3rd District Court of Appeals Decision: Badgerland Overhead Door v. Today’s Overhead Door (Successor Garnishment Action)

In Badgerland Overhead Door v. Today’s Overhead Door (2017AP714), the Court of Appeals District III held that Day Enterprises was liable for $20,000 owed to Badgerland Overhead Door after Day purchased assets and became successor to Today’s Overhead Door.

Day and Today’s Overhead Door entered into an asset purchase agreement that included the provision of a $20,000 credit to Today’s Overhead Door from Day. Following the purchase, Badgerland Overhead Door sought a garnishment action against Day, claiming it could collect from Day debts owed by Today’s Overhead Door because Day still owed the company the $20,000 credit.

Agreeing with the circuit court, the court of appeals held that the $20,000 credit was “property” eligible for garnishment under Wis. Stat. § 812.01(1). The court denied Day’s arguments that the circuit court improperly applied successor liability and that Today’s Overhead Door breached their contract with Day.