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Dieck v. Unified School District of Antigo

477 N.W.2d 613 (1991)

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Dieck v. Unified School District of Antigo

Wisconsin Supreme Court
477 N.W.2d 613 (1991)

DD

Facts

Under Wis. Const. art. XI, § 3(3), a school district that incurred indebtedness was required to collect a tax. The Unified School District of Antigo (the district) (defendant) entered into a lease-purchase agreement (the lease) with the Antigo School Board Leasing Corporation (the leasing corporation). The leasing corporation would build a new high school and would hold title to the building. The district would make rental payments for the use of the building. If the district made rental payments for the entire 20-year lease term, the district would have the option to purchase the building from the leasing corporation. However, the lease contained a nonappropriation clause that granted the district the right to terminate the lease by electing not to appropriate funds for rental payments. Further, the district did not comply with the tax-levy provision of art. XI, § 3(3). William Dieck (plaintiff), a taxpayer, brought suit, contending that the lease was unconstitutional. The court of appeals found that the lease was constitutional. Dieck appealed.

Rule of Law

Issue

Holding and Reasoning (Abrahamson, J.)

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