Milwaukee Ald. Robert Bauman's critical comments lead to $1.4 million jury verdict in defamation case

A Milwaukee alderman's critical statements about a troubled housing facility in his district in 2007 have landed him on the losing end of a  $1.4 million jury verdict, which if paid would be borne by city taxpayers.

In a 10-2 verdict, the Milwaukee County jury Thursday found Ald. Robert Bauman made untrue statements about Tri-Corp Housing, Inc., while criticizing its operation of West Samaria, a residential facility for low-income, cognitively disabled people at 2713 W. Richardson Place.

In 2004, a resident was fatally beaten outside Samaria, and in 2007 another was found in his room several days after he had died there, according to court records. The dormitory-style building was later razed.

The verdict followed a week-and-a-half trial that grew out of a larger case that began with a different plaintiff and a series of defendants. Over more than a decade of litigation, Bauman was left as the final third-party defendant in counter-claim by Tri-Corp. 

Tri-Corp argued that Bauman, whose aldermanic district included West Samaria, was liable for critical statements and press releases and for lobbying other officials to rule against the nonprofit in administrative hearings, according to a summary in a court filing from the U.S. Court of Appeals for the Seventh Circuit.

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Attorney Michael Maistelman, who is not involved in the case, said the verdict could have a "chilling effect" on elected officials.

"It would give elected officials pause before they start voicing their opinion on policy for fear of being sued personally," Maistelman said.

Bauman: 'This is almost the same as the Sarah Palin case'

After the verdict, Bauman told the Journal Sentinel, "This is almost the same as the Sarah Palin case, same issues."

Earlier in the week, the former vice presidential nominee and Alaska governor lost a defamation lawsuit against the New York Times in which she argued the newspaper had defamed her in an editorial.

Although Bauman was the defendant — not the city — any 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.

But Bauman said no payments would immediately be made.

Bauman, who is also a licensed attorney, said in a civil case like this a judgment, not a jury verdict, is what provides the ability to collect money.

He said his attorney would be filing motions after the verdict asking Milwaukee County Circuit Judge Pedro Colon to throw out the claims on First Amendment grounds. If the judge does not dismiss the claims, Bauman said an appeal would be likely.

He is represented by attorney Matthew McClean of the law firm Davis Kuelthau S.C. The city has approved up to $240,000 for legal services.

John Machulak, who represents Tri-Corp, on Friday praised the jury decision.

"What was proven to the jury was that Ald. Bauman basically slandered Tri-Corp repeatedly with the design to put it out of business and more particularly West Samaria, the boarding house that had operated two blocks from his house," Machulak said.

Machulak said he had no reason to believe the $1.4 million verdict would not stand in a judgment, calling the sum "conservative" given the damage done to "one of the best nonprofits in the city."

He also said he hoped the verdict would serve as a warning to other politicians who "attack others with lies."

"I hope it creates at least a warning that you can't do that with impunity," Machulak said.

The trial had proceeded on claims of defamation and tortious interference with a contract, but Colon dismissed the latter claims before closing arguments, which then focused only the defamation claims.

On the verdict form, the jury considered three statements from Bauman.

One was an email to the city's Department of Neighborhood Services, that a resident's death suggested West Samaria was not operating in compliance with its plan or consistent with public health safety and welfare. The jury found that statement untrue, but that Bauman had not made it with reckless disregard of whether it was true of false.

The jury also found Bauman's public claim that West Samaria "has repeatedly demonstrated that they are unwilling or unable to provide quality care to the mentally disabled residents who live there," was untrue.

In that instance, the jury found, Bauman did speak with reckless disregard for the statement's truth or falsity, abused his First Amendment privilege and was not acting within the scope of his employment.

The jury also found Bauman said West Samaria "had bad design, bad location and bad operator," another statement the jury found to be untrue and an abuse of First Amendment privilege.

Milwaukee City Attorney Tearman Spencer said he disagreed with the council and former Mayor Tom Barrett's decision to indemnify Bauman, which was made before Spencer came into office. 

He also wanted to emphasize the jury's finding that some of the statements exceeded Bauman's authority and were outside the scope of his employment as an alderman.

"When you're wrong, you're wrong," Spencer said, adding the city shouldn't carry the burden.

Spencer and the Common Council, particularly Bauman, have been locked in a nearly yearlong feud over an element of the Couture apartment tower contract. Legislation to end the dispute is slated to be taken up by a Common Council committee Tuesday.

Attorneys in Spencer's office previously represented Bauman, according to court records.

In a May 2011 decision that whittled the case down, the Wisconsin Court of Appeals found that Bauman’s efforts regarding West Samaria were a cause of Milwaukee County's decision to remove residents it had referred there, and to not refer others.

"On remand, the question of what damages related to Milwaukee County’s decisions and whether all or any part of Alderman Bauman’s statements were privileged can be addressed by the trial court and, if appropriate, the fact finder at trial," the Court of Appeals found.

Contact Alison Dirr at 414-224-2383 or adirr@jrn.com. Follow her on Twitter @AlisonDirr.