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Badgerland Overhead Door, LLC v. Today's Overhead Door, LLC

Citations: 922 N.W.2d 310; 2018 WI App 71; 384 Wis. 2d 632Docket: Appeal No. 2017AP714

Court: Court of Appeals of Wisconsin; October 2, 2018; Wisconsin; State Appellate Court

Narrative Opinion Summary

In this case, 1 Day Enterprises, LLC (Day) challenged a court order denying its motion to reconsider the denial of its previous motion for relief from judgment under Wisconsin Statutes section 806.07. Day was held liable as a garnishee for $20,000 owed to Badgerland Overhead Door, LLC (Badgerland), following a garnishment action linked to debts of Today's Overhead Door, LLC (TOD), whose assets Day had acquired. The circuit court ruled against Day, determining that the $20,000 credit owed to TOD was subject to garnishment as 'property' under Wisconsin law. In its appeal, Day contended errors regarding successor liability, due process, and fraud evidence by TOD, but the appellate court found these arguments untimely. The court affirmed that Day's motion to reconsider lacked merit, as the new evidence of fraud was irrelevant to the garnishment claims and no misconduct by Badgerland was shown. The appellate court upheld the lower court's decision to deny Day's motion for reconsideration, confirming the garnishment of the credit and rejecting Day's undeveloped arguments about the nature of the credit. The ruling highlighted procedural missteps by Day, reinforcing the importance of timely appeals and properly developed legal arguments.

Legal Issues Addressed

Criteria for Relief under WIS. STAT. 806.07(1)

Application: The circuit court determined that Day was not entitled to relief because no evidence of misconduct by Badgerland, the adverse party, was presented.

Reasoning: The circuit court correctly determined that Day was not entitled to relief under WIS. STAT. 806.07(1) as no evidence of misconduct by Badgerland was presented.

Forfeiture of Arguments Not Raised at Trial

Application: Day's arguments regarding forfeiture were found to be forfeited as they were not raised in the circuit court.

Reasoning: Day's arguments regarding forfeiture were not raised in the circuit court and are thus forfeited, as established in Gemini Capital Grp. LLC v. Jones.

Garnishment under WIS. STAT. 812.01(1)

Application: The court ruled that a $20,000 credit owed to TOD was deemed property subject to garnishment under the statute.

Reasoning: Regarding the garnishment of a $20,000 credit, Day argued that the circuit court misinterpreted the term 'property' in WIS. STAT. 812.01(1).

Reconsideration of Court Orders under WIS. STAT. 806.07

Application: The court denied Day's motion to reconsider, finding that new evidence of fraud was irrelevant to the claims between Day and Badgerland.

Reasoning: In addressing Day's motion to reconsider, the court deemed the new evidence of fraud irrelevant to the claims involving Day and Badgerland.

Successor Liability in Asset Purchase Agreements

Application: The court concluded that Day had not been imposed with successor liability following its acquisition of TOD's assets.

Reasoning: It concluded that Day had not been imposed with successor liability and had received due process during earlier hearings.