Case Summary:
Trustee’s objection to claims. Debtor is a general contractor. Two subcontractors filed claims “secured” by operation of Wisconsin’s theft by contractor statute. Wis. Stat. § 779.16. Wisconsin Dairies v. Citizens Bank & Trust controlled the outcome. 160 Wis. 2d 758 (Wis. 1991). The claims were secured only to the extent that the funds were traceable to specific construction projects on which the creditors worked, and only to the extent that funds from those projects were in the possession of the Trustee. The remainder of the creditors’ claims were unsecured.

Statute/Rule References:
Wis. Stat. § 779.16

Key Terms:
Claims