Landlord-Tenant Regulations

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WI Court of Appeals – District I

Case Name: Danielle J. Armstrong v. Jill Gilbert Welytok

Case No.: 2022AP001551

Officials: Geenen, J.

Focus: Landlord-Tenant Regulations

Armstrong had performed work for Welytok and later refunded part of a payment. Despite that resolution, Welytok used banking information provided for rent payments to make an unauthorized ACH withdrawal from Armstrong’s account and also initiated a PayPal chargeback, recovering funds without Armstrong’s consent. After Armstrong threatened legal action, Welytok retained part of the money and refused to return Armstrong’s security deposit.

Following a trial, the circuit court found that Welytok violated Wisconsin landlord-tenant regulations prohibiting landlords from seizing or holding tenant property and from improperly withholding security deposits. It awarded Armstrong compensatory damages, doubled damages under Wisconsin’s consumer-protection statute, and $34,950 in attorney’s fees.

Welytok then argued that the seized funds related to a separate service agreement rather than the landlord-tenant relationship, challenged the denial of her counterclaim for property damage, and contended that the attorney’s fee award was excessive. The Court of Appeals found that Welytok acted in her capacity as landlord when she accessed Armstrong’s funds, that the circuit court reasonably found her damage claims not credible and intentionally misrepresented, and that the attorney’s fee award reflected a proper exercise of discretion. The court then remanded for the circuit court to determine and award Armstrong reasonable attorney’s fees and costs incurred on appeal.

Affirmed and remanded.

Decided 06/09/26

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