Torts — discovery rule — standing

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Wisconsin Court of Appeals

Civil

Torts — discovery rule — standing

Where a misrepresentation occurred before the plaintiff filed bankruptcy, but was not discovered until afterwards, the claim belongs to the bankruptcy estate, and the plaintiff lacks standing.

“Plainly, Williamson’s case is like Plumlee—the misrepresentations and Williamson’s reliance on them occurred pre-petition. Also like Plumlee, at least part of the injury occurred pre-petition, since, according to Williamson’s complaint, Hi-Liter never intended to pay the outstanding withholding taxes as promised. As Hi-Liter points out, the misrepresentations were made and relied on in 2007 and they pertained to 2007 tax liability. All that occurred postpetition was the government assessment that allowed Williamson to discover that the taxes were unpaid. Therefore, as in Plumlee, the fact that some of Williamson’s injuries—in this case, his being assessed by the government for the unpaid taxes—‘did not occur until after he filed his petition does not change the result.’ See id. What matters is that Williamson’s misrepresentation claims ‘rested on the activity of’ Hi-Liter in the year ‘prior to the filing of the bankruptcy petition.’ See id. (emphasis omitted).”

Affirmed.

Recommended for publication in the official reports.

2011AP838 Williamson v. Hi-Liter Graphics, LLC

Dist. II, Waukesha County, Ramirez, J., Brown, J.

Attorneys: For Appellant: Dunn, Michael P., Milwaukee; For Respondent: Maassen, Eric L., Milwaukee; Katt, William James, Jr., Chicago, IL