Milwaukee taxpayers could be on the hook for more than $832,000 after a lawyer in the City Attorney's Office failed to respond in time to a lawsuit filed by Regal Rexnord Corp. over its downtown headquarters' property taxes. Milwaukee County Circuit Court Judge Paul R. Van Grunsven has already denied the city's bid for relief from the default judgment, and a final hearing is scheduled for August 28.
The case traces back to Regal Rexnord's challenge of its 2025 property assessment and tax bill for its headquarters complex at 111 W. Michigan St., according to Minnesota Lawyer. The manufacturer, described as a Fortune 1000 maker of electric motors and power transmission components, filed suit seeking a refund and asked for a judgment of about $832,000 including interest. Milwaukee had set a response deadline of May 4, but the city missed it, and Regal Rexnord moved for default judgment on May 20.
The attorney assigned to the case, 39-year-old Kyle Bailey, had joined the City Attorney's Office in 2022 and was licensed to practice law in Wisconsin since 2019, per the same account. Bailey objected to the default judgment on May 29 and asked for more time to file an answer, attributing the missed filing to technological issues with the office's new computer record-keeping system. He eventually filed an answer on June 10.
Judge Rejects the Technology Excuse
Judge Van Grunsven wasn't persuaded. He criticized Bailey's explanation that computer problems caused the missed filing and said he was not satisfied that Bailey's responses were enough to prevent the entry of default. The judge ordered a hearing after Bailey filed his answer, and ultimately denied Bailey's objection to relief from the default judgment, which the report notes represents the difference between Milwaukee's 2025 tax calculation and Regal Rexnord's own figures.
Bailey resigned from the City Attorney's Office on July 15, listing relocation and personal reasons, and described his departure as in lieu of discharge, the report states. He withdrew from the Regal Rexnord case on July 28. His law license remains in good standing, and his roughly $93,000 annual salary was noted in the same account. City Attorney Evan Goyke declined to comment on personnel matters or the pending case when asked.
A Downtown Headquarters Worth $73.6 Million
Regal Rexnord moved its corporate headquarters from Beloit to 111 W. Michigan St. in downtown Milwaukee in September 2023, following a $3.7 billion merger with Rexnord's Process and Motion Control division, according to Urban Milwaukee. At the time of the move, the company reported $5.2 billion in annual revenue and 26,000 global employees worldwide. For the 2025 assessment year, the city valued the office complex at $73.6 million, including $7.56 million for land and just over $66 million in improvements — a complex that had previously sold for $72.2 million in a 2021 redevelopment deal.
Under Wisconsin Statute § 74.37, property owners whose administrative tax refund claims are disallowed by a municipality may sue in court for de novo review to recover excessive taxes plus interest, a right guaranteed statewide by a 2011 Wisconsin Supreme Court decision. Separately, Wisconsin Statutes § 806.02 and § 806.07 give trial judges discretion to enter default judgments for missed deadlines, and case law sets a high bar for undoing them — a defendant must show excusable neglect or extraordinary circumstances, a standard that typically does not cover routine office or technical oversights.
A Judge on His Way Out, and an Office Still Rebuilding
Judge Van Grunsven, who has served on the Milwaukee County bench since his 2004 appointment, announced his retirement effective September 4 — just days after the scheduled hearing on Milwaukee's motion for relief. Governor Tony Evers opened the search for his replacement in May, according to WisPolitics. Whether the city can still avoid the full $832,000 refund, or whether taxpayers will ultimately absorb it, remains an open question heading into the hearing.
Evan Goyke took office as Milwaukee's 43rd City Attorney in April 2024 after unseating incumbent Tearman Spencer, who was later criminally charged with misconduct in office and obstructing an officer, as Hoodline reported in its piece on the charges against Tearman Spencer. The office, established in 1846, employs roughly 40 staff attorneys across four legal divisions and represents all city departments in litigation. Since taking over, Goyke's office has pursued an aggressive civil litigation docket, including a March lawsuit targeting out-of-state landlord Highgrove Holdings over code violations and unpaid taxes across nearly 200 Milwaukee homes.
Sara Stellpflug Rapkin said Bailey had never reached out to her and called the matter befuddling, per Minnesota Lawyer's reporting. The Regal Rexnord case remains open as the city awaits Thursday's hearing, with no guarantee that Milwaukee will find relief from the judgment before Judge Van Grunsven steps down from the bench.
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