$1.4M verdict against Bauman thrown out
Case began in 2007 after alderman’s comments
A judge has thrown out jury verdicts that Milwaukee Ald. Bob Bauman wrongly defamed a nonprofit housing agency in the 2000s and should pay $1.4 million in damages.
Circuit Judge Pedro Colón found the plaintiff, Tri-Corp Housing, Inc., was a
“limited purpose public figure” and therefore needed to prove Bauman acted with actual malice, and failed to do so.
“Throughout the events in question, I was doing my job: advocating for my constituents, responding to constituent concerns and complaints, and commenting on matters of public concern in forums available to me,” Bauman said after the Monday ruling.
“My overarching goal was to improve housing for those suffering from mental disabilities. The trial record reflected this. The judge recognized this.”
Tri-Corp’s attorney, John Machulak, said it will “most certainly” appeal Colón’s decision.
“In Tri-Corp’s view, a jury of its peers, listening to all the evidence and following the exact instructions given to it by the court, had no trouble determining that Alderman Bauman’s malicious lies destroyed much needed housing for mentally disabled people living near his home,” he said.
“The jury’s verdict ought to be respected.”
The case, which went to trial in February, began in 2007 as a mortgage foreclosure action against Tri-Corp by the Wisconsin Housing and Economic Development Authority. Tri-Corp later filed a counter-claim against Bauman.
After the verdicts, Bauman filed motions to overturn them.
Although Bauman was the defendant — not the city — payment of any verdict or settlement would ultimately fall to taxpayers to pay under legislation approved in 2020 that committed the city to “defend, indemnify and hold harmless” the fifth-term alderman.
Tri-Corp ran West Samaria, a multiunit facility at 2713 W. Richardson Place for low-income, cognitively disabled people. In 1997, Bauman bought a home about two blocks away. In 2005, a year after he was elected to City Council, Bauman was actively opposed to continued operation of West Samaria.
Bauman’s efforts peaked in 2007, after a tenant was found dead in his room at West Samaria four days after he was last seen. Tri-Corp claimed critical public statements Bauman made about Tri-Corp were untrue and defamatory and led to it losing its main customer, Milwaukee County.
Colón noted truth is a defense to defamation claims.
“In this case, all of the statements at issue are substantially true, and Bauman’s statement regarding West Samaria’s ‘bad design, bad location, and a bad operator’ is pure opinion. It is unclear why any of these statements were even issued to the jury.”
Colón was the seventh judge on the case. Another judge made rulings earlier on which statements would be subject to trial.
Colón’s 13-page decision recounts the history of criticism mounted at the time against Tri-Corp, and testimony from people involved in the task of trying to find safe, affordable housing for the mentally ill. It become a topic of great public debate and concern, and Bauman was far from the only person talking about it, Colón wrote.
The judge — unlike the jury — found Bauman did not abuse his First Amendment privilege of free speech by engaging in public discussion about the safety and propriety of West Samaria’s operation.
Nor did Bauman act with actual malice, Colón wrote, generally defined as making statements one knows are untrue or with reckless disregard of their truth or falsity.
After reviewing the record and drawing all reasonable inferences in Tri-Corp’s favor, Colón determined there wasn’t sufficient evidence to support the jury’s verdicts
“It is clear that Bauman’s allegations were neither fabricated nor ‘so inherently improbable that only a reckless man would have put them in circulation.’”
Bauman’s statements were consistent with and corroborated by numerous statements made by the press, elected officials, city staff, Board of Zoning Appeals members, and members of the community.