Tri-Tech Corp. of America v. Americomp Services, Inc.

2001 WI App 191, 633 N.W.2d 683, 247 Wis. 2d 317, 2001 Wisc. App. LEXIS 753
CourtCourt of Appeals of Wisconsin
DecidedJuly 18, 2001
Docket00-3195
StatusPublished
Cited by2 cases

This text of 2001 WI App 191 (Tri-Tech Corp. of America v. Americomp Services, 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
Tri-Tech Corp. of America v. Americomp Services, Inc., 2001 WI App 191, 633 N.W.2d 683, 247 Wis. 2d 317, 2001 Wisc. App. LEXIS 753 (Wis. Ct. App. 2001).

Opinion

BROWN, PJ.

¶ 1. This case concerns the imposition of treble damages plus the litigation costs for contractor theft based on a recent statute, Wis. Stat. § 895.80 (1999-2000). 1 The most noteworthy issue, which we get to last, is whether violation of the contractor theft statute, Wis. Stat. § 943.20(l)(b), automatically means that the victim gets treble damages and attorney's fees upon proof that the statute was violated. We answer that question no. The plaintiff *320 must initially prove that the contractor theft was accomplished with criminal intent pursuant to § 943.20(l)(b). But we nonetheless affirm treble damages because the summary judgment record supports it. We also hold that the installation of computer cabling in an office building is an "improvement" of that building under the contractor theft statute. There are other issues also raised that we will briefly touch upon.

¶ 2. We set forth a rather detailed account of the procedural history of this case because its recitation will help present the major issue in this case, as well as a preliminary issue in this case, which we hold to be waived.

¶ 3. This action began with a complaint, filed on March 7, 2000, by Tri-Tech Corporation of America against Americomp Services, Inc., and its owner and sole shareholder, James Schmidt. Americomp had entered into an arrangement with a third party, The Frantz Group, to perform computer networking installation. It hired Tri-Tech to lay the cable in the building in which The Frantz Group was housed. The cable was laid, the networking services were performed and The Frantz Group paid Americomp for this work. Tri-Tech submitted an invoice in the amount of $27,807.95.

¶ 4. Despite numerous demands, Americomp did not pay the bill. Tri-Tech alleged that any moneys paid by The Frantz Group to the defendants constituted a trust fund pursuant to Wis. Stat. § 779.02(5). Tri-Tech further alleged that the defendants were under an obligation to use funds received from The Frantz Group to pay Tri-Tech. Tri-Tech complained that failure to pay was a violation, therefore, of the theft by contractor statute for which Schmidt was personally liable. In addition, Tri-Tech alleged that the failure to pay the claim amounted to a misappropriation of trust funds *321 and that based on the misappropriation, Tri-Tech was entitled to treble damages and costs and attorney's fees under Wis. Stat. §§ 895.80 and 943.20.

¶ 5. Americomp and Schmidt answered, admitting that Tri-Tech provided the work in the sum alleged, that The Frantz Group paid Americomp for that work and that Americomp had not paid Tri-Tech. They further admitted that Americomp had received an invoice, had also received numerous statements on the account from Tri-Tech and had not objected to them.

¶ 6. Thereafter, Tri-Tech moved for summary judgment, filed on May 18, providing an affidavit and a brief in support. This motion was made only against Americomp, not Schmidt. This motion asserted, inter alia, that Americomp was the prime contractor for The Frantz Group and that Wis. Stat. § 779.02(5) required it to hold all moneys paid to it in trust for the benefit of all subcontractors whose claims were due. Tri-Tech contended that Americomp was under obligation to hold these moneys for Tri-Tech and the failure to do so was a breach of its fiduciary duty. The motion was scheduled to be heard on June 19.

¶ 7. On June 6, Americomp filed an amended answer alleging that a set-off of $5700.71 was due for work performed by Americomp for Tri-Tech on another project, for which Americomp had not yet been paid. Tri-Tech denied that this amount was due and owing on June 16.

¶ 8. On June 16, Americomp, and not Schmidt, served by mail a brief in opposition to summary judgment. The brief argued, inter alia, that summary judgment against Americomp on the theft by contractor theory was inappropriate because Tri-Tech had to prove that The Frantz Group was the "owner" of the property upon which the improvements were made. Americomp *322 contended that there was no evidentiary support in the summary judgment motion for that to be the case.

¶ 9. The summary judgment motion was heard by the court and the parties apparently stipulated to the court rendering judgment for Tri-Tech for $27,807.95 less a set-off of $5700.71. The judgment also stated that all causes of action against Schmidt, personally, were preserved.

¶ 10. Then on July 28, Tri-Tech filed a motion for summary judgment against Schmidt. As it did with Americomp, Tri-Tech argued in its brief that Americomp's actions amounted to theft by contractor. But Tri-Tech went further and pointed out that Wis. Stat. § 779.02(5) makes the officers and directors of the corporation personally liable. In addition, Tri-Tech contended that the use of such trust funds is considered a misappropriation punishable under the theft statute, Wis. Stat. § 943.20. Tri-Tech theorized that since Wis. Stat. § 895.80 provides for treble damages plus attorney's fees and costs to anyone who suffers a loss based on § 943.20, Schmidt was liable for treble damages.

¶ 11. The record does not contain any proof that a counteraffidavit or brief in opposition to this motion was filed before the hearing date, September 18. At the hearing, however, Schmidt had two basic points to make in opposition. First, that the installation of cable was not an "improvement" to the building and second, that the treble damages statute does not list the contractor theft statute as an underlying claim for which treble damages may be awarded. The trial court disagreed with Schmidt and ordered judgment of treble damages against him personally, plus attorney's fees *323 and costs. This is Schmidt's appeal from that judgment. The judgment against Americomp is not being appealed.

1. EFFECT OF FAILURE TO TIMELY SUBMIT SPECIFIC EVIDENTIARY MATERIALS IN OPPOSITION TO THE MOTION FOR SUMMARY JUDGMENT.

¶ 12. With the procedural status at hand, we can easily answer Schmidt's first issue. He claims that neither Tri-Tech's pleadings nor its affidavit in support of summary judgment presents proof that The Frantz Group was an owner. This is important, claims Schmidt, because of the language contained in the first sentence of the theft by contractor statute. Wisconsin Stat. § 779.02(5) says, in pertinent part:

(5) Theft By CONTRACTORS. The proceeds of ... all moneys paid to any prime contractor or subcontractor by any owner for improvements, constitute a trust fund ....

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Related

Tri-Tech Corp. of America v. Americomp Services, Inc.
2002 WI 88 (Wisconsin Supreme Court, 2002)

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Bluebook (online)
2001 WI App 191, 633 N.W.2d 683, 247 Wis. 2d 317, 2001 Wisc. App. LEXIS 753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tri-tech-corp-of-america-v-americomp-services-inc-wisctapp-2001.