Breach of Fiduciary Duty

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WI Court of Appeals – District

Case Name: Debra K. Sands v. John R. Menard, et al

Case No.: 2012AP2377; 2015AP870

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Breach of Fiduciary Duty

This case involves, in part, the extent to which an attorney can assert a claim under Watts v. Watts, 137 Wis. 2d 506, 405 N.W.2d 303 (1987), arising out of legal services allegedly provided to a cohabiting partner and his businesses. Debra Sands appeals orders dismissing her claims against John Menard, Jr., Menard, Inc., and Menard Thoroughbreds, Inc., (“the Menard Defendants”) and against the trustees of the John R. Menard, Jr. 2002 Trust and related trusts (“the Trustees”). Sands claims she cohabitated with Menard from 1998 until 2006, and during that time she performed work for Menard and his companies that increased their value and for which she was not fully compensated. Sands further claims Menard repeatedly represented to her during their relationship that he would give her ownership interests in his companies as compensation for her services, but he has since failed to do so. For the reasons explained below, we conclude the circuit court properly granted summary judgment dismissing Sands’ claims against the Menard Defendants and the Trustees. We also conclude the court properly granted summary judgment to Sands on Menard, Inc.’s counterclaim for breach of fiduciary duty. We therefore affirm.

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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.