Court Error – Attorney Fees

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WI Court of Appeals – District I

Case Name: BMO Harris Bank, N.A. v. European Motor Works and Gigi Chan, et al

Case No. 2015AO924

Officials: Curley, P.J., Brennan and Brash, J.J.

Focus: Court Error – Attorney Fees

This appeal concerns a claim for contribution by defendant-appellant Scott H. Smith (Smith) against defendant-respondent Gregory Kleynerman (Kleynerman) arising from debts owed by European Motor Works, LLC (EMW), a limited liability company in which Smith and Kleynerman each held a fifty percent interest. Smith appeals the trial court’s grant of summary judgment in favor of Kleynerman and the subsequent dismissal of Smith’s contribution claim. On appeal, Smith argues that the trial court erred in granting Kleynerman’s motion for summary judgment and dismissing Smith’s contribution claim because: (1) Smith paid more than his fair share of the amount paid to discharge Smith’s and Kleynerman’s joint obligation to guaranty the debt of EMW; and (2) Kleynerman should be required to contribute to the attorney’s fees Smith paid for EMW’s defense. For the reasons explained below, we affirm the trial court’s grant of summary judgment in favor of Kleynerman as to Smith’s contribution claim regarding the settlement payment, but we reverse and remand for further proceedings in regard to Smith’s contribution claim as it relates to his claim for attorney’s fees paid on behalf of EMW.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.