Attorney's Title Guaranty Fund, Inc. v. Town Bank
827 N.W.2d 116
Wis. Ct. App.2012Background
- Town Bank obtained and docketed a judgment against Brophy for $1,690,870.36 and secured a supplemental order to appear at a supplementary proceeding in Feb 2006.
- The supplemental order and service were not filed with the clerk, though the proceeding was held on March 9, 2006.
- Brophy later faced bankruptcy and a separate legal malpractice case; Heartland loaned Brophy funds in 2007 with a security assignment of potential malpractice proceeds.
- Brophy filed for bankruptcy in Aug 2007; Town Bank filed a claim in April 2008 asserting its lien against Brophy’s property and proceeds from a related settlement.
- The settlement funds were escrowed by Attorney's Title; interpleader ensued with Heartland and Town Bank cross-claims for priority.
- The circuit court granted Town Bank summary judgment; Heartland appeals challenging the lien’s enforceability and its attachment to post-proceeding property.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Town Bank's creditor's lien unenforceable due to nonfiling? | Heartland | Town Bank | Lien valid; filing duty on the commissioner, not lender; perfected upon service |
| Does a creditor's lien attach to property Brophy acquired after the supplementary proceeding? | Heartland | Town Bank | Lien attaches to any nonexempt property, including post-proceeding acquisitions |
Key Cases Cited
- Badger Lines, Inc. v. Bankruptcy Estate of Badger Lines, Inc., 224 Wis. 2d 646 (Wis. 1999) (creditor's lien valid upon service; does not require additional filing steps)
- Adams Outdoor Adver, L.P. v. County of Dane, 340 Wis. 2d 175 (Wis. Ct. App. 2012) (summary judgment standard and de novo review framework)
- Mann v. Bankruptcy Estate of Badger Lines, Inc., 224 Wis. 2d 646 (Wis. 1999) (options for discovering liens; confirms nonfiling does not defeat lien)