Joseph Koutnik v. Martindale Pinnacle Construction, LLC

CourtCourt of Appeals of Wisconsin
DecidedNovember 10, 2022
Docket2022AP000168
StatusUnpublished

This text of Joseph Koutnik v. Martindale Pinnacle Construction, LLC (Joseph Koutnik v. Martindale Pinnacle Construction, LLC) 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
Joseph Koutnik v. Martindale Pinnacle Construction, LLC, (Wis. Ct. App. 2022).

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. November 10, 2022 A party may file with the Supreme Court a Sheila T. Reiff 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. 2022AP168 Cir. Ct. No. 2018CV3255

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

JOSEPH KOUTNIK AND ANDREA VONCKX,

PLAINTIFFS-RESPONDENTS,

V.

MARTINDALE PINNACLE CONSTRUCTION, LLC,

DEFENDANT-APPELLANT.

APPEAL from a judgment of the circuit court for Dane County: VALERIE BAILEY-RIHN, Judge. Affirmed and cause remanded.

Before Blanchard, P.J., Graham, and Nashold, 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. 2022AP168

¶1 PER CURIAM. Martindale Pinnacle Construction, LLC (“MPC”) appeals a judgment entered following a trial in which the jury found MPC liable to two former employees, Joseph Koutnik and Andrea Vonckx, for unpaid wages. MPC argues that it is entitled to a new trial based on a series of purported trial errors, and it further argues that the circuit court erred in awarding attorney fees to Koutnik and Vonckx pursuant to WIS. STAT. § 109.03(6) (2019-20).1

¶2 We conclude that the circuit court properly exercised its discretion in denying MPC’s motion for a new trial, and we decline to exercise our discretionary power of reversal. The purported errors MPC preserved for appeal were either not errors at all, or they did not affect MPC’s substantial rights. We also conclude that the circuit court properly exercised its discretion in awarding statutory attorney fees. Therefore, we affirm the judgment, and we remand the matter to the circuit court for an award of Koutnik and Vonckx’s reasonable attorney fees for this appeal.

BACKGROUND

¶3 MPC is a roofing and exterior construction contractor company and is wholly owned by Paul Martindale.

¶4 In early 2018, MPC hired Joseph Koutnik and Andrea Vonckx (collectively the “plaintiffs”) as sales representatives. At the time of their hiring, the plaintiffs signed contracts classifying them as independent contractors. The

1 All references to the Wisconsin Statutes are to the 2019-20 version. As discussed in greater detail below, WIS. STAT. § 109.03(6) allows for an award of attorney fees to a prevailing plaintiff in a wage claim case brought under § 109.03. Jacobson v. American Tool Cos., 222 Wis. 2d 384, 398-402, 588 N.W.2d 67 (Ct. App. 1998).

2 No. 2022AP168

contracts also included compensation provisions that were handwritten by Martindale, and which the circuit court later determined were ambiguous.

¶5 The plaintiffs both worked for MPC until early September 2018. During their period of employment, Martindale was in and out of jail, and he asked the plaintiffs to take on additional responsibilities and to effectively manage MPC in his stead. At some point, the relationship between Martindale and the plaintiffs broke down. MPC failed to pay its roofing contractors, who stopped performing work, and MPC lost business as a result. Martindale grew frustrated as he struggled to keep up with MPC’s business dealings and to communicate with the plaintiffs. By the end of August, he ceased all direct communication with the plaintiffs.

¶6 Martindale was finally released from jail in late August or early September. A few days after his release, Martindale fired the plaintiffs. At that time, MPC had paid Koutnik a total of $11,500 and Vonckx a total of $6,500. Upon terminating their employment, Martindale refused to pay the plaintiffs the remaining amounts owed to them by MPC for a number of purported reasons. Martindale claimed, among other things, that MPC had no obligation to pay the plaintiffs for work they had performed because their employment had been terminated; that MPC lost customers due to the plaintiffs’ defective work; that the plaintiffs had committed misconduct; and that MPC did not need to pay them both because they were in a romantic relationship and could be paid as a team. Martindale later acknowledged that, at the time he refused to pay the plaintiffs, he had not done any accounting to determine what they were owed, nor had he reconciled the payments that the plaintiffs had already received against the terms of their contracts. Martindale acknowledged that he did not know whether MPC

3 No. 2022AP168

had paid the plaintiffs more than, less than, or the correct amount of compensation they were entitled to under the terms of their contracts with MPC.

¶7 The plaintiffs then commenced this action to recover unpaid wages and commissions. Their complaint alleged that they were either independent contractors or employees, and it claimed, among other things, breach of contract based on MPC’s failure to pay commissions and a statutory wage claim under WIS. STAT. ch. 109. MPC counterclaimed for breach of contract, tortious interference with contract, civil conspiracy, and conversion.

¶8 Following discovery, the plaintiffs moved for summary judgment on their breach of contract and statutory wage claims, and for an order dismissing MPC’s counterclaims. The circuit court granted the motion in part and denied it in part. It dismissed Martindale’s counterclaims for tortious interference with contract and civil conspiracy. However, it concluded that genuine issues of material fact precluded summary judgment on the plaintiffs’ breach of contract and statutory wage claims. It concluded that the compensation terms of the contracts were ambiguous and, as such, it could not determine as a matter of law whether MPC had breached the contracts or how much the plaintiffs were owed. The court also concluded that genuine issues of material fact precluded granting summary judgment in favor of the plaintiffs on their statutory wage claim because their ability to recover under WIS. STAT. ch. 109 depended on whether they were employees, independent contractors, or managers, or whether they were hired in a commissioned sales capacity.

¶9 Pretrial, MPC filed several motions in limine. One of the motions sought to prevent the jury from learning that Martindale had been incarcerated, and another sought to prevent the jury from learning of a lawsuit between

4 No. 2022AP168

Martindale and his brothers (“the sibling lawsuit”). The circuit court granted these motions at the pretrial hearing. We describe the court’s orders in greater detail in the discussion section below.

¶10 The case then proceeded to a four-day jury trial. During the trial, MPC objected to the introduction of various exhibits and testimony, some of which it argued violated the circuit court’s orders in limine. At the end of the trial, the jury returned a verdict in favor of both plaintiffs on their statutory wage claims. The jury found that the plaintiffs were employees, and that MPC owed them unpaid wages in the form of unpaid commissions. The verdict awarded Koutnik $75,444 and Vonckx $65,593.

¶11 Post-verdict, the plaintiffs filed a motion seeking the imposition of statutory penalties, statutory prejudgment interest, costs, and attorney fees pursuant to WIS. STAT. § 109.03(6). MPC filed a motion for judgment notwithstanding the verdict, a renewed motion for a directed verdict, and a motion for a new trial pursuant to WIS. STAT. § 805.15.

¶12 The circuit court held a hearing, at which it denied all of MPC’s post-verdict motions, including its motion for a new trial.

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