Sanctions – Bad Faith – Attorney Fees

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WI Court of Appeals – District I

Case Name: Bruck Law Offices, S.C. v. KSMS Our House, LLC

Case No.: 2018AP1118

Officials: BRASH, J.

Focus: Sanctions – Bad Faith – Attorney Fees

Bruck Law Offices, S.C. appeals orders of the circuit court awarding attorney’s fees to KSMS Our House, LLC in the amount of $7420.55 as a sanction against Bruck for its conduct during a garnishment action, and denying Bruck’s motion for reconsideration regarding that sanction. The circuit court found that prior to Bruck’s filing of a motion seeking to hold KSMS liable for failing to comply with an earnings garnishment notice, Bruck had not conducted a reasonable inquiry to determine whether there was evidentiary support for that motion, and that it had acted in bad faith by “misus[ing] the court process.” The court awarded sanctions pursuant to WIS. STAT. § 802.05(2); additionally, the court held that it could award the attorney’s fees as an equitable remedy under WIS. STAT. § 812.38(1)(c), which allows the court to levy equitable remedies in garnishment actions.

Bruck argues that the circuit court erred in allowing KSMS’s motion for sanctions to go forward because the motion did not properly comply with the safe harbor provision of WIS. STAT. § 802.05(3)(a)1. Bruck further contends that the award of attorney’s fees was not warranted, and that the amount awarded was unreasonable. We affirm.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.