin did not recognize intervention as of right.
This sentence does not refer to any attorney litigating this case. It is just part of an analysis of an issue.
An admonition commonly attributed to Robert Heinlein in Time Enough For Love.
Opinion of the Court
¶ 1. This is a suit challenging the constitutionality of statutes administered by a state agency. The plaintiffs in this case filed a declaratory judgment action challenging the constitutionality of Wis. Stat. §§ 40.02 and 103.10(3) (2003-04).
¶ 2. We conclude that the Legislature and the Municipalities are not entitled to intervention as a
BACKGROUND
¶ 3. Jody Helgeland and five other current or former state employees, along with their same-sex domestic partners,
¶ 4. In her amended complaint Helgeland named as defendants the Department of Employee Trust Funds (DETF) and other state actors
DISCUSSION
I. INTERVENTION AS A MATTER OF RIGHT UNDER Wis. Stat. § 803.09(1)
¶ 5. The Legislature and Municipalities both argue that the circuit court erred in not granting their
¶ 6. While these statutory requirements are well established, we "have no precise formula for determining whether a potential intervenor meets the requirements of § 803.09(1), Stats., and is thus entitled to intervene in a lawsuit." Wolff v. Town of Jamestown, 229 Wis. 2d 738, 742, 601 N.W.2d 301 (Ct. App. 1999). Rather, we evaluate the motion to intervene practically, not technically, "with an eye toward 'disposing of lawsuits by involving as many apparently concerned per
¶ 7. DETF does not dispute that both the Legislature's and the Municipalities' motions to intervene were made in a timely fashion. Thus, the first statutory requirement for intervention of right under Wis. Stat. § 803.09(1) is satisfied. We therefore turn our attention to the remaining three requirements, addressing their applicability first to the Legislature and then to the Municipalities, and weighing the facts and circumstances of each potential intervenor's claims "against the background of the policies underlying the intervention rule," to determine whether intervention is necessary for the proper adjudication of this case. Bilder, 112 Wis. 2d at 549.
A. Legislature
¶ 8. With the statute's underlying policy of achieving balance between efficiency and due process in mind, we examine the interrelated second and third statutory requirements of Wis. Stat. § 803.09(1) in conjunction with each other, i.e., whether the Legislature has an
¶ 9. The Legislature argues that it has three interests at stake which could be impaired or impeded by this lawsuit if it is not allowed to intervene: (1) its prerogative of establishing public policy; (2) its desire to defend the constitutionality of the public policy it has established regarding employee benefits;
¶ 10. Turning first to the Legislature's argument that its public policy prerogative requires intervention, there is no doubt that the Legislature is entrusted with setting public policy for the state. See Flynn v. DOA,
¶ 11. The Legislature has failed to persuade us that its constitutionally delegated authority to establish public policy would be hampered by a ruling in this case favoring Helgeland. The Legislature's interest in this respect is limited to establishing policy through the
¶ 12. We consider next the Legislature's desire to defend the constitutionality of the public policy it has established. The Legislature specifically claims an interest in defending the propriety of the court's holding in Phillips, invoking Phillips for the proposition that the issue of whether to extend employment benefits to state employees in same-sex domestic partnerships "is a legislative decision, not one for the courts." See Phillips v. Wisconsin Pers. Comm'n, 167 Wis. 2d 205, 213 n.1, 482 N.W.2d 121 (Ct. App. 1992). This argument suffers from two deficiencies.
¶ 13. First, the Legislature misunderstands the nature of footnote one in Phillips. The Legislature treats our discussion in this footnote as a holding in the case. The Legislature is wrong. We agree with the DETF that footnote one is simply dicta; it is plain that the text in footnote one of Phillips is neither a controlling ruling establishing binding law, nor does it abrogate in any way the well-established law of judicial review establishing the judiciary, not the legislature, as the proper branch of government for reviewing the constitutionality of laws.
¶ 15. The final interest asserted by the Legislature is its constitutional duty to establish and balance the budget. The legislature is charged with the duties of establishing the state budget and appropriating the funds necessary to pay for estimated expenses. Wis. Const, art. VIII, §§ 2, 5.
¶ 16. We also observe that there is no principled distinction between allowing intervention here and allowing it in the myriad of other cases where the interpretation of a statute or constitutional provision is at issue. Allowing intervention in this case would open the door to similar intervention in any case with policy or budgetary ramifications,
B. Municipalities
¶ 17. As with the Legislature, the parties do not dispute that the Municipalities' motion for intervention was timely. Thus, we are again concerned with only the three remaining factors of the Wis. Stat. § 803.09(1) test. While we conclude that at least some of the Municipalities may have a sufficiently related interest in the action and that this interest could be impaired by a judgment in Helgeland's favor, we also conclude that this interest is adequately represented by existing parties and therefore the Municipalities do not meet the requirements of § 803.09(1) for intervention as a matter of right.
¶ 18. It is important to clarify which benefits are at issue in this case. Despite the Municipalities' arguments that this lawsuit involves claims to DETF pension benefits, a review of Helgeland's amended complaint and the rest of the record establishes that pension plans are not at issue here. Rather, as the complaint clearly states,
[t]he benefits at issue in this lawsuit include access to health care for an employee's domestic partner; access to family leave so that an employee can care for a seriously ill domestic partner; and an employee's ability when she leaves state employment, such as at retirement or death, to convert sick leave credits to pay for health insurance for her insured partner.
¶ 19. It appears likely that three of the eight proposed intervenor Municipalities, Cottage Grove, Wa-tertown, and Oostburg, may have interests sufficiently related to the declaratory action by virtue of being enrolled in the DETF health plans.
¶ 20. We will ordinarily deem a party's representation of a potential intervenor adequate (1) if there is no showing of collusion between the representative and the opposing party; (2) if the representative's interest is not adverse to that of the proposed intervenor; and (3) if the representative does not fail in the fulfillment of its duty. See Armada Broad., Inc., 183 Wis. 2d at 476; Sewerage Comm'n of Milwaukee v. DNR, 104 Wis. 2d 182, 189, 311 N.W.2d 677 (Ct. App. 1981) (citing United States v. Board of Sch. Comm'rs, 466 F.2d 573, 575 (7th Cir. 1972)). The movant requesting intervention as a matter of, right has the burden of establishing inadequate representation. United States Postal Serv. v. Brennan, 579 F.2d 188, 191 (2d Cir. 1978).
¶ 21. Under the doctrine of parens patriae, "a state that is a party to a suit involving a matter of sovereign interest is presumed to represent the interests of all its citizens." Environmental Defense Fund, Inc. v. Higginson, 631 F.2d 738, 740 (D.C. Cir. 1979). Thus, to intervene in a suit in which a state is already a party, a citizen or subdivision of that state must overcome this presumption of adequate representation through more than a minimal showing that the representation may be inadequate. Id. The movant must demonstrate "that its interest is in fact different from that of the state and that the interest will not be represented by the state." Id. It is not enough to show that the movant could bring additional, cumulative arguments to the table; there must be actual divergence between the state's position on the primary issue and the potential intervenor's position. Id. Such cumulative arguments may always be brought forward through amicus curiae briefs, pursuant to Wis. Stat. § 809.19(7), which does not require intervention.
¶ 22. To support their claim that DETF cannot adequately represent them, the Municipalities present several related arguments. They argue that (1) the attorney general has in public speeches demonstrated support for Helgoland's position, demonstrating her "conflicted loyalties"; (2) DETF is situated differently from the Municipalities, with different objectives; (3) the attorney general has failed to raise important issues and defenses; and (4) the attorney general cannot represent Municipalities in the remedy phase. We reject each of these arguments.
¶ 24. Before we address the Municipalities' first argument, we note that the Municipalities aim their argument at the wrong target. Wisconsin Stat. § 803.09(1) describes the inadequate representation
¶ 25. We start with the presumption that the attorney general will properly perform her duties. See White House Milk Co., 275 Wis. at 250.
¶ 26. Regarding Lautenschlager's statements at the election debate on October 25, 2002, the Municipalities quote her as saying that "part of the job of the attorney general is to ensure that the civil rights of all individuals throughout the state are recognized and are supported. And I believe that we need to do this [create
¶ 27. Similarly, the attorney general's statement at the Madison Gay Pride Rally does not support the Municipalities' contention that the attorney general cannot adequately represent their interests. We note that in her statement, the attorney general voiced only general support for civil rights without addressing the issues specific to this case. At the rally, the attorney general stated:
[Describing a conversation with her son] I said [to the son], 'You are doing a parade," and he said, 'Yes, I ana." And I said, "So why did you want to do this parade?" and he looked at me, as he was about to start law school I might add, and said, "Mom, this is the Civil Rights movement of my generation." Indeed, he was right.... Today's parade is a recognition that in this great nation people ought to be treated fairly no matter who they are. No matter what color they are. No matter what their religion. No matter if they are rich or poor, or no matter if they are gay or straight. This is a fundamental issue, and this is an issue about which we will all be on the battlegrounds .... [T]he reality is this is something*913 where we need to speak out. Where we cannot have our voices silenced and where we need to find the courage not to be timid. Not to play it safe, but to say indeed rights for all are human rights, and human rights are deserved by all no matter if you're gay.
Nothing in the attorney general's comments addresses the litigation before us nor conveys anything more specific about her viewpoint than a general support for civil rights for all persons, regardless of religion, race, wealth or sexual orientation, similar to her statements during the October 25, 2002 debate generally supporting the concept of civil unions.
¶ 28. In addition, a careful look at the Gay Rights Rally transcript reveals that there was not necessarily a close nexus in either timing or context between the statements of the Helgeland plaintiffs and attorney, and that of the attorney general. The transcript of the Gay Rights Rally shows that the rally consisted of statements from five speakers, divided into two segments. The first half of the rally consisted of the speeches by the Helgeland plaintiffs and attorney. Next came a clear break between segments, and a segue by the announcer, who provided the following bridge between segments: "Well, on a different note, the next two speakers are two amazing women who both broke barriers to be here," indicating a transition to another category of speakers: female public officials. Then came the statements of Attorney General Peg Lautenschlager and Congresswoman Tammy Baldwin. There is nothing in the timing or context of Lautenschlager's statements indicating support for plaintiffs' claims in this litigation or an inability to defend against the plaintiffs' constitutional challenge.
¶ 29. We conclude that neither the substance nor the timing of Lautenschlager's remarks serves to rebut
¶ 30. Regarding the Municipalities' description of the attorney general's spokesperson's statement to the newspaper as reflecting an abandonment of the precedent of Phillips, the Municipalities' concerns find no support in the record, considering the attorney general's actual conduct in this action. DETF's motion
¶ 31. We also reject the Municipalities' argument that the DETF cannot adequately represent them because they are differently situated, with the Municipalities having a policymaking prerogative while the DETF administers the policies decided by the Legislature. This argument is essentially the same as the Legislature's public policy prerogative argument. For the reasons we have already explained, we similarly conclude that any policy prerogative of the Municipalities does not qualify as an "interest" for purposes of mandatory intervention and thus we need not consider it in the discussion of adequate representation. See Armada Broad., Inc., 183 Wis. 2d at 476; Sewerage Comm'n, 104 Wis. 2d at 189.
¶ 32. The Municipalities next argue that "critical defenses are absent from Defendant's pleadings and conduct of the litigation to date," and that the motion for judgment on the pleadings is "reckless" because it "risks the Wisconsin Supreme Court reaching the ultimate merits of Plaintiffs' claims ... without presenting any factual basis for sustaining legislative discretion under the deferential rational basis standard." We are not persuaded.
¶ 33. The attorney general has chosen a procedure to obtain a dismissal of the case through a legal ruling on the statutes' constitutionality — based on Phillips — which does not require additional facts. The
¶ 34. Finally, the Municipalities assert that they would be inadequately represented in the remedy phase because, should Helgeland win this case and receive the requested declaratory judgments and injunctive relief, "[drafting and implementing such a massive, quasi-legislative injunction would be irresponsible without extensive participation of the very municipalities and employees whose rights and obligations will be affected." They argue that a judgment for Helgeland would force "hundreds or thousands of municipalities [to] conform to principles in the face of multiple collective bargaining agreements, duly adopted budgets, revenue limitations, vested employee rights, etc."
II. PERMISSIVE INTERVENTION
A. Legislature
¶ 36. The Legislature next argues that the circuit court erred by not granting its motion for permissive intervention. Wisconsin Stat. § 803.09(2) governs permissive intervention and states in relevant part:
Upon timely motion anyone may be permitted to intervene in an action when a movant's claim or defense and the main action have a question of law or fact in common.... In exercising its discretion the court*918 shall consider whether the intervention will unduly delay or prejudice the adjudication of the rights of the original parties.
In its motion to intervene, the Legislature argued that it would address questions of law and fact that were in common with the main action and described a number of issues raised by the case — such as whether Phillips is controlling precedent. It did not identify any defense it had to any claim, although in its appellate brief it describes these issues as "defenses."
¶ 37. The circuit court's permissive intervention analysis began with the court asking, "Whose job is it to defend the laws of Wisconsin?"
¶ 38. Whether to grant a motion to permissively intervene under Wis. Stat. § 803.09(2) is left to the sound discretion of the circuit court. Milwaukee Bd. of Sch. Dirs. v. Milwaukee Teachers' Edu. Ass'n, 143 Wis. 2d 591, 600, 422 N.W.2d 149 (Ct. App. 1988). However, we review de novo whether the legal requirements of the statute are met. See Employee Staffing Servs., Inc. v. Aubry, 20 F.3d 1038, 1042 (9th Cir. 1994) ("[w]e review whether the legal requirements [of permissive intervention under-
¶ 39. Wisconsin Stat. § 803.09(2) is part of our rules of civil procedure. We apply rules of statutory interpretation when interpreting rules of civil procedure. Jadair Inc. v. United States Fire Ins. Co., 209 Wis. 2d 187, ¶ 8, 562 N.W.2d 401 (1997). As with statutory interpretation, rule interpretation is a question of law, which we review de novo. Id. We first look to the plain language of the rule and if the intent of the supreme court is manifest, we must give effect to this intent. Id., ¶ 9.
¶ 40. We focus on the meaning of "defense." As noted above, the Legislature's position is that the issues they wish to raise are "defenses" within the meaning of the statute. "Defense" is a term that has a legal meaning and we may consult Black's Law Dictionary to determine its common legal meaning. See State v. Ellis H., 2004 WI App 123, ¶ 15, 274 Wis. 2d 703, 684 N.W.2d 157. Black's Law Dictionary defines "defense" as "[a] defendant's stated reason why the plaintiff or prosecutor has no valid case, especially, a defendant's answer, denial or plea[:]... 'that which is alleged by a party proceeded against in an action or suit, as a reason why the plaintiff should not recover or establish that which
¶ 41. Wisconsin Stat. § 803.09(3) supports this construction of "defense." See State ex rel. Kalal v. Circuit Court for Dane County, 2004 WI 58, ¶ 46, 271 Wis. 2d 633, 681 N.W.2d 110 (we interpret statutory language "in the context in which it is used; not in isolation but as part of a whole; in relation to the language of surrounding or closely-related statutes"). This subsection requires that the motion to intervene "shall be accompanied by a pleading setting forth the claim or defense for which intervention is sought...." This conveys that the "claim" or "defense" is more than arguments or issues a non-party wishes to address and is the type of matter presented in a pleading-^-either allegations that show why a party is entitled to the relief sought on a claim or allegations that show why a party proceeded against is entitled to prevail against the claim.
¶ 42. Federal cases discussing the identically worded federal rule in all material respects also support this meaning of "defense." See Diamond v. Charles, 476 U.S. 54, 76-77 (1986) (O'Connor, J., concurring) ("The words 'claim or defense' manifestly refer to the kinds of claims or defenses that can be raised in courts of law as part of an actual or impending law suit...[;] it.. .
¶ 43. We conclude that the arguments and issues the Legislature wishes to raise to defeat Helgoland's claims do not constitute a "defense" within the meaning of Wis. Stat. § 803.09(2). Therefore the circuit court did not err in denying its motion for permissive intervention. We recognize that the circuit court apparently denied the motion for a different reason. Based on the Legislature's assertion in its motion that it has a significant interest in defending its policy decision not to provide domestic partner benefits, the circuit court apparently reasoned that the Legislature wanted to "defend" the statutes in the same way the attorney general would, and that providing such a defense was not the Legislature's duty. However, on our de novo review of the statutory require-
B. Municipalities
¶ 44. In its discussion of the Municipalities' motion for permissive intervention, the circuit court concluded:
There has not been any showing that permitting the Legislature to intervene is likely to cause any significant delay but that is not the situation as to the municipal intervenors. The municipal intervenors suggest that this action should be converted into a class action, potentially broadening the scope. It has been asserted that this will inevitably cause some degree of delay and the court accepts this as a probability.
As we have discussed, whether to grant a motion to permissively intervene under Wis. Stat. § 803.09(2) is left to the sound discretion of the circuit court. Milwaukee Bd. of Sch. Dirs., 143 Wis. 2d at 600. We conclude that the circuit court's denial of the Municipalities' motion for permissive intervention, based on the delay associated with a proposed certification for class action,
III. JOINDER
¶ 45. The Municipalities insist that they meet the requirements to be joined as necessary and indispensable parties in this action sua sponte under Wis. Stat. §§ 803.03(l)(b)
¶ 46. The Municipalities argue that they are necessary parties under Wis. Stat. § 803.03(l)(b)l. because of the prejudicial effect a judgment in Helgeland's favor would have on them. The Municipalities do not specify the ways in which they would be prejudiced if not joined in this action; we presume that they implicitly incorporate their previous arguments on how they would be prejudiced if not permitted to intervene as a matter of right. The inquiry of whether a movant is a necessary party under § 803.03(l)(b)l. is in all significant respects the same inquiry under Wis. Stat. § 803.09(1) as to whether a movant is entitled to intervene in an action as a matter of right, including the factor of whether the interest of a movant is adequately represented by existing parties. Dairyland Greyhound Park, Inc. v. McCollum, 2002 WI App 259, ¶ 10 and n.6, 258 Wis. 2d 210, 655 N.W.2d 474. Having concluded that the Municipalities were properly denied the right to intervene in this case, we therefore conclude that the Municipalities are not necessary parties under § 803.03(l)(b).
¶ 47. Regarding the motions for intervention as a matter of right, we conclude that the Legislature has presented no sufficiently related interests potentially impaired by the declaratory judgment action and that any sufficiently related interests of the Municipalities are adequately represented. Regarding the motions for permissive intervention, we conclude that the circuit court properly denied the Legislature's motion because the Legislature did not have a "defense" within the meaning of Wis. Stat. § 803.09(2). We also conclude that the court properly exercised its discretion in deciding that allowing the Municipalities to intervene would result in undue delay. Finally, we conclude that the Muncipalities are not necessary parties within the meaning of Wis. Stat. § 803.03(l)(b), and therefore were properly not joined under that statute. We therefore affirm the circuit court's denial of the Legislature's and Municipalities' motions to intervene.
By the Court. — Order affirmed.
All references to the Wisconsin Statutes are to the 2003-04 version unless otherwise noted.
The First Amended Complaint identifies the plaintiffs and their partners both as life partners and domestic partners.
Wisconsin Stat. § 40.02(20) reads as follows:
"Dependent" means the spouse, minor child, including stepchildren of the current marriage dependent on the employee for support and maintenance, or child of any age, including stepchil*895 dren of the current marriage, if handicapped to an extent requiring continued dependence. For group insurance purposes only, the department may promulgate rules with a different definition of "dependent" than the one otherwise provided in this subsection for each group insurance plan.
Wisconsin Stat. § 103.10 reads in pertinent part:
(1) Definitions. In this section:
(h) "Spouse" means an employee's legal husband or wife.
(3)(b) An employee may take family leave for any of the following reasons:
3. To care for the employee's child, spouse or parent, if the child, spouse or parent has a serious health condition.
Wisconsin Const, art. I, § 1 states, "All people are born equally free and independent, and have certain inherent rights; among these are life, liberty and the pursuit of happiness; to secure these rights, governments are instituted, deriving their just powers from the consent of the governed."
Helgeland also named as co-defendants the Employee Trust Funds Board, the Group Insurance Board, and Eric Stanchfield, who is the secretary of the Department of Employee Trust Funds. Throughout the opinion we will refer to the defendants collectively as DETF.
Wisconsin Stat. § 803.09(1) states:
Upon timely motion anyone shall be permitted to intervene in sm action when the movant claims an interest relating to the property or transaction which is the subject of the action and the movant is so situated that the disposition of the action may as a practical matter impair or impede the movant's ability to protect that interest, unless the movant's interest is adequately represented by existing parties.
We do note, however, that the same conclusions we reach in the next section, applying the adequate representation prong to the Municipalities, would apply to the Legislature as well, were it necessary to apply the final part of the Wis. Stat. § 803.09(1) test in our analysis to the Legislature's intervention request.
DETF argues that this second alleged interest should not be considered by us since it was not presented to the circuit court, and the Legislature consequently "failed to preserve this argument." Upon examining the record, however, we note that while the Legislature did not explicitly argue to the circuit court that it had an interest in defending the constitutionality of the public policies it establishes, such an interest may be considered to be an implicit element of its more general arguments. In addition, even if the claimed interest in defending the constitutionality of its public policies were viewed as a new issue raised for the first time on appeal, "[t]he general rule that appellate
WISCONSIN Stat. § 15.001(1) reads as follows:
Three branches op government. The "republican form of government" guaranteed by the U.S. Constitution contemplates the separation of powers within state government among the legislative, the executive and the judicial branches of the government. The legislative branch has the broad objective of determining policies and programs and review of program performance for programs previously authorized, the executive branch carries out the programs and policies and the judicial branch has the responsibility for adjudicating any conflicts which might arise from the interpretation or application of the laws. It is a traditional concept of American government that the 3 branches are to function separately, without intermingling of authority, except as specifically provided by law.
WISCONSIN Const, art. VIII, § 2 states, "No money shall be paid out of the treasury except in pursuance of an appropriation by law. No appropriation shall be made for the payment of any
Wisconsin Const, art. VIII, § 5 reads as follows:
The legislature shall provide for an annual tax sufficient to defray the estimated expenses of the state for each year; and whenever the expenses of any year shall exceed the income, the legislature shall provide for levying a tax for the ensuing year, sufficient, with other sources of income, to pay the deficiency as well as the estimated expenses of such ensuing year.
An example concerning criminal sentencing illustrates how far-reaching such a broad intervention right could become. Under the Legislature's reasoning, it would be able to intervene in a sentencing hearing contesting a proposed sentence as too harsh based on the fact that extended incarceration would be costly to the state and would interfere with the Legislature's budgetary duties.
The other potential intervening Municipalities do not participate in the DETF health insurance, sick leave carryover, and family leave plans at issue in Helgeland's complaint. It does not appear that these other Municipalities' various benefit plans are sufficiently related to the DETF plans at issue in this case.
In addition to raising arguments related to pension plans, the Municipalities argue, but provide no case law supporting their argument, that the stare decisis effect of this case could impair their interest to the point of requiring intervention. We note that although no Wisconsin appellate court has addressed this specific issue, the Seventh Circuit has, and in doing so concluded that courts should base intervention on such stare decisis arguments "infrequently." Bethune Plaza, Inc. v. Lumpkin, 863 F.2d 525, 532 (7th Cir. 1988). Thus, even if we assume the other Municipalities have a direct interest potentially impaired by the stare decisis effect of this case, we still conclude the circuit court properly denied the Municipalities' motion for intervention of right because the existing parties adequately represent the Municipalities' interests.
Because Wis. Stat. § 803.09 is based on Rule 24 of the Federal Rules of Civil Procedure, we may look to cases and commentary relating to Rule 24 for guidance in interpreting § 803.09. See State ex rel. Bilder v. Township of Delavan, 112 Wis. 2d 539, 547, 334 N.W.2d 252 (1983).
The Municipalities take this quote from Stacy Forster, Domestic Partner Benefits Fight Grows; Legislature to Hire Pro Bono Firm to Intervene, Milwaukee J. Sentinel, May 19, 2005, at Bl.
The dissent contends the supreme court's inadequate representation analysis in White House Milk Co. v. Thomson, 275 Wis. 243, 81 N.W.2d 725 (1957), should not be applied here because at the time the case was decided "there was no provision for intervention as of right in Wisconsin," and therefore the standard of review was for an abuse of discretion, not de novo, which is the standard we apply here. Dissent, ¶ 49. This is a distinction without a difference. First, there is nothing in the supreme court's inadequate representation analysis indicating the court would arrive at a different conclusion today under the intervention of right statute with its concomitant de novo standard of review. Second, the dissent fails to provide any supportable reason why the differences he points to matter. Moreover, White House continues to be the law. See, e.g., City of Madison v. Wisconsin Employment Relations Comm'n, 2000 WI 39, ¶ 11 nn.8, 11, 234 Wis. 2d 550, 610 N.W.2d 94; North
The following quote was taken from 52 Am. Jub. Taxpayers' Actions § 26 (1944):
Public officers are always presumed, in the absence of any showing to the contrary, to be ready and willing to perform their duty; and until it is made to appear that they have refused to do so, or have neglected to act under circumstances rendering this equivalent to a refusal, there is no occasion for the intervention of the citizen for the protection of himself and others similarly situated.
According to the Municipalities, this web page could be accessed through the following URL as of May 26, 2005: www.actionwisconsin.org/elect02update.html. As the circuit court noted, DETF has not objected to or disputed the accuracy of this description of Lautenschlager's statements.
The dissent would grant the Municipalities' motion to intervene as a matter of right based on the Municipalities' subjective belief that the attorney general will not properly and professionally fulfill her duties as attorney general. Dissent, ¶ 57. As we explained, the Municipalities improperly point to the attorney general as the target for their inadequate representation argument, when indeed the Municipalities should focus their argument on DETF, a party in this action. The dissent appears to fall into the same trap by focusing on the attorney general rather than on the DETF in arguing that the Municipalities should be made a party in this action.
Whether the Municipalities' motion to intervene was timely is not in dispute. Therefore we need not address this issue.
Whether the Municipalities had a common claim or defense within the meaning of Wis. Stat. § 803.09(2) has not been raised as an issue in this appeal. Like the circuit court's analysis, our analysis consequently moves directly to the second prong of the permissive intervention test under § 803.09(2): whether the Municipalities' intervention would unduly delay or prejudice the
Wisconsin Stat. § 803.03(1) states in relevant part:
A person who is subject to service of process shall be joined as a party in the action if:
(b) The person claims an interest relating to the subject of the action, and is so situated that the disposition of the action in the persons absence may:
1. As a practical matter impair or impede the person's ability to protect that interest; or
*924 2. Leave any of the persons already parties subject to a substantial risk of incurring double, multiple or otherwise inconsistent obligations by reason of his or her claimed interest.
WISCONSIN Stat. § 806.04(11) provides in relevant part, "[w]hen declaratory relief is sought, all persons shall be made parties who have or claim any interest which would be affected by the declaration, and no declaration may prejudice the right of persons not parties to the proceeding."
The Municipalities' argument that Wis. Stat. § 806.04(11) requires their joinder is not fully developed. We need not consider this argument any further. See State v. Pettit, 171 Wis. 2d 627, 646-47, 492 N.W.2d 633 (Ct. App. 1992).
Reference
- Full Case Name
- Jody Helgeland, Jessie Tanner, Virginia Wolf, Carol Schumacher, Diane Schermann, Michelle Collins, Megan Sapnar, Ingrid Ankerson, Eloise McPike, Janice Barnett, Jayne Dunnum and Robin Timm, Plaintiffs-Respondents, v. Wisconsin Municipalities, Appellant, Wisconsin State Senate and Assembly, Co-Appellant, Department of Employee Trust Funds, Employee Trust Funds Board, Eric Stanchfield and Group Insurance Board, Defendants-Respondents
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- 8 cases
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- Published