Associated Bank N.A. v. Jack W. Collier
852 N.W.2d 443
Wis.2014Background
- SB1 and Decade are judgment creditors of Jack Collier in Wisconsin; Decade seeks a common-law creditor's lien based on service of an order to appear at supplemental proceedings, arguing it precludes SB1 from pursuing Collier's personal property.
- Decade obtained a $654,646.83 judgment against Collier but failed to docket it in the judgment and lien docket until after a clerical error was discovered ( docketed June 29, 2011).
- SB1 had a docketed money judgment and, via a turnover order to a supplemental receiver, levied specific non-exempt Collier property, giving SB1 priority over Decade with respect to that identified property.
- Decade served Collier with an order to appear for supplemental proceedings before SB1 docketed its judgment; Decade contends this created a blanket common-law lien on all non-exempt personal property.
- The circuit court denied Decade's equitable relief, found SB1's identified property subject to SB1's turnover and lien, and held no blanket lien existed; the court of appeals affirmed, and this Court affirmed the priority for identified property but modified to reject a blanket lien.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service of a supplemental proceeding creates a blanket lien on all personal property. | Decade: service creates a blanket lien that preempts SB1. | SB1: no blanket lien; lien arises only on identified property when properly docketed and levied. | No blanket lien arises from service; lien attaches only to identified property SB1 levied. |
| Whether Decade can claim priority over SB1 for identified property when its judgment was undocketed. | Decade contends its lien arises from service, giving priority. | SB1 docketing and levy give it priority in the identified property. | SB1 has priority for the identified property SB1 levied and docketed. |
| Whether a docketed judgment is required to create a common-law lien on personal property. | Decade argues docketing is not required for a lien via supplemental proceedings. | Docketing and proper levy are required for a lien on personal property. | Undocketed judgments cannot create a blanket lien; lien on personal property arises through specific levy and docketing for priority. |
Key Cases Cited
- Kellogg v. Coller, 47 Wis. 649 (1879) (priority based on bona fide service to obtain a receiver; first service can prevail)
- In re Milburn, 59 Wis. 24 (1883) (service of supplementary proceeding operates as equitable levy creating a lien)
- Bragg v. Gaynor, 85 Wis. 468 (1893) (service of process or notice as equitable levy extends lien to debtor's property)
- Candee v. Egan, 84 Wis. 2d 348 (1978) (creditor who first begins supplementary proceedings obtains priority lien)
- In re Badger Lines, Inc., 224 Wis. 2d 646 (1999) (lien on nonexempt personal property arises from service of supplementary proceeding; perfection not always required)
- Alexander v. Wald, 231 Wis. 550 (1939) (receiver's interest superior to bankruptcy trustee when levied earlier)
- Holton v. Burton, 78 Wis. 321 (1890) (earlier rule about insolvency context and priority)
- Knox v. Webster, 18 Wis. 426 (1864) (binding of personal property from the time of seizure; lien timing)