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South Milwaukee Savings Bank v. Barrett

Citations: 2000 WI 48; 611 N.W.2d 448; 234 Wis. 2d 733; 2000 Wisc. LEXIS 348Docket: 97-3759

Court: Wisconsin Supreme Court; June 9, 2000; Wisconsin; State Supreme Court

Narrative Opinion Summary

This case before the Wisconsin Supreme Court concerns South Milwaukee Savings Bank's suit against the Milwaukee County Clerk of Circuit Court regarding the untimely docketing of a judgment under Wis. Stat. 806.10(3). The primary legal issues involve the applicable statute of limitations for claims against the clerk and the interpretation of docketing 'at the proper time.' The court concluded that the six-year statute of limitations under Wis. Stat. 893.93(1)(a) applies, rejecting the clerk's argument for a two-year period. Furthermore, it was determined that 'at the proper time' requires immediate docketing upon judgment entry, which the clerk failed to do by delaying from the afternoon of September 26, 1994, to the morning of September 27, 1994. Consequently, the Supreme Court affirmed the appellate decision to reverse the circuit court's summary judgment in favor of the clerk, remanding for a determination of damages to the Bank. The ruling emphasizes the strict adherence to statutory requirements for docketing to maintain the reliability of judgment records and uphold the race-notice rule in real estate transactions.

Legal Issues Addressed

Immediate Docketing Requirement

Application: The court interpreted the requirement to docket a judgment 'at the proper time' as necessitating immediate docketing upon judgment entry, not within a 'reasonable time.'

Reasoning: The court, however, interpreted this phrase to mean immediate docketing upon judgment entry, aligning with the language in Wis. Stat. 806.10(1), which mandates that docketing occur simultaneously with judgment entry.

Liability for Clerks under Wis. Stat. 806.10(3)

Application: Clerks who fail to docket judgments promptly may face liability, including treble damages, if their neglect causes harm, as demonstrated by the clerk's delayed docketing in this case.

Reasoning: Clerks neglecting to docket judgments promptly may face penalties, including forfeiture of damages to the aggrieved party.

Race-Notice Rule in Real Estate

Application: The court's decision underscores the importance of the race-notice rule, which invalidates unrecorded conveyances against subsequent good faith purchasers, and highlights the need for immediate docketing to protect lien priorities.

Reasoning: Wisconsin follows a 'race-notice' rule for real estate interests, meaning that unrecorded conveyances are void against subsequent good faith purchasers.

Statute of Limitations for Docketing Claims

Application: The case clarifies that the six-year statute of limitations under Wis. Stat. 893.93(1)(a) applies to actions against a clerk for failure to timely docket a judgment, rather than the two-year statute suggested by the clerk.

Reasoning: The court determined that the six-year statute of limitations (Wis. Stat. 893.93(1)(a)) applies to actions against the clerk under Wis. Stat. 806.10(3).