Novo Industrial Corp. v. Nissen

140 N.W.2d 280, 30 Wis. 2d 123, 1966 Wisc. LEXIS 1035
CourtWisconsin Supreme Court
DecidedMarch 1, 1966
StatusPublished
Cited by30 cases

This text of 140 N.W.2d 280 (Novo Industrial Corp. v. Nissen) 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
Novo Industrial Corp. v. Nissen, 140 N.W.2d 280, 30 Wis. 2d 123, 1966 Wisc. LEXIS 1035 (Wis. 1966).

Opinion

Wilkie, J.

On this appeal a number of procedural questions are presented in appellants’ attack on the contempt judgment. No issue is raised concerning the substance of the finding of contempt on the part of the appellants but they do dispute the lower court’s determination of both damages and costs which are assessed against appellants.

Contempt Judgment.

The first broad issue presented is whether sec. 295.14, Stats., authorizes the entry of the contempt judgment against the appellants.

*128 Appellants assert three reasons why the judgment of April 28, 1965, was null and void. First, because in the absence of extraordinary circumstances, only one judgment can be entered in any action. As a general proposition appellants’ statement of the law is accurate. But the present case involves a separate proceeding brought pursuant to the provisions of ch. 295, Stats., to punish appellants for civil contempt. References to “disobedience to any . . . judgment” 1 and “before or after the judgment in the action” 2 indicate that ch. 295 allows additional relief where the original decree of the court is not obeyed. Furthermore, it was held in State ex rel. Rodd v. Verage, 3 that contempt proceedings culminate in a judgment, and recognized in Wisconsin Employment Relations Board v. Mews, 4 and State ex rel. Ignasiak v. Franklin, 5 that a judgment can be entered either finding contempt (Mews) or dismissing the contempt petition (Franklin) when prior judgments have been allegedly disobeyed. In Franklin the town sought, unsuccessfully, to obtain a contempt judgment against Ignasiak for disobeying the basic judgment. The trial court entered a second judgment dismissing the contempt petition. Appellants contend that Franklin is not controlling for the reason that the entry of this second judgment simply was erroneous. This view of Franklin begs the very issue. Appellants also contend that Verage is not apposite in that the special proceeding there was commenced by a writ of attachment which in turn calls for a termination by judgment. There is no reason why an attachment action brought under ch. 295 should end in a judgment while a proceeding initiated by an order to show cause should not.

*129 Second, because Melvin and Hilda Nissen and Crane Manufacturing were not parties to the first suit, they could only be brought into the present action by means of a summons or original writ pursuant to sec. 262.02, Stats. 6 This contention, which would appear to challenge the jurisdiction of the court or binding effect of the judgment on these defendants rather than the validity of the judgment itself, is not persuasive. The procedures under ch. 295, Stats., which are applicable to “[pjarties to actions, . . . and all other persons . . . for any other disobedience to any lawful order, judgment or process of such court ...” 7 were approved in Emerson v. Huss. 8 The affidavit accompanying the order to show cause is the equivalent of the complaint in the ordinary civil action, 9 and the alleged contemnor, whether or not a party to the original judgment, is thus afforded the same protections assured by that process.

Third, that sec. 295.14, Stats., 10 only authorizes the trial court to issue an order and not a judgment in the present action. Sec. 295.14 does state that the “court shall order” the defendant to make indemnification for *130 any losses or injuries sustained. Unless the court has the power to support the “order” by means of a judgment, there would be substantial enforcement difficulties which would undermine the very purpose of the statute. Accordingly, this court has previously upheld judgments of contempt requiring the payment of damages under sec. 295.14, or its predecessor. 11

Damages.

The second major issue presented on this appeal concerns the amount of damages awarded to Novo against the appellants.

It is settled that the indemnification for actual loss which the complainant is entitled to under sec. 295.14, Stats., is that amount which could be recovered in a separate action. 12 The record establishes that Crane Manufacturing had sales of $432,062.34 in 1961, $1,406,-532.18 in 1962, and $1,015,561.65 in 1963. Melvin Nissen testified that Crane Manufacturing conducted approximately 75 percent of its 1961-1962 and 50 percent of its 1963 business with former customers of respondent (or Milwaukee Crane). The trial court arrived at the $48,985.08 damage award by applying a three percent profit factor to 75 percent of Crane Manufacturing’s combined 1961-1962 sales and 25 percent of its 1963 total.

In attacking the trial court’s determination of damages, appellants contend that it was improper to consider profits earned by Crane Manufacturing in arriving at the award. Although this evidence would be relevant *131 in a suit based on a noncompetition clause, 13 this challenge is nonetheless misguided for the reason that the trial court’s decisions of February 17 and April 19, 1965, and the findings of fact and conclusions of law entered on April 28, 1965, make it clear that the sales and not the profits of Crane Manufacturing furnished the multiplicand to measure respondent’s damages while the multiplier was the three percent profit factor found by the court to have been used by Novo in estimating and bidding on crane sales during the years in question.

Appellants’ principal ground for attacking the trial court’s determination of damages is the alleged insufficiency of the evidence upon which to base a damage award. The general rule is that damages must be proved with reasonable certainty 14 and cannot be based on conjecture. 15 When damages are susceptible of precise proof or of estimation by someone having knowledge, this proof must be adduced. 16 However,

“Compliance with the rule of reasonable certainty does not make it necessary for the plaintiff to prove his savings with mathematical accuracy. It is sufficient if they can be estimated by the trier of the facts with a reasonable degree of certainty.”

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Bluebook (online)
140 N.W.2d 280, 30 Wis. 2d 123, 1966 Wisc. LEXIS 1035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/novo-industrial-corp-v-nissen-wis-1966.