Johnson v. Cintas Corp. No. 2

2012 WI 31, 811 N.W.2d 756, 339 Wis. 2d 493, 2012 WL 1004309, 2012 Wisc. LEXIS 25
CourtWisconsin Supreme Court
DecidedMarch 27, 2012
DocketNo. 2009AP2549
StatusPublished
Cited by37 cases

This text of 2012 WI 31 (Johnson v. Cintas Corp. No. 2) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Cintas Corp. No. 2, 2012 WI 31, 811 N.W.2d 756, 339 Wis. 2d 493, 2012 WL 1004309, 2012 Wisc. LEXIS 25 (Wis. 2012).

Opinions

ANNETTE KINGSLAND ZIEGLER, J.

¶ 1. This is a review of a published decision of the court of appeals, Johnson v. Cintas Corp. No. 2, 2011 WI App 5, 331 Wis. 2d 51, 794 N.W.2d 475, that reversed a default judgment entered by the Kenosha County Circuit Court1 in favor of Robert Johnson (Johnson) and against Cintas Corporation No. 2 (Cintas No. 2). Because Johnson's summons and complaint did not name Cintas No. 2 as a defendant and instead named Cintas Corporation (Cintas), the parent corporation of Cintas No. 2, the court of appeals concluded that the circuit court lacked personal jurisdiction over Cintas No. 2, and therefore, the default judgment is void. Accordingly, the court of appeals reversed the default judgment and remanded the cause to the circuit court for further proceedings.

¶ 2. On appeal to this court, Johnson argues that the circuit court had personal jurisdiction over Cintas No. 2 because, despite not being named in the summons and complaint, Cintas No. 2 was served with the summons and complaint and was not prejudiced by Johnson's error. Alternatively, Johnson contends that his pleadings ought to be construed as only technically defective on the grounds that Cintas No. 2 held itself out as Cintas.

¶ 3. We disagree with Johnson on both counts and therefore affirm.

[499]*499¶ 4. We conclude that service in this case was fundamentally defective because Johnson failed to name Cintas No. 2 as a defendant in his summons and complaint, contrary to Wis. Stat. §§ 801.02(1) and 801.09(1). Therefore, the circuit court lacked personal jurisdiction over Cintas No. 2, regardless of whether or not the defect prejudiced Cintas No. 2 and regardless of the manner in which Cintas No. 2 held itself out to the public or to Johnson specifically. Because the circuit court lacked personal jurisdiction over Cintas No. 2, the default judgment entered against Cintas No. 2 is void.

I. FACTUAL BACKGROUND AND PROCEDURAL POSTURE

¶ 5. On April 12, 2007, Johnson filed a summons and complaint against Cintas; United Healthcare; Marvin Crandall (Crandall); and XYZ Corporation, a fictitious name designating Crandall's automobile liability insurer.2 According to his complaint, Johnson was an employee of Cintas and was required to use his personal vehicle in the course of his employment. As a result, Johnson alleged, he had automobile liability insurance coverage through Cintas.

¶ 6. In his complaint, Johnson alleged that on July 2, 2006, he was riding as a passenger in his own vehicle driven by Crandall with Johnson's permission when Crandall negligently operated the vehicle, causing it to collide with another vehicle. Johnson alleged that as a result of the accident, he was permanently [500]*500injured, experienced pain and suffering, incurred past and future medical expenses, and had a loss of earning capacity.

¶ 7. In addition, Johnson claimed that both he and Crandall qualified as insureds under Cintas's automobile liability insurance coverage and consequently were entitled to benefits payable by Cintas. Cintas's refusal to pay any benefits, according to Johnson, constituted a breach of contract and bad faith.

¶ 8. On April 19, 2007, Johnson served his summons and complaint upon the registered agent for Cintas No. 2, a wholly owned subsidiary of the named defendant, Cintas. Unlike Cintas No. 2, Cintas is neither registered nor licensed to do business in Wisconsin and does not have a registered agent for service of process in Wisconsin. Cintas is a foreign public corporation, incorporated under the laws of Washington with a principal place of business in Ohio.

¶ 9. Neither Cintas nor Cintas No. 2 answered Johnson's complaint. Accordingly, Johnson's counsel filed an affidavit of no answer, and on June 15, 2007, Johnson moved for default judgment against Cintas. Like his summons and complaint, Johnson's motion for default judgment was served upon the registered agent for Cintas No. 2, not Cintas.

¶ 10. On July 2, 2007, Cintas, through its counsel in Illinois,3 filed an emergency motion to dismiss Johnson's motion for default judgment on the grounds that the circuit court lacked personal jurisdiction over Cintas. Cintas's motion explained that Johnson's em[501]*501ployer was actually Cintas No. 2, not Cintas as Johnson had alleged in his complaint. Cintas attached to its motion various corporate records from the Wisconsin Department of Financial Institutions (DFI), showing that Cintas is not a registered corporation in Wisconsin. By contrast, the DFI records reveal that Cintas No. 2, incorporated under the laws of Nevada with a principal place of business in Ohio, is a registered corporation in Wisconsin, as of June 1, 2000. Because Johnson failed to serve his summons and complaint upon Cintas, Cintas argued that the circuit court lacked personal jurisdiction over Cintas and consequently could not enter default judgment against Cintas.

¶ 11. Alternatively, assuming the circuit court found that Cintas was properly served, Cintas maintained that default judgment would still be inappropriate because Cintas's failure to answer was unintentional and because Cintas had a valid defense to Johnson's claims. Specifically, Cintas alleged that the accident that injured Johnson was a result of both Johnson and Crandall being intoxicated.

¶ 12. Three days later, on July 5, 2007, Johnson filed a letter with the circuit court, acknowledging receipt of Cintas's emergency motion to dismiss Johnson's motion for default judgment and expressing his intention to amend his summons and complaint by changing the named defendant from Cintas to Cintas No. 2. Furthermore, relying on this court's decision in Hoesley v. La Crosse VFW Chapter, 46 Wis. 2d 501, 175 N.W.2d 214 (1970), Johnson submitted that default judgment should still be entered against Cintas No. 2 because Cintas No. 2 was the entity served.

¶ 13. On July 6, 2007, the circuit court held a hearing on Johnson's motion for default judgment, at which only counsel for Johnson and counsel for Cintas [502]*502were present. Johnson moved to orally amend his summons and complaint to name Cintas No. 2 as the correct defendant. The circuit court granted Johnson's motion to amend and then immediately granted default judgment in favor of Johnson and against Cintas No. 2. The circuit court denied that Cintas No. 2 was entitled to notice of the amended summons and complaint. The court reasoned that the amendment did not have the effect of bringing in Cintas No. 2 as a new party since Cintas No. 2 was the entity served with the original summons and complaint.

¶ 14. On July 20, 2007, Cintas No. 2 filed an answer to both Johnson's complaint and amended complaint and moved to intervene and to set aside the default judgment. That same date, by letter, the circuit court responded to Cintas No. 2, advising Cintas No. 2 that it need not intervene because the court already determined that it was a party to the action. The circuit court further stated that it would not accept the filing of Cintas No. 2's answer because default judgment had already been entered. Still, the court indicated that it would be willing to consider a motion for relief from the judgment under Wis. Stat. § 806.07.

¶ 15.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

College Avenue BP, Inc. v. Arorora Investments
Court of Appeals of Wisconsin, 2026
v. Thomas James Flynn, II
Court of Appeals of Wisconsin, 2024
Kia Hutchinson v. Steren Management Co, Inc.
Court of Appeals of Wisconsin, 2023
Portage County DH&HS v. A. K.
Court of Appeals of Wisconsin, 2022
Village of Bay City v. David C. Meixner
Court of Appeals of Wisconsin, 2022
State v. Ryan Hugh Mulhern
2022 WI 42 (Wisconsin Supreme Court, 2022)
STB Investments LLC v. Richard Wood
Court of Appeals of Wisconsin, 2021
Steven J. Piper v. Jones Dairy Farm
2020 WI 28 (Wisconsin Supreme Court, 2020)
Bernard C. Seidling v. Patricia Lewis
Court of Appeals of Wisconsin, 2020
Michael J. Vieth v. John Tate, II
Court of Appeals of Wisconsin, 2020
State v. Wilber
2019 WI App 5 (Court of Appeals of Wisconsin, 2018)
Haas v. City of Oconomowoc
2017 WI App 10 (Court of Appeals of Wisconsin, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
2012 WI 31, 811 N.W.2d 756, 339 Wis. 2d 493, 2012 WL 1004309, 2012 Wisc. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-cintas-corp-no-2-wis-2012.