Section 140.26. Procedure for determination of claims against the dealer bond or letter of credit.

 

(1)   Petition for ruling.

(a) Any claim made against the bond or letter of credit of a licensee, any request by a surety for a department determination of a claim, any notification of the department by a licensee of the licensee's termination of business, any filing of a bankruptcy petition by a licensee, or any payment of any part of a bond or letter of credit by the surety or financial institution to the department may be regarded by the department as a petition for declaratory ruling under s. 227.41 , Stats.

(b) If the petition does not initially comply with the required format of s. 227.41 (2) , Stats., the department may request that the additional materials needed to satisfy s. 227.41 (2) , Stats., be furnished.

(2)   Notice of petition.

(a) The department shall provide notice to all interested parties by publishing notice, pursuant to s. 985.07 (1) , Stats., in a newspaper of general circulation in the area of the licensed address of the licensee and by mailing notice to all interested parties known to the department.

(b) The notice required in par. (a) shall include:

1. The name of the licensee.

2. The amount of the bond or letter of credit.

3. The period of time covered by the bond or letter of credit.

4. The deadline for the submission of claims against the bond or letter of credit.

5. The address from which to request claims forms and to which to submit claims.

6. The date and the place for a hearing on all timely but disputed claims.

(3)   Deadline for claims. The deadline for the submission of claims shall be 60 days after the final insertion of the published notice required by sub. (2) .

(4)   Evaluation and investigation.

(a) The department shall evaluate each claim received, request additional documentation or clarification from the claimant as necessary and make a preliminary determination of the allowance, amount and priority class of the claim.

(b) In determining the allowance, amount and priority class of a claim, the department shall give full faith and credit to applicable findings of fact and judgments entered by a court in an action involving the claim in which the claimant and the licensee were opposing parties.

(5)   Disputed claims.

(a) Preliminary determination of claims. When a preliminary determination of all claims received prior to the deadline for filing claims is completed, the compilation of all those preliminary determinations shall be sent to each claimant, the surety, if any, and the licensee, who shall all be parties to any hearing under sub. (6) . The compilation of preliminary determinations may include an estimate of the amount which would be paid on each claim, in accordance with s. Trans 140.23 , if the preliminary determinations are not contested.

(b) Deadline for objection. Each claimant, the surety, if any, or the licensee shall have 30 days from the date the preliminary determination is mailed to him or her to object to the preliminary determination of the allowance, amount or priority class of any claim.

(c) Notice of objection. The party objecting to a preliminary determination shall furnish timely notice, pursuant to par. (b) , of the grounds for the party's objection to the department, the surety, if any, and the licensee. If the preliminary determination objected to is of a claim by another claimant, timely notice of the grounds for the objection shall also be made by the objector to that claimant.

(d) Adoption of preliminary determinations. If the preliminary determinations are not disputed the scheduled public hearing may be cancelled and the preliminary determinations shall be adopted by the department.

(6)   Hearing on claims.

(a) If there is a dispute of a preliminary determination, a hearing shall be held before a hearing examiner appointed by the department. The claimant, surety, licensee, and any party objecting to the preliminary determination of the claim may present evidence, including witnesses and argument.

(b) The hearing shall be scheduled for a date within 120 days of the publication of the notice provided in sub. (2) . The hearing may subsequently be rescheduled to another date, time or place at the discretion of the department and upon notice to all claimants, the licensee and the surety, if any.

(7)   Hearing examiner determination final. The determination of the hearing examiner regarding the allowance, amount and priority class of each claim shall be the final decision of the department.

(8)   Final decision and payment.

(a) The final decision of the department shall be in writing and sent to each claimant, the surety or financial institution and the licensee. Payments from the bond, in accordance with the final decision shall not be made until at least 10 days after the final decision is sent to each party.

(b) The amount paid on an allowed claim shall be determined as provided by s. Trans 140.23 .

History: Emerg. cr. eff. 10-16-85; cr. Register, July, 1986, No. 367 , eff. 8-1-86; am. (1), (2) (a), (b) 1. to 5., (4) (b), (5) (a) to (c), (6) and (8) (a), Register, February, 1996, No. 482 , eff. 3-1-96.