COURT OF APPEALS DECISION DATED AND FILED January 28, 2010 David
R. Schanker Clerk of Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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APPEAL
from an order of the circuit court for
Before Dykman, P.J., Vergeront and Higginbotham, JJ.
¶1 PER CURIAM. Terrance Larson appeals an order dismissing his complaint against Timothy Ross. The circuit court held that this action was barred by the doctrine of claim preclusion. We agree, and therefore affirm.
¶2 Before commencing this action, Larson filed a replevin action against Ross in small claims court for the return of a motorcycle. He alleged that Ross had purchased the motorcycle from him, but had failed to make full payment or perform other obligations under the sales contract. A court commissioner dismissed the action, concluding that Larson could not sue for replevin because he had failed to create an enforceable security interest in the motorcycle. Larson did not appeal that decision to the circuit court, making it the final disposition of the action. See Wis. Stat. § 799.207(2) (2007-08).[1]
¶3 In this large claims action Larson filed a complaint alleging that Ross breached the contract for sale of the motorcycle. As his remedy, he asked the court to impose a constructive trust on the motorcycle, and, pursuant to the constructive trust, to return it to him to prevent an unjust enrichment. The court granted Ross’s summary judgment motion, concluding that the doctrine of claim preclusion barred further litigation over the motorcycle contract. On appeal Larson contends that the doctrine does not apply because the small claims court was not competent to hear the matter, the factual bases of the lawsuits are different, and this case falls under exceptions to the general rule of claim preclusion.
¶4 Whether the doctrine of claim preclusion applies is a
question of law. See Menard, Inc. v. Liteway Lighting Prods., 2005 WI 98, ¶23, 282
The goal in the transactional approach is to see a claim in factual terms and to make a claim coterminous with the transaction, regardless of the claimant’s substantive theories or forms of relief, regardless of the primary rights invaded, and regardless of the evidence needed to support the theories or rights. Under the transactional approach, the legal theories, remedies sought, and evidence used may be different between the first and second actions.
¶5 Larson concedes satisfaction with the first factor, namely, the identity of the parties is the same between the two lawsuits. His dispute lies with the second and third factors.
¶6 With respect to the second factor, Larson contends that the small claims court did not render a valid judgment because the value of the motorcycle exceeded $5000, and small claims courts do not have competency to hear replevin actions if the value of the property exceeds $5000. See Wis. Stat. § 799.01(1)(c). However, by petitioning the small claims court, Larson implicitly represented that the value of the motorcycle was equal to or less than $5000. Additionally, the record contains no evidence that the motorcycle’s worth exceeded $5000 when Larson filed the small claims action.[2] Consequently, Larson has no basis to argue that the small claims court lacked competency to enter judgment.
¶7 Regarding the third factor, Larson argues that the facts in
each of the cases are different, such that the claims are also different. He contends that his “theory of recovery in
the [small claims action] was that he had a valid lien on the motorcycle in
question, and was therefore entitled to replevin.” In this action, his claim “is rooted on the
fact that … the defendant’s failure to file the lien paperwork … served to
defeat plaintiff’s lien claim.” These
are, however, differences in legal theory based on what Larson knew at the time
rather than differences in fact. The
underlying factual grouping in each case remained identical, regardless of what
Larson knew or believed, and under the transactional approach we focus on that
factual grouping to determine identity of claims. See Kruckenberg, 279
¶8 Finally, Larson contends that he falls under two of the exceptions to claim preclusion contained in the Restatement (Second) of Judgments § 26(1), including (1) when the court lacks competency or jurisdiction to hear a claim or grant a remedy in the first action that the plaintiff wishes to pursue in the second action, and (2) when the prior litigation fails to yield a “coherent disposition of the controversy.” Restatement (Second) of Judgments §§ 26(1)(c) and (f). He contends that the exceptions apply because he was unable to pursue his constructive trust claim until he learned that Ross had never filed the lien paperwork, as was allegedly his obligation.
¶9 We acknowledge that
By the Court.—Order affirmed.
This opinion will not be published. See Wis. Stat. Rule 809.23(1)(b)5.
[1] All references to the Wisconsin Statutes are to the 2007-08 version unless otherwise noted.
[2] Ross bought the motorcycle from Larson for $9000 in May 2006. However, there is no evidence in the record concerning the value of the motorcycle when Larson filed his small claims complaint two years later.
[3] Our decision makes it unnecessary to decide whether Larson’s complaint in this action stated a viable cause of action for a constructive trust, given that the “method provided in [Wis. Stat. ch. 342] of perfecting and giving notice of security interests [in motor vehicles] is exclusive.” Wis. Stat. § 342.24.