United States of America v. Meisegeier et al

Filing 47

ORDER granting the United States of America's 38 claim on the surplus funds. Not later than May 18, 2015, claimants Wymore Seed and Farm Supply, David Krumrei and Bonita Perry should file with the court proof of their judgment against defendants Larry and Emily Meisegeier, as well as proof of a lien on the subject property. At that time, claimants should also inform the court, to the best of their knowledge, whether Larry and Emily Meisegeier filed an application for satisfaction of judgment due to bankruptcy pursuant to Wis. Stat. § 806.19(4). Not later than May 26, 2015, the Meisegeiers should file a written response with the court addressing the asserted claims on the surplus and explaining why they should not be held in default with respect to those claims. Signed by District Judge William M. Conley on 5/8/2015. (jef),(ps)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN

UNITED STATES OF AMERICA,
Plaintiff,

OPINION & ORDER

v.
14-cv-065-wmc
LARRY A. MEISEGEIER,
EMILY B. MEISEGEIER,
WYMORE SEED AND FARM SUPPLY,
MARSHFIELD CLINIC,
DAVID KRUMREI,
BONITA PERRY,
SHELDON CO-OP SERVICES and
HERDSMAN FEEDS, INC.,
Defendants.

In this action for foreclosure, plaintiff, the United States of America, obtained a
default judgment in the amount of $126,668.53 against defendants Larry A. and Emily B.
Meisegeier.

(Dkt. #25.)

The court ordered the sale of certain property to fulfill that

judgment, including mortgaged real estate located in the County of Rusk, State of
Wisconsin. (Id.) Thereafter, plaintiff obtained an appraisal suggesting that the judgment
could be satisfied by selling only a portion of the mortgaged real estate, allowing the
Meisegeiers to retain possession of the parcel containing their residence. (Dkt. #27.) The
court accordingly granted plaintiff’s request to sell the property in parcels (dkt. #29), and
on March 18, 2015, the court confirmed the sale of the real estate in the amount of
$172,000.00. (Dkt. #37.)
After deducting the costs of the United States Marshal and the United States
Attorney’s Office, this left a surplus in the amount of $44,061.24. The court gave the other
parties in this matter fourteen days to file a written claim to these surplus funds, with any

remaining surplus to revert to the Meisegeiers. Three claims were filed: (1) a claim for
$2,475.92 filed by the United States, seeking reimbursement for its advertising and
appraisal costs in connection with the sale, as well as interest (dkt. #38); (2) a claim for
$2,103.50 plus $1,093.56 in post-judgment interest filed by P. Thomas Wymore of
Wymore Seed and Farm Supply (dkt. #43); and (3) a claim for an amount in excess of
$40,000.00 and a petition for equitable distribution of the surplus, filed by David Krumrei
and Bonita Perry (dkt. #42).
The court requested a response from the Meisegeiers regarding the claims on the
surplus funds, but they failed to file anything with the court. On April 29, 2015, the court
held a hearing on the surplus distribution. The United States appeared through counsel
Barbara Oswald. P. Thomas Wymore, doing business as Wymore Seed and Farm Supply
(“Wymore”), appeared pro se.1 The Meisegeiers did not appear, nor did Krumrei and Perry.
The claim of the United States is straightforward. At the hearing, the court granted
its unopposed request for additional expenses associated with the sale and interest.
The remaining two claims on the surplus are based on money judgments obtained
against the Meisegeiers: (1) a judgment in the amount of $42,041.00 obtained by Krumrei
and Perry in Rusk County Case No. 2007CV000010; and (2) a small claims judgment in
the amount of $2,098.50 obtained by Wymore in Rush County Case No. 2010SC000430.2
The docket sheets for both those cases, however, suggest both judgments are deemed

1

At the hearing, Wymore confirmed that Wymore Seed and Farm Supply is a sole proprietorship,
not a corporation, meaning that he may proceed pro se. United States v. Hagerman, 545 F.3d 579, 581
(7th Cir. 2008).
2
The court takes judicial notice of these court records, which are available via the Wisconsin Circuit
Court Access website (https://wcca.wicourts.gov/index.xsl). See Gen. Elec. Capital Corp. v. Lease
Resolution Corp., 128 F.3d 1074, 1081 (7th Cir. 1997) (most frequent use of judicial notice of
ascertainable facts is in noticing contents of court records).

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satisfied due to the Meisegeiers obtaining a discharge under Chapter 7 bankruptcy in 2011.
(See Case No. 1-11-11683-tsu, United States Bankruptcy Court for the Western District of
Wisconsin.)
Although it is not entirely clear from the state court docket sheets alone, it appears
that on November 5, 2014, the Meisegeiers may have submitted an application for an order
of satisfaction of the judgments due to bankruptcy pursuant to Wis. Stat. § 806.19(4).
Under that statute, “[u]pon satisfaction, a judgment shall cease to be a lien on any real
property that the person discharged in bankruptcy owns or later acquires.”
§ 806.19(4)(d).

Wis. Stat.

Thus, if the Meisegeiers did acquire a valid order of satisfaction of

judgment, Wymore, as well as Krumrei and Perry, may no longer have even an in rem
interest in the surplus funds from the sale of the mortgaged premises.
Of course, the Meisegeiers have not advanced any of these arguments; indeed, they
have not appeared in this case at all. Accordingly, the court is not prepared to reject the
claims on the surplus absent additional information. Consistent with the April 29 hearing,
all interested parties will be given an opportunity to supplement the record as set forth
below.

ORDER
IT IS ORDERED that:
1) Plaintiff the United States of America’s claim on the surplus funds (dkt. #38) is
GRANTED.
2) Not later than May 18, 2015, claimants Wymore Seed and Farm Supply, David
Krumrei and Bonita Perry should file with the court proof of their judgment
against defendants Larry and Emily Meisegeier, as well as proof of a lien on the
subject property.
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3) At that time, claimants should also inform the court, to the best of their
knowledge, whether Larry and Emily Meisegeier filed an application for
satisfaction of judgment due to bankruptcy pursuant to Wis. Stat. § 806.19(4).
4) Not later than May 26, 2015, the Meisegeiers should file a written response with
the court addressing the asserted claims on the surplus and explaining why they
should not be held in default with respect to those claims.
Entered this 8th day of May, 2015.
BY THE COURT:
/s/
________________________________________
WILLIAM M. CONLEY
District Judge

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