Justia Wisconsin Supreme Court Opinion Summaries
Articles Posted in Contracts
Link Snacks, Inc. v. Link
This case centered on a dispute between Jack Link and his two sons, Jay and Troy. Jack and Troy filed suit against Jay seeking specific performance of an agreement that would require Jay to surrender his shares in Link Snacks. Jay filed counterclaims alleging Jack and Troy had breached fidicuiary duties owed to Jay by squeezing Jay out of Link Snacks to buy Jay's shares. The circuit court (1) granted specific enforcement of the agreement; (2) concluded that Jay had not been oppressed by Jack and Troy; and (3) remitted the jury's punitive damages award against Jack for breaching fiduciary duties to Jay. The court of appeals granted Jack partial dismissal of Jay's appeal and reversed the circuit court order remitting the punitive damages award against Jack. The Supreme Court affirmed in part and reversed in part, holding (1) the circuit court erred in remitting the award of punitive damages against Jack; (2) the court of appeals properly rejected Jay's oppression claim; and (3) Jay did not, under the benefit-estoppel doctrine, waive his right to appeal the circuit court's decision to limit the evidence Jay could present regarding his theory of damages relating to his breach of fiduciary duty claims. Remanded. View "Link Snacks, Inc. v. Link " on Justia Law
Kilian v. Mercedes-Benz USA, L.L.C.
Steven Kilian leased a Mercedes-Benz vehicle with financing by Mercedes-Benz Financial. After the car required numerous repairs, Kilian returned the car to Mercedes-Benz USA and sought a refund under Wisconsin's Lemon Law. Mercedes-Benz USA accepted the returned vehicle and refunded $20,847 to Kilian. Because Mercedes-Benz USA did not immediately pay off the lease with Mercedes-Benz Financial, Mercedes-Benz Financial commenced collection actions to obtain payment from Kilian. Kilian filed suit under the Lemon Law to stop enforcement of the lease. While Kilian's action was pending in circuit court, Mercedes-Benz paid off the lease to Mercedes-Benz Financial. The circuit court granted summary judgment in favor of Mercedes-Benz Financial, finding that Kilian did not suffer a pecuniary loss when Mercedes-Benz Financial continued to enforce the lease after the vehicle was returned. The court of appeals affirmed. The Supreme Court reversed, holding (1) Kilian could maintain an action for equitable relief under the Lemon Law and Mercedes-Benz Financial's actions violated the Lemon Law; and (2) Kilian prevailed in his action when Mercedes-Benz Financial voluntarily ceased enforcement of the lease after Kilian filed suit, and as the prevailing party, Kilian was entitled to attorney fees, disbursements, and costs. Remanded. View "Kilian v. Mercedes-Benz USA, L.L.C." on Justia Law
Bushard v. Reisman
In 1995, David Bushard and Steven Reisman formed a partnership called PressEnter. After Bushard dissolved the partnership in 1999 he withdrew from its day-to-day operations. Reisman continued to run day-to-day operations and to direct PressEnter to pay partnership distributions to both partners. In 2004, Reisman started taking a salary. In 2007, Bushard filed a complaint against Reisman and PressEnter, alleging breach of fiduciary duty and unjust enrichment and demanding a money judgment, including the amount of Reisman's salary. Reisman counterclaimed with two counts of unjust enrichment, damage to business reputation, and breach of the duty of good faith and fair dealing. The trial court concluded that the dissolution of PressEnter resulted in a wind-up, ordered the equal distribution of PressEnter's profits to both partners, and granted summary judgment in favor of Bushard. The court of appeals affirmed. On appeal, the Supreme Court affirmed, holding (1) the distribution of PressEnter's profits and losses was governed by Wis. Stat. 178.15, and Reisman's equitable arguments were insufficient to overcome the plain language of the statute; and (2) because there was no genuine dispute of material fact, the circuit court appropriately ordered summary judgment in favor of Bushard. View "Bushard v. Reisman" on Justia Law
Brethorst v. Allstate Property & Casualty Ins. Co.
Wanda Brethorst submitted an uninsured motorist (UM) claim to her insurer, Allstate. Brethorst made a demand for settlement, and Allstate responded with only a partial settlement. Brethorst rejected the offer then filed suit against Allstate for bad faith. Allstate filed a motion asking that Brethorst's contract claim for UM coverage be bifurcated from her bad faith claim and that discovery on the bad faith claim be stayed until the contract claim was resolved. Brethorst opposed the motion on the grounds that she had filed only one claim, and thus no bifurcation or stay of discovery was appropriate. The circuit court agreed with Brethorst and denied Allstate's motion. The Supreme Court affirmed, holding (1) an insured may file a bad faith claim without also filing a breach of contract claim; and (2) Brethorst had supplied the insurer and the court with sufficient evidence of a breach of contract by the insurer to proceed with discovery on her bad faith claim. View "Brethorst v. Allstate Property & Casualty Ins. Co." on Justia Law