Justia Consumer Law Opinion Summaries

Articles Posted in Wisconsin Supreme Court

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The Supreme Court affirmed the decision of the court of appeals affirming the circuit court's order granting Security Finance's (Security) motion to dismiss Brian Kirsch's (Kirsch) counterclaims against Security under Wis. Stat. Chapters 425 and 427, holding that Kirsch's counterclaims were properly dismissed. Security and Kirsch entered into a loan agreement. Kirsch later defaulted on the payment obligation. Security subsequently filed a small claims lawsuit against Kirsch to enforce the agreement and collect the alleged debt. Kirsch counterclaimed for damages under chapter 427, the Wisconsin Consumer Act, on the grounds that Security filed this action before serving Kirsch with a notice of right to cure default satisfying the requirements set forth in chapter 425. The circuit court dismissed the counterclaim relating to the notice of right to cure default. The court of appeals affirmed. The Supreme Court affirmed, holding that a creditor's failure to provide a notice of right to cure default does not constitute a sufficient basis for relief under chapter 427. View "Security Finance v. Kirsch" on Justia Law

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Marco Marquez, the consumer, brought this action against Mercedes-Benz USA, alleging that his new car was a "lemon" under the state's Lemon Law, that he requested a refund and provided Mercedes-Benz with the required notice and information, and that Mercedez-Benz failed to provide a refund within the thirty-day period as required under the Lemon Law. At issue in this case was whether Marquez intentionally thwarted Mercedes-Benz's attempt to provide a refund within the thirty-day statutory period by failing to provide necessary information. On remand, the jury found in favor of Mercedes-Benz, but the circuit court entered a directed verdict in favor of Marquez, finding no credible evidence that Marquez intentionally thwarted Mercedes-Benz's efforts to provide a refund. The Supreme Court affirmed, holding that no credible evidence supported the jury's verdict, and therefore, the circuit court was not clearly wrong in directing the verdict in favor of Marquez. View "Marquez v. Mercedes-Benz USA, LLC" on Justia Law

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An accountant and the company he owned (collectively, MBS), filed suit against Defendants, telecommunications companies, asserting claims for damages under Wis. Stat. 100.207 and other statutes, arguing that Defendants' telephone bills contained unauthorized charges. The circuit court dismissed MBS's claims for relief, determining that although the complaint properly alleged violations of section 100.207, the voluntary payment doctrine barred any entitlement to monetary relief. The court of appeals affirmed. The Supreme Court reversed and remanded, holding (1) the Supreme Court had not decided whether the legislature intended the voluntary payment doctrine to be a viable defense against any cause of action created by a statute; and (2) under the circumstances, the conflict between the manifest purpose of section 100.207 and the common law defense left no doubt that the legislature intended that the common law defense should not be applied to bar claims under the statute. Remanded. View "MBS-Certified Pub. Accountants, LLC v. Wis. Bell Inc." on Justia Law

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Steven Kilian leased a Mercedes-Benz vehicle with financing by Mercedes-Benz Financial. After the car required numerous repairs, Kilian returned the car to Mercedes-Benz USA and sought a refund under Wisconsin's Lemon Law. Mercedes-Benz USA accepted the returned vehicle and refunded $20,847 to Kilian. Because Mercedes-Benz USA did not immediately pay off the lease with Mercedes-Benz Financial, Mercedes-Benz Financial commenced collection actions to obtain payment from Kilian. Kilian filed suit under the Lemon Law to stop enforcement of the lease. While Kilian's action was pending in circuit court, Mercedes-Benz paid off the lease to Mercedes-Benz Financial. The circuit court granted summary judgment in favor of Mercedes-Benz Financial, finding that Kilian did not suffer a pecuniary loss when Mercedes-Benz Financial continued to enforce the lease after the vehicle was returned. The court of appeals affirmed. The Supreme Court reversed, holding (1) Kilian could maintain an action for equitable relief under the Lemon Law and Mercedes-Benz Financial's actions violated the Lemon Law; and (2) Kilian prevailed in his action when Mercedes-Benz Financial voluntarily ceased enforcement of the lease after Kilian filed suit, and as the prevailing party, Kilian was entitled to attorney fees, disbursements, and costs. Remanded.