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Opinions

The Western District of Wisconsin offers a database of opinions for the years 1986 to present, listed by year and judge. For a more detailed search, enter a keyword, statute, rule or case number in the search box above.

Opinions are also available on the Government Printing Office website for Appellate, District and Bankruptcy cases. The content of this collection dates back to April 2004, though searchable electronic holdings for some courts may be incomplete for this earlier time period.

For a direct link to the Western Wisconsin Bankruptcy Court on-line opinions, visit this link.

Judge Robert D. Martin

Case Summary:
Debtors sought to avoid a lien on a liquor license under 11 U.S.C. § 522(f)(1)(B)(ii) as a “tool of the trade.” The license had been exempted under 11 U.S.C. § 522(d)(5), the “wildcard” exemption. The Debtors owned a golf course, and there was no dispute that the liquor license was necessary for the success of the business. The Bankruptcy Court determined that the lien could not be avoided because the license was not a tool of the trade. The Court explained that in the Seventh Circuit, the reference to “tools of the trade” in § 522(f) takes on the meaning of either the federal tools of the trade exemption under § 522(d)(6) or the state tools of the trade exemption, depending on which the Debtor has elected. In re Thompson, 867 F.2d 416, 420 (7th Cir. 1989). In this case, the Debtors elected the federal exemptions, and therefore were limited to the narrow definition of the federal tools of the trade exemption as set forth by the Seventh Circuit Court of Appeals in In re Patterson, 825 F.2d 1140, 1146 (7th Cir. 1987). Patterson stated that the purpose of the tools of the federal tools of the trade exemption is to enable an artisan to retain tools of modest value, like rakes and other hand tools, so that he is not forced out of his trade. The Bankruptcy Court held that under this reasoning, a liquor license is not a tool of the trade.

Statute/Rule References:
11 U.S.C. § 522(f) -- Lien Avoidance

Key Terms:
Lien Avoidance
Tools of the Trade


Case Summary:
Mr. Myhre sought to have his student loan discharged. Mr. Myhre was injured in a swimming pool accident in which he broke his neck and became a quadriplegic. Since the accident he has required a live-in caregiver for assistance with all daily needs, including eating, dressing, and bathing. After several years of depending on Social Security disability payments, he decided to attend school and learn computer programming in an attempt to support himself. He received an associate’s degree but was still unable to find work for five years. After returning to school again to further his computer programming education, he finally secured a full-time position. The U.S. Department of Education argued that Mr. Myhre should have to repay his student loan because he had full-time employment. The Bankruptcy Court found that with the increased cost of living as a quadriplegic, Mr. Myhre was unable to afford even a minimum payment on his student loan. Even without making any payment on his student loan, Mr. Myhre was unable to make ends meet and was depending on the generosity of his caregiver to get by. The bankruptcy noted that the Seventh Circuit Court of Appeals recently injected common sense into its consideration of § 523(a)(8) in Krieger v. Educ. Credit Mgmt. Corp., 713 F.3d 882 (7th Cir. 2013), declining to require that certainty of hopelessness and proof of prior payment overwhelm the inquiry into the future burden of the debt in question to the Debtor’s anticipated livelihood. In light of Krieger, the Bankruptcy Court held it would be an undue hardship on Mr. Myhre to require him to pay back his student loan.

Statute/Rule References:
Wis. Stat. § 409.108 -- Sufficiency of Description
Wis. Stat. § 409.203 -- Security Interests - Attachment and Enforceability

Key Terms:
Security Interests - Attachment


Case Summary:
Plaintiffs objected to the bill of costs filed by the prevailing defendant, specifically to expert witness fees in the amount of $ 3,250 for the medical examiner. Under Crawford Fitting Co. v. J.T. Gibbons, Inc., 482 U.S. 437 (1987), outside of court-appointed expert witnesses, an award of expert witness fees is limited to the amount in 28 U.S.C. § 1821 unless the parties have contracted otherwise or there is explicit statutory authority to the contrary. The Plaintiffs argued that the expert witness fees for the medical examiner should be limited to the amounts set forth in § 1821. The Defendant argued that the fees were authorized by Wisconsin Statutes §§ 59.36 and 59.38. The Bankruptcy Court held that rate setting is not the type of statutory authorization to which Crawford was referring. While these provisions authorized the medical examiner’s fees in the sense that they authorized how much he may charge for his services as a medical examiner, the Supreme Court in Crawford meant that there must be statutory authorization for the fees to be taxed as costs. Therefore, the Defendant’s award of costs was limited to the amounts set forth in § 1821.

Statute/Rule References:
28 U.S.C. § 1821
28 U.S.C. § 1920
Fed. R. Bankr. P. 7054
Wis. Stat. § 59.38
Wis. Stat. § 59.36

Key Terms:
Expert Witness Fees
Fee Dispute


Case Summary:
Teenage girl died in a rollover accident. The driver had been drinking, underage, at a party hosted by the debtor. Plaintiffs (the victim’s parents and her estate) brought claims of battery and sexual assault at the party, and wrongful death for the rollover accident. The Plaintiffs sought to have these debts determined non-dischargeable as “willful and malicious injury.” The Bankruptcy Court held that the Plaintiffs failed to prove that any battery and sexual assault occurred, given that the Plaintiffs’ main witness was not credible and remaining evidence was negligible. The Bankruptcy Court also held that any social host liability the Debtor may have had for the accident did not rise to the level of willful and malicious injury in this case. Under the standard of Jendusa-Nicolai v. Larsen, 677 F.3d 320, 322 (7th Cir. 2012), the Plaintiffs failed to prove that the Debtor desired to inflict the victim’s injuries or that he knew they were highly likely to result.

Statute/Rule References:
11 U.S.C. § 523(a)(6) -- Nondischargeability - Willful and Malicious Injury

Key Terms:
Dischargeability - Willful and Malicious


Case Summary:
The Debtor was 100% owner of a limited liability company (LLC), which in turn held legal title to the property on which the Debtor resided. The Debtor attempted to take a Wisconsin homestead exemption in the property, but the Court determined that the Debtor did not have a property interest which could be exempted. The Court held that the Debtor and his LLC were separate legal entities, so the Debtor did not have legal title to the property, and his equitable interest in the property had passed to the Trustee along with his ownership interest in the LLC.

Statute/Rule References:
11 U.S.C. § 522(b)(1)(3)

Key Terms:
Exemptions – Homestead
Homestead Exemption
Property of the Estate


Case Summary:
During the Debtors’ marriage, the Debtor-wife received an interest in real property from her father. The Debtors later executed a mortgage note with a bank and pledged the real property as collateral. The Debtors made payments on the mortgage note with marital property funds. The Debtors filed for bankruptcy under Chapter 7, and each claimed an exemption in the real property under 11 U.S.C. § 522(d)(5). The Chapter 7 Trustee objected, claiming that the wife’s interest in the real property was individual property under Wisconsin law, and therefore, the husband could not claim any exemption in it. The Bankruptcy Court found that marital property was “mixed” with the wife’s individual property under Wis. Stat. § 766.63(1) because the principal payments the Debtors made on the mortgage note constituted marital property. However, because the marital property component could be traced, the real property was not reclassified to marital property. The Debtor-husband was entitled to claim an exemption in his undivided one-half interest in the amount of principal payments made on the mortgage note.

Statute/Rule References:
11 U.S.C. § 522(d) -- Exemptions - Federal
Wis. Stat. § 766.63(1)

Key Terms:
Marital Property
Mixed Property
Mortgage Payments
Wild Card Exemption


Case Summary:
The Trustee objected to the Debtor’s claimed exemption in a “CSI Retirement Savings Plan” under 11 U.S.C. § 522(d)(10)(E). The Trustee argued that the Plan was actually a limited partnership interest, and therefore, it did not meet the standard under 11 U.S.C. § 522(d)(10)(E). Examining the three elements of the statute, the Bankruptcy Court overruled the Trustee’s objection. The Court found the Plan to be a “similar plan or contract” because it provided income that substituted for wages. The Plan payments met the second element of the statute, as redemption of units could occur “on account of” disability, death, or illness. Finally, the Court found the Plan to be reasonably necessary for the support of the Debtor. The Debtor was entitled to claim an exemption in the Plan under the statute.

Statute/Rule References:
11 U.S.C. § 522(d)(10)(E) -- Exemptions - Federal - Stock Bonus, Pension, Profit-sharing, Annuity

Key Terms:
Exemptions
Limited Partnership
Similar Plan


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