Statutory Interpretation – Repossession

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WI Court of Appeals – District IV

Case Name: Danelle Duncan v. Asset Recovery Specialists, Inc., et al.,

Case No.: 2019AP1365

Officials: Blanchard, Graham, and Nashold, JJ.

Focus: Statutory Interpretation – Repossession

Greg Strandlie, Asset Recovery Specialists, Inc., and Wells Fargo Bank, N.A. (collectively, the defendants) repossessed Danelle Duncan’s vehicle while it was parked in the shared garage on the ground floor of her multi-unit apartment complex. It is undisputed that the defendants had a legal right to repossess the vehicle, but Duncan argues that the way they repossessed it violated WIS. STAT. § 425.206(2)(b) (2017-18).  She also contends that the defendants violated WIS. STAT. § 425.107(1), which prohibits unconscionable conduct directed against a customer. The circuit court determined that the defendants did not violate § 425.206(2)(b), and on that basis, it granted summary judgment on all claims in the defendants’ favor.

The central issue in this appeal is the proper interpretation of WIS. STAT. § 425.206(2), which prohibits a merchant from “enter[ing] a dwelling used by the customer as a residence” to repossess collateral. We conclude that the garage in Duncan’s apartment building was part of a dwelling she used as a residence. Therefore, the defendants violated § 425.206(2)(b) when they entered the garage, the circuit court erred by granting summary judgment in the defendants’ favor, and Duncan is entitled to summary judgment on that claim instead. We also reverse the court’s grant of summary judgment on the WIS. STAT. § 425.107(1) claim because the court’s stated reasons no longer apply, and the parties’ remaining arguments about unconscionable conduct are undeveloped. Accordingly, we reverse the order granting summary judgment to the defendants and remand for further proceedings consistent with this opinion.

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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.