Precision Erecting, Inc. v. M&I Marshall & Ilsley Bank, G.A.P., Inc.

592 N.W.2d 5, 224 Wis. 2d 288, 1998 Wisc. App. LEXIS 1438
CourtCourt of Appeals of Wisconsin
DecidedDecember 16, 1998
Docket97-3029
StatusPublished
Cited by31 cases

This text of 592 N.W.2d 5 (Precision Erecting, Inc. v. M&I Marshall & Ilsley Bank, G.A.P., Inc.) 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
Precision Erecting, Inc. v. M&I Marshall & Ilsley Bank, G.A.P., Inc., 592 N.W.2d 5, 224 Wis. 2d 288, 1998 Wisc. App. LEXIS 1438 (Wis. Ct. App. 1998).

Opinion

BROWN, J.

At its core, this case examines the responsibilities of a litigant in a multiparty suit to closely examine any exposure it might have whenever one of the other parties files a motion for summary judgment against another party but not against the litigant. We observe it to be self-evident that a summary judgment motion by its very nature alleges certain facts to be undisputed. If a litigant who is not the subject of the motion for summary judgment nonetheless has reason to dispute the facts supporting the motion, it is that litigant's duty to appear and object to *293 the motion. If not, and summary judgment is granted, the facts underlying that judgment are binding on all other parties to the suit as a matter of issue preclusion. That is what the trial court held and we agree.

AFW Foundry, Inc. (AFW), undertook a project to improve its business property in Waukesha, Wisconsin. It hired Jeffrey Antonie, of Antonie & Associates, Ltd. (Antonie), to coordinate the improvement project. AFW and Antonie signed a Finalized Project Agreement listing the projects which Antonie was to supervise. Among them was a "sand system upgrade," including a mixer/muller used for mixing sand. 1 Antonie went to Nambe Mills, Inc. (Nambe), in New Mexico, and bought the muller. He paid Nambe $7000 down on the purchase price of $70,000. The muller was delivered to AFW in Waukesha.

When Nambe did not receive the balance due, it filed suit in New Mexico against AFW and Antonie for breach of the contract to purchase the muller. Nambe's position was that Antonie had acted as AFW's agent when he purchased the muller, making AFW responsible for the $63,000 balance due. Meanwhile, in Waukesha county, Precision Erecting, Inc., a subcontractor on the AFW improvement project, filed suit against AFW for its unpaid bills. In response, AFW filed a third-party complaint against Nambe and twenty-two other third-party defendants, including *294 Antonie. It is this third-party suit that is the subject of the present appeal.

AFW's complaint claimed that Antonie was not its agent, but rather the general contractor for the project. Therefore, AFW alleged that its liability was limited to the balance due to Antonie under the contract. The balance allegedly remaining to be paid under the contract was $135,237.25. Further, AFW claimed that since some of the subcontractors and suppliers had already agreed to a pro rata payment, the resulting amount actually due to Antonie on the contract was $86,317.76. AFW denied that it owed the $365,000 claimed by the various subcontractors and suppliers. Nambe filed an answer, alleging, inter alia, that Antonie was an agent of AFW, not a general contractor. Antonie also filed an answer denying that the agreement was a "general contractor's agreement" and affirmatively alleging that he acted exclusively as project manager, not as general contractor.

AFW eventually moved for summary judgment against Antonie and others and requested that the court enter judgment establishing its liability to the various third-party defendants. The motion requested that the court "grant entry of summary judgment in this action in accordance with the demand of the complaint filed herein" and find that the balance due under the agreement was $85,957.35. Antonie submitted a letter to the court indicating that he did not oppose the motion. While Nambe was noticed about the motion, it did not appear or in any way participate in the motion for summary judgment.

The circuit court granted summary judgment. The conclusions of law by the court established that: the agreement between Antonie and AFW was for general contracting services, AFW was only liable for the *295 remaining balance under the general contract and the court's conclusions were binding on all parties to the litigation. Pursuant to the judgment, the amount of $85,957.35 was placed in trust to be distributed to all the subcontractors and suppliers who had not already settled. The court later ordered judgment against AFW, in favor of Nambe, for $11,340. This represented eighteen percent of Nambe's claim. Nambe appeals from this judgment, claiming it did not have adequate notice to oppose AFW's summary judgment motion, that the court lacked personal jurisdiction over Nambe and that the court should have stayed proceedings in Wisconsin due to the ongoing proceedings in New Mexico. 2

As a threshold question, we address whether the trial court had personal jurisdiction over Nambe. Nambe is a New Mexico corporation. The trial court found jurisdiction pursuant to Wisconsin's long-arm statute, § 801.05, STATS. Furthermore, it found that Nambe had sufficient minimum contacts with the state of Wisconsin to satisfy jurisdictional due process requirements. Nambe claims that this was error — that Nambe's "contacts with Wisconsin are too small and too strained to require Nambe to defend a claim in Wisconsin."

Whether a Wisconsin court has personal jurisdiction over a nonresident defendant is a question of law we review de novo. See Marsh v. Farm Bureau Mut. *296 Ins. Co., 179 Wis. 2d 42, 52, 505 N.W.2d 162, 165 (Ct. App. 1993). The determination involves a two-step inquiry. See id. First, do the defendant's contacts with Wisconsin subject him or her to jurisdiction under Wisconsin's long-arm statute, § 801.05, Stats.? See Marsh, 179 Wis. 2d at 52, 505 N.W.2d at 165. Second, does the exercise of jurisdiction conform with due process requirements? See id.

We construe Wisconsin's long-arm statute liberally in favor of finding jurisdiction. See id. Here, the trial court found personal jurisdiction based on § 801.05(5)(c), STATS., which grants a Wisconsin court jurisdiction over any action which "[a]rises out of a promise, made anywhere to the plaintiff or to some 3rd party for the plaintiffs benefit, by the defendant to deliver... within this state ... goods ... or other things of value." We agree with the trial court that this paragraph gives the Waukesha County Circuit Court jurisdiction over Nambe. It promised to and did deliver the muller to AFW in Waukesha, Wisconsin.

A state's exercise of jurisdiction under its long-arm statute must comport with due process requirements. See Brown v. LaChance, 165 Wis. 2d 52, 67, 477 N.W.2d 296, 303 (Ct. App. 1991). The due process clause permits a state to exercise jurisdiction over a nonresident defendant as long as the defendant has minimum contacts with the forum state such that "the exercise of jurisdiction does not violate traditional notions of fair play and substantial justice." Marsh, 179 Wis. 2d at 53, 505 N.W.2d at 166 (citing International Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)).

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Bluebook (online)
592 N.W.2d 5, 224 Wis. 2d 288, 1998 Wisc. App. LEXIS 1438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/precision-erecting-inc-v-mi-marshall-ilsley-bank-gap-inc-wisctapp-1998.