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COURT OF APPEALS DECISION DATED AND RELEASED March 14, 1996 |
NOTICE |
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A party may file with the
Supreme Court a petition to review an adverse decision by the Court of
Appeals. See § 808.10 and
Rule 809.62, Stats. |
This opinion is subject to
further editing. If published, the
official version will appear in the bound volume of the Official Reports. |
No. 94-3055
STATE
OF WISCONSIN IN COURT OF
APPEALS
DISTRICT IV
DANNY R. HERTRAMPF
AND CINDY L.
HERTRAMPF,
Plaintiffs-Respondents,
v.
JEROME M. OTT,
LAWTON & CATES,
S.C.,
AND WISCONSIN LAWYERS
MUTUAL INSURANCE
COMPANY,
Defendants-Appellants.
APPEAL from a judgment
of the circuit court for Grant County:
GEORGE S. CURRY, Judge. Affirmed.
Before Eich, C.J.,
Gartzke, P.J., and Dykman, J.
PER
CURIAM. Attorney Jerome Ott and his law firm, Lawton &
Cates, S.C., appeal from a judgment awarding damages to Danny and Cindy
Hertrampf on a legal malpractice claim.
After a bench trial, the trial court found that Ott negligently
dismissed the Hertrampfs' 42 U.S.C. § 1983 claim against Attorney Gregory Knoke
and Green County Deputy Sheriff Robert Rufer.
The court further found that but for Ott's negligence, the Hertrampfs
could have recovered $100,000 in punitive damages on that claim, and entered
judgment for that amount. The issues on
appeal are whether Knoke and Rufer were immune from liability under § 1983, and
whether the evidence supported a punitive damages award. We decide against Ott on those issues and
therefore affirm.
The Hertrampfs formerly
rented a dairy farm from Fred Scott.
After they fell behind in the rent, Scott hired Knoke to evict them and
to sue them for damages. Rufer and
Knoke went to the farm and served the Hertrampfs with a summons and complaint
on the damage claim and a fourteen-day eviction notice. At the same time, in Knoke's and Rufer's
presence, several individuals acting on behalf of Scott, removed eighteen cows
from the farm. They had no legal
authority to do so.
The trial court later
found that
Deputy
Rufer's presence aided and helped with the removal of the cows. He restrained the Plaintiffs from stopping
the removal of these cattle, which they claimed were their cattle under color
of law.... Deputy Rufer threatened
Danny and Cindy Hertrampf with arrest if they left their residence and
indicated their children would be taken away from them if they interfered.... Deputy Rufer was not acting pursuant to any
lawful order at that time nor could he reasonably have believed he was acting
with any lawful authority in helping with the removal of the cows.
Rufer
admitted that he never read the papers he served on the Hertrampfs.
The cows were
subsequently destroyed. Lacking
animals, the Hertrampfs were forced to abandon farming as an occupation. After a liquidation sale of their assets,
they remained indebted to the Farmers Home Administration.
The Hertrampfs' hired
Ott to defend them in Scott's suit, and to counterclaim for damages against
Scott, Knoke and Rufer. Through a
misunderstanding, Ott dismissed Hertrampfs' counterclaims against all parties,
although the Hertrampfs had requested a dismissal against only Scott.
The Hertrampfs then
commenced this lawsuit against Ott, his law firm and its malpractice insurance
carrier, alleging malpractice in dismissal of the claims against Rufer and
Knoke. After concluding that Ott was
negligent and that Rufer and Knoke would have been liable under § 1983,
the court further concluded that the Hertrampfs would have recovered
substantial punitive damages due to the "excessive degree of wanton and
reckless conduct exhibited by Deputy Rufer and Attorney Knoke ... and the
indelible effect it had on the Hertrampfs' person and property." The court set damages at $100,000. The court did not compensate the Hertrampfs
for lost compensatory damages, because any amount they recovered on that basis
would have been offset by Scott's claim against them.
Ott first claims that
Knoke and Rufer were immune from liability under § 1983, because Knoke
acted in good faith on behalf of his client, and because Rufer's conduct did
not violate clearly established statutory or constitutional rights known to a
reasonable person. Barnhill v.
Board of Regents, 166 Wis.2d 395, 406, 479 N.W.2d 917, 921 (1992). Rufer should have known that he was
violating Hertrampfs' due process right to a hearing before seizure of goods in
their possession. Fuentes v.
Shevin, 407 U.S. 67, 96 (1972).
As for Knoke, we need not address his claimed immunity because
establishing Rufer's liability is sufficient to prove the case within the case
on Ott's liability.
The trial court properly
determined that Rufer's conduct gave rise to punitive damages. A jury may assess punitive damages in a
§ 1983 action when the defendant's conduct demonstrates an evil motive or
intent, or when it involves reckless or callous indifference to the federally
protected rights of others. Smith
v. Wade, 461 U.S. 30, 56 (1983).
Here, Rufer acted without knowing the facts of the dispute, without
reading the papers he served and without ascertaining the legal basis of the
seizure. Nevertheless, he chose Scott's
side in the dispute and by his statements, actively assisted in removal of the
cows. He exerted his authority by
threatening the Hertrampfs with arrest and loss of their children. As a result he effectively became an agent
of the party who, as it happened, was acting illegally in the situation. By doing so his actions amounted to reckless
indifference to the Hertrampfs' statutory and constitutional rights.
One hundred thousand
dollars in punitive damages would not have been an excessive award. Ott contends that the trial court could not
have found damages in that amount without evidence of Rufer's and Knoke's
ability to pay it. However, evidence of
a defendant's wealth or ability to pay is prohibited where joint tortfeasors
are sued for punitive damages. See
Fahrenberg v. Tengel, 96 Wis.2d 211, 224-25, 291 N.W.2d 516, 522
(1980).
By the Court.—Judgment
affirmed.
This opinion will not be
published. See Rule 809.23(1)(b)5, Stats.