Justia Wisconsin Supreme Court Opinion Summaries

A landlord served a residential tenant with an eviction notice for nonpayment of rent during a period when the governor had ordered a temporary ban on such notices due to the COVID-19 pandemic. The tenant responded by counterclaiming that the landlord violated the Wisconsin Consumer Act (WCA), specifically Wis. Stat. § 427.104(1)(j), which bars attempts to collect a debt under an “agreement to defer payment” when the right to collect does not exist. The tenant also alleged the lease was void under Wis. Stat. § 704.44(10) and Wis. Admin. Code § ATCP 134.08(10) because it permitted eviction for a crime committed in relation to the property but lacked the required notice of domestic abuse protections.The Marathon County Circuit Court dismissed the landlord’s eviction claim since the notice was issued during the moratorium. The court also held that the WCA did not apply to the lease and found the lease was not void under the cited statutes and regulations, concluding that the tenant was not entitled to damages or attorney fees. The tenant’s attorney was denied intervention for attorney fees but was later allowed to intervene to appeal that issue.The Court of Appeals reversed, holding for the first time that a residential lease with monthly rent payments is a “consumer transaction” and an “agreement to defer payment” under the WCA, and that serving the eviction notice violated the Act. The appellate court also found the lease void for omitting the required domestic abuse notice and allowed recovery of double damages and attorney fees.The Supreme Court of Wisconsin reversed the appellate court. It held that a typical residential lease with monthly rent payments is not an “agreement to defer payment” under Wis. Stat. § 427.104, so the WCA does not apply. Even if the lease were void, the tenant showed no pecuniary loss, precluding recovery of damages, costs, or attorney fees under Wis. Stat. § 100.20(5) or § 425.308(1). View "Koble Investments v. Marquardt" on Justia Law

The Milwaukee City Housing Authority brought an eviction action against Defendant, who lives in federally subsidized housing, because Defendant violated the terms of his lease by engaging in “drug-related criminal activity” - i.e., smoking marijuana inside his apartment. Defendant argued that he could not be evicted because Wis. Stat. 704.17(2)(b) required the notice of eviction to provide him with an opportunity to remedy his lease violation. The circuit court issued a restitution order and writ of eviction. The court of appeals reversed. The Supreme Court reversed the court of appeals, holding that 42 U.S.C. 1437d(1)(6) preempts the right-to-remedy provision of section 704.14(2)(b) when a public housing tenant is evicted for engaging in “drug-related criminal activity” within the meaning of 42 U.S.C. 1437d(1). View "Milwaukee City Housing Auth. v. Cobb" on Justia Law

Robert Kraft formed Electronic Printing Systems, Inc. (the company), which was rebranded, restructured, and sold to various entities. This case involved several leases that the company and its progenies had with Anthony Gagliano & Co., Inc. (Gagliano). Gagliano filed claims against defendants New Electronic Printing Systems, LLC; Openfirst, LLC; Robert Kraft; and Quad/Graphics, Inc. concerning rent allegedly owned under several commercial leases. The circuit court granted (1) granted summary judgment for Quad/Graphics, the last entity to acquire assets of the company; and (2) after trial, directed a verdict in favor of Defendants, concluding that Gagliano did not give sufficient notice to extend the leases to the time when the alleged breach occurred. The court of appeals reversed summary judgment in favor of Quad/Graphics and reversed the circuit court’s directed verdict. The Supreme Court affirmed in part and reversed in part, holding (1) Gagliano’s notice was valid because Gagliano gave sufficient notice to extend the leases to the time when the alleged breach occurred; and (2) Qaud/Graphics was not liable to Gagliano because Quad/Graphics was a subtenant of the lessee, not an assignee of the leases. View "Anthony Gagliano & Co., Inc. v. Openfirst, LLC" on Justia Law