Wilhelm v. McCoy Contractors, Inc.
Wilhelm v. McCoy Contractors, Inc.
Opinion of the Court
¶1 This case arises from a dispute between Michael R. Wilhelm and his former employer, McCoy Contractors, Inc. (McCoy) over unpaid compensation. Wilhelm appeals from orders dismissing McCoy's president, Daniel J. McCoy (Daniel), from the case and reducing a jury's damages award against McCoy. McCoy, meanwhile, cross-appeals from an order awarding attorney fees to Wilhelm.
¶2 We conclude that the circuit court properly dismissed Daniel from the case and properly awarded attorney fees to Wilhelm. However, we also conclude that the court erred in reducing the jury's damages award against McCoy, which may have affected the amount of attorney fees ordered.
¶3 Wilhelm was employed as a salesman for McCoy, a construction firm specializing in basement waterproofing and structural repairs. Pursuant to an oral agreement, McCoy paid Wilhelm a ten percent commission on his sales plus health insurance and a company car. Wilhelm did not receive checks for the sales commissions he earned; rather, beginning in 2003, he "banked" them with McCoy so that he could withdraw payments throughout the year.
¶4 In the ensuing years, the unpaid sales commissions accumulated, reaching over $100,000. Wilhelm frequently inquired as to the status of his funds and received statements of what was owed to him based on McCoy's computer records. Eventually, Wilhelm asked McCoy to pay him the money that was due. McCoy refused to do so, indicating that it no longer had the money and had switched Wilhelm's compensation from commission to salary. By then, McCoy had also stopped paying Wilhelm's health insurance benefits, which cost Wilhelm between $12,000 and $13,000 per year.
¶5 In 2014, Wilhelm filed suit against McCoy and Daniel, alleging various causes of action.
¶6 McCoy filed several motions after verdict seeking to reduce or set aside the jury's damages award. Although the motions were timely filed, they were not decided within ninety days as required by WIS. STAT. § 805.16(3) (2015-16).
¶7 When the motions after verdict were finally heard, Wilhelm objected to the circuit court's competency to decide them. The court reluctantly agreed that it lacked competency to do so. Nevertheless, it reduced the jury's damages award on the theory that it lacked subject matter jurisdiction over some of Wilhelm's action. Specifically, the court determined that the statute of limitations barred Wilhelm's attempt to recover unpaid sales commissions from before 2008. It concluded that $53,617 was the proper amount of damages for Wilhelm and ordered the clerk to enter the reduced judgment.
¶8 The circuit court next took up the issue of attorney fees, which may be awarded to a prevailing party in a wage claim action. See WIS. STAT. § 109.03(6). The court concluded that an award of forty percent of the $53,617 judgment, or $21,466.80, was a reasonable fee under the contingency fee agreement of Wilhelm and his attorney and factors set forth for fees in SCR 20:1.5. It then entered an order to that effect. This appeal and cross-appeal followed.
¶9 On appeal, Wilhelm first contends that the circuit court erred in dismissing Daniel from the case. He submits that a reasonable jury could have found Daniel personally liable for conversion, breach of fiduciary duty, and the statutory wage claim.
¶10 As a threshold matter, Wilhelm pled only one cause of action against Daniel, which was for conversion. Accordingly, there is no reason to discuss other potential claims against him. With respect to the alleged conversion, the circuit court was not persuaded that the evidence at trial was sufficient to support such a finding. We agree with the court. In addition, we note that the jury ultimately found that McCoy did not convert any money belonging to Wilhelm. Because there was no conversion by McCoy, Daniel could not have been held personally liable for conversion based upon Wilhelm's "piercing the corporate veil."
¶11 Wilhelm next contends that the circuit court erred in reducing the jury's damages award against McCoy. McCoy effectively concedes this argument in its brief by failing to refute it. See Charolais Breeding Ranches, Ltd. v. FPC Sec. Corp. ,
¶12 We agree with the parties that the circuit court erred in reducing the jury's damages award against McCoy. The court lost competency to consider the motions after verdict once the ninety-day time limit had expired. See Jos. P. Jansen Co. v. Milwaukee Area Dist. Bd. of Vocational, Tech. & Adult Ed. ,
¶13 We decline McCoy's invitation to utilize WIS. STAT. § 752.35 to reduce the jury's damages award. Exercise of our discretionary reversal power is rare and reserved for "exceptional cases." State v. Avery ,
¶14 Having addressed the issues in Wilhelm's appeal, we turn next to McCoy's cross-appeal. McCoy argues that the circuit court erred in awarding attorney fees to Wilhelm. Principally, it asserts that WIS. STAT. § 109.03(6) has no application in this case due to the nature of Wilhelm's employment.
¶15 The problem with McCoy's argument is that it comes too late. McCoy never questioned Wilhelm's entitlement to reasonable attorneys' fees under WIS. STAT. § 109.03(6) in the circuit court. Indeed, it conceded the point in its motions after verdict.
¶16 With respect to the award itself, this court will affirm a circuit court's determination on attorneys' fees "unless its determination is clearly erroneous." D.S.G. Evergreen F.L.P. v. Town of Perry ,
¶17 As a final matter, McCoy complains that the circuit court erred in denying its initial motion to disqualify Wilhelm's attorney, Daniel Stevens, from the case. McCoy had sought to disqualify Attorney Stevens based upon a meeting he had with Daniel in 2013, prior to the commencement of Wilhelm's lawsuit. In his motion, McCoy accused Attorney Stevens of violating the duties to a prospective client as set forth in SCR 20:1.18, which provides in relevant part:
(a) A person who consults with a lawyer about the possibility of forming a client-lawyer relationship with respect to a matter is a prospective client.
(b) Even when no client-lawyer relationship ensues, a lawyer who has learned information from a prospective client shall not use or reveal that information learned in the consultation....
(c) A lawyer subject to par. (b) shall not represent a client with interests materially adverse to those of a prospective client in the same or a substantially related matter if the lawyer received information from the prospective client that could be significantly harmful to that person in the matter....
¶18 After considering arguments from the parties and hearing testimony from both Daniel and Attorney Stevens, the circuit court denied the motion to disqualify. The court found that "there was no discussion whatsoever" between Daniel and Attorney Stevens regarding the possibility of forming a client-attorney relationship. The finding was based, in part, upon the acrimonious relationship between the two men, which stemmed from previous unrelated lawsuits.
¶19 On this record, we conclude that Daniel was not a prospective client of Attorney Stevens. Likewise, we conclude that Attorney Stevens received no information in his meeting with Daniel that was significantly harmful to McCoy in this matter. Accordingly, we are satisfied that the circuit court properly denied the motion to disqualify Attorney Stevens from the case.
¶20 For these reasons, we affirm in part, reverse in part, and remand with directions. On remand, the circuit court shall reinstate the jury's damages award of $147,000 and make a new determination of attorney fees.
By the Court. -Orders affirmed in part; reversed in part and cause remanded with directions.
This opinion will not be published. See WIS. STAT. RULE 809.23(1)(b)5.
The amount of attorney fees ordered was based upon a contingency fee that the circuit court found reasonable under the circumstances.
Wilhelm also named Daniel's wife, Carol McCoy, as a defendant. The circuit court dismissed her from the case. That dismissal is not challenged on appeal.
All references to the Wisconsin Statutes are to the 2015-16 version.
The circuit court's jurisdictional concern was based upon a statute of limitations argument that McCoy did not raise until after trial. Given its timing, that argument should have been deemed forfeited. See Robinson v. Mount Sinai Med. Ctr. ,
In its brief supporting its motions after verdict, McCoy acknowledged that "Wilhelm Is Entitled To Reasonable Attorney Fees On His Wage Claim...."
The "amount involved and the results obtained" are among the factors listed in SCR 20:1.5(a).
The circuit court opined that the meeting took place because of the need by Daniel in pursuing a treatment program "to make amends with people that he had had conflicts with in the past ...."
McCoy also accuses Attorney Stevens of violating the requirements of SCR 20:4.3 for dealing with an unrepresented person. We note that the motion to disqualify Attorney Stevens was not premised on that rule. In any event, we are not persuaded that the rule applied to the meeting in question.
Upon completion of briefing, Wilhelm filed a motion to strike McCoy's reply brief, which was held in abeyance. We now deny that motion.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.