A Lesson Learned from a Great Bankruptcy Judge

Judge Dale Ihlenfeldt Judge Dale Ihlenfeldt died right after Christmas. He was 92 years old and hadn’t sat on the bankruptcy court bench in Milwaukee for many years, though he remained active until fairly recently, including by teaching an annual CLE program in Madison in which I also participate. Teaching CLE required him to keep up on developments in bankruptcy law, and that suited him just fine, because he loved the law. He also liked lawyers, and his warm, engaging personality was always welcome whenever he could join us.

I learned a lot from Judge Ihlenfeldt over the years, but one of the most valuable lessons he taught me came very early in my legal career, and I see this story as making an important point for law students and new lawyers. The practice of law requires constant learning; you’ve barely begun to know what you need to know when you leave law school. And you can—must—learn the lessons of the law (and life) from everyone, not just your professors, but your colleagues, your adversaries, your clients, and even from judges.

Back in the mid ’70s, as an associate at Foley & Lardner, I first appeared in bankruptcy court for banks and other creditors, often seeking to recover collateral or to oppose the discharge of a debt. I had appeared before Judge Ihlenfeldt a few times, and on this particular occasion he had ruled against me. I don’t remember the details, but the decision may well have involved the judge’s exercising some discretion, and he exercised it against my client. The case was over, and (as often happened in his court) the lawyers had lingered in chambers to talk. He could tell that I was upset at losing (not then having much experience at it—a condition that time has healed), and he turned to me, in his gentle way, and said, “Oh, Tom, you have to understand that we’re the bankruptcy court. Bankruptcy law is intended to benefit debtors, and you shouldn’t expect to win all the time when you represent creditors.”

This comment struck me at the time and many times since as one of the best lessons that a judge could teach a young lawyer. And it has implications beyond bankruptcy law. Good judges like Judge Ihlenfeldt call them as they see them and follow the law as they understand it. But a lawyer should never lose sight of the fact that much of the law (understood as being what judges do) is not black and white, but gray, and a judge’s instincts in the gray area—whether to afford a debtor relief, to let a plaintiff try to prove her case, or to cut a lawyer some slack—are every bit as much a part of the law as the stuff in the books. I’m glad that I learned that lesson early from a great judge.

Continue ReadingA Lesson Learned from a Great Bankruptcy Judge

Budget Cuts Haven’t Meant Prosecution Cuts Here, Santelle Says

In case any criminals reading this are hoping to avoid prosecution because budget cuts are reducing the reach of federal prosecutors, their hopes are ill-founded – at least for now, according to James Santelle, the U.S. Attorney for the eastern district of Wisconsin.  

But down the road and even now in places other than eastern Wisconsin? Cutbacks in federal spending could and sometimes are translating into decisions not to prosecute cases, Santelle said. 

Speaking Tuesday at an “On the Issues” session at Eckstein Hall, Santelle told Mike Gousha, the Law School’s distinguished fellow in law and public policy, that the staff he oversees in offices in Milwaukee and Green Bay, has been reduced from about 80 several years ago to about 70 now. More cuts may lie ahead, he said.

But so far, the reduction has been accomplished without affecting decisions on who to prosecute, Santelle said. That hasn’t been true in offices of US Attorneys in some places around the country, where decisions on matters such as “smaller” drug cases or white collar financial crimes are being shaped by whether the office has adequate resources. He said a $1 million bank fraud in some instances may be below the threshold a prosecutor has set for bringing a case to court, given practical limits on how much can get done.

Continue ReadingBudget Cuts Haven’t Meant Prosecution Cuts Here, Santelle Says

Department of Justice Files Fair Housing Act Suit Against City of New Berlin

On Thursday, the United States Department of Justice (DOJ) filed a complaint against the City of New Berlin. The complaint arises out of a series of events that led to the City’s denial of a “workforce” housing development proposal made by MSP Real Estate, Inc. (MSP).  The DOJ alleges that the City of New Berlin ultimately denied the proposal on the basis of racial discrimination, in violation of Section VIII of the Fair Housing Act.

According to the complaint (which can be viewed here), on March 10, 2010, MSP submitted a development application to construct 180 units of affordable housing in what is known as New Berlin’s “City Center.”  The proposal stated that the development would include 100 elderly units and 80 workforce housing units.  The development was intended to be financed in part by the Low-Income Housing Tax Credit program, a program that allows a developer to sell tax credits to investors in exchange for the promise that the developer will rent the apartments for below-market rates to tenants who qualify.  For this specific development, MSP was going to rent to individuals who made 40 to 60 percent of the median household income in New Berlin.  In New Berlin, the median income as of 2000 was approximately $70,000, which means the proposed development would rent to individuals who made $28,000 to $42,000 a year.

Continue ReadingDepartment of Justice Files Fair Housing Act Suit Against City of New Berlin