Ann K. Cady v. Matthew C. O'Malley

CourtCourt of Appeals of Wisconsin
DecidedJanuary 23, 2026
Docket2025AP000944
StatusUnpublished

This text of Ann K. Cady v. Matthew C. O'Malley (Ann K. Cady v. Matthew C. O'Malley) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ann K. Cady v. Matthew C. O'Malley, (Wis. Ct. App. 2026).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. January 23, 2026 A party may file with the Supreme Court a Samuel A. Christensen petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2025AP944 Cir. Ct. No. 2022CV155

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

ANN K. CADY, BETH L. CORNING, AND CARON G. ROESLER,

PLAINTIFFS-RESPONDENTS,

V.

MATTHEW C. O’MALLEY,

DEFENDANT-APPELLANT.

APPEAL from an order of the circuit court for Sauk County: WENDY J.N. KLICKO, Judge. Affirmed.

Before Graham, P.J., Kloppenburg, and Taylor, JJ.

Per curiam opinions may not be cited in any court of this state as precedent

or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3). No. 2025AP944

¶1 PER CURIAM. Matthew O’Malley appeals a circuit court order that enforced a settlement agreement he made with his sisters regarding the disposition of real estate and a family-owned corporation, and that dismissed this litigation with prejudice pursuant to that agreement. We reject O’Malley’s arguments and affirm the order of dismissal.

BACKGROUND

¶2 The plaintiffs, Ann Cady, Beth Corning, and Caron Roesler, and the defendant, Matthew O’Malley, are siblings who shared ownership of real estate and a family-owned corporation called Johnson-O’Malley, Inc. We refer to Cady, Corning, and Roesler collectively as the “sisters”; to the three sisters and O’Malley collectively as the “siblings”; and to Johnson-O’Malley, which is not a party in this litigation, as the “corporation.”

¶3 When this lawsuit was initiated, each of the siblings owned an undivided one-fourth interest in a parcel of residential real estate in the Village of Lake Delton. Each of the siblings also owned one fourth of the shares of the family corporation, meaning that the siblings were its sole shareholders. For its part, the corporation owned a parcel of commercial real estate that was adjacent to the residential parcel.

¶4 In or around 2021, some or all of the siblings decided that the residential and commercial parcels should be sold, ideally to a single buyer. At some point as they prepared for a sale, the communication between the siblings broke down and O’Malley, who had been living in a house on the residential property, refused to allow his sisters access to that property.

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The Pleadings

¶5 In April 2022, the sisters initiated this lawsuit and O’Malley counterclaimed. As we discuss in more detail below, both sides generally agreed that the real estate should be sold, and both sides asked for a judicially ordered sale of one or both parcels pursuant to WIS. STAT. § 842.02(2) (2023-24).1 However, the sisters and O’Malley disagreed about how the proceeds of the sale should be split between the siblings.

¶6 In their complaint, the sisters sought an injunction against O’Malley that would grant the sisters access to the residential property and require O’Malley to move out. They also sought an order for the judicial sale of the residential property, which would be followed by a court-ordered equitable division of the proceeds. According to the sisters’ request for relief, the distribution of sale proceeds to O’Malley should be reduced based on “contributions” that the sisters made to the residential real estate and reductions in the value of the real estate that the sisters attributed to O’Malley, and also based on the theory of unjust enrichment because O’Malley had been “living rent free” in the house on the residential property.

¶7 In his answer, O’Malley denied that he owed any rent for the residential property. He affirmatively alleged that any reduction in its value was due to mismanagement by his sisters.

¶8 O’Malley also filed two counterclaims: one for unjust enrichment and a second for a judicial sale. As for unjust enrichment, O’Malley alleged that

1 All references to the Wisconsin Statutes are to the 2023-24 version.

3 No. 2025AP944

the sisters had been unjustly enriched by the efforts he had undertaken to manage the residential property and the business on the commercial property, and he sought the value of the services that he had provided for both properties. As for the request for a judicial sale, O’Malley sought the sale of not only the residential property but also the commercial property, and he took the position that the net proceeds should be divided equally among the parties.

¶9 In their response to the counterclaims, the sisters denied that O’Malley was entitled to any compensation. They affirmatively alleged that he had taken insurance money for the residential property for his own personal use and operated his own business out of the commercial property.

¶10 In February 2023, O’Malley’s first set of attorneys moved to withdraw as counsel, citing a substantial breakdown in communication on the substantive issues relating to the case. The circuit court did not enter an order allowing the attorneys to withdraw until a month later, after the siblings had entered into a settlement agreement but before they followed through on the settlement by asking the court to dismiss the litigation. As discussed below, O’Malley would go on to retain and then discharge two more sets of attorneys during the course of the post-settlement phase of the litigation.

The Settlement

¶11 The siblings entered into a written settlement agreement on March 3, 2023. As we understand it, a significant impetus for the agreement was that there had been an offer to purchase the residential and commercial real estate and some or all of the siblings wanted to accept that offer. As we describe in greater detail below, the written settlement agreement memorializes an agreement to sell the real estate, to resolve the claims between the siblings, to distribute the proceeds of the

4 No. 2025AP944

real estate sale, to transfer full ownership of the corporation to O’Malley, and to dismiss this litigation. The siblings and the corporation were party to the agreement, which was signed on March 3, 2023, by each of the siblings and by one of the sisters, Ann Cady, on behalf of the corporation as its president. We sometimes refer to the siblings and the corporation collectively as the “settling parties.”

¶12 As for the real estate, the settlement agreement provided that both parcels would be sold pursuant to the terms of the purchase offer, which was incorporated into the agreement.2 The agreement further provided that, if the closing did not occur “due to factors out of the control of the parties,” the settlement agreement would be “null and void in its entirety.”

¶13 The settlement agreement resolved various disputes between the siblings about who was owed money and who would be responsible for certain corporate debts, and it also provided that O’Malley would assume sole ownership of the corporation. For his part, O’Malley agreed that upon the closing of the real estate sale, he would make a payment to Cady to pay off a personal loan, he would resolve a specified judgment and certain debts that constituted liens on the real estate, and he would be responsible for specified utility bills and certain credit card and corporate debts. For the sisters’ part, they agreed to make a payment to O’Malley, to pay certain utility and legal bills owed by the corporation, and to

2 The offer to purchase and its addendum were not included in the documents filed in the record. There is no argument that the details of those documents are material to this appeal.

5 No. 2025AP944

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Bluebook (online)
Ann K. Cady v. Matthew C. O'Malley, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ann-k-cady-v-matthew-c-omalley-wisctapp-2026.