03-0750 Badger State Bank v. Taylor

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“We acknowledge that this result may seem harsh. The Taylors are ostensibly innocent of any wrongdoing but will be required to pay the Bank some $12,500 or more. The trial court essentially concluded that the record provided no indication that the Taylors were guilty of any fraud because of their belief that they had given fair value for the cancellation of their indebtedness by doing likewise for the benefit of another of Vogt’s businesses. Wisconsin Stat. § 242.05(1), however, does not require a showing that a transferee possessed fraudulent intent…. As we have noted, under the plain language of § 242.05(1) the Bank is required to show only that its debtor, Ag-Tech, while insolvent, made a transfer ‘without receiving a reasonably equivalent value in exchange,’ regardless of the intent or motives of any of the parties to the transaction….

“For the reasons discussed above, we reverse the appealed order and remand to the circuit court for further proceedings consistent with this opinion. Specifically, we direct that judgment be entered in favor of the Bank after the circuit court determines the amount of the judgment and the nature of any other remedies to which the bank may be entitled.”

Recommended for publication in the official reports.

Dist IV, Grant County, Van De Hey, J., Deininger, P.J.

Attorneys:

For Appellant: F. Bromley, Lancaster

For Respondent: James P. Czajkowski, Prairie du Chien