Appeals court preserves court alternatives program as JusticePoint pursues appeal

By Alexandria Staubach

The Wisconsin Court of Appeals on Monday ordered that JusticePoint’s services for Milwaukee Municipal Court remain in place while litigation between the organization and the City of Milwaukee proceeds.
 
As WJI previously reported, JusticePoint’s contract to provide Milwaukee Court Alternatives Program (MCAP) services was terminated by two of the three Milwaukee Municipal Court judges without much explanation, under a “convenience” clause. The city notified JusticePoint of the termination in May, giving the organization until mid-July to finish its work.

The court did not name any successor provider for the MCAP services and has said it will seek bids at some future date. That means that without JusticePoint, municipal court defendants will lose the assistance the organization provides for completing community service requirements, handling inability to pay forfeitures, or finding various social services.

JusticePoint sued the city on July 10, moving for a temporary restraining order (TRO) and preliminary and permanent injunctions to keep its contract and the program alive. JusticePoint argued that termination of its contract violated the Wisconsin Fair Dealership Law (WFDL).

Milwaukee County Circuit Judge Hannah Dugan granted JusticePoint a TRO on July 10 to prevent expiration of the contract. But on Oct. 5, Judge J.D. Watts denied a preliminary injunction and dismissed JusticePoint’s case. Watts issued a 30-day stay of his decision to allow an appeal, but he refused to issue a stay that extended any longer.

JusticePoint then sought continuation of the TRO by the appeals court.

Justice Point will now continue to provide services to Milwaukee Municipal Court pending a decision on the appeal.
 
The issues on appeal will require the court to evaluate whether the WFDL applies to the city’s relationship with JusticePoint. Under the WFDL, a dealership exists when a person or entity “is granted the right to sell or distribute goods or services,” and when a “community of interest” exists between the parties. JusticePoint’s argument is that it distributes city services to individuals using the MCAP and that it has invested in the program.

Monday’s decision by Court of Appeals Judge M. Joseph Donald focused on the procedural aspects of granting a stay of Watts' order and evaluated three factors: 1) likelihood of success on appeal; 2) irreparable injury in the absence of stay; and 3) the existence of substantial harm to other interested parties. In examining these factors, Donald found that “JusticePoint showed more than a possibility it would prevail”; the stay was otherwise appropriate, as full-time staff could be lost and reputational harm to the program could result if the program is ultimately continued; and substantial harm could result to defendants who receive JusticePoint's MCAP services with no clear alternative to those services in place.
 
Donald said his order will “maintain the status quo” pending a decision that will resolve the appeal.