Wisconsin 
  Lawyer
  Vol. 81, No. 3, March 
2008
 Court of Appeals Digest
  This column summarizes selected
  published opinions of the Wisconsin Court of Appeals. Prof. Daniel D. 
Blinka
  and Prof. Thomas J. Hammer invite comments and questions about the 
digests.
  They can be reached at the Marquette University Law School, 1103 W. 
Wisconsin
  Ave., Milwaukee, WI 53233, (414) 288-7090.
by Prof. Daniel D. Blinka &
  Prof. Thomas J. Hammer
Criminal Procedure
Jury Trials - Requirement that Defendant Wear Armband Taser Device 
  - Trial Court's Duty to Inquire as to Necessity of Device
State v. 
Champlain, 2008 WI App 5 (filed 5 Dec. 2007) (ordered published 
30 
Jan. 2008)
     The local jail administrator required the defendant to wear an 
armband 
taser device (a Band-It) during the defendant's jury trial. The Band-It, 
a 
polypropylene sleeve that fits from just above the wrist to over the 
elbow, employs 
an electrical discharge similar in principle to a stun belt. The 
electronic 
box inside the sleeve measures about three inches by six or seven inches 
and is 
an inch or inch-and-a-half thick. A uniformed court officer wearing an 
activator sat directly behind the defendant at the jury trial in case 
the unit had to 
be activated. 
     The defendant wore his own clothing at the jury trial, declining 
the 
jail administrator's offer of a long-sleeved shirt from the jail's 
property 
collection. The short sleeves of the defendant's polo shirt did not 
conceal the 
Band-It on his right forearm. When defense counsel noticed the armband 
and asked 
what it was, his client told him it was "some kind of security 
thing." Counsel 
did not object to the defendant having to wear the device or otherwise 
ask the 
trial court to inquire whether the device was necessary. The jury 
convicted the 
defendant of burglary and obstructing an officer.
     On appeal the defendant challenged the propriety of the 
armband's use 
and, separately, alleged that his trial counsel was ineffective for 
failing to 
object to his wearing the device in the presence of the jury. In a 
decision authored 
by Judge Nettesheim, the court of appeals reversed. Applying the 
two-prong 
test articulated in Strickland v. 
Washington, 466 U.S. 668 (1984), the court 
agreed with the defendant that his trial counsel was ineffective for 
failing to raise 
a challenge to use of the armband taser device.
     A criminal defendant generally should not be restrained during 
the 
trial "because such freedom is an important component of a fair and 
impartial 
trial" (¶ 22) (citation omitted). Said the court, "once 
[the defendant] told [his 
attorney] that the armband was a type of security device, we cannot 
excuse 
[defense counsel] for failing to raise the question of whether the 
device was 
necessary and to ask [that] the trial court make an independent inquiry 
on 
the matter.... Numerous cases address the potential prejudice inherent 
when a 
criminal defendant appears before a jury garbed or restrained so as to 
imply 
guilt. Numerous cases also address that it is for the court, not jail 
personnel, 
to determine the necessity for the restraint.... Once he learned that 
[the 
defendant's] armband, at least potentially visible to the jury, was an 
electronic restraint, [counsel] had a duty to object or, at a bare 
minimum, to request 
the trial court to explore the need for the device. We conclude that 
[counsel's] professional assistance fell below an objective standard of 
reasonableness 
such that he did not function as the `counsel' the Sixth Amendment 
guarantees" 
(¶¶ 26-27) (citations omitted). "[B]ecause we cannot say 
with confident 
certainty that the visible device did not unfairly prejudice [the 
defendant], we hold 
that the prejudice prong of Strickland is also satisfied" 
(¶ 2).
     The court of appeals further held that, despite counsel's 
failure to 
raise the issue, the trial court had an independent duty to explore the 
necessity 
of the device once the court became aware of it. "A trial court 
maintains the 
discretion to decide whether a defendant should be shackled during a 
trial as 
long as the reasons justifying the restraints have been set forth in the 
record. 
It is an erroneous exercise of discretion to rely primarily upon law 
enforcement department procedures instead of considering the risk a 
particular 
defendant poses for violence or escape. In addition, whenever a 
defendant wears a 
restraint in the presence of jurors trying the case, the court should 
instruct that the restraint is not to be considered in assessing the 
proof and 
determining guilt.... The judge alone controls the courtroom and alone 
has the 
authority and the duty to make a restraint decision" (¶¶ 
33-34) (citations omitted).
Top of page 
Search and Seizure - Vehicle Stops - Protective Frisks - 
"Furtive 
Movements"
State v. 
Alexander, 2008 WI App 9 (filed 18 Dec. 2007) (ordered published 
30 Jan. 2008)
     Two Milwaukee police officers were parked in a specific area of 
the 
city because of recent complaints that shots had been fired in the area. 
They 
observed a vehicle go through a red light, and they activated their 
squad 
car's emergency lights in an attempt to pull the vehicle over. The 
vehicle did 
not stop immediately but eventually did so after travelling about two 
blocks. 
During the time the officers followed the vehicle, they noticed three 
people in 
the car. The front seat occupants were the driver, Brown, and the 
defendant, Alexander; the back seat occupant was Winters. 
     One of the officers stated that he saw Alexander and Winters 
making 
furtive movements as though each were giving something or receiving 
something from 
the other. The officer then saw Alexander turn back toward the front of 
the car 
and lean forward toward the glove compartment. Alexander also appeared 
to lean 
toward Brown, who lifted herself up as if to allow Alexander to place 
something beneath her. After the furtive movements stopped, the car 
pulled over. Based 
on the furtive movements, the delay in pulling over, the high-crime 
area, and 
the time of day (9:19 p.m.), the officer believed, based on his prior 
experience, that there were weapons in the car. He and his partner 
called for backup. 
The officers then asked the occupants to exit the vehicle and they 
patted down 
the individuals. First, they patted down Winters and did not find any 
weapons. 
Then they asked Alexander to exit; he initially refused. He then 
complied, and a 
pat-down did not reveal any weapons on Alexander. Then the officers 
asked Brown 
to exit and patted her down. The officers did not find any weapons but 
they 
did observe on the driver seat a bottle of air freshener, some papers, 
and the 
auto manual - items typically kept in the glove compartment. The 
officers 
then searched the glove compartment of the vehicle and discovered a gun 
and a 
large amount of cocaine and marijuana (see ¶ 3).
     The defendant was charged with possession of cocaine and 
marijuana with 
intent to deliver. The circuit court denied his motion to suppress this 
evidence, and he entered a guilty plea. The circuit court also denied 
his 
postconviction motion to reconsider the ruling on the suppression 
motion, and this appeal 
followed. In a decision authored by Judge Wedemeyer, the court of 
appeals affirmed.
     The question before the appellate court was whether the officer 
conducting the protective search had reasonable suspicion to believe 
that the subject 
of the pat-down was dangerous and may have had immediate access to a 
weapon 
(see ¶ 8). "We are convinced that the officers in the 
instant case had sufficient 
particularized facts to raise a reasonable suspicion that the situation 
was 
dangerous, and that the occupants of the vehicle may have had a weapon. 
We base 
our decision on the following factors: (1) the officers were in the area 
due 
to `shots fired' complaints and knew the area to be very violent, with 
substantial drug and gun activity; (2) the numerous furtive gestures of 
the occupants of 
the car observed by the officers before the car stopped; (3) the delay 
in 
stopping raising the suspicion of the officers that the occupants were 
buying time 
to hide weapons; (4) the officers' belief that the situation was 
dangerous based 
on the occupants' actions immediately upon stopping the car; (5) the 
items 
observed on the driver's seat and the reasonable inferences that could 
be drawn 
therefrom; (6) the protective search being the first priority over the 
traffic 
stop; and (7) the trial court's credibility determination" (¶ 
15).
Top of page 
HIPAA - Wisconsin Medical Privacy Statute - Suppression of Evidence 
Not Proper Remedy for Violations of Health Care Privacy Laws
State v. 
Straehler, 2008 WI App 14 (filed 19 Dec. 2007) (ordered 
published 
30 Jan. 2008)
     The defendant was injured when the vehicle she was driving was 
involved in 
an accident. The officer at the scene did not detect any odor of 
intoxicants 
coming from her. After the defendant was conveyed to a hospital, 
however, a 
different officer was informed by a nurse that she and other hospital 
staff 
members smelled alcohol coming from the defendant and that the defendant 
had told 
hospital staff that she had consumed alcohol before the accident. With 
the 
defendant's consent, blood was thereafter withdrawn and analyzed; it was 
found 
to have an alcohol content level of .119 grams per 100 milliliters of 
blood. 
The state charged the defendant with operating while intoxicated as a 
repeat 
offender.
     The defendant argued that the release of her confidential health 
information by the nurse violated the Health Insurance Portability and 
Accountability Act 
of 1996 (HIPAA) and the Wisconsin medical privacy statute (Wis. Stat. 
§ 146.82) 
and that the information should therefore be suppressed. She further 
contended 
that without this medical information the police lacked probable cause 
for a 
blood draw and that the results of any chemical test would be 
inadmissible. The 
circuit court denied the motion to suppress. In a decision authored by 
Judge 
Anderson, the court of appeals affirmed the circuit court.
     With respect to the alleged HIPAA violation, the appellate court 
concluded that HIPAA applies to what are known as "covered 
entities," but police 
officers are not listed as one of the covered entities. Therefore HIPAA 
does not 
control the conduct of law enforcement officers. 
See 45 C.F.R. §§ 160.102(a), 164.104(a). 
"Thus, even assuming [nurse] Hagerman disclosed information in 
violation of this privacy rule, in urging suppression of the evidence, 
[the 
defendant] ignores the most obvious limitation of HIPAA: HIPAA and its 
accompanying regulations, including the privacy rule, apply to express 
`covered 
entities': health plans, health care clearinghouses, and health care 
providers who 
transmit health information electronically. See 
45 C.F.R. §§ 160.102(a), 164.104(a)" 
(¶ 10). Further, "even if [the detective at the hospital] 
was somehow bound 
by HIPAA, which we have established an officer is not, HIPAA does not 
provide 
for suppression of the evidence as a remedy for a HIPAA violation. 
Suppression 
is warranted only when evidence has been obtained in violation of a 
defendant's constitutional rights or if a statute specifically provides 
for suppression as 
a remedy. [The defendant] does not argue a constitutional 
violation and the 
statute does not specifically provide for suppression as a 
remedy..." (¶ 13) 
(citations omitted). The court also concluded that HIPAA does not 
preempt Wis. 
Stat. section 905.04(4)(f), which provides "[t]here is no privilege 
concerning 
the results of or circumstances surrounding any chemical tests for 
intoxication 
or alcohol concentration" (¶ 14).
     With respect to the Wisconsin medical privacy statute, the court 
held 
that section 146.82 applies to patient health care 
records. Because the statute only applies to records, the nurse's 
verbal statements based on her observations 
of the defendant are not protected by it 
(see ¶¶ 19-20). Further, section 
146.84 provides remedies for violations of section 146.82 but the list 
of remedies 
does not include suppression of evidence 
(see ¶ 14).
Top of page 
  Elder Law
    
Competence - Attorney-in-Fact - Standing  
Winiarski v. Village of 
Manor Park, 2008 WI App 7 (filed 4 Dec. 2007) 
(ordered published 30 Jan. 2008)
     "This case arises out of an unmarried woman's estate 
planning" (¶ 
2). Winiarski prepared a will, a health care power of attorney (HCPOA), 
and a 
general durable power of attorney (GDPOA) in which he was designated the 
"first 
named agent" for his client, Florence. Years later Florence entered 
a facility, 
Village of Manor Park (VMP). VMP later questioned the validity of the 
HCPOA 
because Winiarski both witnessed the HCPOA and was named as the 
representative; 
accordingly, VMP petitioned for a guardianship to determine if Florence 
was 
competent to make her own health care decisions. Winiarski observed the 
hearing but 
was not permitted to participate or present evidence. The circuit court 
found 
that Florence was competent and dismissed the petition. Shortly 
thereafter, 
Florence's adversary counsel informed Winiarski that Florence had 
revoked the 
HCPOA and the GDPOA and thereby terminated him as her agent. Winiarski 
"conceded" 
that he agreed to this "unconditional termination," and he 
gave the keys and 
documents to Florence's new agent. Winiarski then appealed the 
determination 
that Florence was competent.
     The court of appeals, in an opinion written by Judge Kessler, 
dismissed 
the appeal because Winiarski lacked standing. "[B]ecause 
Winiarski's standing 
derives from his agency under the GDPOA, when Winiarski conceded at oral 
argument that he had accepted Florence's termination of his agency, he 
would only 
be entitled to appeal on her behalf if he reserved the right to do so at 
the 
time of his termination as agent. As he conceded at oral argument that 
he did 
not reserve the right to do so, we must determine whether Winiarski's 
failure 
to reserve a right to appeal upon his termination as Florence's agent 
under 
the GDPOA constituted a waiver that deprives him of standing to make 
this appeal" 
(¶ 13). "Because Winiarski is a lawyer, and the drafter of the 
GDPOA, we can 
infer that he had constructive knowledge of his rights and 
responsibilities as 
an agent under the GDPOA. By his acknowledgement at oral argument that 
he did 
not reserve his right to appeal on Florence's behalf the court's finding 
that 
she was competent when he consented to his termination as her agent 
under the 
GDPOA, we may also infer that Winiarski voluntarily and intentionally 
waived 
that right" (¶ 15). 
Top of page 
  Employment Law
    
WERC - Jurisdiction to Hear Case Involving Demotion during 
  Promotional Probationary Period  
Kriska v. WERC, 
2008 WI App 13 (filed 11 Dec. 2007) (ordered published 30 
Jan. 2008)
     In 1995 petitioner Kriska was hired by the Wisconsin Department 
of 
Corrections (DOC) as a correctional officer. In 2001 he was promoted to 
the 
position of lieutenant (supervising officer 1) (SO 1). He successfully 
completed 
the probationary period associated with that promotion and acquired 
permanent 
employee status in the SO 1 position. In 2005 Kriska was promoted to 
captain 
(supervising officer 2) (SO 2). This position required a 12-month 
probationary period. During that probation, Kriska received notice that 
his promotional 
probationary period for captain was being terminated because he 
allegedly 
violated various work rules, and that he was being returned to his 
lieutenant position 
at that corresponding rate of pay. Kriska appealed from the dismissal, 
alleging that he was denied his right to a just cause determination. 
     The Wisconsin Employment Relations Commission (WERC) denied the 
appeal 
after determining that it lacked subject matter jurisdiction over 
appeals of 
probationary termination decisions in a situation in which the employee 
is serving 
an initial probationary period and thus does not have the 
"permanent status 
in class" required by Wis. Stat. section 230.44(1)(c). This statute 
provides 
as follows: "If an employee has permanent status in class 
 
the employee may 
appeal a demotion, layoff, suspension, discharge or reduction in base 
pay to the 
commission, if the appeal alleges that the decision was not based on 
just 
cause." The circuit court affirmed WERC's decision. In an opinion 
authored by 
Judge Wedemeyer, the court of appeals affirmed the circuit court.
     The issue on appeal was whether WERC erred in determining that 
it 
lacked subject matter jurisdiction to hear Kriska's appeal from the 
DOC's 
termination of his probationary period for the captain position and 
returning him to 
the lieutenant position (see ¶ 7). Based on the plain 
language of the statutes 
and the administrative code, together with the existing case law, the 
appellate court concluded that WERC did not have jurisdiction to hear 
Kriska's appeal. 
"We hold that under the facts and circumstances of this case, DOC's 
termination 
of Kriska's probationary period for the SO2 position does not fall under 
Wis. 
Stat. § 230.44(1)(c), as DOC returned Kriska to his pre-promotion 
position and did 
not adversely affect his permanent status rights in that position. 
Moreover, 
the administrative code clearly permits dismissal `[a]t any time during' 
the 
probationary period without the right to an appeal. Wis. Admin. Code 
§ ER-MRS 
14.03. Accordingly, we affirm the decision of the circuit court, 
affirming WERC's 
determination that it lacked subject matter jurisdiction in this 
case" (¶ 15).
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Restrictive Covenants - Privacy
H&R Block v. 
Swenson, 2008 WI App 3 (filed 20 Dec. 2008) (ordered published 
30 Jan. 2008)
     Six former employees of H&R Block left the company in 2004 
and set up 
their own bookkeeping and tax service. The former employees had been 
with H&R 
Block for periods ranging from 10 years to 25 years. H&R Block 
brought this 
action alleging that the former employees had breached restrictive 
covenants in 
their employment contracts. The circuit court struck down the clauses as 
invalid. 
     The court of appeals, in a decision authored by Judge Vergeront, 
affirmed. Restrictive covenants are viewed under the following canons: 
"(1) they are 
prima facie suspect; (2) they must withstand close scrutiny to pass 
legal muster 
as being reasonable; (3) they will not be construed to extend 
beyond their 
proper import or further than the language of the contract absolutely 
requires; 
and (4) they are to be construed in favor of the employee" 
(¶ 14). The court particularly focused on contract language that 
extended 
the two-year period of restrictions by the "period(s) of any 
violation." It 
held that "the extension provision makes the duration of the 
restraints 
unreasonable for two independent reasons. First, if we accept H&R 
Block's proposed 
construction, we do not understand how this provision is to be applied 
in the context 
of the two restrictive clauses here, which deal with providing services 
to 
company clients and soliciting those clients. What constitutes a 
`one-day' violation? 
Is it any day in which there is any contact with a company client for 
whom one 
of the listed services is being provided? Does the violation then extend 
until 
the service is completed for that client? If there are contacts with 
different 
company clients on one day for the purposes of providing the listed 
services 
does that count as a one day violation, the same as if there were 
contact with 
only one company client in a day? These questions, unanswered by the 
contract 
terms, mean that a former employee cannot tell from the terms of his or 
her 
contract how long the extension will be for particular conduct in 
violation of the 
clauses. Second, there may be legitimate disputes between a former 
employee and 
H&R Block over whether particular conduct violates the clauses. An 
employee will 
not know until the dispute is resolved by a court whether the conduct is 
or is not 
a violation. Only then will the employee know if there is an extension 
and 
how long it is. The effect of the extension provision thus makes the 
duration of 
the restraint not a fixed and definite time period but a time period 
that is 
contingent upon outcomes the employee cannot predict" (¶¶ 
19-20).
     The court also addressed a counterclaim brought by the former 
employees 
in which they alleged that H&R Block had violated their privacy 
rights provided 
by Wis. Stat. section 995.50(2)(b). The counterclaim involved H&R 
Block's 
allegedly inadvertent use of their names after their employment had 
ended. The 
parties' dueling affidavits, however, created disputed issues of 
material fact that 
precluded summary judgment for either party on the counterclaim. 
Top of page 
  Evidence
Other Acts - Computer Pornography - Greater Latitude
State v. 
Normington, 2008 WI App 8 (filed 21 Nov. 2007) (ordered 
published 
30 Jan. 2008)
     The defendant was convicted of sexually assaulting and causing 
great 
bodily harm to a person with mental disabilities. The defendant was the 
victim's 
caretaker. The state contended that he assaulted the victim with a 
toilet 
plunger and caused life-threatening internal injuries. At trial the 
state 
introduced evidence of pornography on the defendant's computer that 
depicted somewhat 
similar acts.
     The court of appeals, in an opinion written by Judge Vergeront, 
affirmed. 
The case is noteworthy for its application of other-acts evidence 
doctrine to 
computer pornography and for applying the "greater latitude" 
standard "if the 
victim functions at the level of a child due to disabilities" and 
regardless of 
the victim's chronological age (¶ 19). The opinion features a 
meticulous, 
case-intensive application of the Sullivan 
(State v. Sullivan, 216 Wis. 2d 768, 576 N.W.2d 30 (1998)) 
three-step test (used to determine whether prior acts of 
a defendant are admissible) to the "object insertion" 
pornography that the 
state introduced to prove the penetration here was intentional, not 
accidental.
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Family Law
Termination of Parental Rights - Meaningful Participation - 
Technology
Waukesha County Dep't of 
Health & Human Servs. v. Teodoro 
E., 2008 WI App 16 
(filed 19 Dec. 2007) (ordered published 30 Jan. 2008)
     The circuit court terminated the parental rights of Teodoro E. 
to two 
children. Teodoro could not personally attend the hearings because he 
had been 
deported to Mexico. The county department and Teodoro's lawyer devised a 
webcam system that permitted Teodoro to see and hear the proceedings in 
the 
courtroom while permitting the local participants to see and hear him. 
     The court of appeals, in an opinion written by Chief Judge 
Brown, affirmed 
in a three-judge appeal that was ordered to underscore the importance of 
the 
issues, especially the use of technology to provide a meaningful 
opportunity 
to participate. First, the circuit court properly found that the webcam 
system allowed Teodoro to follow and understand the proceedings, unlike 
a 
"simple telephone setup" that was criticized in a prior case 
(¶ 15). Second, the 
procedures did not deprive Teodoro of effective assistance of counsel. 
"The record 
shows that Teodoro could consult privately with his attorney. Moreover, 
his 
attorney was physically present in the courtroom. Thus, 
 there was 
nothing 
preventing the court from keeping an eye on either Teodoro or his 
counsel" (¶ 19). 
     The court then turned to, and rejected, Teodoro's substantive 
claims. 
First, the conditions he failed to meet were not "impossible." 
"[A]s the circuit 
court noted, `Mexico is not prison' and Teodoro remained free to work on 
and meet 
many of the conditions of return. As an example, the first condition, 
`Show that 
you are interested in your child,' includes subparts that deportation 
should 
not have prevented Teodoro from meeting, such as `[t]alk to doctors, 
teachers, 
therapists and other people who care for your child to learn what your 
child 
needs [and] [p]ay child support on a regular basis.' The trial court 
found 
that Teodoro did neither of these things, either in Mexico or earlier 
when he was 
in Waukesha; indeed, during the time that his wages were being garnished 
to 
pay child support, he sometimes asked for and received the money back 
from the 
children's mother" (¶ 23). The court also rejected claims 
based on the 
department's alleged "bad faith" and the circuit court's 
alleged abuse of discretion in 
terminating Teodoro's parental rights.
Top of page 
Real Property
Condominium Law - Bylaw Restriction Limiting Occupancy to Unit 
Owners 
Apple Valley Gardens 
Ass'n Inc. v. 
MacHutta, 2007 WI App 270 (filed 28 Nov. 2007) (ordered 
published 19 Dec. 2007)
     Apple Valley Gardens Association, a condominium owners' 
association, sued 
the defendants to enforce an amended bylaw requiring owner occupancy of 
condominium units. The original condominium declaration did not contain 
this limitation; 
it was added several years later by an amendment to the bylaws. On 
cross-motions for summary judgment, the circuit court ruled in favor of 
the association. 
     On appeal the defendants argued, among other things, that 1) the 
bylaw 
amendment is unenforceable because Wis. Stat. section 703.09(1)(g) 
(2005-06) 
requires that all use restrictions be recorded in the condominium 
declaration; and 
2) such rental restrictions make the title unmarketable, in violation of 
Wis. 
Stat. section 703.10(6) and Bankers Trust Co. of California, N.A. v. 
Bregant, 2003 WI App 86, 261 Wis. 2d 855, 661 N.W.2d 498. In a 
decision authored by 
Judge Nettesheim, the court of appeals affirmed. 
     Wis. Stat. section 703.09(1)(g) requires the declaration to 
contain a 
statement of intended purpose and use restrictions, section 703.10(3) 
permits 
the bylaws to contain use restrictions, and section 703.10(1) directs 
that 
unit owners "shall comply strictly" with the bylaws, the rules 
adopted 
thereunder, and any amendments to them (see ¶ 16). The court 
of appeals agreed with 
the circuit court that "nothing in the declaration prohibited the 
Association 
from amending the bylaws to require owner occupancy. [The declaration] 
provided 
that each unit owner `shall abide by and be subject to' all duties and 
obligations arising under the Association's bylaws, rules and 
regulations of the 
Association, and empowers the Association to make reasonable rules and 
regulations governing the use of the units. Reading the declaration, 
bylaws and 
statutes together, we conclude that the amendment was permissible and is 
enforceable" 
(¶ 18).
     The appellate court further concluded that the owner occupancy 
restriction does not violate Wis. Stat. section 703.10(6), which 
provides that bylaws 
cannot render unmarketable or otherwise affect a condominium unit title. 
It also 
found that the Bankers Trust decision, which concluded that a 
bylaw restriction 
cannot be used to block a transfer of title, addresses a situation 
distinguishable 
from that in the present case. "The Association here is not 
attempting to block 
a sale but to enforce a use restriction against a current owner. While 
this 
particular use restriction may negatively affect a unit's appeal to some 
potential buyers, it does not render the title `unmarketable' in the 
full legal sense 
of that term. An unmarketable title is one which is not transferable. 
Restricting further leasing of a unit does not affect an owner's right 
to alienate his 
or her property; it affects only the use of the unit" (¶ 21) 
(citations omitted).
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Taxation
Estate - Gifts - Contemplation of Death
Wisconsin Dep't of 
Revenue v. Estate of 
Schweitzer, 2008 WI App 2 (filed 6 Dec. 2007) (ordered published 
30 Jan. 2008)
     The court described the following stipulated facts. "Ott E. 
Schweitzer 
died on November 4, 2003. His will was admitted into informal 
administration in 
probate court on December 19, 2003. Prior to his death, Schweitzer made 
gifts 
of $119,000 in January 2003 and $390,000 in September 2003. These gifts 
were 
properly reported to the Internal Revenue Service (IRS) on U.S. Gift Tax 
Return 
Form 709. For purposes of this appeal only, the personal representatives 
of Schweitzer's Estate (the Estate) concede that the gifts were made in 
contemplation of his death" 
(¶ 2). The estate also filed returns with the IRS and the 
Wisconsin 
Department of Revenue (DOR). The DOR asserted that the 2003 gifts should 
have been added 
to the gross estate, which meant that the estate owed $45,000 in estate 
taxes 
and interest (see ¶ 3). The estate challenged the assessment 
in court, and the 
judge ruled that the DOR lacked authority to add gifts made in 
contemplation of 
death (see ¶ 5). 
     The court of appeals, in an opinion authored by Judge 
Higginbotham, 
affirmed. "The sole question presented on appeal is whether the 
statutes authorize DOR 
to add gifts made in contemplation of death to the gross estate when 
calculating 
an estate's Wisconsin estate tax liability" (¶ 7). In essence, 
"the gross 
estate subject to Wisconsin estate taxes is the federal taxable estate. 
DOR's 
attempt to tack on gifts made in contemplation of death to the federal 
taxable 
estate, which serves as the gross estate for purposes of calculating the 
Wisconsin 
estate tax, is therefore contrary to the plain language of the statute, 
which taxes only property that is subject to a federal estate tax" 
(¶ 13). 
"Because DOR's interpretation of Wis. Stat. §§ 72.01 and 
72.02 would result in a 
total Wisconsin estate tax that is greater than the federal credit 
against the 
federal estate tax, and not `equal to the federal credit against the 
federal 
estate tax,' it is contrary to the plain language of § 72.02. 
Stated differently, 
any construction of these statutes that results in a calculation of the 
Wisconsin estate tax that is not equal to the federal tax credit for 
state death taxes 
is inconsistent with the plain language of § 72.02" (¶ 
14).
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Torts
Medical Malpractice - Borrowed Employee - Caps
Phelps v. Physicians 
Ins. Co., 2008 WI App 6 (filed 4 Dec. 2007) (ordered 
published 30 Jan. 2008)
     The case stemmed from the remand of Phelps v. Physicians 
Insurance 
Co., 2005 WI 85. An unlicensed resident doctor, Lindemann, 
negligently treated a 
patient who was pregnant with twins. One twin died during delivery. The 
prime issue 
on remand was whether Lindemann was a "borrowed employee" of 
the hospital. 
The circuit court found that he was and capped various damage awards in 
keeping 
with recent case law.
     The court of appeals, in an opinion written by Judge Curley, 
reversed in 
part and affirmed in part. Lindemann was clearly an employee of the 
Medical 
College of Wisconsin Affiliated Hospital (MCWAH) and the only issue was 
whether 
his service at the hospital rendered him a "borrowed 
employee." Applying the 
prolix "borrowed employee" test from prior cases, the court 
concluded that the test 
had not been met. "There is no evidence that Dr. Lindemann left 
MCWAH's 
employment and agreed to become a St. Joseph's employee. Dr. Lindemann 
provided 
medical services similar to those provided by private physicians who are 
not St. 
Joseph's employees. MCWAH directed which hospital Dr. Lindemann worked 
at and 
paid him. Dr. Lindemann and MCWAH had a written contract, and MCWAH had 
the 
sole right to terminate him. MCWAH never relinquished any control over 
Dr. 
Lindemann. Indeed, as noted, while at St. Joseph's no hospital employee 
supervised 
Dr. Lindemann, and Dr. Lindemann was never given a handbook or any rules 
setting 
out St. Joseph's procedures. Thus, the right to control Dr. Lindemann 
remained 
in the hands of MCWAH's program director, MCWAH senior residents and 
private 
physicians. Finally, Dr. Lindemann's services benefitted the patients of 
the 
hospital and the private physicians but most of all, Dr. Lindemann's 
work aided MCWAH 
in its mission to train first-year residents in order to become licensed 
physicians" (¶ 31). 
     Finally, because Lindemann was not a borrowed employee, his 
conduct was 
not subject to the caps on damages as provided by Wis. Stat. chapter 655 
(because unlicensed, first-year residents were not otherwise 
"protected" by chapter 655). 
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