Section 140.21. Allowed claims.

 

(1)  A claim is an allowable claim if it satisfies each of the following requirements and is not excluded by sub. (2) or (3) :

(a) The claim shall be for monetary damages in the amount of an actual loss suffered by the claimant.

(b) The claim arose during the period covered by the security.

(c) The claimant's loss shall be caused by an act of the licensee, or the claimant's agents or employees, which is grounds for suspension or revocation of any of the following:

1. A salesperson license or a motor vehicle dealer license, in the case of a secured salesperson or motor vehicle dealer, pursuant to s. 218.0116 (1) (a) to (gm) , (im) 2. , (j) , (jm) , (k) , (m) or (n) to (p) , Stats.

2. A recreational vehicle dealer license, in the case of a bonded recreational vehicle dealer, pursuant to s. 218.11 (6) , Stats.

3. A salvage dealer license, in the case of a bonded salvage dealer, pursuant to s. 218.22 (3) , Stats.

4. An auction dealer license, in the case of a bonded auction dealer, pursuant to s. 218.32 (3) , Stats.

5. Any other license issued by the department under ch. 218 , Stats. , in any other case, including that of a bonded manufacturer, distributor, distributor-wholesaler, or trailer dealer, pursuant to s. 218.0116 (1) , Stats.

(d) The claim must be made within 3 years of the last day of the period covered by the security. The department shall not approve or accept any surety bond or letter of credit which provides for a lesser period of protection.

(2)  The following claims shall be disallowed:

(a) Any claim by a claimant licensed under ch. 218 , Stats. , or required to be so licensed.

(b) Any claim by the licensee, the licensee's employing dealer, if any, or the licensee's agents, partners, stockholders or employes.

(c) Any claim arising from activities of the licensee which are not regulated by the department under ch. 218 , Stats. , specifically including, without limitation, claims for rent, mortgage payments, wages, commissions, personal services rendered and commercial transactions not directly related to the sale or purchase of a motor vehicle.

(d) Any claim by a manufacturer, factory branch, factory representative, distributor or distributor representative involving the sale or delivery of a new motor vehicle to the licensee.

(e) Any claim for interest or penalties, legal costs, attorney fees, or punitive damages except as otherwise expressly provided in sub. (5) .

(f) Any claim by a financial institution or secured party.

(3)  Any of the following acts by a claimant, as determined by the department, may be grounds for disallowing a claim:

(a) Making or offering a false statement, false or altered document, or other misrepresentation in support of a claim against the security;

(b) Making a claim based in whole or in part upon a transaction or an act by the claimant which is unlawful or contrary to statute, regulation or administrative rule, as determined by the department.

(c) Failing to make a claim in the manner provided by this subchapter.

(d) Failure of the claimant to cooperate in the investigation of the claimant's claim, including failure to provide additional supporting documentation or evidence for a claim or to provide other explanatory materials when that information is requested by the department and is readily available to, or known to, the claimant or is in the claimant's possession or control.

(4)  A claim may be allowed in part and disallowed in part.

(5)  

(a) When a claimant is unable to obtain title to a motor vehicle because the licensee who held the vehicle for sale created a security interest in the motor vehicle and a manufacturer or financial institution is holding the title or Manufacturers Certificate of Origin (MCO) to ensure payment by the licensee at the time of sale, the claimant's reasonable expenses, including legal costs and attorney fees, in obtaining requisite title documentation, are allowable claims against the security of the licensee.

(b) As alternatives to making the claim described in par. (a) , a claimant in such a case may instead do any of the following:

1. Rescind the purchase contract and make a claim against the security of the licensee for the full purchase price of the vehicle.

2. Make a claim against the security of the licensee for the cost of a title bond prescribed by s. 342.12 (3) (b) , Stats.

3. Make any other allowable claim for damages.

History: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367 , eff. 8-1-86; am. (1) (a) to (c) 4., (d), (2) (a) to (e), (3) and (5) (a) to (b) 2., r. (1) (c) 5., renum. (1) (c) 6. to be 5., Register, February, 1996, No. 482 , eff. 3-1-96; corrections in (1) (c) 1., 5. made under s. 13.92 (4) (b) 7. , Stats., Register March 2012 No. 675 .

Note

This paragraph does not supersede any applicable provision of ch. 893 , Stats., and does not limit the liability of the licensee in any way. Microsoft Windows NT 6.1.7601 Service Pack 1