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968 N.W.2d 684
Wis.
2022
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Background:

  • Daniel and Jane Hennessy borrowed $7.5 million from Wells Fargo to build a condominium in San José del Cabo, Mexico; the transaction involved a loan agreement, promissory note (Wisconsin law, English), and a trust agreement (Mexican law, Spanish) securing the property.
  • The Hennessys defaulted and Wells Fargo sued in Mexico; the Mexican district court entered judgment and the Mexican appellate court affirmed in part, awarding Wells Fargo US$7,500,000 (to be converted to pesos), interest, fees, costs, and permitting seizure/auction of the collateral and potential recovery of any deficiency.
  • The Hennessys sued in Milwaukee seeking a declaratory judgment that a Wisconsin breach claim was time-barred; Wells Fargo counterclaimed to domesticate the Mexican judgment in Wisconsin.
  • The circuit court held two hearings: (1) as a factfinder on Mexican law (crediting Wells Fargo’s Mexican-law expert) and concluded the Mexican judgment created personal money liability (including a possible deficiency); (2) exercised discretion under comity to domesticate the judgment and enter it in Wisconsin.
  • The court of appeals affirmed; the Wisconsin Supreme Court (1) reaffirmed that foreign law is a question of fact (Wis. Stat. §902.02(5)), (2) found the circuit court’s interpretation of Mexican law not clearly erroneous, and (3) held domestication under comity was a proper discretionary exercise.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Proper standard of review for foreign law Hennessy: treat foreign law as a question of law and review de novo Wells Fargo: maintain Wisconsin practice treating foreign law as a question of fact Court: reaffirmed foreign law is a question of fact; appellate review is for clear error; declined to change standard (statutory and stare-decisis grounds).
Scope of Mexican judgment (in rem vs. in personam; deficiency) Hennessy: Mexican proceedings were in rem (foreclosure) only; no personal money judgment/deficiency allowed Wells Fargo: judgment expressly awards $7.5M, interest, fees and permits collateral transfer and enforcement of any deficiency Court: credited Wells Fargo’s expert; held Mexican judgment allowed personal money recovery and pursuit of deficiency; circuit court not clearly erroneous.
Domestication under comity / finality / "sum certain" Hennessy: judgment lacks a single sum certain because interest, fees, commissions, and deficiency require further computation; therefore not final for domestication Wells Fargo: judgment is final and enforceable; further calculations are execution/enforcement, not reopening merits Court: domesticating judgment was reasonable under comity; circuit court did not err in discretion; judgment was final enough to recognize and domesticate.

Key Cases Cited

  • Animal Sci. Prods., Inc. v. Hebei Welcome Pharm. Co. Ltd., 138 S. Ct. 1865 (U.S. 2018) (discussing treatment and appellate review of foreign law under federal procedure)
  • Hilton v. Guyot, 159 U.S. 113 (U.S. 1895) (comity doctrine: courts should not relitigate merits of foreign judgments)
  • Royster-Clark, Inc. v. Olsen's Mill, Inc., 290 Wis. 2d 264 (Wis. 2006) (deference to circuit court findings of fact; clear-error standard)
  • Milwaukee Cheese Co. v. Olafsson, 40 Wis. 2d 575 (Wis. 1968) (foreign law must be pleaded and proved as a fact)
  • Ingersoll Milling Mach. Co. v. Granger, 833 F.2d 680 (7th Cir. 1987) (foreign-money-judgment recognition can be proper even where additional computations of interest or currency conversion are needed)
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Case Details

Case Name: Daniel J. Hennessy, Jr. v. Wells Fargo Bank, N.A.
Court Name: Wisconsin Supreme Court
Date Published: Jan 14, 2022
Citations: 968 N.W.2d 684; 400 Wis.2d 50; 2022 WI 2; 2019AP001206
Docket Number: 2019AP001206
Court Abbreviation: Wis.
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    Daniel J. Hennessy, Jr. v. Wells Fargo Bank, N.A., 968 N.W.2d 684