¶ 1. This case makes its second appearance in the court of appeals. This court previously determined that Wis. Stat. § 710.15 (1999-2000)
1
and Wis. Admin. Code ch. ATCP 125 applied to the contractual relationship between Mark A. Flood, the owner of a mobile home park, and Robert A. Benkoski, the owner of certain mobile homes located in the park.
See Benkoski v. Flood,
FACTS
¶ 3. A complete recitation of the underlying facts to this dispute has already been set forth in our prior decision. See id. at 380-83. For purposes of this decision, we need only restate that Flood leased lots in his mobile home park to Benkoski, who in turn rented his mobile homes on the lots to third parties. The lease between Flood and Benkoski provided that Benkoski could not sublet the sites unless prior approval had been granted by Flood. Later, Flood imposed an additional condition requiring that any purchaser of a mobile home owned by Benkoski would have to remove the home at the end of the lease. When Benkoski attempted to sell one of the mobile homes, Flood refused to approve the application for tenancy because Benkoski would not agree to the removal condition. Id. at 380. As noted, we previously held that Flood's actions violated the administrative code which forbids a mobile home park operator from placing unreasonable restrictions on the sale of a mobile home located in the park. Id. at 391-92.
¶ 5. Flood moved for reconsideration. He challenged (1) the trial court's application of the ordinary burden of proof in this case versus the middle burden for which he had argued; (2) the trial court's doubling of the lost sale price prior to deducting the fair market value of the mobile home; and (3) the trial court's failure to offset the stream of rental income produced by the mobile home after the lost sale.
¶ 6. Following a hearing, the trial court denied the reconsideration motion. The court held that the supreme court's decision in
Carlson & Erickson Builders, Inc. v. Lampert Yards, Inc.,
DISCUSSION
¶ 7. While Flood's appellate brief breaks out into many issues and subissues, we see four issues: (1) the proper burden of proof, (2) whether the evidence
¶ 8. We begin with a discussion of our standards of review. The determination of the appropriate burden of proof required by Wis. Stat. § 100.20(5) presents a question of statutory interpretation.
Carlson,
¶ 9. Flood's challenge to the trial court's finding that Benkoski and the Longsines reached an agreement for the sale, of the mobile home requires that we apply the clearly erroneous standard of review. See Wis. Stat. § 805.17(2).
¶ 10. Finally, appellate review of an award of attorney fees is limited to whether the trial court properly exercised its discretion.
Hughes,
1. Burden of Proof
¶ 11. Flood contends that the appropriate burden of proof to apply in calculating damages under WlS. Stat. § 100.20(5) is the middle burden — the clear and convincing evidence standard. See Wis JI — CIVIL 205. Benkoski, on the other hand, argues that the trial court was correct in applying the ordinary civil burden — the reasonable certainty by the greater weight of the credible evidence standard. See Wis JI — Civil 200.
¶ 12. Flood offers two arguments in support of the middle burden of proof. First, he argues that his conduct is subject to criminal penalties and, as such,
State v. Fonk's Mobile Home Park and Sales, Inc.,
133
¶ 13. We disagree that
Fonk's
controls this issue. There, the State brought a civil action against a mobile home park operator for violating Wis. Admin. Code § AT CP 125.07 by unreasonably restricting its tenants' resale of mobile homes.
See Fonk's,
¶ 14. However, in
Carlson,
our supreme court distanced itself from our burden of proof statement in
Fonk's.
The
Carlson
court stated, "The question of the appropriate standard of proof was not, however, at issue in Fonk's; the parties in
Fonk's
had agreed that the middle burden applied."
Carlson,
¶ 15. Although
Carlson
was an antitrust case and this is an unfair trade practices case, we conclude that
Carlson
represents the appropriate framework for our burden of proof analysis. In deciding that the ordinary burden of proof applied, the
Carlson
court noted the remedial aspects of the antitrust law. The court
¶ 16. WISCONSIN Stat. § 100.20 is similarly remedial. The statute addresses methods of competition and trade practices. Subsection (5), which provides for double damages together with attorney fees and costs, supplies the teeth to the unfair trade practice regulations promulgated under subsec. (2) of the statute. Wis consin Admin. Code ch. ATCP 125, which governs mobile home parks, was created pursuant to this authority. In our earlier decision, we held that Flood's policy mandating the removal of Benkoski's mobile
¶ 17. The purposes and policies underlying Wis. Stat. § 100.20(5) are very much like those underlying the Wisconsin antitrust law as discussed in
Carlson.
In
Shands v. Castrovinci,
¶ 18. As his second argument in support of the middle burden of proof, Flood relies on the law of punitive damages, likening those damages to the multiple damages authorized by Wis. Stat. § 100.20(5). Flood argues, "[T]here is indeed a long line of Wisconsin cases which strongly suggest that the middle burden of proof is to be applied in multiple damages cases regardless of whether conduct that is subject to criminal penalties is
2. Sufficiency of the Evidence
¶ 19. Next, Flood argues that Benkoski failed to meet the burden of proof under any standard. Specifically, Flood argues that the evidence does not establish an agreement between Benkoski and the Longsines for the sale of Benkoski's mobile home. On this point, each party is able to point to certain evidence supporting their competing positions. This necessitated that the trial court engage in fact-finding. As such, we will affirm the trial court's findings unless clearly erroneous. See Wis. Stat. § 805.17(2).
¶ 20. The key pieces of evidence on this issue are the various documents memorializing the agreement between Benkoski and the Longsines and the testimony of Linda Longsine. At trial, Benkoski submitted a copy of the application for tenancy signed by him and the Longsines, which was submitted to Flood for his approval. In addition to personal information about the prospective tenants, the document lists an agreed upon sale price of $6500 for the mobile home, which was to be financed by Benkoski. The record also contains copies of two receipts issued by Benkoski to the Longsines.
¶ 21. The nature of the agreement between the Longsines and Benkoski became a little more uncertain following Linda Longsine's testimony at trial. Flood argues that in order for Benkoski to satisfy his burden of proof, he had to show that "but for the Floods' refusal to process the Longsines' Application for Tenancy, the Longsines would have purchased the mobile home." Flood believes that Linda's testimony concerning "her readiness and willingness to purchase the mobile home was equivocal at best." Flood supports this with portions of Linda's testimony on cross-examination where she said that Benkoski offered several occupancy options and that she chose the "rent-to-own" option. However, she also said that she did not think this arrangement obligated her to purchase the mobile home. Flood further cites to portions of Linda's testimony stating that she and her family continued to rent Benkoski's mobile home for a period of nine months, but moved out to purchase a different mobile home
¶ 22. The trial court also questioned Linda about her understanding of the agreement, which elicited the following testimony:
Q In your mind, on the 3rd of January of '95 when you signed the [application for tenancy], did you have an understanding of what you would have been purchasing and for how much
A Yes.
Q —if anything? What?
A We would have been purchasing — we would have purchased this mobile home for the price that he has, $6,500.
Q And what was that contingent upon, if anything?
A Can you rephrase that?
Q Okay. You were going to do that if what happened?
A If he could get Flood to approve us, but Flood had told us — or had said that we would have to move the mobile home out.
¶ 23. Ultimately, the trial court concluded that an agreement to purchase the mobile home existed, that the agreement was subject to Flood's approval of the application for tenancy, and that but for Flood's denial of the application, the Longsines would have purchased Benkoski's mobile home for $6500. The court also viewed the money paid by the Longsines to Benkoski as part performance on the deal. It is for these reasons that the court believed the Longsines
3. Calculation of Damages
¶ 24. Flood challenges the trial court's calculation of damages. Flood's first argument focuses on the meaning of "pecuniary loss" as used in WlS. STAT. § 100.20(5), and how that term bears upon the methodology intended by the legislature in calculating damages under that section. As stated earlier, this issue presents a question of statutory interpretation that we review de novo.
¶ 25. Flood argues that the trial court erred in doubling Benkoski's loss from the lost mobile home sale prior to subtracting the fair market value of the mobile home. Borrowing from Lemon Law and landlord/tenant law, the court determined that Benkoski's initial damages were $6500 for the purchase price he was to receive and $120 in advertising costs. The court then doubled that amount to $13,240. Thereafter, the court deducted the fair market value of the mobile home — $3000—to produce a net recovery to Benkoski of $10,240.
¶ 26. Flood contends that the trial court should have subtracted the fair market value of the mobile
¶ 27. But the supreme court rejected an argument similar to Flood's in
Hughes,
a Lemon Law case. There, Chrysler argued that pecuniary loss should be limited to out-of-pocket expenses rather than the full purchase price of the car.
See Hughes,
¶ 28. The court of appeals has also rejected a similar argument in
Moonlight v. Boyce,
¶ 29. Moreover, Flood's proposed methodology would create a scenario counter to that envisioned by the legislature when it created this remedial statute. As Benkoski points out, in the average case, an injured party would rarely be able to negotiate a price greater than market value for his or her property. In such a case, an injured party would be remediless because he or she would still have his or her property — thus zeroing out the amount of pecuniary loss prior to applying the damage multiplier. Flood's approach does not promote the purposes and objectives that lie behind the legislature's creation of the damage multiplier provision in Wis. Stat. § 100.20(5). Thus, we agree with the trial court's method of calculating damages because it furthers the statutory objectives behind § 100.20(5). We hold that the trial court properly doubled
¶ 30. Flood's final argument regarding calculation of damages is that the evidence does not support any claim for damages because Benkoski continued to derive financial benefit from the stream of rental income that the mobile home produced after the lost sale. Flood develops this argument by piecing together Benkoski's rents and expenses, and comparing them to what Benkoski would have made through the sale of the mobile home. But Flood offers no authority for this novel method of calculating pecuniary loss under Wis. Stat. § 100.20(5). Instead, we agree with the trial court's analysis:
[Benkoski] attempted to sell the mobile home ... he had an offer and it was frustrated, so, therefore, I felt that was the truest measure of damages at that snapshot in time as to say when . . . the violation of law occurred according to the Court of Appeals. He attempted to sell a mobile home and he couldn't and that was the best measure of what his loss was at that particular time. What might have happened in the future, I think, would be speculation on my part from either the income approach or from any other approach of how he might have invested that money from the sale of the mobile home. 5
¶ 32. Although this is not a contract case, we find additional support for our holding in the law of contracts. Flood's unfair trade practices thwarting Benkoski's potential sale caused damages akin to those caused by a breach of contract. WISCONSIN JI — CIVIL 3735, entitled "Damages: Loss of Expectation" states,
[t]he measure of damages for a breach of contract is the amount which will compensate the plaintiff for the loss suffered because of the breach. A party who is injured should, as far as it is possible to do by monetary award, be placed in the position in which he or she would have been had the contract been performed.
We conclude that the "pecuniary loss" concept set out in WlS. Stat. § 100.20(5) is similar to this concept of damages set out in the law of contracts. We hold that the trial court was correct in limiting its consideration of damages to those existing at the time of the rejected application for tenancy.
4. Attorney Fees
¶ 33. Flood argues that the trial court erred in awarding Benkoski attorney fees incurred in defense of his counterclaim. As stated earlier, our review of this
¶ 34.
Paulik
involved a landlord/tenant dispute where the landlord was guilty of violations of the administrative code, but was successful on a counterclaim producing damages that exceeded the tenants' statutory damages under Wis. Stat. § 100.20(5).
See Paulik,
¶ 35. Flood places too general a reading on
Pau-lik.
There, the tenant's claim was based on the landlord's failure to provide the requisite written statement accounting for the retention of a security deposit.
Id.
at 434 n.3. None of those facts was
directly
related to the landlord's counterclaim for rents and damages. In our case, however, Flood's counterclaim was premised on Benkoski's alleged failure to remove the
¶ 36. In its thorough and well-reasoned decision, the trial court made the same observation:
In order for the plaintiff to prosecute this claim effectively and prevail on his own original complaint, he needed to defeat both the seventh affirmative defense as well as the defendant's counterclaim. Both claims were inextricably intertwined with the prosecution of the plaintiffs claim and for those reasons I will deny no attorney's fees to the plaintiff for defense of the counterclaim.
¶ 37. We conclude that the trial court did not erroneously exercise its discretion in awarding Benkoski his attorney fees incurred in defense of Flood's counterclaim.
¶ 38. As a final matter, we address Benkoski's request for attorney fees incurred on appeal. This question was answered by our supreme court in
Shands
when it held that a plaintiff who recovers attorney fees at the trial court level shall recover further attorney fees incurred on a successful defense of the award on appeal.
See Shands,
¶ 39. We hold that the ordinary, civil burden of proof applies to actions for damages occasioned by violations of Wis. Admin. Code ch. ATCP 125 and that the trial court was not clearly erroneous in concluding that Benkoski had satisfied this burden. We hold that the trial court properly doubled Benkoski's pecuniary losses prior to offsetting this amount by the fair market value of the mobile home still in his possession. We hold that the evidence supports the damage award. We hold that the trial court properly exercised its discretion in awarding Benkoski attorney fees incurred in defense of Flood's counterclaim because the claims were inextricably intertwined. Finally, we hold that Benkoski is entitled to his attorney fees incurred on this appeal and we remand to the trial court for a determination on that matter.
By the Court. — Judgment affirmed and cause remanded with directions.
Notes
All references to the Wisconsin Statutes are to the 1999-2000 version.
The relevant paragraphs of Wis. Stat. § 100.20 read as follows:
100.20 Methods of competition and trade practices. (1) Methods of competition in business and trade practices in business shall be fair. Unfair methods of competition in business and unfair trade practices in business are hereby prohibited.
(2)(a) The department, after public hearing, may issue general orders forbidding methods of competition in business or trade practices in business which are determined by the department to be unfair. The department, after public hearing, may issue general orders prescribing methods of competition in business or trade practices in business which are determined by the department to be fair.
(5) Any person suffering pecuniary loss because of a violation by any other person of any order issued under this section may sue for damages therefor in any court of competent jurisdiction and shall recover twice the amount of such pecuniary loss, together with costs, including a reasonable attorney's fee.
One of Flood's arguments for distinguishing
Carlson & Erickson Builders, Inc. v. Lampert Yards,
Inc.,
In support, Flood cites to the comment that follows WlS JI — CIVIL 2780, which is entitled "Intentional Interference With Contractual Relationship." The comment cites to section 774A of the Restatement (Second) of Torts saying that "[d]amages may include . . . pecuniary loss of benefits of the contract." Wis JI—Civil 2780.
The trial court also addressed the stream of income argument as well. The court found that even if it employed the stream of income approach advanced by Flood, the amount of profit through renting the mobile home would have been very small after offsetting the expenses required to maintain the property. This was prior to considering labor that Benkoski supplied for repairs and improvements or assessment of his customary management fee.
