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Liens: 1 Updated 21 22 Wis. Stats

The document outlines the Wisconsin Statutes related to liens, specifically focusing on construction liens under Chapter 779. It details the definitions, rights, and obligations of lien claimants, including the requirements for notice to preserve lien rights and the priority of construction liens. Additionally, it includes various subchapters addressing different types of liens such as mechanic's liens, hospital liens, and maintenance liens.

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0% found this document useful (0 votes)
24 views23 pages

Liens: 1 Updated 21 22 Wis. Stats

The document outlines the Wisconsin Statutes related to liens, specifically focusing on construction liens under Chapter 779. It details the definitions, rights, and obligations of lien claimants, including the requirements for notice to preserve lien rights and the priority of construction liens. Additionally, it includes various subchapters addressing different types of liens such as mechanic's liens, hospital liens, and maintenance liens.

Uploaded by

ade
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

1 Updated 21−22 Wis. Stats. LIENS 779.01

CHAPTER 779
LIENS
SUBCHAPTER I 779.40 Liens for labor in quarry.
CONSTRUCTION LIENS SUBCHAPTER IV
779.01 Construction liens. MECHANIC’S LIENS, ETC.
779.02 Notice required to preserve lien rights; exceptions; saving clause; obliga- 779.41 Mechanic’s liens.
tions of contractors. 779.413 Liens on aircraft and aircraft engines.
779.03 Lien valid unless waived by claimant personally, or unless payment bond 779.415 Liens on vehicles for towing and storage.
furnished. 779.42 Obtaining mechanic’s services by misrepresentation of interest in personal
779.035 Form of contract; payment bond; remedy. property.
779.036 Contracts with payment bond; lien; notice; duty of owner and lender. 779.43 Liens of keepers of hotels, livery stables, garages, marinas and pastures.
779.04 Claims assignable; notice; prior payment. 779.44 Liens of consignees.
779.05 Waivers of lien. 779.45 Liens of factors, brokers, etc.
779.06 Filing claim and beginning action; notice required before filing; contents 779.46 Jeweler’s lien.
of claim document. 779.47 Plastics fabricator’s lien.
779.07 Judgment and lien docket. 779.48 Enforcement.
779.08 Release of lien; undertaking. 779.485 Special tools.
779.09 Foreclosure of lien; procedure; parties. SUBCHAPTER V
779.10 Judgment.
779.11 Distribution of proceeds of sale. BREEDING ANIMAL, THRESHING LIENS, ETC.
779.12 Sale; notice and report; deficiency judgment; writ of assistance. 779.49 Lien of owner of breeding animal or methods.
779.13 Satisfaction of judgment or lien; correction of errors. 779.50 Lien for threshing, husking, baling; enforcement.
779.135 Construction contracts, form of contract. SUBCHAPTER VII
779.14 Public works, form of contract, bond, remedy. MAINTENANCE LIENS
779.15 Public improvements; lien on money, bonds, or warrants due the prime 779.70 Maintenance liens.
contractor; duty of officials. SUBCHAPTER VIII
779.155 Judgment creditors, attachment of funds due to public contractors. DISPOSITION OF UNCLAIMED ARTICLES
779.16 Theft by contractors. 779.71 Disposition of articles left for laundering, dry cleaning, repair, storage.
779.17 Release of funds on filing bond. SUBCHAPTER IX
SUBCHAPTER II HOSPITAL LIENS
OTHER LIENS 779.80 Hospital liens.
779.18 Log liens; priority. SUBCHAPTER X
779.19 Petition for log lien; filing same.
PREPAID MAINTENANCE LIEN
779.20 Action to enforce log lien; parties; costs; change of venue.
779.21 Attachment, affidavit for; undertaking; service of writ. 779.85 Definitions.
779.24 Lien for camp supplies. 779.86 Records.
779.25 Lien for joint log driving. 779.87 Escrow account or bond requirement.
779.26 Lien of improvement companies. 779.88 Prepaid maintenance lien.
779.28 Execution. 779.89 Attachment and preservation.
779.29 Intervention. 779.90 Notice of existence of lien.
779.30 Undertaking by intervenor; procedure. 779.91 Discharge of lien.
779.31 Cook’s lien. 779.92 Enforceability of lien.
779.32 Commission liens. 779.93 Duties of the department of agriculture, trade and consumer protection.
SUBCHAPTER III 779.94 Penalties.
MINING LIENS, ETC. SUBCHAPTER XI
779.35 Mining liens. FEDERAL LIEN REGISTRATION
779.36 Extent of lien; filing claim. 779.97 Uniform federal lien registration act.
779.37 Satisfaction of lien. SUBCHAPTER XII
779.38 Effect of mortgage. LIENHOLDER; ACQUISITION OF PRIOR LIEN
779.39 Foreclosure of lien. 779.98 Payment of prior real estate liens.

SUBCHAPTER I (bm) “Materials” includes any construction materials, sup-


plies, tools, fixtures, equipment, machinery, vehicles, fuel, and
CONSTRUCTION LIENS energy.
(c) “Owner” means the owner of any interest in land who, per-
779.01 Construction liens. (1) NAME OF LAW. This sub- sonally or through an agent, enters into a contract, express or
chapter may be referred to as the construction lien law. implied, for the improvement of the land. Agency will be pre-
(2) DEFINITIONS. In this subchapter unless the context or sub- sumed, in the absence of clear and convincing evidence to the con-
ject matter requires otherwise: trary, between employer and employee, between spouses,
(a) “Improve” or “improvement” includes any building, struc- between joint tenants and among tenants in common, but there
ture, erection, fixture, demolition, alteration, excavation, filling, shall be a similar presumption against agency in all other cases.
grading, tiling, planting, clearing, landscaping, repairing, or (d) “Prime contractor” means any of the following:
remodeling which is built, erected, made or done on or to land for 1. A person, other than a laborer, but including an architect,
its benefit. This enumeration is intended as an extension rather professional engineer, construction manager, surveyor, or other
than a limitation of the normal meaning and scope of “improve” service provider, employed by the owner, who enters into a con-
and “improvement”. tract with an owner of land who is not personally the prime con-
(am) “Labor” includes any wages and related contributions for tractor as defined in subd. 2. to improve the land, or who takes over
state employment taxes, worker’s compensation and unemploy- from a prime contractor the uncompleted contract.
ment compensation insurance, and other fringe benefits. 2. An owner of land who acts personally as prime contractor
(b) “Lien claimant” means any person who claims a lien under in improving such land.
this section pursuant to a contract for improvement of land entered (e) “Serve” or “served” means personal delivery, delivery by
into by an owner of the land. registered or certified mail, service in a manner described for ser-
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.01 LIENS Updated 21−22 Wis. Stats. 2

vice of a summons under s. 801.14, or any other means of delivery be given by lien claimants under sub. (2) shall not be required to
in which the recipient makes written confirmation of the delivery; be given in the following cases only:
except that in s. 779.15, with respect to serving the state, “serve” (a) By any laborer or mechanic employed by any prime con-
or “served” means delivery by registered or certified mail. tractor or subcontractor.
(3) EXTENT AND CHARACTER OF LIEN. Any person who per- (b) By any lien claimant who has contracted directly with the
forms, furnishes, or procures any work, labor, service, materials, owner for the labor, services, materials, plans, or specifications
plans, or specifications, used or consumed for the improvement of performed, furnished, or procured, unless the claimant is a prime
land, and who complies with s. 779.02, shall have a lien therefor contractor subject to the notice requirement of sub. (2) (a).
on all interests in the land belonging to its owners. The lien (c) By any lien claimant performing, furnishing, or procuring
extends to all contiguous land of the owner, but if the improve- labor, services, materials, plans, or specifications for an improve-
ment is located wholly on one or more platted lots belonging to the ment in any case where more than 4 family living units are to be
owner, the lien applies only to the lots on which the improvement provided or added by such work of improvement, if the improve-
is located. ment is wholly residential in character, or in any case where the
(4) PRIORITY OF CONSTRUCTION LIEN. The lien provided in sub. improvement is partly or wholly nonresidential in character.
(3) shall be prior to any lien which originates subsequent to the (d) By any prime contractor who is personally an owner of the
visible commencement in place of the work of improvement, land to be improved, by any corporate prime contractor of which
except as otherwise provided by ss. 215.21 (4) (a), 292.31 (8) (i), an owner of the land is an officer or controlling shareholder, by
292.81 and 706.11 (1) and (1m). When new construction is the any prime contractor who is an officer or controlling shareholder
principal improvement involved, commencement is considered to of a corporation which is an owner of the land or by any corporate
occur no earlier than the beginning of substantial excavation for prime contractor managed or controlled by substantially the same
the foundations, footings or base of the new construction, except persons who manage or control a corporation which is an owner
where the new construction is to be added to a substantial existing of the land.
structure, in which case the commencement is the time of the
(e) By any lien claimant, other than a prime contractor, who
beginning of substantial excavation or the time of the beginning
performs, furnishes, or procures labor, services, materials, plans,
of substantial preparation of the existing structure to receive the
or specifications for an improvement on a project on which the
added new construction, whichever is earlier. The lien also shall
prime contractor is not required to give notice under this section.
be prior to any unrecorded mortgage given prior to the commence-
ment of the work of improvement, if the lien claimant has no (2) NOTICE TO OWNER, LENDER, AND SUPPLIER. (a) Every prime
actual notice of the mortgage before the commencement. Lien contractor who enters into a contract with the owner for a work of
claimants who perform, furnish, or procure any labor, services, improvement on the owner’s land and who has contracted or will
materials, plans, or specifications for an improvement prior to the contract with any subcontractors, suppliers, or service providers
visible commencement of the work of improvement shall have to perform, furnish, or procure labor, services, materials, plans, or
lien rights, but shall have only the priority accorded to other lien specifications for the work of improvement shall include in any
claimants. written contract with the owner the notice required by this para-
graph, and shall provide the owner with a copy of the written con-
(5) ASSIGNMENT OF LIEN, GARNISHMENT. Assignment of a
tract. If no written contract for the work of improvement is entered
claim or right to a lien or any part thereof by a prime contractor,
into, the notice shall be prepared separately and served on the
or garnishment by the creditor of a prime contractor, subcontrac-
owner or authorized agent within 10 days after the first labor, ser-
tor, supplier, service provider, laborer or mechanic, shall not oper-
vices, materials, plans, or specifications are performed, furnished,
ate to compel the owner, prime contractor, subcontractor, supplier,
or procured for the improvement by or pursuant to the authority
or service provider to pay the assignee or creditor until the lien
of the prime contractor. The notice, whether included in a written
claims of subcontractors, suppliers, service providers, and labor-
contract or separately given, shall be in at least 8−point bold type,
ers under this subchapter have either been paid in full, matured by
if printed, or in capital letters, if typewritten. It shall be in substan-
notice and filing or expired. If such claims become liens, the
tially the following language: “As required by the Wisconsin con-
owner, prime contractor, subcontractor, supplier, or service pro-
struction lien law, claimant hereby notifies owner that persons or
vider shall be compelled to pay such assignee or creditor only
companies performing, furnishing, or procuring labor, services,
what remains due in excess of such liens. materials, plans, or specifications for the construction on owner’s
History: 1973 c. 231; 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.01;
1983 a. 189; 1993 a. 453; 1995 a. 225, 227; 1997 a. 27, 35, 44, 252; 2005 a. 204. land may have lien rights on owner’s land and buildings if not
A lien did not accrue by virtue of a surveyor’s placement of stakes indicating the paid. Those entitled to lien rights, in addition to the undersigned
street layout, although performed before the mortgage was recorded, as staking is not claimant, are those who contract directly with the owner or those
a visible commencement of improvement work. Mortgage Associates v. Monona
Shores, Inc., 47 Wis. 2d 171, 177 N.W.2d 340 (1970). who give the owner notice within 60 days after they first perform,
Public policy does not require that financial institutions notify contractors that the furnish, or procure labor, services, materials, plans or specifica-
owner is or may be in default. Mortgage Associates v. Monona Shores, Inc., 47 Wis. tions for the construction. Accordingly, owner probably will
2d 171, 177 N.W.2d 340 (1970). receive notices from those who perform, furnish, or procure labor,
In a complaint seeking to foreclose a construction lien on a municipal arena, allega-
tions that the lessee of the arena was acting as the city’s agent in contracting for services, materials, plans, or specifications for the construction,
improvements to the arena was sufficient to withstand demurrer. James W. Thomas and should give a copy of each notice received to the mortgage
Construction Co. v. City of Madison, 79 Wis. 2d 345, 255 N.W.2d 551 (1977). lender, if any. Claimant agrees to cooperate with the owner and
An architects’ lien was unenforceable prior to the visible commencement of con- the owner’s lender, if any, to see that all potential lien claimants
struction. Goebel v. National Exchangors, Inc., 88 Wis. 2d 596, 277 N.W.2d 755
(1979). are duly paid”.
A prospective buyer under a purchase contract was not an “owner” under sub. (2) (b) Every person other than a prime contractor who performs,
(d) [now sub. (2) (c)]. C.R. Stocks, Inc. v. Blakely’s Matterhorn, Inc., 90 Wis. 2d 118,
279 N.W.2d 499 (Ct. App. 1979). furnishes, or procures labor, materials, plans, or specifications for
A lien for work performed after the owner’s ex−spouse docketed a judgment an improvement shall have the lien and remedy under this sub-
against the owner related back to earlier work completed and paid in full under a dif- chapter only if within 60 days after performing, furnishing, or pro-
ferent contract. Estate of Riese v. Weber, 132 Wis. 2d 215, 389 N.W.2d 640 (Ct. App. curing the first labor, services, materials, plans, or specifications
1986).
Construction Lien Claimants’ Rights Against Purchase Contract Interests: The the person serves a written notice, in 2 signed copies, on the owner
Role of Equitable Conversion. Schroeder. 1980 WLR 615. or authorized agent at the last−known post−office address. The
owner or agent shall provide a copy of the notice received, within
779.02 Notice required to preserve lien rights; excep- 10 days after receipt, to any mortgage lender who is furnishing or
tions; saving clause; obligations of contractors. is to furnish funds for construction of the improvement to which
(1) EXCEPTIONS TO NOTICE REQUIREMENT. The notice required to the notice relates. The notice to the owner shall be in substantially
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

3 Updated 21−22 Wis. Stats. LIENS 779.02

the following language, with blanks accurately filled in: “As a actually in dispute, have been paid in full or proportionally in
part of your construction contract, your prime contractor or claim- cases of a deficiency, is theft by the prime contractor or subcon-
ant has already advised you that those who perform, furnish, or tractor of moneys so misappropriated and is punishable under s.
procure labor, services, materials, plans, or specifications for the 943.20. If the prime contractor or subcontractor is a corporation,
work will be notifying you. The undersigned first performed, fur- limited liability company, or other legal entity other than a sole
nished, or procured labor, services, materials, plans, or specifica- proprietorship, such misappropriation also shall be deemed theft
tions on .... (give date) for the improvement now under construc- by any officers, directors, members, partners, or agents responsi-
tion on your real estate at .... (give legal description, street address ble for the misappropriation. Any of such misappropriated mon-
or other clear description). Please give your mortgage lender the eys which have been received as salary, dividend, loan repayment,
extra copy of this notice within 10 days after you receive this, so capital distribution or otherwise by any shareholder, member, or
your lender, too, will know that the undersigned is included in the partner not responsible for the misappropriation shall be a civil lia-
job”. bility of that person and may be recovered and restored to the trust
(c) If any prime contractor required to give the notice pre- fund specified in this subsection by action brought by any inter-
scribed in par. (a) fails to give notice as required, the prime con- ested party for that purpose. Except as provided in this subsection,
tractor does not have the lien and remedy provided by this sub- this section does not create a civil cause of action against any per-
chapter unless the prime contractor pays all of the prime son other than the prime contractor or subcontractor to whom such
contractor’s obligations to its subcontractors, suppliers, and ser- moneys are paid. Until all claims are paid in full, have matured
vice providers in respect to the work of improvement within the by notice and filing or have expired, such proceeds and moneys
time periods under s. 779.06 and until the time for notice under shall not be subject to garnishment, execution, levy or attachment.
par. (b) has elapsed and either none of its subcontractors, suppli- (6) PRIME CONTRACTORS TO DEFEND LIEN ACTIONS. Where a
ers, or service providers gives notice as a lien claimant under par. lien is filed under this subchapter by any person other than the
(b) or all of its subcontractors, suppliers, and service providers prime contractor, the prime contractor shall defend any action
have waived all lien rights in full under s. 779.05. thereon at personal expense, and during the pendency of the action
(d) Every mortgage lender making an improvement or con- the owner may withhold from the prime contractor the amount for
struction loan shall make reasonable inquiry of the owner as to which the lien was filed and sufficient to defray the costs of the
whether any notices required by this subsection have been given. action. In case of judgment against the owner, the owner may
A lender is not required to pay out any loan proceeds unless or deduct from any amount due to the prime contractor the amount
until the prime contractor has given any notice required of the of the judgment and if the judgment exceeds the amount due, the
prime contractor by this subsection. owner may recover the difference from the prime contractor. This
subsection does not apply if the lien is the result of the failure of
(e) If the owner or lender complains of any insufficiency of any
the owner to pay the prime contractor.
notice, the burden of proof is upon the owner or lender to show that
he or she has been misled or deceived by the insufficiency. If there (7) WRONGFUL USE OF MATERIALS. Any prime contractor or
is more than one owner, giving the notice required to any one any subcontractor furnishing materials who purchases materials
owner or authorized agent is sufficient. In addition, every prime on credit and represents at the time of making the purchase that the
contractor and subcontractor, at the time of purchasing or con- materials are to be used in a designated building or other improve-
tracting for any materials to be used in any of the cases enumerated ment and thereafter uses or causes them to be used in the construc-
in s. 779.01, shall upon request deliver to the supplier a description tion of any improvement other than that designated, without the
of the real estate upon which the materials are to be used and the written consent of the seller, may be fined not more than $300 or
name and post−office address of the owner and authorized agent, imprisoned not more than 3 months.
if any. Failure to receive such description and name and address (8) WAGE PAYMENTS TO LABORER APPLY TO EARLIER WORK. In
does not relieve a supplier who asserts a lien from the requirement any situation where a laborer or mechanic employed by any prime
of giving timely notice. contractor or subcontractor has wage payments due and has
(3) FAILURE TO GIVE NOTICE; SAVING CLAUSE. Any lien claim- worked on more than one improvement for the employer during
ant, other than the prime contractor, who fails to give a notice as the period for which the wages are due, and a payment of less than
required by sub. (2) (b) shall have no lien on the land or improve- all wages due is made, the payment is deemed to apply to the
ment to which the failure relates. Any claimant who serves a late unpaid work in chronological sequence starting with the earliest
but otherwise proper notice on the owner or authorized agent shall unpaid time, unless the laborer agrees in writing that the payment
have the lien provided by s. 779.01 for any labor, services, materi- shall be applied in a different way.
History: 1973 c. 229, 231; 1975 c. 409; 1979 c. 32 ss. 57, 92 (9); 1979 c. 110 s.
als, plans, or specifications performed, furnished, or procured 60 (12); 1979 c. 176, 355; Stats. 1979 s. 779.02; 1983 a. 362; 1995 a. 395; 2005 a.
after the late notice is actually received by the owner. The burden 204.
of proving that labor, services, materials, plans, or specifications It is not necessary to show that the defendant received benefits from a misappropri-
for which a lien is claimed were furnished after that date is on the ation of trust funds in order for the plaintiff to recover. A showing of wrongful intent
is not required to establish civil liability under sub. (5). Burmeister Woodwork Co.
lien claimant. v. Friedel, 65 Wis. 2d 293, 222 N.W.2d 647 (1974).
(4) NOTICE AND FILING REQUIREMENTS IN S. 779.06 UNAFFECTED. When the defendant lessor had not paid the lessee for improvements to the lessor’s
property by the lessee’s contractor, the contractor had a claim for unjust enrichment
Nothing in this section shall be construed to relieve any lien claim- against the defendant even though the contractor lost its lien rights against the defend-
ant of the notice and filing requirements under s. 779.06. ant by failing to give the notice required under sub. (2) (a). S&M Rotogravure Ser-
vice, Inc. v. Baer, 77 Wis. 2d 454, 252 N.W.2d 913 (1977).
(5) THEFT BY CONTRACTORS. The proceeds of any mortgage on Intent to defraud must be proved when criminal sanctions are sought under sub. (5).
land paid to any prime contractor or any subcontractor for State v. Blaisdell, 85 Wis. 2d 172, 270 N.W.2d 69 (1978).
improvements upon the mortgaged premises, and all moneys paid Because an entire project was covered by one contract, three buildings on three
to any prime contractor or subcontractor by any owner for adjoining lots constituted a single improvement under sub. (1) (c). Cline−Hanson,
Inc. v. Esselman, 107 Wis. 2d 381, 319 N.W.2d 829 (1982).
improvements, constitute a trust fund only in the hands of the Sub. (5) does not require that payments be made directly from the owner to subcon-
prime contractor or subcontractor to the amount of all claims due tractors for a trust to be created. Money deposited into a bank did not lose its trust
or to become due or owing from the prime contractor or sub- fund status. Kraemer Bros. v. Pulaski State Bank, 138 Wis. 2d 395, 406 N.W.2d 379
(1987).
contractor for labor, services, materials, plans, and specifications
A trust fund under sub. (5) is created when an owner constructively pays an insol-
used for the improvements, until all the claims have been paid, and vent contractor by delivering money to the clerk of court seeking a declaratory judg-
shall not be a trust fund in the hands of any other person. The use ment as to distribution. A subcontractor need not preserve lien rights. Wisconsin
of any such moneys by any prime contractor or subcontractor for Dairies Cooperative v. Citizens Bank & Trust, 160 Wis. 2d 758, 467 N.W.2d 124
(1991).
any other purpose until all claims, except those which are the sub- A violation of sub. (5) may be found without showing that the prime contractor
ject of a bona fide dispute and then only to the extent of the amount intended to permanently deprive laborers and suppliers of compensation. The intent

2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.02 LIENS Updated 21−22 Wis. Stats. 4

required is to use the moneys subject to a trust inconsistent with the purpose of the mortgage lender furnishing funds for the construction of the
trust. State v. Sobkowiak, 173 Wis. 2d 327, 496 N.W.2d 620 (Ct. App. 1992).
Under sub. (5), a corporate officer who had the power and authority to ensure that
improvement. No assignment, modification or change in the con-
corporate affairs were properly managed and who did not receive a personal benefit tract, or change in the work covered thereby, or any extension of
may be personally responsible for a misappropriation. Capen Wholesale, Inc. v. time for completion of the contract shall release the sureties on the
Probst, 180 Wis. 2d 354, 509 N.W.2d 120 (Ct. App. 1993). bond.
The prime contractor’s duty under sub. (6) to defend the property owners against
subcontractors’ lien claims is not altered because the prime contractor is also owed (2) (a) Except as provided in par. (b), any party in interest
money. Torke/Wirth/Pujara, Ltd. v. Lakeshore Towers of Racine, 192 Wis. 2d 481, may, not later than one year after the completion of the contract
531 N.W.2d 419 (Ct. App. 1995).
The exemption under sub. (1) (c) to the notice requirement for improvements when
for the construction of the improvement, maintain an action in his
more than four residential units are provided is not restricted to the actual provision or her own name against the prime contractor and the sureties
of the dwellings, but also applies to improvements that facilitate providing the upon the bond for the recovery of any damages sustained by rea-
dwellings when the improvements are not provided to each living unit separately but
are provided to a project as a whole. Riverwood Park, Inc. v. Central Ready−Mixed son of the failure of the prime contractor to comply with the con-
Concrete, Inc., 195 Wis. 2d 821, 536 N.W.2d 722 (Ct. App. 1995), 94−2413. tract or with the contract between the prime contractor and sub-
The test for a violation of sub. (5) is whether all the money received by the contrac- contractors. If the amount realized on the bond is insufficient to
tor was paid for labor and materials used for contracted improvements. It is not
whether an individual subcontractor received its full billed amount. Capital City satisfy all of the claims of the parties in full, it shall be distributed
Sheet Metal, Inc. v. Voytovich, 217 Wis. 2d 683, 578 N.W.2d 643 (Ct. App. 1998), among the parties proportionally.
97−1588.
When a lien claimant’s work was essential to allow an improvement to be used for (b) 1. Except as provided in subd. 2., a subcontractor, supplier,
its intended purpose and the improved area exceeded 10,000 square feet, the work or service provider may maintain an action under par. (a) only if
“provided” 10,000 square feet of space to the facility under former sub. (1) (c), 1995 the subcontractor, supplier, or service provider has notified the
stats., and the claimant was exempt from the sub. (2) lien notice requirement. United
States Fire Protection, Wisconsin, Inc. v. St. Michael’s Hospital of Franciscan Sisters, prime contractor in writing that the subcontractor, supplier, or ser-
Milwaukee, Inc., 221 Wis. 2d 410, 585 N.W.2d 659 (Ct. App. 1998), 97−3426. vice provider was performing, furnishing, or procuring labor, ser-
Under sub. (5), a misuse of contractor trust funds can form the basis of a prosecu- vices, materials, plans, or specifications for the construction of the
tion for criminal theft by contractor under s. 943.20. Because s. 943.20 qualifies for
treble damages under s. 895.80, treble damages are available for theft by contractor improvement. The notice must be provided no later than 60 days
under sub. (5), provided that the elements of both the civil and the criminal statutes, after the date on which the subcontractor, supplier, or service pro-
including the specific criminal intent element required by s. 943.20, are proven to the vider first performed, furnished, or procured the labor, services,
civil preponderance burden of proof. Tri−Tech Corp. of America v. Americomp Ser-
vices, Inc., 2002 WI 88, 254 Wis. 2d 418, 646 N.W.2d 822, 00−3195. materials, plans, or specifications.
While money cannot be used for purposes outside of the project, that does not end 2. A notice under subd. 1. is not required if any of the follow-
contractors’ responsibilities under the statute. Using the money to pay themselves
in full while other subcontractors have not been paid proportionally constitutes using ing applies:
money for a non−statutory purpose. State v. Keyes, 2008 WI 54, 309 Wis. 2d 516, a. The contract for performing, furnishing, or procuring the
750 N.W.2d 30, 04−1104.
Monies paid to the trustee in bankruptcy of an insolvent contractor are not trust labor, services, materials, plans, or specifications does not exceed
funds. Wisconsin Furnace Supply Corp. v. Kroog, 322 F. Supp. 1161 (1971). $5,000.
Wisconsin’s Construction Trust Fund Statute: Protecting Against Theft by Con-
tractor. Hinkston. Wis. Law. May 2005. b. The action is brought by an employee of the prime contrac-
tor, the subcontractor or the supplier.
779.03 Lien valid unless waived by claimant person- c. The subcontractor, supplier, or service provider is listed in
ally, or unless payment bond furnished. (1) NO AGREE- a written contract, or in a document appended to a written contract,
MENT BY OTHER THAN CLAIMANT MAY INVALIDATE LIEN. Subject to between a subcontractor, supplier, or service provider and the
s. 779.05, a lien claimant may waive the lien given by s. 779.01 prime contractor.
by a writing signed by the lien claimant, but no action by nor (3) In any case in which the improvement contract and bond
agreement between any other persons shall invalidate the lien, have been prepared and executed pursuant to sub. (1) upon inquiry
other than payment in full to the claimant for the labor, services, by any subcontractor, supplier, service provider, laborer, or
materials, plans, or specifications to which the lien claim relates. mechanic performing, furnishing, or procuring labor, services,
(2) PAYMENT BOND MAY ELIMINATE LIEN RIGHTS. In any case materials, plans, or specifications for said improvement, the prime
where the prime contractor, pursuant to agreement with the owner, contractor and the owner shall so advise the person making the
has furnished a payment bond under s. 779.035, all liens provided inquiry and shall give the person reasonable opportunity to inspect
by s. 779.01 except those of any prime contractor do not exist, ss. and examine the contract and bond.
779.02 (1) to (4) and (6) and 779.06 do not apply and all claimants History: 1973 c. 230; 1979 c. 32 ss. 57, 92 (9); 1979 c. 110 s. 60 (12); 1979 c. 176;
who have no lien shall follow the requirements and procedures Stats. 1979 s. 779.035; 1991 a. 200; 1993 a. 213; 1995 a. 395; 2005 a. 204.
A provision in a contractor’s payment bond requiring a supplier of a subcontractor
specified in ss. 779.035 and 779.036. to provide notice to the prime contractor within 90 days after supplying materials in
History: 1973 c. 230; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.03; 1993 a. 486; order to secure his rights under the payment bond was not inconsistent with the one−
2005 a. 204. year statute of limitations provided by sub. (2), which was also incorporated into the
agreement, and hence was not contrary to public policy. R.C. Mahon Co. v. Hedrich
779.035 Form of contract; payment bond; remedy. Construction Co., 69 Wis. 2d 456, 230 N.W.2d 621 (1975).
The liability of a prime contractor for damages to employees of a subcontractor
(1) To eliminate lien rights as provided in s. 779.03 (2), the con- under s. 779.14 (2) did not include wage penalties under s. 66.293 (3) [now s. 66.0903
tract between the owner and the prime contractor for the construc- (3)]. Consent to be a named a party under s. 66.293 (3) [now s. 66.0903 (3)] may occur
tion of the improvement shall contain a provision for the payment after one year when the action is for damages under s. 66.293 [now s. 66.0903] in the
name of the plaintiffs and other similarly situated employees and was filed within the
by the prime contractor of all claims for labor, services, materials, one−year time period. Strong v. C.I.R., Inc., 184 Wis. 2d 619, 516 N.W.2d 719
plans, or specifications performed, furnished, procured, used, or (1994).
consumed, except plans or specifications furnished by the archi-
tect, professional engineer or surveyor employed by the owner, in 779.036 Contracts with payment bond; lien; notice;
making such improvement and performing the work of improve- duty of owner and lender. (1) In any case in which an
ment. The contract shall not be effective to eliminate lien rights improvement is constructed or to be constructed pursuant to a con-
unless the prime contractor gives a bond issued by a surety com- tract and payment bond under s. 779.035, any person performing,
pany licensed to do business in this state. The bond shall carry a furnishing, or procuring labor, services, materials, plans, or speci-
penalty for unpaid claims of not less than the contract price, and fications to be used or consumed in making the improvement, to
shall be conditioned for the payment to every person entitled any prime contractor or subcontractor shall have a lien on the
thereto of all the claims for labor, services, materials, plans, and money or other payment due or to become due the prime contrac-
specifications performed, furnished, or procured under the con- tor or subcontractor therefor, if the lienor, before payment is made
tract and subsequent amendments thereto, to be used or consumed to the prime contractor or subcontractor, serves a written notice of
in making the improvement or performing the work of improve- the lienor’s claim on the owner or authorized agent and on any
ment as provided in the contract and subsequent amendments mortgage lender furnishing funds for the construction of the
thereto. The bond shall be approved by the owner and by any improvement. Upon receipt of the notice, the owner and lender
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

5 Updated 21−22 Wis. Stats. LIENS 779.06

shall assure that a sufficient amount is withheld to pay the claim performed, furnished, or procured, or to be performed, furnished,
and, when it is admitted or not disputed by the prime contractor or procured, by the claimant at any time for the improvement to
or subcontractor involved or established under sub. (3), shall pay which the waiver relates, except to the extent that the document
the claim and charge it to the prime contractor or subcontractor as specifically and expressly limits the waiver to apply to a particular
appropriate. Any owner or lender violating this duty shall be portion of such labor, services, materials, plans, or specifications.
liable to the claimant for the damages resulting from the violation. A lien claimant or potential lien claimant of whom a waiver is
There shall be no preference among lienors serving such notices. requested is entitled to refuse to furnish a waiver unless paid in full
(2) A copy of the notice provided in sub. (1) also shall be for the labor, services, materials, plans, or specifications to which
served by the lienor, within 7 days after service of the notice upon the waiver relates. A waiver furnished is a waiver of lien rights
the owner and lender, upon the prime contractor or subcontractor. only, and not of any contract rights of the claimant otherwise exist-
(3) If the prime contractor or subcontractor does not dispute ing.
the claim by serving written notice on the owner and the lien (2) A promissory note or other evidence of debt given for any
claimant within 30 days after service of written notice under sub. lienable claim shall not be deemed a waiver of lien rights unless
(2), the amount claimed shall be paid over to the claimant on the note or other instrument is received as payment and expressly
demand and charged to the prime contractor or subcontractor pur- declares that receipt thereof is a waiver of lien rights.
suant to sub. (1). If the prime contractor or subcontractor disputes History: 1979 c. 32 s. 57; Stats. 1979 s. 779.05; 2005 a. 204.
the claim, the right to a lien and to the moneys in question shall be Public improvement liens under this section are subject to the waiver provision of
s. 289.05 (1) [now sub. (1)]. Since waiver of a public improvement lien disposes of
determined in an action brought by the claimant or the prime con- the lien itself, the refiling of a claim for lien after a waiver was a nullity and the fact
tractor or subcontractor. If the action is not brought within 3 that the claim was not disputed following refiling did not revive the lien. Druml Co.
months from the time the notice required by sub. (1) is served, the v. City of New Berlin, 78 Wis. 2d 305, 254 N.W.2d 265 (1977).
Section 779.135 (1) voids a contract provision that requires a subcontractor to
lien rights under this section are barred. waive its right to a construction lien before it can get paid. Sub. (1) specifically allows
(4) (a) When the total lien claims exceed the sum due the a subcontractor who has signed a contract containing a lien waiver provision to refuse
to furnish the waiver unless paid in full for the work or material to which the waiver
prime contractor or subcontractor concerned and where the prime relates. Thus, a subcontractor facing a void construction lien waiver contract provi-
contractor or subcontractor has not disputed the amounts of the sion has a choice: it can either tender a lien waiver prior to being paid or refuse to
claims filed, the owner with the concurrence of the lender shall do so until it is paid. Tri−State Mechanical, Inc. v. Northland College, 2004 WI App
100, 273 Wis. 2d 471, 681 N.W.2d 302, 03−2182.
determine on a proportional basis who is entitled to the amount A lien waiver satisfies each element of a contract; accordingly, contract principles
being withheld and shall serve a written notice of the deter- apply to its interpretation. In this case, consistent with the principle that handwritten
mination on all claimants and the prime contractor or subcontrac- terms control over a form’s printed provisions, the handwritten term “partial” pre-
vailed over the conflicting language in the printed body of the document waiving all
tor. Unless an action is commenced by a claimant or by the prime lien rights to date, and resolving that conflict left no ambiguity as to whether the docu-
contractor or subcontractor within 20 days after the service of said ment was a full or partial waiver. Great Lakes Excavating, Inc. v. Dollar Tree Stores,
Inc., 2022 WI 44, 402 Wis. 2d 311, 976 N.W.2d 506, 19−2095.
notice, the money shall be paid out in accordance with the deter- A waiver can be limited to a dollar amount. Sub. (1) specifies only that a partial
mination and the liability of the owner and lender to any claimant lien waiver must be specific and express. In this case, the partial lien waiver satisfied
shall cease. sub. (1) because it waived the subcontractor’s lien rights only in the amount of
$33,448, an amount representing the “particular portion” of the work to which the
(b) If an action is commenced, all claimants, the owner and the waiver applied. Great Lakes Excavating, Inc. v. Dollar Tree Stores, Inc., 2022 WI 44,
lender shall be made parties. Such action shall be brought within 402 Wis. 2d 311, 976 N.W.2d 506, 19−2095.
6 months after completion of the work of improvement or within
the time limit prescribed by par. (a), whichever is earlier. 779.06 Filing claim and beginning action; notice
(c) Within 10 days after the filing of a certified copy of the required before filing; contents of claim document.
judgment in any such action with the owner and lender, the money (1) No lien under s. 779.01 shall exist and no action to enforce a
due the prime contractor or subcontractor shall be paid to the clerk lien under s. 779.01 shall be maintained unless within 6 months
of court to be distributed in accordance with the judgment. from the date the lien claimant performed, furnished, or procured
History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 110 s. 60 (11); 1979 c. 176; Stats. 1979 the last labor, services, materials, plans, or specifications, a claim
s. 779.036; 2005 a. 204. for the lien is filed in the office of the clerk of circuit court of the
The initial availability to the supplier of a lien under this section on payments made county in which the lands affected by the lien lie, and unless within
to a subcontractor did not preclude the bringing of an action on the payment bond
since nothing in the statute itself indicates it is to be an exclusive remedy, and the leg- 2 years from the date of filing a claim for lien an action is brought
islative history indicates it was intended as a supplementary remedy to the supplier’s and summons and complaint filed. A lien claimant shall serve a
rights under the payment bond provided for in s. 779.035. R.C. Mahon Co. v. Hedrich copy of the claim for lien on the owner of the property on which
Construction Co., 69 Wis. 2d 456, 230 N.W.2d 621 (1975).
A construction lien protects employee benefits in addition to hourly wages. the lien is placed within 30 days after filing the claim. A claim for
Plumber’s Local 458 Holiday Vacation Fund v. Howard Immel, Inc., 151 Wis. 2d 233, a lien may be filed and entered in the judgment and lien docket,
445 N.W.2d 43 (Ct. App. 1989). and action brought, notwithstanding the death of the owner of the
property affected by the action or of the person with whom the
779.04 Claims assignable; notice; prior payment. All original contract was made, with like effect as if he or she were
claims for liens and right to recover therefor under this subchapter then living.
are assignable. Notice in writing of such assignment may be
served upon the owner of the property affected and all payments (2) No lien claim may be filed or action brought thereon
made by the owner before service of such notice shall discharge unless, at least 30 days before timely filing of the lien claim, the
the debt to the amount paid. The assignee may file petitions for lien claimant serves on the owner a written notice of intent to file
such liens and may bring an action in the assignee’s name to a lien claim. The notice is required to be given whether or not the
enforce the same, subject to the limitations in s. 779.01 (5). claimant has been required to and has given a previous notice pur-
History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.04. suant to s. 779.02. Such notice shall briefly describe the nature of
the claim, its amount and the land and improvement to which it
779.05 Waivers of lien. (1) Any document signed by a lien relates.
claimant or potential claimant and purporting to be a waiver of (3) Such a claim for lien shall have attached thereto a copy of
construction lien rights under this subchapter, is valid and binding any notice given in compliance with s. 779.02 and a copy of the
as a waiver whether or not consideration was paid therefor and notice given in compliance with sub. (2), and shall contain a state-
whether the document was signed before or after the labor, ser- ment of the contract or demand upon which it is founded, the name
vices, materials, plans, or specifications were performed, fur- of the person against whom the demand is claimed, the name of
nished, or procured, or contracted for. Any ambiguity in such doc- the claimant and any assignee, the last date of performing, furnish-
ument shall be construed against the person signing it. Any ing, or procuring any labor, services, materials, plans, or specifi-
waiver document shall be deemed to waive all lien rights of the cations, a legal description of the property against which the lien
signer for all labor, services, materials, plans, or specifications is claimed, a statement of the amount claimed and all other mate-
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.06 LIENS Updated 21−22 Wis. Stats. 6

rial facts in relation thereto. Such claim document shall be signed when received or, in the case of coupons, as the income becomes
by the claimant or attorney, need not be verified, and in case of due.
action brought, may be amended, as pleadings are. (2) If an undertaking is furnished, it shall be accompanied by
History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.06; 1995 a. 224; the affidavit of the surety which states that the surety is worth, over
2005 a. 204.
The limitation period under sub. (1) commenced on the date the claimant furnished and above all debts and liabilities in property within this state not
the last materials for the project, although the claimant supplied two succeeding sub- exempt from execution, an amount in the aggregate equal to 125
contractors and the second subcontractor paid in full. R. Fredrick Redi−Mix, Inc. v. percent or more of the amount of the claim for lien.
Thomson, 96 Wis. 2d 715, 292 N.W.2d 648 (1980).
When a contractor gave a lien notice to the initial owner when work commenced (3) The person against whom the lien is claimed or other inter-
and had no notice of a subsequent transfer of title, the contractor’s lien rights pre- ested party depositing the security shall cause to be served upon
vailed against subsequent owners who received no lien notice. Wes Podany Con- the lien claimant a notice of the filing of the undertaking or deposit
struction Co. v. Nowicki, 120 Wis. 2d 319, 354 N.W.2d 755 (Ct. App. 1984).
Sub. (3) does not restrict when amendments to lien claims can be made. It only of other security and, if an undertaking, a copy thereof, which
provides that if an amendment is made after an action is brought, the lien claim may notice shall state where and when the undertaking was filed or the
be amended in the same manner as pleadings. Torke/Wirth/Pujara, Ltd. v. Lakeshore security was deposited.
Towers of Racine, 192 Wis. 2d 481, 531 N.W.2d 419 (Ct. App. 1995).
A subcontractor’s liens are not protected by incorporation into the prime contrac- (4) Any action brought after the furnishing of security or
tor’s lien if the subcontractor makes an independent claim. If the subcontractor brings pending at the time of the furnishing thereof in accordance with
a lien claim independent from the prime contractor, it is required to follow the proce- this section shall proceed as if no security had been furnished,
dures required for all claimants under the statutes. Torke/Wirth/Pujara, Ltd. v.
Lakeshore Towers of Racine, 192 Wis. 2d 481, 531 N.W.2d 419 (Ct. App. 1995). except that after the time within which exceptions may be taken
It is settled under Duitman, 17 Wis. 2d 543 (1962), that a contractor has no duty to the security, or pursuant to order of the court upon any exception
to keep itself updated by searching the title records after construction begins. The
critical date, insofar as the lien claimant’s duty to check the records in the office of so taken, the clerk shall satisfy the claim for lien of record and dis-
the register of deeds is concerned, is the first date on which the contractor furnishes charge any lis pendens filed, and except that the lien thereupon
labor or materials because the right to a lien of a supplier of labor or materials arises shall attach to the security and the amount adjudged due in the pro-
on that date. Bayland Buildings, Inc. v. Spirit Master Funding VIII, LLC, 2017 WI
App 42, 377 Wis. 2d 149, 900 N.W.2d 94, 16−1807. ceeding for foreclosure thereof shall be satisfied out of the secu-
rity, and the property described in the lien claim shall thenceforth
779.07 Judgment and lien docket. (1) Every clerk of cir- be entirely free of the lien and shall in no way be involved in subse-
cuit court shall keep a judgment and lien docket in which shall be quent proceedings.
entered, immediately upon filing, the proper entries under the (5) If no action to foreclose the lien is brought within the time
appropriate headings specified in this subsection, relative to each specified by s. 779.06 (1), the clerk of circuit court in whose office
claim for lien filed, opposite the names of the persons against the undertaking or other security was filed or deposited shall on
whom the lien is claimed. The names shall be entered alphabeti- request, and without notice, return the undertaking or security to
cally. Each page in the judgment and lien docket shall be divided the party filing or depositing it.
into 9 columns, with headings in the following sequence to the History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.08; 2005 a. 204.
By its plain language, the patent purpose of the release bond is to allow a property
respective columns, as follows: owner whose property is the subject of a construction lien or a general contractor, act-
(a) Name of person against whom lien is claimed. ing on the owner’s behalf, to substitute a bond for the property. Because the effect
of the release bond procedure is to free the real property from the effect of the claim
(b) Name of claimant or assignee. and lien and any action brought to foreclose such a lien and because a lien foreclosure
(c) Attorney for claimant. action is an in rem proceeding, unless personal judgment can otherwise be rendered
against the property owner, the owner of the liened property is entitled to a judgment
(d) Last date of performing, furnishing, or procuring labor, ser- of dismissal from a lien foreclosure action. Hunzinger Construction Co. v. SCS of
vices, materials, plans, or specifications. Wisconsin, Inc., 2005 WI App 47, 280 Wis. 2d 230, 694 N.W.2d 487, 04−0657.

(e) Description of copies of notices attached to claim when


779.09 Foreclosure of lien; procedure; parties. In the
filed.
foreclosure of liens mentioned in s. 779.01, ch. 846 shall control
(f) Date and time of filing claim. as far as applicable unless otherwise provided in this subchapter.
(g) Description of property. All persons having filed claims for liens under s. 779.01 may join
(h) Amount claimed. as plaintiffs, and if any do not join they may be made defendants.
(i) Satisfaction. All persons having liens subsequent to such lien may be joined as
(2) The judgment and lien docket shall be presumptive evi- defendants. If any person who is a proper party is not a party to
dence of the correctness of its entries. the action the person may, at any time before judgment, be made
History: 1979 c. 32 s. 57; Stats. 1979 s. 779.07; 1993 a. 486; 1995 a. 224; 2005 a defendant, and any person who after the commencement of the
a. 204. action obtains a lien or becomes a purchaser may, at any time
before judgment, be made a defendant.
779.08 Release of lien; undertaking. (1) The person History: 1973 c. 189 s. 20; Sup. Ct. Order, 67 Wis. 2d 585, 775 (1975); 1975 c.
218; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.09.
against whom a lien is claimed or any other interested party may Section 840.10 (1) (a) imposes the requirement of recording a lis pendens on the
file with the clerk of court in whose office the claim for lien is filed plaintiff who files a complaint and on a defendant seeking relief on a counterclaim
an undertaking executed by a surety to the effect that the person or a cross−complaint, which contains a legal description of the real estate. A defend-
ant construction lien claimant is not a plaintiff, and no cross−claim is necessary in
against whom the lien is claimed shall pay the amount of the claim order for a defendant construction lien claimant to obtain a determination of the
and all costs and damages which may be awarded against that per- amount due it and an order for sale in a lien foreclosure action. There is no logical
son on account of the lien or in lieu thereof deposit with the clerk rationale for imposing the requirements of s. 840.10 (1) (a) on a defendant construc-
tion lien claimant because it unnecessarily files a cross−claim seeking relief it is enti-
of the court a sum of money, certified check or negotiable govern- tled to under ss. 779.09 to 779.11. Carolina Builders Corp. v. Dietzman, 2007 WI App
ment bonds in par value equal to 125 percent of the claim for lien. 201, 304 Wis. 2d 773, 739 N.W.2d 53, 06−3180.
The court in which any action to foreclose the lien may be brought
shall determine any question of sufficiency of the surety if excep- 779.10 Judgment. The judgment shall adjudge the amount
tion is taken thereto by the lien claimant within 10 days after due to each claimant who is a party to the action. It shall direct that
notice of the filing of such undertaking or deposit of other security the interest of the owner in the premises at the commencement of
and may upon notice and upon motion of any party, order any sum the performing, furnishing, or procuring the labor, services, mate-
of money deposited to be invested. The clerk of court shall rials, plans, or specifications for which liens are given and which
remove the lien from the judgment and lien docket upon the the owner has since acquired, or so much thereof as is necessary,
court’s order approving the surety in substitution for the lien. The be sold to satisfy the judgment, and that the proceeds be brought
depositor shall be entitled to any income from the investments, into court with the report of sale to abide the order of the court.
certified check or negotiable U.S. government bonds deposited If the premises can be sold in parcels without injury to the parties,
and the clerk shall pay the income to the depositor without order the court may adjudge that the sale be so made. If the plaintiff fails
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

7 Updated 21−22 Wis. Stats. LIENS 779.14

to establish a lien upon the premises but does establish a right to (2) Provisions making the contract subject to the laws of
recover for labor, services, materials, plans, or specifications, the another state or requiring that any litigation, arbitration or other
plaintiff may have a judgment against the party liable. dispute resolution process on the contract occur in another state.
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.10; 2005 a. 204. (3) Provisions making a payment to a prime contractor from
any person who does not have a contractual agreement with the
779.11 Distribution of proceeds of sale. The several subcontractor, supplier, or service provider a condition precedent
claimants whose liens were established in the action shall be paid to a prime contractor’s payment to a subcontractor, supplier, or
without priority among themselves. If the sum realized at the sale service provider. This subsection does not prohibit contract provi-
under s. 779.10 is insufficient after paying the costs of the action
sions that may delay a payment to a subcontractor until the prime
and the costs of making the sale to pay the liens in full they shall
contractor receives payment from any person who does not have
be paid proportionally.
History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 110 s. 60 (12); Stats. 1979 s. 779.11.
a contractual agreement with the subcontractor, supplier, or ser-
vice provider.
779.12 Sale; notice and report; deficiency judgment; History: 1993 a. 213 ss. 164, 165; Stats. 1993 s. 779.135; 2005 a. 204.
Sub. (1) voids a contract provision that requires a subcontractor to waive its right
writ of assistance. (1) All sales under judgments in accord- to a construction lien before it can get paid. Section 779.05 (1) specifically allows
ance with s. 779.10 shall be noticed, conducted and reported in the a subcontractor who has signed a contract containing a lien waiver provision to refuse
to furnish the waiver unless paid in full for the work or material to which the waiver
manner provided for the sale of real estate upon execution and relates. Thus, a subcontractor facing a void construction lien waiver contract provi-
shall be absolute and without redemption. In case such sale is con- sion has a choice: it can either tender a lien waiver prior to being paid or refuse to
firmed, the deed given thereon shall be effectual to pass to the pur- do so until it is paid. Tri−State Mechanical, Inc. v. Northland College, 2004 WI App
100, 273 Wis. 2d 471, 681 N.W.2d 302, 03−2182.
chaser all that interest in the premises which is directed to be sold. A contractual forum selection clause requiring litigation in another state contra-
(2) If any deficiency arises upon the sale in the payment of the vened sub. (2) and was void. McCloud Construction, Inc. v. Home Depot USA, Inc.,
sums adjudged to be due to any lien claimant, the court, upon con- 149 F. Supp. 2d 695 (2001).
firming the sale, may render judgment for the deficiency if
demanded in the pleadings against the defendant legally liable to 779.14 Public works, form of contract, bond, remedy.
pay the deficiency. The judgment may be entered in the judgment (1) DEFINITION. In this section, “subcontractor, supplier, or ser-
and lien docket and enforced in the same manner that ordinary vice provider” means the following:
judgments are. The purchasers at the sale shall be entitled to a writ (a) Any person who has a direct contractual relationship,
of assistance under s. 815.63 to obtain possession of the premises expressed or implied, with the prime contractor or with any sub-
sold. contractor of the prime contractor to perform, furnish, or procure
History: Sup. Ct. Order, 67 Wis. 2d 585, 775 (1975); 1979 c. 32 ss. 57, 92 (9); labor, services, materials, plans, or specifications, except as pro-
Stats. 1979 s. 779.12; 1995 a. 224. vided in par. (b).
779.13 Satisfaction of judgment or lien; correction of (b) With respect to contracts entered into under s. 84.06 (2) for
errors. (1) Every lien claimant, or the attorney who executed highway improvements, any person who has a direct contractual
and filed a claim for lien on the claimant’s behalf, who has relationship, expressed or implied, with the prime contractor to
received satisfaction or tender of the claim with the costs of any perform, furnish, or procure labor, services, materials, plans, or
action brought on the claim shall, at the request of any person specifications.
interested in the premises affected and on payment of the costs of (1e) CONTRACT REQUIREMENTS REGARDING DUTIES OF PRIME
satisfying the same, execute and deliver the necessary satisfaction CONTRACTOR. (a) All contracts involving $10,000 or more for per-
to the interested person. On filing the satisfaction with the clerk forming, furnishing, or procuring labor, services, materials, plans,
of circuit court, the clerk of circuit court shall enter satisfaction of or specifications, when the same pertains to any public improve-
the claim on the judgment and lien docket. Failure to execute and ment or public work shall contain a provision for the payment by
deliver the satisfaction or to satisfy the lien on the judgment and the prime contractor of all claims for labor, services, materials,
lien docket shall render the person so refusing liable to pay to the plans, or specifications performed, furnished, procured, used, or
person requiring the satisfaction a sum equal to one−half of the consumed that pertain to the public improvement or public work.
sum claimed in the claim for lien. (b) All contracts that are in excess of $30,000 and that are for
(2) Every lien claimant, or the attorney who executed and filed performing, furnishing, or procuring labor, services, materials,
a claim for lien on the claimant’s behalf, who has received from plans, or specifications for a public improvement or public work
any person interested in the premises described in the claim a writ- shall contain a provision under which the prime contractor agrees,
ten statement that the premises described in the claim are not in to the extent practicable, to maintain a list of all subcontractors,
fact the premises on which the claimant performed, furnished, or suppliers, and service providers performing, furnishing, or
procured the labor, services, materials, plans, or specifications to procuring labor, services, materials, plans, or specifications under
which the claim relates together with a written demand that the the contract.
claim be satisfied of record shall, if in fact the statement of such (1m) PAYMENT AND PERFORMANCE ASSURANCE REQUIREMENTS.
person about the mistaken description is true, promptly satisfy the (c) State contracts. The following requirements apply to con-
lien claim of record at the lien claimant’s expense. Failure to sat- tracts with the state for performing, furnishing, or procuring labor,
isfy the lien claim of record within a reasonable time, if in fact the services, materials, plans, or specifications for a public improve-
statement asserting the mistaken description is true, shall render ment or public work:
the person so failing liable to pay to the person demanding the sat- 1. In the case of a contract with a contract price exceeding
isfaction a sum equal to one−half of the sum claimed in the claim $16,000 but not exceeding $148,000:
for lien.
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.13; 1995 a. 224; 2005 a. The contract shall include a provision which allows the
a. 204. state to make direct payment to subcontractors or to pay the prime
contractor with checks that are made payable to the prime contrac-
779.135 Construction contracts, form of contract. The tor and to one or more subcontractors. This subd. 1. a. does not
following provisions in contracts for the improvement of land in apply to any contract entered into by the state under authority
this state are void: granted under chs. 84, 85 and 86. This subd. 1. a. also does not
(1) Provisions requiring any person entitled to a construction apply to any contract with a town, city, village, county or school
lien to waive his or her right to a construction lien or to a claim district for the construction, improvement, extension, repair,
against a payment bond before he or she has been paid for the replacement or removal of a transportation facility, as defined
labor, services, materials, plans, or specifications that he or she under s. 84.185 (1) (d); bikeway, as defined under s. 84.60 (1) (a);
performed, furnished, or procured. bridge; parking lot or airport facility.
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.14 LIENS Updated 21−22 Wis. Stats. 8

b. The contract shall comply with written standards estab- or removal of a transportation facility, as defined under s. 84.185
lished by the department of administration. Written standards (1) (d); bikeway, as defined under s. 84.60 (1) (a); bridge; parking
established under this subd. 1. b. shall include criteria for deter- lot or airport facility.
mining whether the contract requires payment or performance b. Except as provided in sub. (4), the contract shall require the
assurances and, if so, what payment or performance assurances prime contractor to provide a payment and performance bond
are required. meeting the requirements of par. (e), unless the public body autho-
2. In the case of a contract with a contract price exceeding rized to enter into the contract allows the prime contractor to sub-
$148,000 but not exceeding $369,000: stitute a different payment assurance for the payment and perfor-
a. The contract shall include a provision which allows the mance bond. The public body may allow a prime contractor to
state to make direct payment to subcontractors or to pay the prime substitute a different payment and performance assurance for the
contractor with checks that are made payable to the prime contrac- payment and performance bond only if the substituted payment
tor and to one or more subcontractors. This subd. 2. a. does not and performance assurance is for an amount at least equal to the
apply to any contract entered into by the state under authority contract price and is in the form of a bond, an irrevocable letter of
granted under chs. 84, 85 and 86. This subd. 2. a. also does not credit or an escrow account acceptable to the public body. The
apply to any contract with a town, city, village, county or school public body shall establish written standards under this subd. 2. b.
district for the construction, improvement, extension, repair, governing when a different payment and performance assurance
replacement or removal of a transportation facility, as defined may be substituted for a payment and performance bond under
under s. 84.185 (1) (d); bikeway, as defined under s. 84.60 (1) (a); par. (e).
bridge; parking lot or airport facility. 3. Except as provided in sub. (4), in the case of a contract with
b. The contract shall require the prime contractor to provide a contract price exceeding $148,000 the contract shall require the
a payment and performance bond meeting the requirements of par. prime contractor to obtain a payment and performance bond meet-
(e), unless the department of administration allows the prime con- ing the requirements under par. (e).
tractor to substitute a different payment assurance for the payment (e) Bonding requirements. 2. A bond required under par. (c)
and performance bond. The department of administration may or (d) shall carry a penalty of not less than the contract price, and
allow a prime contractor to substitute a different payment and per- shall be conditioned for all of the following:
formance assurance for the payment and performance bond only a. The faithful performance of the contract.
after the contract has been awarded and only if the substituted pay- b. The payment to every person, including every subcontrac-
ment and performance assurance is for an amount at least equal to tor, supplier, or service provider, of all claims that are entitled to
the contract price and is in the form of a bond, an irrevocable letter payment for labor, services, materials, plans, or specifications
of credit or an escrow account acceptable to the department of performed, furnished, or procured for the purpose of making the
administration. The department of administration shall establish public improvement or performing the public work as provided in
written standards under this subd. 2. b. governing when a different the contract and sub. (1e) (a).
payment and performance assurance may be substituted for a pay- 3. A bond required under par. (c) shall be approved for the
ment and performance bond under par. (e). state by the state official authorized to enter the contract. A bond
3. In the case of a contract with a contract price exceeding required under par. (d) shall be approved for a county by its corpo-
$369,000 the contract shall require the prime contractor to obtain ration counsel, for a city by its mayor, for a village by its president,
a payment and performance bond meeting the requirements under for a town by its chairperson, for a school district by its president
par. (e). and for any other public board or body by the presiding officer
(d) Local government contracts. The following requirements thereof.
apply to contracts, other than contracts with the state, for perform- 4. No assignment, modification or change of the contract,
ing, furnishing, or procuring labor, services, materials, plans, or change in the work covered thereby or extension of time for the
specifications for a public improvement or public work: completion of the contract may release the sureties on a bond
1. In the case of a contract with a contract price exceeding required under par. (c) or (d).
$16,000 but not exceeding $74,000: 5. Neither the invitation for bids nor the person having power
a. The contract shall include a provision which allows the to approve the prime contractor’s bond may require that a bond
governmental body that is authorized to enter into the contract to required under par. (c) or (d) be furnished by a specified surety
make direct payment to subcontractors or to pay the prime con- company or through a specified agent or broker.
tractor with checks that are made payable to the prime contractor (f) Direct purchase contracts. Paragraphs (c) and (d) do not
and to one or more subcontractors. This subd. 1. a. does not apply apply to a contract for the direct purchase of materials by the state
to any contract with a town, city, village, county or school district or by a local unit of government.
for the construction, improvement, extension, repair, replacement (2) ACTIONS ON A PERFORMANCE AND PAYMENT BOND. (a)
or removal of a transportation facility, as defined under s. 84.185 Except as provided in par. (am), no later than one year after the
(1) (d); bikeway, as defined under s. 84.60 (1) (a); bridge; parking completion of work under the contract, any party in interest,
lot or airport facility. including any subcontractor, supplier, or service provider, may
b. The contract shall comply with written standards estab- maintain an action in that party’s name against the prime contrac-
lished by the public body authorized to enter into the contract. tor and the sureties upon the bond for the recovery of any damages
Written standards established under this subd. 1. b. shall include sustained by reason of any of the following:
criteria for determining whether the contract requires payment or 1. Failure of the prime contractor to comply with the contract.
performance assurances and, if so, what payment or performance 2. Except as provided in subd. 3., failure of the prime contrac-
assurances are required. tor or a subcontractor of the prime contractor to comply with a
2. In the case of a contract with a contract price exceeding contract, whether express or implied, with a subcontractor, sup-
$74,000 but not exceeding $148,000: plier, or service provider for performing, furnishing, or procuring
a. The contract shall include a provision which allows the labor, services, materials, plans, or specifications for the purpose
governmental body that is authorized to enter into the contract to of making the public improvement or performing the public work
make direct payment to subcontractors or to pay the prime con- that is the subject of the contract with the governmental entity.
tractor with checks that are made payable to the prime contractor 3. With respect to contracts entered into under s. 84.06 (2) for
and to one or more subcontractors. This subd. 2. a. does not apply highway improvements, failure of the prime contractor to comply
to any contract with a town, city, village, county or school district with a contract, whether express or implied, with a subcontractor,
for the construction, improvement, extension, repair, replacement supplier, or service provider of the prime contractor for perform-
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

9 Updated 21−22 Wis. Stats. LIENS 779.155

ing, furnishing, or procuring labor, services, materials, plans, or supervises, or administers any labor, services, materials, plans, or
specifications for the purpose of making the highway improve- specifications used or consumed in making public improvements
ment that is the subject of the contract with the governmental or performing public work, to any prime contractor, except in cit-
entity. ies of the 1st class, shall have a lien on the money or bonds or war-
(am) 1. Except as provided in subd. 2., a subcontractor, sup- rants due or to become due the prime contractor therefor, if the
plier, or service provider may maintain an action under par. (a) lienor, before payment is made to the prime contractor, serves a
only if the subcontractor, supplier, or service provider has served written notice of the claim on the debtor state, county, town, or
a written notice on the prime contractor that the subcontractor, municipality. The debtor shall withhold a sufficient amount to pay
supplier, or service provider has performed, furnished, or pro- the claim and, when it is admitted by the prime contractor or estab-
cured, or will perform, furnish, or procure labor, services, materi- lished under sub. (3), shall pay the claim and charge it to the prime
als, plans, or specifications to the public work or improvement. contractor. Any officer violating the duty hereby imposed shall
The notice must be served no later than 60 days after the date on be liable on his or her official bond to the claimant for the damages
which the subcontractor, supplier, or service provider first per- resulting from the violation. There shall be no preference between
formed, furnished, or procured the labor, services, materials, the lienors serving the notices.
plans, or specifications. (2) Service of the notice under sub. (1) shall be made upon the
2. A notice under subd. 1. is not required if any of the follow- clerk of the municipality or in the clerk’s absence upon the trea-
ing applies: surer. If any of the money due the prime contractor is payable by
a. The contract for performing, furnishing, or procuring the the state, service of the notice under sub. (1) shall be served upon
labor, services, materials, plans, or specifications does not exceed the state department, board, or commission having jurisdiction
$5,000. over the work. A copy of the notice shall be served concurrently
b. The action is brought by an employee of the prime contrac- upon the prime contractor.
tor, subcontractor, supplier, or service provider. (3) If a valid lien exists under sub. (1) and the prime contractor
c. The subcontractor, supplier, or service provider is listed in does not dispute the claim within 30 days after service on the
the list required to be maintained under sub. (1e) (b) or in a written prime contractor of the notice provided in sub. (2), by serving
contract, or in a document appended to a written contract, between written notice on the debtor state, county, town, or municipality
a subcontractor, supplier, or service provider and the prime con- and the lien claimant, the amount claimed shall be paid over to the
tractor. claimant on demand and charged to the prime contractor pursuant
(b) If the amount realized on the bond is insufficient to satisfy to sub. (1). If the prime contractor disputes the claim, the right to
all claims of the parties in full, it shall be distributed among the a lien and to the moneys in question shall be determined in an
parties proportionally. action brought by the claimant or the prime contractor. If the
(3) ACTIONS BY A COUNTY. In an action by a county upon the action is not brought within 3 months from the time the notice
bond all persons for whose protection it was given and who make required by sub. (1) is served, and notice of bringing the action
claim thereunder may be joined in the action. The county highway filed with the officer with whom the claim is filed, the lien rights
commissioner may take assignments of all demands and claims are barred.
for labor, services, materials, plans, or specifications and enforce (4) (a) When the total of the lien claims exceeds the sum due
the same in the action for the benefit of the assignors, and the judg- the prime contractor and where the prime contractor has not dis-
ment may provide the manner in which the assignors shall be paid. puted the amounts of the claims filed, the debtor state, county,
(4) BONDING EXEMPTION. A contract with a local professional town or municipality, through the officer, board, department or
football stadium district under subch. IV of ch. 229 is not required commission with whom the claims are filed, shall determine on a
under sub. (1m) (d) 2. b. or 3. to include a provision requiring the proportional basis who is entitled to the money and shall notify all
prime contractor to provide or obtain a payment and performance claimants and the prime contractor in writing of the determination.
bond or other payment assurance. Unless an action is commenced by a claimant or by the prime con-
History: 1973 c. 90; 1975 c. 147 s. 54; 1975 c. 224; 1977 c. 418; 1979 c. 32 s. 57; tractor within 20 days after the mailing of the notice, the money
1979 c. 110 s. 60 (12); 1979 c. 176; Stats. 1979 s. 779.14; 1985 a. 225; 1987 a. 399; shall be paid out in accordance with the determination and the lia-
1989 a. 31, 290; 1995 a. 395, 432; 1997 a. 27, 39, 237; 1999 a. 167; 2005 a. 204; 2013
a. 173 s. 33; 2017 a. 59. bility of the state, county, town or municipality to any lien
A subcontractor can maintain an action against the prime contractor and the prime claimant shall cease.
contractor’s surety if the claim is brought within one year after completion of work
on the principal contract. Honeywell, Inc. v. Aetna Casualty & Surety Co., 52 Wis. (b) If an action is commenced, all claimants shall be made par-
2d 425, 190 N.W.2d 499 (1971). ties and the action shall be commenced within 3 months after
In a complaint seeking to foreclose a construction lien on a municipal arena, an acceptance of the work by the proper public authority except as
allegation that the lessee of the arena was acting as the city’s agent in contracting for
improvements to the arena was sufficient to withstand a demurrer. James W. Thomas otherwise herein provided.
Construction Co. v. City of Madison, 79 Wis. 2d 345, 255 N.W.2d 551 (1977). (c) Within 10 days after the filing of a certified copy of judg-
The liability of a prime contractor for damages to employees of a subcontractor
under sub. (2) did not include wage penalties under s. 66.293 (3) [now s. 66.0903 (3)]. ment in any such action with the officers with whom the notice
Consent to be a named party under s. 66.293 (3) [now s. 66.0903 (3)] may occur after authorized by sub. (1) is filed, the money due the prime contractor
one year when the action is for damages under s. 66.293 [now s. 66.0903] in the name shall be paid to the clerk of court to be distributed in accordance
of the plaintiffs and other similarly situated employees and was filed within the one−
year time period. Strong v. C.I.R., Inc., 184 Wis. 2d 619, 516 N.W.2d 719 (1994). with the judgment.
A prime contractor is responsible for and must provide a bond in the amount of its History: 1975 c. 147 s. 54; 1975 c. 199, 224, 422; 1979 c. 32 s. 57; 1979 c. 176;
own contract, not in the amount of the total of all prime contractors together. Golden Stats. 1979 s. 779.15; 1997 a. 39; 2005 a. 204.
Valley Supply Co. v. American Insurance Co., 195 Wis. 2d 866, 537 N.W.2d 58 (Ct. A public improvement lien under this section is subject to the waiver provision of
App. 1995), 95−0357. s. 289.05 (1) [now s. 779.05 (1)]. Since waiver of a public improvement lien disposes
Completion of work under a contract under sub. (2) occurs when a contractor has of the lien itself, the refiling of a claim for a lien after a waiver was a nullity and the
completed the work, not when the work is accepted. Arbor Vitae−Woodruff Joint fact that the claim was not disputed following the refiling did not revive the lien.
School District No. 1 v. Gulf Insurance Co., 2002 WI App 24, 250 Wis. 2d 637, 639 Druml Co. v. City of New Berlin, 78 Wis. 2d 305, 254 N.W.2d 265 (1977).
N.W.2d 788, 01−0993. In a complaint seeking to foreclose a construction lien on a municipal arena, an
The deletion of former sub. (1m) (b) 1., 1995 stats., which specifically required a allegation that the lessee of the arena was acting as the city’s agent in contracting for
municipality to require a prime contractor to furnish a bond, did not eliminate munici- improvements to the arena was sufficient to withstand a demurrer. James W. Thomas
pal liability in the event the municipality fails to ensure the existence of a contractor’s Construction Co. v. City of Madison, 79 Wis. 2d 345, 255 N.W.2d 551 (1977).
bond. Holmen Concrete Products Co. v. Hardy Construction Co., 2004 WI App 165,
276 Wis. 2d 126, 686 N.W.2d 705, 03−3335.
779.155 Judgment creditors, attachment of funds due
779.15 Public improvements; lien on money, bonds, or to public contractors. (1) LIMITATIONS. This section does not
warrants due the prime contractor; duty of officials. apply to cases covered by s. 812.42. Demands covered by s.
(1) Any person who performs, furnishes, procures, manages, 779.15 have priority over judgments filed under this section. The
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.155 LIENS Updated 21−22 Wis. Stats. 10

remedies afforded by s. 779.15 and by this section are comple- contractor or subcontractor for any other purpose until all claims,
mentary. except those which are the subject of a bona fide dispute and then
(2) CERTIFIED COPIES OF JUDGMENTS FILED. In this section, only to the extent of the amount actually in dispute, have been paid
“municipality” includes city, village, county, town, school dis- in full or proportionally in cases of a deficiency, is theft by the
trict, technical college district and any quasi municipal corpora- prime contractor or subcontractor of moneys so misappropriated
tion. When the state or any municipality is indebted to any prime and is punishable under s. 943.20. If the prime contractor or sub-
contractor, the owner of a judgment against the prime contractor contractor is a corporation, limited liability company, or other
may attach the debt by filing a certified copy of his or her judgment legal entity other than a sole proprietorship, such misappropri-
in the manner and subject to the conditions and limitations of this ation also shall be deemed theft by any officers, directors, mem-
section. If the debt is owed by the state upon a contract for public bers, partners, or agents responsible for the misappropriation.
improvements, the certified copy shall be filed with the officer, Any of such misappropriated moneys which have been received
board, department or commission having jurisdiction over the as salary, dividend, loan repayment, capital distribution or other-
work. Otherwise, the copy shall be filed with the department of wise by any shareholder, member, or partner not responsible for
administration. If the debt is owed by a municipality, the copy the misappropriation shall be a civil liability of that person and
shall be filed with the municipal clerk or corresponding officer. may be recovered and restored to the trust fund specified in this
The judgment creditor shall promptly notify the judgment debtor subsection by action brought by any interested party for that pur-
of the filing, within the time and as provided by s. 812.07 for ser- pose. Except as provided in this subsection, this section shall not
vice upon the defendant. create a civil cause of action against any person other than the
prime contractor or subcontractor to whom such moneys are paid
(3) PAYMENT TO JUDGMENT CREDITOR; EXCEPTION. Except as to
or become due. Until all claims are paid in full, have matured by
prime contractors on public works, the proper officers of the state
notice and filing or have expired, such money, bonds and warrants
or municipality shall pay the judgment out of moneys due the
shall not be subject to garnishment, execution, levy or attachment.
prime contractor or which become due the prime contractor, but History: 1973 c. 231; 1975 c. 409; 1979 c. 32 s. 57; Stats. 1979 s. 779.16; 2005
no payment shall be made until 30 days after the creditor has filed a. 204.
with such officers proof that the contractor had been notified of the A fiduciary relationship exists between a prime contractor and subcontractor when
filing of a copy of the judgment against the contractor. the prime contractor has received payment for a public improvement. Loehrke v.
Wanta Builders, Inc., 151 Wis. 2d 695, 445 N.W.2d 717 (Ct. App. 1989).
(4) SAME; FUNDS DUE PUBLIC PRIME CONTRACTORS. When the In this case, the court’s determination that the subcontractor did not prove its theft−
state or a municipality is indebted to a prime contractor for public by−contractor claim because the prime contractor was “solvent and always able to
pay” was incorrect as a matter of law when the evidence unquestionably showed that
improvements, payment shall not be made to the judgment credi- the prime contractor retained and used the money it owed to the subcontractor to sup-
tor until 3 months after final completion and acceptance of the port the prime contractor’s general account for payment of its own business obliga-
public work and then only out of moneys due the prime contractor tions. The fact that the prime contractor, almost a year after it refused the subcontrac-
tor’s first demand for payment and after the subcontractor’s second demand, placed
in excess of unpaid lienable claims having priority under s. the entire contract amount into the trust account of the prime contractor’s attorney
779.15. amounted to little more than a continued refusal to pay the amount owed. Century
Fence Co. v. American Sewer Services, Inc., 2021 WI App 75, 399 Wis. 2d 742, 967
(5) ADJUSTMENT OF LIEN CLAIMS. (a) For the purpose of N.W.2d 32, 19−2432.
administering this section, sworn statements of the prime contrac- In this case, when the subcontractor undisputedly completed the job as the contract
required, a question about how much work was necessary to complete the job was
tor setting forth the unpaid lien claims that have been or may be irrelevant to the question of what was owed to the subcontractor under the contract.
filed under s. 779.15 may be accepted by the proper officer, board, The prime contractor had no legitimate ground for withholding payment simply
department, or commission, unless the judgment creditor or other because it, after−the−fact, may have regretted not negotiating the contract differently.
There was no “bona fide” dispute. Century Fence Co. v. American Sewer Services,
interested person gives written notice that an action is pending to Inc., 2021 WI App 75, 399 Wis. 2d 742, 967 N.W.2d 32, 19−2432.
determine whether specified lien claims were incurred in perform- A prime contractor cannot cure its theft once the crime is completed. Century
ing the public work and the amount thereof, or to determine priori- Fence Co. v. American Sewer Services, Inc., 2021 WI App 75, 399 Wis. 2d 742, 967
N.W.2d 32, 19−2432.
ties in which event payments shall await the result of the action. Misappropriation of funds under this section was a nondischargeable debt in bank-
(b) Within 10 days after filing the certified copy of the judg- ruptcy. In re Thomas, 729 F.2d 502 (1984).
ment under sub. (2), the prime contractor shall file the sworn state-
ment in duplicate, with the proper officer, board, department or 779.17 Release of funds on filing bond. At any time after
commission, who shall immediately furnish the judgment creditor the service of a notice of lien claim or filing of judgment or pend-
with one of the statements. The judgment creditor shall have 10 ing the determination of any action commenced thereunder, the
days from the receipt thereof in which to serve the notice of pen- prime contractor shall be entitled to the release of any moneys due
dency of the court action. the prime contractor under the contract upon filing a bond, exe-
(6) PAYMENTS TO JUDGMENT CREDITOR. After the expiration of cuted by a surety company duly authorized to transact business in
the 3−month period, the moneys due the prime contractor in this state, with the public authority having jurisdiction over the
excess of unpaid lienable expenses and claims incurred in per- work, guaranteeing that the prime contractor will pay any judg-
ment of the court rendered in favor of the lien claimant and all
forming the public work shall be paid to the judgment creditor, but
judgments filed. Such bond shall be in an amount sufficient to
not exceeding the amount due on the judgment.
insure payment of the lien claims and judgments, and shall be
(7) PRIORITY OF JUDGMENTS OVER ASSIGNMENTS. Any judg- approved as to form and amount by the public authority.
ment filed under this section has priority over an assignment made History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.17; 2005 a. 204.
by the prime contractor after the commencement of the action in
which the judgment was obtained.
History: 1971 c. 154; Sup. Ct. Order, 67 Wis. 2d 585, 775 (1975); 1975 c. 218; SUBCHAPTER II
1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.155; 1993 a. 80, 399, 486;
1999 a. 185; 2001 a. 38; 2005 a. 204.
OTHER LIENS
779.16 Theft by contractors. All moneys, bonds or war-
rants paid or to become due to any prime contractor or subcontrac- 779.18 Log liens; priority. (1) Any person who, personally
tor for public improvements are a trust fund only in the hands of or by a beast or machine or vehicle, performs any services in cut-
the prime contractor or subcontractor to the amount of all claims ting, hauling, running, felling, piling, driving, rafting, booming,
due or to become due or owing from the prime contractor or sub- cribbing, towing, sawing, peeling, kiln drying or manufacturing
contractor for labor, services, materials, plans, and specifications logs, timber, stave bolts, heading staves, pulp wood, cordwood,
performed, furnished, or procured for the improvements, until all firewood, railroad ties, piling, telegraph poles, telephone poles,
the claims have been paid, and shall not be a trust fund in the hands fence posts, paving timber, tan or other barks or in preparing wood
of any other person. The use of any such moneys by any prime for or manufacturing charcoal shall have a lien upon the material
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

11 Updated 21−22 Wis. Stats. LIENS 779.31

for the amount owing for the services, which shall take precedence 779.24 Lien for camp supplies. All persons furnishing sup-
of all other claims, liens or encumbrances thereon or sales thereof. plies necessary for the performing of the labor and services upon
(2) The right of lien given by this section survives any change any property mentioned in s. 779.18, at the request of the person
in the property through manufacture and the lienor has a lien upon engaging such labor or services, shall have the right of lien there-
the manufactured product as though the services had been per- for and may enforce the same by action as herein provided for the
formed directly thereon. enforcement of liens upon logs and timber.
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.18; 1981 c. 370. History: 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.24.

779.19 Petition for log lien; filing same. No demand for 779.25 Lien for joint log driving. When logs or timber of
the services may become a lien unless a petition therefor is signed different owners are so intermixed that they cannot be conve-
and verified by the claimant or by someone in the claimant’s niently separated for driving and either owner neglects to make
behalf setting forth the nature of the demand, the amount claimed, the necessary provision for driving them any other owner may
a description of the property upon which the lien is claimed and drive all such logs or timber to the destination and shall receive
that the petitioner claims a lien thereon. The petition shall be filed reasonable compensation for driving the logs of the owner so
in the office of the clerk of the circuit court of the county in which neglecting and shall have a lien for such compensation and may
the services or some part thereof were performed within 3 months enforce the same as provided for the enforcement of liens upon
after the last day of performing continuous services, and the ser- logs or timber.
History: 1979 c. 32 s. 57; Stats. 1979 s. 779.25.
vices shall be deemed continuous notwithstanding a change of
ownership in the property on which the lien is claimed. The clerk 779.26 Lien of improvement companies. Every com-
shall receive the fee prescribed in s. 814.61 (5) for filing the peti- pany whose charter authorizes it to collect tolls on logs, lumber or
tion. timber shall have a lien thereon, with the remedies herein given to
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.19; 1981 c. 317. enforce liens for labor and services in respect to logs or timber.
History: 1979 c. 32 s. 57; Stats. 1979 s. 779.26.
779.20 Action to enforce log lien; parties; costs;
change of venue. (1) An action to enforce any lien under s. 779.28 Execution. In actions to enforce liens on property
779.18 may be brought in the circuit court of the county where the mentioned in s. 779.18 the execution, in addition to the directions
petition is filed. This claim shall cease to be a lien unless an action of ordinary executions upon judgments for money, shall direct
to foreclose it is commenced within 4 months after filing the peti- that the property upon which a lien is found to exist or so much
tion. If the claim is not due at the time of filing the petition the time thereof as may be necessary for such purpose be sold to satisfy the
when the claim will become due shall be stated in the petition, and judgment.
in this case the claim shall not cease to be a lien until 30 days after History: 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.28.
the claim has become due and until 4 months after the filing of the
petition. 779.29 Intervention. In an action for the enforcement of a
lien upon property under s. 779.18 a person not a party may, at any
(2) Where the property subject to such lien has been taken time before sale of the property upon which a lien is claimed,
from the county where such work was done the lienor may bring become a party defendant by filing with the clerk of the court
an action to foreclose the lien in any county where said property where the action is pending an affidavit made in behalf of or by
may be found. In all foreclosure actions the person liable for such the person that the person is the owner of or of some interest in the
claim shall be made defendant and any other person claiming to property upon which a lien is claimed and believes that the claim
own or have any interest in such property may be made a defend- for lien is invalid. Upon filing this affidavit the person may defend
ant, but shall not be liable for costs unless defending the action. this action so far as a claim for a lien is concerned. If judgment
In actions appealed from municipal court no change of venue shall has been previously rendered for a lien, the person may move the
be allowed except for prejudice of the judge or of the people. court for relief from the judgment within 20 days after the filing
History: 1977 c. 449; 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.20.
of the affidavit. The right to file an affidavit shall not extend
beyond one year from the rendition of the judgment.
779.21 Attachment, affidavit for; undertaking; service History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.29; 1983 a. 219.
of writ. (1) The plaintiff in this action may have remedy by Judicial Council Note, 1983: This section is amended by repealing an appeal pro-
attachment of the property upon which the lien is claimed as in cedure and substituting the right to move the trial court for relief from its judgment.
personal actions; this attachment may be issued, served and [Bill 151−S]
returned and like proceedings had thereon including the release of 779.30 Undertaking by intervenor; procedure. The fil-
any attached property as in personal actions. The affidavit for the ing of an affidavit under s. 779.29 shall not stay execution unless
attachment must state that the defendant who is personally liable the intervenor files an undertaking, with 2 or more sureties, who
is indebted to the plaintiff in the sum named, above all setoffs, for shall each justify in a sum equal to double the amount of the judg-
services which entitle the plaintiff to a lien, describe the property ment, conditioned that if the plaintiff establishes the right to a lien
on which it is claimed that the services were performed and that on the property they will pay the amount of judgment in the plain-
the plaintiff has filed the petition for a lien pursuant to law. No tiff’s favor with costs; the undertaking shall be approved by the
other fact need be stated. No order may be made by any court or judge of the court; and upon filing it all proceedings upon the judg-
any judge thereof requiring an undertaking or security for costs ment shall be stayed during the pendency of the proceedings. If
except upon 10 days’ notice to the plaintiff. execution has been previously issued the same shall, upon pre-
(2) The writ of attachment shall direct the officer to attach the senting to the officer in whose custody it may be a certified copy
property described or so much thereof as shall be necessary to sat- of the affidavit and undertaking, be returned, and all property in
isfy the sum claimed to be due and to hold the same subject to fur- which the intervenor claims an interest that may have been levied
ther proceedings in the action. The officer shall make return but upon shall be released from the levy. If upon the trial the plaintiff
it shall not be necessary for the officer to make an inventory or recovers judgment of lien upon this property the judgment may be
appraisal of the property attached; the officer shall pay any entered against the intervenor and sureties; but if the plaintiff does
charges that may be due for booming or driving the property not establish the right to a lien the intervenor shall recover judg-
attached, and the amount paid shall be taxed as costs. Where per- ment for costs.
sonal service of the summons and writ of attachment cannot be History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.30; 1983 a. 219.
made service shall be made as provided for service of summons
on nonresidents or persons who cannot be found as in other 779.31 Cook’s lien. The person who prepares or serves the
actions. food for persons while they are performing lienable services upon
History: 1977 c. 449; 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.21. any property mentioned in s. 779.18, at the request of their
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.31 LIENS Updated 21−22 Wis. Stats. 12

employer shall have the right of lien therefor the same as those (b) In the case of a lien under sub. (2) (b), at least 30 days before
persons. the conveyance of the commercial real estate subject to the buyer
History: 1975 c. 94 s. 91 (9); 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.31. agency agreement.
(4) PERFECTION OF LIEN. (a) A lien under this section is per-
779.32 Commission liens. (1) DEFINITIONS. In this sec- fected when a broker records a lien in the office of the register of
tion: deeds for the county in which the commercial real estate is
(a) “Broker” means a real estate broker licensed under ch. 452. located. The lien must be perfected no later than the following:
(b) “Commercial real estate” means any real property other 1. In the case of a lien under sub. (2) (a) or (b), 30 days after
than any of the following: the date that the conveyance documents are recorded with the reg-
1. Real property containing 8 or fewer dwelling units. ister of deeds in the county where the real property, that is the sub-
2. Real property that is zoned for residential purposes and that ject of the listing contract or buyer agency agreement, is located.
does not contain any buildings or structures. 2. In the case of a lien under sub. (2) (c), 90 days after the later
3. Real property that is zoned for agricultural purposes. of the following:
(c) “Financial institution” has the meaning given in s. 214.01 a. The date that the broker earns a commission or compensa-
(1) (jn). tion that gives rise to a lien under this section. For purposes of this
subd. 2. a., a commission or compensation is considered earned
(d) “Tenant representation agreement” means an agency
on the date that payment of it is due under the lease, tenant repre-
agreement between a broker and a person that grants the broker the
sentation agreement, or management agreement.
right to represent the person in the lease of commercial real estate.
b. The date that the broker receives notice that he or she has
(2) LIEN. If a broker complies with the notice requirements earned a commission or compensation that gives rise to a lien
under sub. (3) and perfects the lien under sub. (4), all of the follow- under this section. For purposes of this subd. 2. b., a commission
ing apply: or compensation is considered earned on the date that the payment
(a) If the broker has earned a commission under a written com- of it is due under the lease, tenant representation agreement, or
mercial real estate listing contract, the broker has a lien for the management agreement.
unpaid amount of the commission against the commercial real (b) The lien shall be signed by the broker and shall include all
estate, or the interest in commercial real estate, that is listed with of the following information:
the broker under the contract.
1. The name and license number of the broker.
(b) If the broker has earned a commission under a written com-
mercial real estate buyer agency agreement or tenant representa- 2. The name of the owner or acquirer of the commercial real
tion agreement, the broker has a lien for the unpaid amount of the estate that is subject to the lien.
commission against the commercial real estate, or the interest in 3. The legal description of the commercial real estate that is
commercial real estate, that is acquired as a result of the agree- subject to the lien.
ment. 4. The amount of the lien at the time the lien is recorded.
(c) If the broker has earned compensation from the owner or (c) A broker shall mail a copy of the lien to the owner or
landlord under a written agreement for the lease or management acquirer of the commercial real estate that is subject to the lien
of commercial real estate or under a tenant representation agree- within 72 hours after the recording of the lien under par. (a). A lien
ment, the broker has a lien for the unpaid amount of the compensa- under this section is effective only from the date that it is perfected
tion against the commercial real estate for which the leasing or under this subsection.
management services were provided under the agreement. (d) A lien that is perfected under this subsection by a broker
(2m) NOTICE OF LIEN RIGHTS. (a) To claim a lien under sub. secures all unpaid commissions or compensation that is due that
(2), the broker shall notify the person who owes the commission broker with respect to the commercial real estate subject to that
or compensation described in sub. (2) (a), (b), or (c) in writing of lien, regardless of whether the commission or compensation was
the right to claim a lien under this section. A broker shall include earned at the time the lien was recorded.
the notice required under this subsection in the commercial real (4m) DUTY OF REGISTER OF DEEDS. If a lien meets the require-
estate listing contract, commercial real estate buyer agreement, ments under sub. (4), the register of deeds shall accept the lien for
tenant representation agreement, or written agreement for the recording. The register of deeds shall index the lien under the
lease or management of commercial real estate. name of the owner or acquirer of the commercial real estate who
(b) The notice required under this subsection shall be in sub- is subject to the lien. If the register of deeds maintains a tract
stantially the following form: index, the register of deeds shall also index the lien under the legal
NOTICE: A broker has the authority under section 779.32 of description of the real estate against which a lien is claimed.
the Wisconsin Statutes to file a broker lien for commissions or (5) PRIORITY. A lien under this section shall have priority over
compensation earned but not paid when due against the commer- all other liens on the commercial real estate, except tax and special
cial real estate, or the interest in the commercial real estate, that assessment liens, liens created under subch. I of ch. 779, purchase
is the subject of this agreement. money mortgages, liens that are filed or recorded before the lien
(3) NOTICE OF INTEREST. In addition to the requirements of under this section is perfected and any other lien given priority
sub. (2m), to claim a lien under sub. (2) (a) or (b), the broker shall under the law.
record a written notice of interest under this section at the office (8) SATISFACTION OF THE LIEN. (a) Upon the request of any per-
of the register of deeds for the county in which the commercial real son interested in the real estate that is the subject of a lien under
estate is located. A notice required under this subsection shall this section, the broker shall execute and deliver a satisfaction of
contain the name of each party to the agreement under which the lien to the interest party, if one of the following conditions is met:
interest is claimed, the date that the agreement was entered into 1. The person owing the commission or compensation pays
and a description of the commercial real estate that is subject to the the broker in full the amount specified in the lien.
lien rights. A notice required under this subsection shall be pro- 2. The person owing the commission or compensation pays
vided within the following time periods: an amount equal to 125 percent of the commission or compensa-
(a) In the case of a lien under sub. (2) (a), at least 30 days before tion owed into the trust account of the broker, the trust account of
the conveyance of the commercial real estate subject to the listing any attorney who does not represent any party to the dispute and
contract. who is in good standing with the State Bar of Wisconsin, or to a
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

13 Updated 21−22 Wis. Stats. LIENS 779.40

mutually agreed−upon 3rd party. The moneys shall be held in mine or manufactory, and, subject to s. 779.36 (2), all of the
escrow until disbursed pursuant to the written mutual agreement employer’s interest in any real estate connected with the mining,
of the parties or pursuant to a court order. smelting or manufacturing business. The lien under this section
3. If the parties to the contract or agreement giving rise to the shall take precedence of all other debts, judgments, decrees, liens
lien agree to binding arbitration regarding the disputed commis- or mortgages against the employer, except liens accruing for
sion or compensation and if the parties to the contract or agree- taxes, fines or penalties and liens under ss. 292.31 (8) (i) and
ment, other than the broker, agree to pay all of the costs of the arbi- 292.81, subject to the exceptions and limitations contained in this
tration. subchapter.
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.35; 1993 a. 453; 1995
(am) The satisfaction of lien shall include the information a. 227; 1997 a. 27, 254.
listed in sub. (4) (b) 1. to 3.
(b) The satisfaction of lien shall be recorded with the register 779.36 Extent of lien; filing claim. (1) Subject to sub. (2),
of deeds. the lien under s. 779.35 extends only to the amount of the interest
(c) A broker is liable to a person requesting a lien satisfaction in the real property held by the employer. In case of the employ-
under this subsection for a sum equal to 50 percent of the sum er’s death or insolvency, or of the sale or transfer of the employer’s
claimed in the lien claim, if the broker does not provide the interest in the works, mines, manufactories or business, all mon-
requested satisfaction within 30 days of the later of the following: eys that may be due for wages to any miner, mechanic or laborer
shall be a lien upon all of the property and shall be preferred and
1. The date on which the request is received by the broker. first paid out of the proceeds of the sale.
2. If the satisfaction is required under par. (a) 1., the date on (2) No claim for wages shall be a lien under s. 779.35 upon any
which the broker receives payment in full of the amount specified real estate unless the claim is filed in the office of the clerk of the
in the lien. circuit court of the county in which the real estate, upon which a
3. If the satisfaction is required under par. (a) 2., the date on lien is claimed, is situated. The claim shall be filed within 60 days
which the broker receives evidence that the requirements under after the draft, time check or order upon which the claim is
par. (a) 2. have been met. founded is due and payable, in the manner that claims for mechan-
4. If the satisfaction is required under par. (a) 3., the date on ics’ liens are required to be filed.
which the broker receives the agreement to binding arbitration. History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.36; 1997 a. 254.
5. If the satisfaction is required under par. (a) 3., the date on
which the broker receives evidence of payment of the arbitrator’s 779.37 Satisfaction of lien. If an attachment, execution or
fee. similar writ shall be issued against any employer engaged in a
business described in s. 779.35, any miner, laborer, mechanic or
(9) EXTINGUISHMENT OF NOTICE OF INTEREST. A notice of inter- other person who is entitled to claim a lien under s. 779.35 may
est expires and is extinguished if a new notice of interest is not give notice in writing of the lien claim and the amount of the lien
recorded under sub. (3) within 2 years after the recording of the claimed, verified by affidavit, to the officer holding the writ at any
original notice of interest. A notice of interest may be rescinded time before the actual sale of the property that is subject to the writ.
by the recording of a notice with the register of deeds in the county The officer shall retain out of the sale proceeds a sufficient sum
where the real property is located, indicating that the broker is no to satisfy all lien claims, which sum shall be held by the officer,
longer claiming an interest under this section. A broker shall subject to the order of the circuit court.
record a notice rescinding the notice of interest if the contract or History: 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.37; 1993 a. 486; 1997 a. 254.
agreement under which the interest was created expires or is ter-
minated. 779.38 Effect of mortgage. No mortgage or other instru-
(10) FORECLOSURE OF LIEN; PROCEDURE, PARTIES. In the fore- ment by which a lien is created shall operate to impair or postpone
closure of a lien under this section, ch. 846 shall control as far as the lien and preference given and secured to the wages and mon-
applicable. All persons who have recorded a lien under this sec- eys mentioned in s. 779.35; provided, that no lien of any mortgage
tion may join as plaintiffs, and if any do not join they may be made or judgment entered before such labor is performed shall be
defendants. All persons having liens subsequent to such lien may affected or impaired by such lien.
be joined as defendants. If any person who is a proper party is not History: 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.38.
a party to the action the person may, at any time before judgment, 779.39 Foreclosure of lien. The liens and preferences given
be made a defendant, and any person who after the commence- by ss. 779.35 to 779.38 may be foreclosed in the same manner as
ment of the action obtains a lien or becomes a purchaser may, at mechanics’ liens, and all provisions of these statutes relating to the
any time before judgment, be made a defendant. foreclosure thereof shall apply to the foreclosure of the liens so
(11) WAIVER OF LIEN. A broker may waive the lien under this given, so far as such provisions are applicable.
section in writing signed by the broker, but no action or agreement History: 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.39.
between any other persons may invalidate the lien, other than the
payment in full to the broker of the commission or compensation 779.40 Liens for labor in quarry. (1) Any person who shall
to which the lien relates. perform any labor for an employer not the owner of the real estate,
History: 1997 a. 309; 2001 a. 103; 2009 a. 348. engaged in quarrying, crushing, cutting or otherwise preparing
stone for use or for manufacturing lime and any bona fide holder
of any draft, time check or order for the payment of money due for
SUBCHAPTER III any such labor issued by such employer, shall have a lien for
wages owed and for the amount due on such draft, check or order
MINING LIENS, ETC. upon the personal property connected with such industry owned
by such employer, including interest in the product of such quarry
779.35 Mining liens. Any person who performs any labor or or factory and machinery and other personal property used in the
services for any employer engaged in or organized for the purpose operation of such quarry or factory, and all interest in any lease of
of mining, smelting or manufacturing ores or minerals, and any the real estate connected with such business, which lien shall take
bona fide holder of any draft, time check or order for the payment precedence of all other debts, judgments, decrees, liens or mort-
of money due for that labor, issued or drawn by the employer, shall gages against such employer, except taxes, fines or penalties and
have a lien for the wages due in the amount due on the draft, check mortgages or judgments recorded or entered before such labor is
or order. The lien shall be upon all of the personal property con- performed and except liens under ss. 292.31 (8) (i) and 292.81.
nected with the mining, smelting or manufacturing industry (2) The wages shall become a lien upon the property and mate-
belonging to the employer, including the ores or products of the rial mentioned in this section upon filing with the clerk of the cir-
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.40 LIENS Updated 21−22 Wis. Stats. 14

cuit court of the county in which the labor is performed within 60 lien on the boat informing them that they must take steps to obtain
days after the first of the services shall be rendered, a petition the release of the boat. To reclaim the boat, the owner or the senior
signed by the claimant and verified in behalf of or by the claimant lienholder must pay all charges that have a priority over other
under oath, setting forth the nature of the debt for which the lien security interests under this subsection and all reasonable storage
is claimed, the amount claimed, a description of the property upon charges on the boat that have accrued after 60 days from the date
which the lien is claimed and that the petitioner claims a lien that the charges for the work became past due. A reasonable effort
thereon pursuant to law. The clerk shall receive the fee prescribed to notify the owner and the holder of the senior lien satisfies the
in s. 814.61 (5) for filing the petition. notice requirement under this subdivision. Failure to make a rea-
(3) The provisions of ss. 779.20 and 779.21 shall govern the sonable effort to notify the owner and the senior lienholder renders
foreclosure of the liens here given so far as such provisions are void any lien to which the person may be entitled under this sub-
applicable. section.
History: 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s. 779.40; 1981 c. 317; (b) A lien under this subsection is in addition to any remedy
1993 a. 453; 1995 a. 225, 227; 1997 a. 27, 35, 252.
available under ch. 780.
(2) Every keeper of a garage or repair shop who alters, repairs,
SUBCHAPTER IV or does any work on any detached accessory, fitting, or part of an
automobile, a truck, a motorcycle, a moped, a motor bicycle or
MECHANIC’S LIENS, ETC. similar motor vehicle, a bicycle, an electric scooter, or an electric
personal assistive mobility device, at the request of the owner or
779.41 Mechanic’s liens. (1) Every mechanic and every legal possessor thereof, shall have a lien upon and may retain pos-
keeper of a garage or shop, and every employer of a mechanic who session of any such accessory, fitting, or part until the charges for
transports, makes, alters, repairs or does any work on personal such alteration, repairing, or other work have been paid. If the
property at the request of the owner or legal possessor of the per- detached article becomes attached to such motor vehicle, bicycle,
sonal property, has a lien on the personal property for the just and electric scooter, or electric personal assistive mobility device
reasonable charges therefor, including any parts, accessories, while in the possession of the keeper, the keeper has a lien on the
materials or supplies furnished in connection therewith and may motor vehicle, bicycle, electric scooter, or electric personal assis-
retain possession of the personal property until the charges are tive mobility device under sub. (1).
paid. The lien provided by this section is subject to the lien of any (3) Insofar as the possessory right and lien of the person per-
security interest in the property which is perfected as provided by forming labor and services under this section are released, relin-
law prior to the commencement of the work for which a lien is quished and lost by the removal of property upon which a lien has
claimed unless the work was done with the express consent of the accrued, it is prima facie evidence of intent to defraud if upon the
holder of the security interest, but only for charges in excess of removal of such property, the person removing the property issues
$1,500 except if the personal property is: any check or other order for the payment of money in payment of
(a) A trailer or semitrailer designed for use with a road tractor, the indebtedness secured by the lien, and thereafter stops payment
for charges in excess of $4,500. on the check or order. This subsection does not apply when a
(b) Road machinery, including mobile cranes and trench hoes, check is stopped because the product is improperly repaired or
farm tractors, machines of husbandry, or off−highway construc- improperly serviced and the product has been returned to the per-
tion vehicles and equipment, for charges in excess of $7,500. son performing the labor or services for proper repair or service.
(c) A motor vehicle not included under par. (a) or (b) with a (4) This section does not apply to liens on aircraft and aircraft
manufacturer’s gross weight rating, including, with respect to engines under s. 779.413.
road tractors, a manufacturer’s gross weight rating for the com- History: 1971 c. 333; 1979 c. 32 s. 57; 1979 c. 176, 252; Stats. 1979 s. 779.41;
1983 a. 243; 1987 a. 399; 1995 a. 107, 331; 1997 a. 35; 2001 a. 90; 2019 a. 11, 103.
bined carrying capacity of the tractor and trailer, of: Cross−reference: See s. 779.48 (2) for method of enforcing a mechanics’ lien.
1. More than 10,000 and less than 20,000 pounds, for charges The lien of a garage keeper who did not obtain the consent of the lienholder to make
in excess of $3,000. the repairs was limited to the statutory amount, and the garage keeper could not claim
more under a theory of unjust enrichment. Industrial Credit Co. v. Inland G.M.
2. 20,000 pounds or more but less than 40,000 pounds, for Diesel, Inc., 51 Wis. 2d 520, 187 N.W.2d 157 (1971).
charges in excess of $6,000. Upon a conditional release of personal property by the lienor, the lien is enforce-
able against all parties except a bona fide purchaser for value or a subsequent levying
3. 40,000 pounds or more but less than 60,000 pounds, for creditor with no notice of the lien. M&I Western State Bank v. Wilson, 172 Wis. 2d
charges in excess of $9,000. 357, 493 N.W.2d 387 (Ct. App. 1992).
4. 60,000 pounds or more, for charges in excess of $12,000. The legislature did not create a crime or invoke criminal penalties in enacting sub.
(3), which renders stopping payment on a check used to pay for certain repairs to per-
(1m) Annually, on January 1, the department of agriculture, sonal property “prima facie evidence of intent to defraud.” This section could operate
trade and consumer protection shall adjust the dollar amounts to establish prima facie evidence of only one of the elements of the crime of theft
defined in s. 943.20 (1) (d). 63 Atty. Gen. 81.
identified under sub. (1) (intro.), (a), (b) and (c) 1. to 4. by the
annual change in the consumer price index, as determined under
s. 16.004 (8) (e) 1., and publish the adjusted figures. 779.413 Liens on aircraft and aircraft engines. (1) In
NOTE: The department will publish the adjusted mechanic’s lien limits in the this section, “aircraft” has the meaning given in s. 29.001 (6).
December Wisconsin Administrative Register. (2) Every person, employer of a person, and keeper of a garage
(1s) (a) Subsection (1), as it applies to a mechanic, mechan- or shop engaged in repair, storage, servicing, or furnishing sup-
ic’s employer or keeper of a garage or shop, applies to a boat plies or accessories for an aircraft or an aircraft engine or provid-
mechanic, boat mechanic’s employer, person who tows a boat or ing contracts of indemnity for an aircraft, and every person,
keeper of a marina or shop at which boats are repaired, except as municipal or private, owning any airport, hangar, or aircraft ser-
follows: vice station and leasing hangar space for aircraft, shall have a lien
1. The lien provided by this subsection is subject to the lien on the aircraft or aircraft engine for any reasonable charges,
of any security interest in the boat that is perfected as provided by including charges for labor, for the use of tools, machinery, and
law prior to the commencement of the work for which the lien is equipment, and for all parts, accessories, materials, fuel, oils,
claimed unless the work was done with the express consent of the lubricants, keep or storage fees, earned premiums, and other sup-
holder of the security interest, but only for charges in excess of plies furnished. A lien under this section shall be superior to all
$1,200. liens except liens for taxes, subject to compliance with sub. (3).
2. Within 30 days after the charges for the work become past (3) A lien under this section may be asserted by the retention
due, the person claiming a lien under this subsection shall send of the aircraft or the aircraft engine, and if the lien is asserted by
written notice to the owner of the boat and the holder of the senior retention of the aircraft or aircraft engine, the lienor may not be
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

15 Updated 21−22 Wis. Stats. LIENS 779.43

required to surrender the aircraft or aircraft engine to the holder (1m) (a) Within 30 days after taking possession of a vehicle,
of a subordinate security interest or lien. If possession of the air- every motor carrier, licensed motor vehicle salvage dealer, and
craft or aircraft engine is surrendered by the person claiming the licensed motor vehicle dealer under sub. (1g) shall send written
lien, the person claiming the lien may do all of the following notice to the owner of the vehicle and the holder of the senior lien
within 180 days after the repairs, storage, services, supplies, on the vehicle informing them that they must take steps to obtain
accessories, or contracts of indemnity are furnished: the release of the vehicle.
(a) Provide written notice, subscribed and sworn to by a person (b) To repossess the vehicle, the senior lienholder must pay all
or by someone on the person’s behalf, giving an accurate account towing and storage charges that have a priority under sub. (1g) (a)
of the demands claimed to be due, with all just credits and the and all reasonable storage charges that have accrued after 60 days
name of the person to whom the repair, storage, service, supplies, from the date on which possession of the vehicle was taken. Fail-
accessories, or contracts of indemnity were furnished, the name ure to notify the senior lienholder as provided in par. (a) renders
of the owner of the aircraft or aircraft engine, if known, and a void, with respect to the senior lienholder, any lien to which the
description of the aircraft or aircraft engine sufficient for identifi- motor carrier, licensed motor vehicle salvage dealer, or licensed
cation, by personal delivery, certified mail, or statutory overnight motor vehicle dealer would otherwise be entitled under sub. (1g).
delivery, return receipt requested, to one of the following: (2) At least 20 days prior to sale or junking, notice thereof
1. The registered owner and others holding recorded interests shall be given by certified mail to the person shown to be the
in the aircraft or aircraft engine at the addresses listed in the federal owner of the vehicle in the records of the department of transporta-
aviation administration’s aircraft registry. tion and to any person who has a lien on such vehicle perfected
2. If the aircraft is not a U.S. registered aircraft or if the aircraft under ch. 342, stating that unless the vehicle owner or the owner’s
engine is not subject to recordation by the federal aviation admin- agent pays all reasonable towing and storage charges for the vehi-
istration, to the owner, if known, at his or her last known address, cle within said 20 days the vehicle will be exposed for sale or
or, if not known, to the person to whom the repair, storage, service, junked, as the case may be. If the proceeds of the sale exceed the
supplies, accessories, or contracts of indemnity were furnished. charges, the balance shall be paid to the holder of the senior lien
(b) File the written notice for recording in the federal aviation perfected under ch. 342, and if none, then to the owner as shown
administration’s aircraft registry in the manner prescribed by fed- in the records of the department of transportation.
eral law under 49 USC 44107, or, if the aircraft is not a U.S. regis- History: 1977 c. 29 s. 1654 (7) (b); 1977 c. 273; 1979 c. 32 ss. 57, 92 (9); Stats.
1979 s. 779.415; 1983 a. 213, 445; 1989 a. 320; 1995 a. 62; 2009 a. 201; 2019 a. 103.
tered aircraft or if the aircraft engine is not subject to recordation
by the federal aviation administration, in the office of the depart- 779.42 Obtaining mechanic’s services by misrepre-
ment of financial institutions or any office authorized by the sentation of interest in personal property. Any person
department of financial institutions as described under s. 409.501 who, for the purpose of inducing any mechanic, or keeper of a
(1) (b), or the appropriate recording authority, established by garage or shop, or the employer of a mechanic to transport, make,
applicable state law, international treaty, or foreign law, in the alter, repair or do any work on any personal property, makes any
manner prescribed. misrepresentation as to the nature or extent of the person’s interest
History: 2019 a. 103; 2021 a. 240 s. 30.
in said property or as to any lien upon said property shall be fined
779.415 Liens on vehicles for towing and storage. not more than $200 or imprisoned not more than 6 months or both.
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.42.
(1c) In this section, “vehicle” has the meaning given in s. 29.001
(87), but does not include aircraft under s. 779.413 (1).
779.43 Liens of keepers of hotels, livery stables,
(1g) (a) Every motor carrier holding a permit to perform vehi- garages, marinas and pastures. (1) As used in this section:
cle towing services, every licensed motor vehicle salvage dealer,
(a) “Boarding house” includes a house or other building where
and every licensed motor vehicle dealer who performs vehicle
regular meals are generally furnished or served to 3 or more per-
towing services or stores a vehicle, when such towing or storage
sons at a stipulated amount for definite periods of one month or
is performed at the direction of a traffic officer or the owner of the
less.
vehicle, shall, subject to sub. (1m) (b), have a lien on the vehicle
for reasonable towing and storage charges, and may retain posses- (b) “Lodging house” includes any house or other building
sion of the vehicle, until such charges are paid. If the vehicle is where rooms or lodgings are generally rented to 3 or more persons
subject to a lien perfected under ch. 342, a towing lien shall have received or lodged for hire, or any part of a house or other building
priority only to the extent of $100 for a vehicle having a manufac- that is let for sleep at stipulated rentals for definite periods of one
turer’s gross weight rating of 20,000 pounds or less and $350 for month or less, whether any or all of the rooms or lodgings are let
a vehicle having a manufacturer’s gross weight rating of more or used for light housekeeping or not, except that duplex flats or
than 20,000 pounds and a storage lien shall have priority only to apartment houses actually divided into residential units shall not
the extent of $10 per day but for a total amount of not more than be considered lodging houses.
$600 for a vehicle having a manufacturer’s gross weight rating of (c) “Marina” includes any property used for the storage, repair
20,000 pounds or less and $25 per day but for a total amount of not or mooring of boats, whether on land or in water.
more than $1,500 for a vehicle having a manufacturer’s gross (2) (a) Except as provided in par. (b), every keeper of an inn,
weight rating of more than 20,000 pounds. If the value of the vehi- hotel, boarding house or lodging house shall have a lien upon and
cle exceeds $750, the lien may be enforced under s. 779.48 (2). may retain possession of all baggage and other effects brought into
If the value of the vehicle does not exceed $750, the lien may only the place by any guest, boarder or lodger, whether the baggage and
be enforced by sale or junking as provided in sub. (2). effects are the property of or under the control of the guest, boarder
(b) If the vehicle is towed or stored under the directions of a or lodger, or are the property of any other person liable for the
traffic officer, any personal property within the vehicle shall be board and lodging for the proper charges owing the keeper for
released to the owner of the vehicle as provided under s. 349.13 board, lodging and other accommodation furnished to or for a
(5) (b) 2. No additional charge may be assessed against the owner guest, boarder or lodger, and for all moneys loaned, not exceeding
for the removal or release of the personal property within the vehi- $50, and for extras furnished at the written request signed by the
cle. guest, boarder or lodger, until the charges are paid. Any execution
(c) Annually, on January 1, the department of agriculture, or attachment levied upon the baggage or effects shall be subject
trade and consumer protection shall adjust the dollar amounts to the lien given by this section and the costs of satisfying it.
identified under par. (a) by the annual change in the consumer (b) The lien given by this section does not cover charges for
price index, as determined under s. 16.004 (8) (e) 1., and publish alcohol beverages nor the papers of any soldier, sailor or marine
the adjusted figures. that are derived from and evidence of military or naval service or
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.43 LIENS Updated 21−22 Wis. Stats. 16

adjusted compensation, compensation, pension, citation medal or advances, commissions or moneys are paid or such liability is dis-
badge. charged.
(3) Subject to sub. (4), every keeper of a garage, marina, livery History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.45.
or boarding stable, and every person pasturing or keeping any car-
riages, automobiles, boats, harness or animals, shall have a lien 779.46 Jeweler’s lien. Every jeweler, watchmaker or silver-
thereon and may retain the possession thereof for the amount due smith who shall do any work on any article at the request of the
for the keep, support, storage or repair and care thereof until paid. owner or legal possessor of such property, shall have a lien upon
But no garage or marina keeper shall exercise the lien upon any and may retain the possession of such article until the charges for
automobile or boat unless the keeper gives notice of the charges alteration, repair or other work have been paid.
History: 1979 c. 32 s. 57; Stats. 1979 s. 779.46.
for storing automobiles or boats on a signed service order or by
posting in some conspicuous place in the garage or marina a card 779.47 Plastics fabricator’s lien. (1) DEFINITIONS. In this
that is easily readable at a distance of 15 feet. section:
(4) (a) The lien of a marina keeper under this section is subject (a) “Plastics fabricator” means a person who uses toolings to
to the lien of any security interest in the boat that is perfected as fabricate or manufacture plastic products or a person who makes
provided by law prior to the commencement of the services for or provides toolings for use in the fabrication or manufacture of
which the lien is claimed unless the services were done with the plastic products.
express consent of the holder of the security interest, but only for (b) “Toolings” includes masters, models, patterns, tools, dies,
charges in excess of $1,200. molds, jigs, fixtures, forms and designs that are used in the fab-
(b) Within 30 days after the charges for the services of a marina rication or manufacture of plastic products.
keeper become past due, the marina keeper shall send written (2) LIEN. Subject to sub. (2m), a plastics fabricator shall have
notice to the owner of the boat and the holder of the senior lien on a lien on all toolings and plastic products in the plastics fabrica-
the boat informing them that they must take steps to obtain the tor’s possession that belong to the customer for the amount owed
release of the boat. To reclaim the boat, the owner or the senior the plastics fabricator by the customer for toolings or for plastics
lienholder must pay all charges that have a priority over other fabrication processing or work. The plastics fabricator may retain
security interests under par. (a) and all reasonable storage charges possession of the toolings until the amount owed is paid or satis-
on the boat that have accrued after 60 days from the date that the fied.
charges for the services became past due. A reasonable effort to
notify the owner and the holder of the senior lien satisfies the (2m) ATTACHMENT AND PERFECTION. A lien under sub. (2)
notice requirement under this paragraph. Failure to make a rea- attaches and is perfected 30 days after the date on which plastic
sonable effort to notify the owner and the senior lienholder renders products are delivered to the customer unless the customer noti-
void any lien to which the marina keeper may be entitled under fies the plastics fabricator within that time period that the products
this section. failed to meet an approved quality control plan, the products devi-
ated from approved samples or the products deviated from previ-
(c) A lien of a marina keeper under this section is in addition ously accepted parts and the customer returns the products within
to any remedy available under ch. 780. 60 days after the date on which the products are delivered to the
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.43; 1981 c. 79 s. 17; 1995
a. 331; 1997 a. 254; 2019 a. 103. customer.
No garage keeper’s lien is imposed under sub. (3) when storage occurs without an (3) PRIORITY. A lien under sub. (2) does not take priority over
owner’s consent. Bob Ryan Leasing v. Sampair, 125 Wis. 2d 266, 371 N.W.2d 405
(Ct. App. 1985). an existing perfected security interest.
A lien under sub. (3) is contingent on possession and is a possessory lien under s. History: 1993 a. 328.
409.333 (1) with priority over a security interest. Premier Community Bank v. Schuh,
2010 WI App 111, 329 Wis. 2d 146, 789 N.W.2d 388, 09−1722. 779.48 Enforcement. (1) Every person given a lien by ss.
Following transfer of ownership of a vehicle in possession of a garage keeper, for
the garage keeper to have a lien on the vehicle under sub. (3) enforceable against the 779.43 to 779.46, except s. 779.43 (3), or as bailee for hire, carrier,
new owner, two criteria must have been met: 1) the garage keeper must have satisfied warehouse keeper or pawnee or otherwise, by common law, may,
the notice requirements of sub. (3); and 2) the bailment of the vehicle must have been in case the claim remain unpaid for 3 months and the value of the
with the new owner’s consent. The consent required by Bob Ryan, 125 Wis. 2d 266
(1985), is necessarily limited. While a party might consent expressly, for example property affected thereby does not exceed $100, sell such property
by signing a work order, a party might also consent impliedly. Toyota Motor Credit at public auction and apply the proceeds of such sale to the claim
Corp. v. North Shore Collision, LLC, 2011 WI App 38, 332 Wis. 2d 201, 796 N.W.2d and the expenses of such sale. Notice in writing, of the time and
832, 10−0761.
place of the sale and of the amount claimed to be due shall be given
779.44 Liens of consignees. Every consignee of property to the owner of such property personally or by leaving the same
shall have a lien thereon for any money advanced or negotiable at the owner’s place of abode, if a resident of this state, and if not,
security given by the consignee to or for the use of the person in by publication thereof, in the county in which such lien accrues,
whose name the shipment of such property is made, and for any as a class 3 notice, under ch. 985. If such property exceeds in value
money or negotiable security received by such person for personal $100, then such lien may be enforced against the same by action.
use unless the consignee shall, before advancing any such money, (2) Every person given a lien by ss. 779.41, 779.413, and
or giving such security, or before it is so received for personal use, 779.43 (3) may in case the claim remains unpaid for 2 months after
have notice that such person is not the actual owner thereof. the debt is incurred, and a person given a lien under s. 779.47 (2)
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.44. may if the claim remains unpaid 90 days after the lien is perfected,
A consignment need not be for the purpose of sale. A tender of the amount due enforce such lien by sale of the property substantially in conform-
must be made and is not waived merely by an excessive demand for payment made
in good faith and in ignorance of the scope of the lien. Power Transmission Equip- ity with subch. VI of ch. 409 and the lien claimant shall have the
ment Corp. v. Beloit Corp., 55 Wis. 2d 540, 201 N.W.2d 13 (1972). rights and duties of a secured party thereunder. When such sec-
tions are applied to the enforcement of such lien the word debtor
779.45 Liens of factors, brokers, etc. Every factor, broker or equivalent when used therein shall be deemed to refer to the
or other agent entrusted by the owner with the possession of any owner of the property and any other person having an interest
bill of lading, customhouse permit, warehouse receipt or other shown by instrument filed as required by law or shown in the
evidence of the title to personal property, or with the possession records of the department of transportation, and the word indebt-
of personal property for the purpose of sale or as security for any edness or equivalent shall include all claims upon which such lien
advances made or liability incurred by the factor, broker or agent is based.
in reference to such property, shall have a lien upon such personal History: 1977 c. 29 s. 1654 (7) (b); 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats.
property for all such advances, liability incurred or commissions 1979 s. 779.48; 1983 a. 500 s. 43; 1993 a. 328; 2001 a. 10; 2005 a. 336; 2019 a. 103.
Discussing requirements of a common law lien. Even though some of the goods
or other moneys due for services as such factor, broker or agent, are returned, the lien may exist on the balance retained for the whole amount due.
and may retain the possession of such property until such Moynihan Associates, Inc. v. Hanisch, 56 Wis. 2d 185, 201 N.W.2d 534 (1972).

2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

17 Updated 21−22 Wis. Stats. LIENS 779.485

779.485 Special tools. (1) DEFINITIONS. In this section: general circulation in the place where the special tool is last known
(a) “Customer” means a person who does any of the following: to be located and in the place of the last−known address of any per-
1. Causes a special tool builder to design, develop, manufac- son for which the postal service returns a notice as undeliverable.
ture, assemble, or otherwise make a special tool. (3) MANUFACTURERS. (a) Transfer of interest. 1. Unless oth-
2. Orders a product from a manufacturer that is produced with erwise agreed by a customer and manufacturer in writing, all
a special tool or causes a manufacturer to use a special tool. rights, title, and interest of a customer in a special tool that a manu-
(b) “Intellectual property” means a design, program, or pro- facturer has used to produce parts ordered by the customer or that
cess. the customer has caused a manufacturer to use are transferred to
the manufacturer for the purpose of destroying the special tool, if
(c) “Manufacturer” means a person who uses a special tool as
all of the following are satisfied:
part of the person’s manufacturing process.
(d) “Manufacturer’s lien” means a lien described in sub. (3) a. The special tool has been in the possession of the manufac-
(b). turer during the one−year period beginning after the manufactur-
er’s last use of the special tool.
(e) “Special tool” means a tool, die, jig, gauge, gauging fixture,
metal casting, pattern, forging, machinery, ferrous or nonferrous b. The customer has not claimed possession of the special tool
machined part, or intellectual property used for the purpose of before the expiration of the one−year period specified in subd. 1.
designing, developing, manufacturing, assembling, or fabricating a.
a metal part. c. After the expiration of the one−year period specified in
(f) “Special tool builder” means a person who designs, devel- subd. 1. a., the manufacturer provides written notice by registered
ops, manufactures, fabricates, or assembles a special tool. mail, return receipt requested, to an address designated in writing
(g) “Special tool builder’s lien” means a lien described in sub. by the customer or, if the customer has made no such designation,
(2) (a) 1. to the customer’s last−known address, that indicates that the man-
ufacturer intends to terminate the customer’s rights, title, and
(2) SPECIAL TOOL BUILDERS. (a) Lien. 1. A special tool builder interest in the special tool and transfer those rights, title, and inter-
who does all of the following has a lien on a special tool in the est to the manufacturer as provided in this paragraph.
amount that a customer or manufacturer owes the special tool
builder for designing, developing, manufacturing, fabricating, d. The customer has not, within 120 days after the date that
assembling, repairing, or modifying the special tool: the manufacturer receives the return receipt of notice specified in
subd. 1. c. or within 120 days after the manufacturer provides
a. Permanently records on the special tool the special tool
notice if no return receipt is received within that period, claimed
builder’s name, street address, city, and state, or other traceable
possession of the special tool or agreed to other arrangements with
identification.
the manufacturer for storage of the special tool.
b. Files a financing statement for the special tool under subch.
V of ch. 409. 2. The one−year period specified in subd. 1. a. applies retro-
actively to special tools last used before April 29, 2006.
2. A special tool builder’s lien attaches and is perfected on the
date that both of the requirements specified in subd. 1. a. and b. are 3. This paragraph does not apply to a special tool that is titled
satisfied. to, and in the possession of, a manufacturer. This paragraph may
not be construed to grant a customer any right, title, or interest in
3. A special tool builder retains a special tool builder’s lien
a special tool.
even if the special tool builder does not have physical possession
of the special tool for which the lien is claimed. (b) Lien. A manufacturer has a lien on any special tool in the
4. A special tool builder’s lien remains valid until the first of manufacturers’ possession belonging to a customer for the
any of the following occurs: amount due the manufacturer from the customer for work per-
formed with the special tool or for making or improving the spe-
a. The customer or manufacturer pays the special tool builder cial tool. A manufacturer may retain possession of the special tool
the amount for which the special tool builder’s lien is claimed. until the amount due is paid.
b. The financing statement is terminated.
(c) Enforcement. 1. A manufacturer may not enforce a manu-
(b) Priority. An attached and perfected special tool builder’s facturers’ lien unless the manufacturer provides notice in writing
lien has priority over any other lien that subsequently attaches to to the customer, delivered personally or by registered mail to the
the special tool. last−known address of the customer, that states that the manufac-
(c) Enforcement. 1. A special tool builder may not enforce a turer is claiming a lien for the amount due described in par. (b).
special tool builder’s lien unless the builder provides notice in Except as provided in subd. 2., if the manufacturer is not paid the
writing to the customer, manufacturer, or both that owes the amount due within 90 days after the customer receives the notice,
builder the amount for which the special tool builder’s lien is and if the manufacturer is still in possession of the special tool, the
claimed. The notice shall be delivered personally or by registered manufacturer may sell the special tool at public auction under par.
mail, return receipt requested, to the last−known address of the (d).
customer, manufacturer, or both and shall state that the builder is 2. If the postal service returns a notice under subd. 1. as unde-
claiming a lien for the amount that customer, manufacturer, or liverable and if the manufacturer is still in possession of the spe-
both owes the special tool builder for designing, developing, man- cial tool, the manufacturer may sell the special tool at public auc-
ufacturing, fabricating, assembling, repairing, or modifying the tion under par. (d) no sooner than 90 days after the special tool
special tool and that the builder demands payment for the amount. builder publishes, under ch. 985, a class 1 notice of the sale in a
Except as provided in subd. 2., if the special tool builder is not paid
newspaper of general circulation in the place of the last−known
the amount claimed within 90 days after either the customer or, if
address of the customer.
applicable, the manufacturer receives the notice, whichever is
later, the builder has the right to possession of the special tool and (d) Public auction. 1. A manufacturer may not sell a special
the builder may enforce the right by any available judicial proce- tool at public auction unless the manufacturer has provided, by
dure or by taking possession of the special tool without judicial registered mail, return receipt requested, the customer and any
process, but only if the taking is done without breach of the peace. other person, including a special tool builder, who has perfected
2. If the postal service returns any notice required under subd. by filing a security interest in the special tool, a notice that
1. as undeliverable, the special tool builder may enforce the right includes all of the following:
to possession under subd. 1. no sooner than 90 days after the spe- a. A statement that the manufacturer intends to sell the special
cial tool builder publishes, under ch. 985, a class 1 notice of the tool no sooner than 60 days after receipt of the notice.
intended enforcement of the right to possession in a newspaper of b. A description of the special tool.
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.485 LIENS Updated 21−22 Wis. Stats. 18

c. The time and place of the public auction. guilty of a misdemeanor and upon conviction shall be fined not
d. An itemized statement of the amount for which the manu- more than $10 or imprisoned for not more than 60 days.
facturer’s lien is claimed. History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.49; 1993 a. 301; 1997
a. 254.
e. A statement that any product produced by the manufacturer
with the special tool complies with the quality and quantity 779.50 Lien for threshing, husking, baling; enforce-
ordered by the customer. ment. (1) (a) Every person who threshes grain, cuts, shreds,
2. Except as provided in subd. 3., a manufacturer may sell a husks or shells corn or bales hay or straw by machine for another
special tool at public auction no sooner than 60 days after the cus- shall have a lien upon the grain, corn, hay or straw for the value
tomer’s or other person’s receipt of the notice specified in subd. of the services to the extent that the person contracting for the ser-
1., whichever is later, except that, if the postal service returns any vices has an interest in the grain, corn, hay or straw, from the date
of the notices as undeliverable, the manufacturer may sell the spe- of the commencement of the service.
cial tool no sooner than 60 days after the manufacturer publishes, (b) The lien given under par. (a) may be foreclosed at any time
under ch. 985, a class 1 notice of the intended sale, that includes within 6 months from the date of the last charge for the services
the information specified in subd. 1., in a newspaper of general described in par. (a) as long as the charges remain unpaid. For the
circulation in the place where the manufacturer is holding the spe- purpose of foreclosing the lien, the lien claimant may take posses-
cial tool for sale, in the place of the customer’s last−known sion of so much of the grain, corn, hay or straw as shall be neces-
address, and in the place of the other person’s last−known address. sary to pay for the services and the expenses of enforcing the lien,
for the services, and sell the grain, corn, hay or straw at public auc-
3. If a customer disagrees with the statement specified in tion. The auction shall be held upon notice of not less than 10 nor
subd. 1. e. that is included in a notice, the customer may notify the more than 15 days from the date of the seizure of the grain, corn,
manufacturer of the disagreement in writing by registered mail, hay or straw under this paragraph.
return receipt requested. If a manufacturer receives a notification
(2) Notice of such sale shall be given personally and by post-
under this subdivision before the date of the public auction, the ing in at least three public places in the town where the debtor
manufacturer may not sell the special tool at public auction until resides, and also in the town where such sale is to be made; and
after the disagreement is resolved. if such debtor is a nonresident of the state, in the town where such
(e) Proceeds. The proceeds of a sale of a special tool under par. grain, corn, hay or straw, or some part thereof, was threshed, cut,
(d) shall, if applicable, first be paid to a prior lienholder who has husked, shelled or baled, and apply the proceeds of such sale to the
perfected a lien in an amount sufficient to extinguish that lien. payment of such service, together with the expenses of such sei-
Any excess proceeds shall next be paid to the manufacturer in an zure and sale, returning the residue to the party entitled thereto.
amount sufficient to extinguish the manufacturer’s lien. Any (3) The lien created by this section shall be preferred to all
remainder shall be paid to the customer. other liens and encumbrances, but does not apply to an innocent
History: 2005 a. 336. purchaser for value unless such lien is recorded in the office of the
register of deeds of the county where the services were performed
within 15 days from the date of the completion of such service.
SUBCHAPTER V (4) The costs and expenses of seizure and sale under this sec-
tion shall be as follows:
BREEDING ANIMAL, THRESHING LIENS, ETC. (a) For seizing grain, corn, hay or straw, 50 cents.
(b) For posting each notice, 12 cents.
779.49 Lien of owner of breeding animal or methods. (c) For serving each notice of sale, 25 cents.
(1) (a) Except as provided in par. (b), every owner of a stallion, (d) For every copy of a notice of sale delivered on request, 12
jackass or bull, or semen from a stallion, jackass or bull, kept and cents.
used for breeding purposes shall have a lien upon any dam served
and upon any offspring gotten by the animal, or by means of artifi- (e) For each mile actually traveled, going and returning to
serve any notice; or to give or post notices of sale, 10 cents.
cial insemination for the sum stipulated to be paid for the service
of the dam. The owner of the stallion, jackass or bull, used to ser- (f) For conducting the sale of the grain, corn, hay or straw, 50
vice, or semen used to artificially inseminate, the dam may seize cents.
and take possession of the dam and offspring or either without pro- (g) For collecting and paying over all sums upon the sale, 5 per-
cess at any time before the offspring is one year old, in case the cent of the sums collected or $10, whichever is less.
price agreed upon for the service remains unpaid, and sell the off- (h) All necessary expenses incurred in taking possession of
spring at public auction. The sale of the offspring shall be upon and preserving any grain, corn, hay or straw.
10 days’ notice, to be posted in at least 3 public places in the town History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.50; 1993 a. 301; 1997
a. 254; 2007 a. 96.
where the service was rendered. The proceeds of the sale shall be Sub. (1) (b) does not state that an agricultural lien is extinguished or terminated if
applied to the payment of the amount due for the service and the the lienholder chooses not to foreclose within six months of the date of the last charge.
This section provides for a permissive foreclosure process. CHS Capital, LLC v. Hel-
expenses of the seizure and sale. The residue, if any, shall be lenbrand Farms, LLC, 420 F. Supp. 3d 872 (2019).
returned to the party entitled to it.
(b) No lien given under this subsection shall be effective for
any purpose against an innocent purchaser or mortgagee of the SUBCHAPTER VII
offspring or the dam of the offspring for value unless the owner
having a claim for the service records with the register of deeds of MAINTENANCE LIENS
the county where the owner of the dam served resides a statement
showing that the service has been rendered and the amount due for 779.70 Maintenance liens. (1) Any corporation organized
the service. under the laws of this state as a nonprofit, membership corporation
(2) Any person who sells, disposes of or gives a mortgage for the purpose of maintaining, improving, policing or preserving
upon any dam which to the person’s knowledge has been served properties in which its members shall have common rights of
by a stallion, jackass or bull, or artificially inseminated with usage and enjoyment, including, without limitation because of
semen owned by another, the fee for which has not been paid, and specific enumeration, private (not public) parks, plazas, roads,
who has not given written information to the purchaser or mort- paths, highways, piers, docks, playgrounds, tennis courts,
gagee of the fact of the service or artificial insemination, shall be beaches, water pumping plant and connecting pipes or sewer plant
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

19 Updated 21−22 Wis. Stats. LIENS 779.71

and connecting pipes, shall have the power to prepare and annu- (4) In the event that an assessment levied under sub. (2)
ally submit to its membership a budget of the expenditures which against any lot remains unpaid for a period of 60 days from the
it proposes to make for the ensuing year. Such budget shall date of the levy, the governing board of the levying corporation
include the expenses of maintaining the necessary organization of may, in its discretion, file a claim for a maintenance lien against
the corporation including salaries to officers, fees paid for audit- the lot. All of the following apply to a claim for lien under this sub-
ing the books of the corporation and for necessary legal services section:
and counsel fees to the governing board thereof. (a) The claim may be filed at any time within 6 months from
(2) (a) Upon the adoption and approval of the annual budget the date of the levy.
by a majority of the members entitled to vote as established by the (b) The claim shall be filed in the office of the clerk of the cir-
articles of incorporation and bylaws of the corporation and by cuit court of the county in which the lands affected by the levy lie.
rules validly adopted by resolution of the governing board of the (c) The claim shall contain a reference to the resolution autho-
corporation, at a regular meeting or adjournment thereof, or upon rizing the levy and the date of the resolution, the name of the
the approval of a special assessment under par. (e), the governing claimant or assignee, the name of the person against whom the
board of the corporation may levy an assessment not in excess of assessment is levied, a description of the property affected by the
8 mills on each dollar of assessed valuation, to be known as a levy and a statement of the amount claimed.
maintenance assessment, against all of the lots, the ownership of (d) The claim shall be signed by the claimant or the claimant’s
which entitles the owner thereof to the use and enjoyment of the attorney, need not be verified, and may be amended, in case an
properties controlled by the corporation, but the limitation of 8 action is brought, by court order, as pleadings may be.
mills on each dollar of assessed valuation shall not apply in any (5) The clerk of circuit court shall enter each claim for a main-
case in which the property owners or their predecessors in title tenance lien in the judgment and lien docket immediately after the
have, by written contract, or by the terms of their deeds of convey- claim is filed in the same manner that other liens are entered. The
ance, assumed and agreed to pay the costs of maintaining those date of levy of assessment will appear on the judgment and lien
properties in which the owners have common rights of usage and docket instead of the last date of performance of labor or furnish-
enjoyment. ing materials.
(b) The assessment levied under this section shall be equal in (6) When the corporation, described in sub. (1) has so filed its
amount against each parcel of contiguous lots under common claim for lien upon a lot it may foreclose the same by action in the
ownership and with one dwelling house in a parcel, with the circuit court having jurisdiction thereof, and ss. 779.09, 779.10,
assessment prorated among the lots in the parcel, or equal in rate 779.11, 779.12 and 779.13 shall apply to proceedings undertaken
against the assessed value of each lot or equal in amount against for the enforcement and collection of maintenance liens as
each lot, at the option of the governing board as it directs each described in this subsection.
year, except as provided in pars. (c) and (d), and shall be levied at History: 1977 c. 316, 449; 1979 c. 32 ss. 57, 92 (9); 1979 c. 176; Stats. 1979 s.
the same time once in each year upon all lots. Assessed value shall 779.70; 1989 a. 31; 1995 a. 224; 1997 a. 254.
include the value of the land comprising the lot and the improve-
ments thereon.
SUBCHAPTER VIII
(c) The governing board shall apportion the cost of operating
water or sewer plants and facilities thereof and separate such costs
from the other expenses of the budget and shall include the expen- DISPOSITION OF UNCLAIMED ARTICLES
ses of water and sewer plant maintenance only in the levy against
those lots which may be improved with a dwelling house on the 779.71 Disposition of articles left for laundering, dry
date when the levy is ordered, and no portion of such cost shall be cleaning, repair, storage. (1) Any garment, clothing, wear-
assessed against the vacant lots or the owners thereof. In comput- ing apparel or household goods remaining in the possession of a
ing the cost of operating water or sewer line facilities thereof, rea- person, firm, partnership or corporation, on which laundering,
sonable reserves may be set up for depreciation of facilities. cleaning, pressing, glazing or dyeing has been done or upon which
(d) If property owners or their predecessors in title have, by alteration or repairs have been made, or on which materials or sup-
written contract, or by the terms of their deeds of conveyance, plies have been used or furnished, for a period of 6 months or
agreed to pay unequal amounts, dues or assessments to maintain more, may be sold to pay the reasonable or agreed charges and the
cost of notifying the owner, after giving notice of said sale as spec-
those properties in which the owners have common rights of usage
ified in sub. (3) to such owner. Property that is to be placed in stor-
and enjoyment and if those amounts, dues or assessments which
age after any of the services or labors mentioned herein are per-
are not based on assessed valuations do not vary more than $25 formed shall not be affected by the provisions of this subsection.
between lots, then the governing board may apportion the costs of
maintaining those properties in proportion to the amounts, dues or (2) All garments, clothing, wearing apparel or household
assessments specified in the agreement. goods placed in storage, or on which any of the services or labors
mentioned in sub. (1) have been performed and then placed in
(e) The governing board of a corporation may call a special storage by agreement and remaining in the possession of a person
meeting upon at least 5 days’ written notice for the purpose of without the reasonable or agreed charges having been paid for a
making a special assessment. The nature of the proposed special period of more than 18 months, may be sold to pay said charges
assessment shall be included in the notice. A majority of members after giving notice of said sale as specified in sub. (3) to such
entitled to vote shall constitute a quorum for a special meeting, owner, provided that where property was delivered to be cleaned,
and a majority of members entitled to vote who are present at the pressed, glazed or dyed, and left for storage in addition to having
special meeting shall determine a question. such work done, it shall not be so sold unless at the time of delivery
(3) The governing board of a corporation described in sub. (1) the owner was given a receipt for such property containing a state-
shall declare the assessments levied under sub. (2) due and pay- ment that the property will be sold when such 18 months have
able at any time after 30 days from the date of the levy. The corpo- elapsed unless called for within such 18 months’ period. Persons
ration’s secretary or other officer shall notify the owner of every operating as warehouses or warehouse keepers shall not be
lot so assessed of the action taken by the board, the amount of the affected by this subsection.
assessment of each lot owned by such owner and the date on which (3) The mailing of a registered letter, with a return address
the assessment becomes due and payable. The secretary shall mail marked thereon, addressed to the owner at their address given at
the notice by U.S. mail, postage prepaid, to the owner at the own- the time of the delivery of the article or articles to a person, firm,
er’s last−known post−office address. partnership or corporation rendering any of the services or labors
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.71 LIENS Updated 21−22 Wis. Stats. 20

as set out in this section, stating the time and place of sale, shall (4) After filing and service of the notice of lien, no release of
constitute notice. Said notice shall be posted or mailed at least 30 any judgment, claim or demand by the injured person shall be
days before the date of sale. The costs of posting or mailing said valid as against such lien, and the person making any payment to
letter shall be added to the charges. such injured person or legal representatives as compensation for
(4) The person, firm, partnership or corporation to whom the the injuries sustained shall, for a period of one year from the date
charges are payable, shall, from the proceeds of sale, deduct the of such payment, remain liable to the hospital for the amount of
charges due plus the costs of notifying the owner and shall hold such lien.
the overplus, if any, subject to the order of the owner and shall (5) Such lien shall not in any way prejudice or interfere with
immediately thereafter mail to the owner at the owner’s address, any lien or contract which may be made by such injured person or
if known, a notice of the sale, the amount of overplus, if any, due legal representatives with any attorney or attorneys for legal ser-
the owner, and at any time within 12 months, upon demand by the vices rendered with respect to the claim of the injured person or
owner, pay to the owner said sums of overplus. legal representatives against the person alleged to be liable for
(5) All persons, firms, partnerships or corporations taking such injury. Said lien shall also be subservient to actual taxable
advantage of this section must keep posted in a prominent place court costs, and actual disbursements made by the attorney in
in their receiving office or offices at all times 2 notices which shall prosecuting the court action.
read as follows: “All articles cleaned, pressed, glazed, laundered, (6) No hospital is entitled to any lien under this section if the
washed, altered or repaired and not called for in 6 months will be person injured is eligible for compensation under ch. 102 or any
sold to pay charges”. “All articles stored by agreement and other worker’s compensation act.
charges not having been paid for 18 months will be sold to pay History: 1975 c. 147 s. 54; 1979 c. 32 s. 57; 1979 c. 89; 1979 c. 102 s. 236 (3);
charges”. 1979 c. 176; Stats. 1979 s. 779.80; 1981 c. 317; 1991 a. 179; 1995 a. 224.
Under s. 609.91, a health maintenance organization (HMO) enrollee has no per-
History: 1979 c. 32 s. 57; 1979 c. 176; Stats. 1979 s. 779.71; 1983 a. 500 s. 43. sonal liability for the costs of covered health care received. A hospital only has
recourse against the HMO and may not assert its lien rights under this section against
insurance proceeds paid by a tortfeasor’s insurer to the HMO enrollee. Dorr v. Sacred
Heart Hospital, 228 Wis. 2d 425, 597 N.W.2d 462 (Ct. App. 1999), 98−1772.
SUBCHAPTER IX The circuit court did not err in interpreting federal Medicare law to allow a hospital
to enforce a lien under this section after expiration of the time period within which
the hospital could have billed Medicare for the plaintiff’s treatment. Laska v. General
HOSPITAL LIENS Casualty Co. of Wisconsin, 2013 WI App 42, 347 Wis. 2d 356, 830 N.W.2d 252,
10−2410.
An attorney or law firm that receives and then distributes a settlement payment on
779.80 Hospital liens. (1) Every corporation, association or a personal injury claim is not, under sub. (4), a person making any payment to the
other organization operating as a charitable institution and main- injured person as compensation for the injuries sustained. The tortfeasor’s insurer
that made a payment to the injured person through the injured party’s attorney is such
taining a hospital in this state shall have a lien for services ren- a person because it made payment to the injured person as compensation for the
dered, by way of treatment, care or maintenance, to any person injuries sustained. Watertown Regional Medical Center, Inc. v. General Casualty
who has sustained personal injuries as a result of the negligence, Insurance Co., 2014 WI App 62, 354 Wis. 2d 195, 848 N.W.2d 890, 13−2324.
wrongful act or any tort of any other person.
(2) Such lien shall attach to any and all rights of action, suits,
SUBCHAPTER X
claims, demands and upon any judgment, award or determination,
and upon the proceeds of any settlement which such injured per-
son, or legal representatives might have against any such other PREPAID MAINTENANCE LIEN
person for damages on account of such injuries, for the amount of
the reasonable and necessary charges of such hospital. 779.85 Definitions. In ss. 779.85 to 779.94:
(3) No such lien shall be effective unless a written notice con- (1) “Creditor” has the meaning set forth in s. 421.301 (16).
taining the name and address of the injured person, the date and (2) “Customer” means a person who seeks or acquires mainte-
location of the event causing such injuries, the name and location nance on behalf of himself or herself or another person for per-
of the hospital, and if ascertainable by reasonable diligence, the sonal, family, household or agricultural purposes.
names and addresses of the persons alleged to be liable for dam-
ages sustained by such injured person, shall be filed in the office (3) “Goods” has the meaning set forth in s. 402.105 (1) (c)
of the clerk of circuit court in the county in which such injuries except that this term does not include a “motor vehicle” as defined
have occurred, or in the county in which such hospital is located, in s. 218.0101 (22).
or in the county in which suit for recovery of such damages is (4) “Maintenance” means any repair or other services to be
pending, prior to the payment of any moneys to such injured per- performed on goods after the goods have been initially delivered
son or legal representatives, but in no event later than 60 days after to the premises designated by a customer following its sale, but
discharge of such injured person from the hospital. this term does not include installation, set up charges or delivery
(a) The clerk of circuit court shall enter all hospital liens in the charges.
judgment and lien docket, including the name of the injured per- (5) “Prepaid maintenance agreement” means any agreement
son, the date of the event causing the injury and the name of the in which a customer agrees to make prepayment for maintenance
hospital or other institution making the claim. The clerk of circuit to be performed by a seller.
court shall receive the fee prescribed in s. 814.61 (5) for entering (6) “Prepayment” means any full or partial payment received
each lien. by a seller or an obligation incurred by a customer to a creditor or
(b) Within 10 days after filing of the notice of lien, the hospital to a seller or to a seller’s assignee for maintenance to be performed
shall send by certified mail or registered mail or serve personally by a seller if payment is made before the maintenance is rendered
a copy of such notice with the date of filing thereof to or upon the or received. This term does not include prepayment for mainte-
injured person and the person alleged to be liable for damages sus- nance under an insurance policy. Except with regard to a warranty
tained by such injured person, if ascertained by reasonable dili- under s. 101.953, this term does not include prepayment for main-
gence. If such hospital fails to give notice if the name and address tenance to be provided under a manufacturer’s warranty on goods
of the person injured or the person allegedly liable for the injury or maintenance unless there is a prepayment made for mainte-
are known or should be known, the lien shall be void. nance to be rendered under the warranty separate from the pay-
(c) The hospital shall also serve a copy of such notice, as pro- ment for the goods themselves.
vided in par. (b), to any insurer which has insured such person (7) “Regulated prepaid maintenance agreement” means a pre-
alleged to be liable for the injury against such liability, if the name paid maintenance agreement meeting the following requirements:
and address may be ascertained by reasonable diligence. (a) The total prepayment exceeds $100; and
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

21 Updated 21−22 Wis. Stats. LIENS 779.94

(b) The total period during which the seller is obligated to pro- 779.89 Attachment and preservation. All prepaid main-
vide maintenance exceeds one year whether the obligation is ini- tenance liens attach at the time of the first prepayment and shall
tially for more than one year or is extended or renewed beyond one be preserved from the time the lien attaches. It is not necessary to
year. file or record any notice of the lien in order to preserve or perfect
History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.85; 1983 a. 189 the lien although a customer may file this lien in the manner pre-
s. 329 (24), (30); 1999 a. 9, 31. scribed for perfecting liens under subch. III of ch. 409 regarding
779.86 Records. A seller shall retain records for 60 days fol- debtors who are located in this state.
History: 1977 c. 296; 1979 c. 32 s. 57; Stats. 1979 s. 779.89; 2001 a. 10.
lowing completion of the time period for which prepaid mainte-
nance is to be performed under a prepaid maintenance agreement 779.90 Notice of existence of lien. A person is deemed to
including but not limited to records showing the amount of pre- have notice of a prepaid maintenance lien if:
payment, the period for which maintenance is to be performed, all (1) That person has actual knowledge or reason to know that
contracts relating to such maintenance and all records pertaining the lien exists on the seller’s property;
to the escrow account or bond required under s. 779.87.
History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.86. (2) That person has reason to know that the seller regularly
demands or accepts prepayments for maintenance;
779.87 Escrow account or bond requirement. (3) The seller engages in a type of business that generally
(1) REQUIREMENT. A seller who enters a regulated prepaid main- requests or demands prepayment for maintenance; or
tenance agreement shall either maintain an escrow account or (4) The lien was filed as permitted in s. 779.89.
maintain a bond. History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.90.
(2) ESCROW ACCOUNT. (a) Surety. If a seller maintains an
escrow account, all proceeds received under any regulated pre- 779.91 Discharge of lien. (1) A prepaid maintenance lien
paid maintenance agreement shall be deposited in the escrow is discharged by:
account for the benefit of any customer who suffers a loss of pre- (a) Returning the amount of the prepayment to the customer
payments for maintenance due to the bankruptcy or cessation of who made the prepayment;
business by the seller. (b) The expiration of the time period for the performance of all
(b) Not to be commingled. The seller shall not commingle the contract or other obligations secured by the prepayment; or
proceeds received under a regulated prepaid maintenance agree- (c) Lapse of the right to maintain an action.
ment with any other funds and any other funds which are com- (2) Upon discharge of a prepaid maintenance lien, any cus-
mingled become a part of and shall be deposited in the escrow tomer who filed the lien as permitted in s. 779.89 is subject to the
account. The seller may aggregate the proceeds received under requirements of s. 409.513.
several prepaid maintenance agreements in one escrow account. History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.91; 2001 a. 10.
(c) Interest. The seller may withdraw and retain for his or her
own use any interest payments received on the escrow account. 779.92 Enforceability of lien. A prepaid maintenance lien
is enforceable from the time it attaches until it is discharged. Any
(d) Not to be used prior to discharge. The seller may not with- enforcement and foreclosure of a prepaid maintenance lien shall
draw or use the proceeds received under a regulated prepaid main- be in one civil action and shall be against the proceeds of the
tenance agreement which are deposited in an escrow account prior escrow account.
to the discharge of the prepaid maintenance lien under s. 779.91. History: 1977 c. 296; 1979 c. 32 s. 57; Stats. 1979 s. 779.92.
(e) Not subject to attachment. Until all prepaid maintenance
liens are discharged, the escrow account is not subject to garnish- 779.93 Duties of the department of agriculture, trade
ment, execution, levy, attachment or foreclosure except as pro- and consumer protection. (1) The department of agricul-
vided under s. 779.92. ture, trade and consumer protection shall investigate violations of
(3) BOND. (a) Surety. If a seller maintains a bond, it shall be this subchapter and attempts to circumvent this subchapter. The
issued by a surety company licensed to do business in this state. department of agriculture, trade and consumer protection may
(b) Amount; filed. The principal sum of the bond shall be subpoena persons and records to facilitate its investigations, and
$25,000 at all times. A copy of the bond shall be filed with the may enforce compliance with such subpoenas as provided in s.
department of financial institutions. 885.12.
(c) For benefit of customer. The bond shall be in favor of the (2) The department of agriculture, trade and consumer protec-
state for the benefit of any customer who suffers a loss of prepay- tion may in behalf of the state or in behalf of any person who holds
ments for maintenance due to the bankruptcy or cessation of busi- a prepaid maintenance lien:
ness by the seller. Any customer claiming against the bond may (a) Bring an action in any court of competent jurisdiction to
maintain an action against the seller and the surety. enforce and foreclose a prepaid maintenance lien under s. 779.92.
(d) Surety’s obligation. If the seller fails to perform mainte- (b) Bring an action for temporary or permanent injunctive or
nance under a regulated prepaid maintenance agreement, the other relief in any court of competent jurisdiction for any violation
surety shall either perform or procure the performance of that of this chapter or attempt to circumvent this chapter. The court
maintenance or pay the customer the amount of the prepayment may in its discretion, prior to the entry of final judgment, award
made under the agreement. restitution to any customer suffering loss because of violations of
(e) No lien. If a seller maintains a bond under this subsection, this subchapter if proof of that loss is submitted to the satisfaction
a customer does not have a prepaid maintenance lien under s. of the court.
779.88. (c) Bring an action in any court of competent jurisdiction for
History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.87; 1995 a. 27. recovery of civil forfeitures against any seller who violates this
subchapter.
779.88 Prepaid maintenance lien. Except as provided History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.93; 1995 a. 27.
under s. 779.87 (3), a customer who makes a prepayment under
a regulated prepaid maintenance agreement has a lien designated 779.94 Penalties. (1) GENERALLY. A person who violates
as a prepaid maintenance lien in the amount of the prepayment on this subchapter shall forfeit not less than $100 nor more than
all the proceeds contained in the escrow account, including all $10,000 for each violation.
after acquired proceeds. This lien is preferred to all other liens, (2) MISUSE OF ESCROW FUNDS. The use of the proceeds in an
security interests and claims on such proceeds except other pre- escrow account by a seller for any purpose prior to the discharge
paid maintenance liens which attached at an earlier time. of the prepaid maintenance lien is theft by the seller and is punish-
History: 1977 c. 296; 1979 c. 32 ss. 57, 92 (9); Stats. 1979 s. 779.88. able under s. 943.20. If the seller is a corporation, such misuse is
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

779.94 LIENS Updated 21−22 Wis. Stats. 22

also deemed theft by any officer, director or agent of the corpora- ance with s. 409.519 as if the refiling were a continuation state-
tion responsible for the misappropriation. Any of the misappro- ment within the meaning of chs. 401 to 411.
priated proceeds which have been received as salary, dividend, 2. If a certificate of release is presented to the department of
loan repayment, capital distribution or otherwise by any share- financial institutions for filing, the filing officer shall cause the
holder of the corporation not responsible for the misappropriation certificate to be dealt with in accordance with s. 409.513 as if the
is a civil liability of the shareholder and may be recovered and certificate were a termination statement within the meaning of
restored to the escrow account by action brought by any interested chs. 401 to 411, and the filing officer may remove the notice of
party. federal lien and any related refiling of a notice of lien, certificate
History: 1977 c. 296; 1979 c. 32 s. 57; Stats. 1979 s. 779.94. of nonattachment, discharge, or subordination from the files at
any time after receipt of the certificate of release, but the depart-
ment of financial institutions shall keep the certificate of release
SUBCHAPTER XI or a microfilm or other photographic record or optical disc or elec-
tronic record of the certificate of release in a file, separate from
FEDERAL LIEN REGISTRATION those containing currently effective notices of liens, for a period
of 30 years after the date of filing of the certificate of release.
779.97 Uniform federal lien registration act. (1) SCOPE. 3. If a certificate of discharge is presented to the department
This section applies only to: of financial institutions for filing, the filing officer shall cause the
(a) Federal tax liens; and certificate to be dealt with as if the certificate were an amendment
(b) Other federal liens, if any act of congress or any regulation that deletes collateral within the meaning of chs. 401 to 411.
adopted under an act of congress requires or permits notices of 4. If a certificate of nonattachment or subordination of any
such liens to be filed in the same manner as notices of federal tax lien is presented to the department of financial institutions for fil-
liens. ing, the filing officer shall cause the certificate to be dealt with as
(2) PLACE OF FILING. (a) Notices of liens, certificates and other if the certificate were an amendment that deletes collateral within
notices affecting federal tax liens or other federal liens shall be the meaning of chs. 401 to 411.
filed under this section. (c) 1. If a refiled notice of federal lien or a certificate of nonat-
(b) Notices of liens upon real property for obligations payable tachment, discharge or subordination is presented for filing to any
to the United States, and certificates and notices affecting the liens other filing officer specified in sub. (2), the officer shall perma-
shall be filed in the office of the register of deeds of the county in nently attach the refiled notice or the certificate to the original
which real property subject to the liens is situated. notice of lien and shall enter the refiled notice or certificate with
the date of filing in any alphabetical federal lien index on the line
(c) Notices of liens upon personal property, whether tangible where the original notice of lien is entered.
or intangible, for obligations payable to the United States and cer-
tificates and notices affecting the liens shall be filed as follows: 2. Except as otherwise provided in this subdivision, if a certif-
icate of release or other document associated with a recorded
1. If the person against whose interest the lien applies is a part- notice of federal tax lien is presented for filing or recording with
nership or a corporation, as defined in 26 USC 7701 (a) (2) and (3), any other filing officer specified in sub. (2), the officer shall treat
whose principal executive office is in this state, with the depart- the certificate or document in the same manner as a notice filed or
ment of financial institutions. recorded under par. (a) 2. The officer shall also reference the cer-
2. If the person against whose interest the lien applies is a trust tificate or document to the recorded notice of federal lien by docu-
not covered under subd. 1., with the department of financial insti- ment number in the index maintained under s. 59.43 (9).
tutions. (e) Upon request of any person, the filing officer shall issue a
3. If the person against whose interest the lien applies is the certified copy of any notice of federal lien or any related refiling
estate of a decedent, with the department of financial institutions. of a notice of lien, certificate of nonattachment, discharge or sub-
4. In all other cases in the office of the register of deeds of the ordination filed on or after February 1, 1968. The officer may
county where the person against whose interest the lien applies charge the fee specified under s. 59.43 (2) (b) for the copy. If the
resides at the time of filing of the notice of lien. filing officer is the department of financial institutions, the filing
(3) EXECUTION OF NOTICES AND CERTIFICATES. Certification of officer shall include the information concerning the notice of fed-
notices of liens, certificates or other notices affecting federal liens eral lien, or notice or certificate affecting a federal lien, in the
by the secretary of the U.S. treasury, by the secretary’s designee information communicated or otherwise made available in
or by any other official or entity of the United States responsible response to a request under s. 409.523 (3), and the fee charged
for filing or certifying notice of any other lien entitles them to be shall be that charged in accordance with s. 409.525.
filed and no other attestation, certification or acknowledgment is (5) FEES. (a) The fee for recording or filing and indexing each
necessary. notice of lien or certificate or notice affecting the lien is the fee
(4) DUTIES OF FILING OFFICER. (a) If a notice of federal tax lien specified under s. 59.43 (2) (ag).
or a notice of revocation of a certificate of release is presented to (b) The officer may bill the district directors of internal reve-
the filing officer who is: nue on a monthly basis for fees for documents recorded or filed
1. With the department of financial institutions, the filing offi- by them.
cer shall cause the notice to be dealt with in accordance with s. (6) UNIFORMITY OF APPLICATION AND CONSTRUCTION. This sec-
409.519 as if the notice were a financing statement within the tion shall be applied and construed to effectuate its general pur-
meaning of chs. 401 to 411; or pose to make uniform the law with respect to the subject of this
2. Any other officer described in sub. (2), the officer shall section among those states which enact it.
make the endorsements required under s. 59.43 (1c) (e) and (f) and (7) SHORT TITLE. This section may be cited as the Uniform
forthwith file or record the notice and enter it in the index under Federal Lien Registration Act.
s. 59.43 (9). Notices under this subdivision are subject to s. 59.43 (8) TAX LIENS AND NOTICES FILED ON OR BEFORE FEBRUARY 1,
(4) (a). 1968. Filing officers with whom notices of federal tax liens, certifi-
(b) 1. If a refiling of a notice of lien is presented to the depart- cates and notices affecting such liens have been filed on or before
ment of financial institutions for filing, the filing officer shall February 1, 1968 shall, after that date, continue to maintain a file
cause the refiled notice of federal lien to be dealt with in accord- labeled “federal tax lien notices filed prior to ....” containing
2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)
Updated 2021−22 Wis. Stats. Published and certified under s. 35.18. August 1, 2024.

23 Updated 21−22 Wis. Stats. LIENS 779.98

notices and certificates filed in numerical order of receipt. If a (d) Taxes or special assessments due and unpaid on any realty
notice was filed on or before February 1, 1968 any certificate or covered by the lien with interest, penalties and costs.
notice affecting the lien shall be filed in the same office. (e) Any portion of a prior lien.
History: 1977 c. 29, 418; 1979 c. 89, 177, 223, 312, 355; Stats. 1979 s. 779.97;
1991 a. 39, 148, 304, 315; 1993 a. 70, 172, 214; 1995 a. 27, 201, 417; 2001 a. 10; 2003 (f) Any charge for improvements or any other item authorized
a. 206; 2015 a. 48, 196. by statutes or by the terms of any prior lien.
(3) Payments made under sub. (1) shall be proved by the affi-
SUBCHAPTER XII davit of the person making the payment or the person’s agent or
attorney, giving the items paid, the dates when paid and the
LIENHOLDER; ACQUISITION OF PRIOR LIEN description of the real estate on which the lien is claimed, shall
have priority over any liens which were subsequent to the lien of
779.98 Payment of prior real estate liens. (1) Any per- the person making the payment at the date of such payments, and
son having a lien on real estate against which there is a prior lien shall also have priority over any lien filed after such affidavit is
may pay any or all of the items in sub. (2). The amounts paid shall recorded with the register of deeds of the county where the land
be added to the payor’s lien, with interest from the date of payment is located. Said payments shall also be prior to any liens filed
at the same rate as when paid, or if no rate was provided for prior before the recording of such affidavit if such filing was made with
to such payment, at the legal rate of interest. Interest on amounts knowledge of such payments.
paid for items described in sub. (2) (d) shall be computed at the (4) The payments may be made during the period in which any
rate under s. 74.77. All sums so paid shall be collected as a part lien is being enforced, or during the redemption period. An affida-
of and in the same manner as is the lien by virtue of which said pay- vit of the payments as provided in sub. (3) may be recorded with
ments are made and be entitled to the same priority. the register of deeds, and a copy of the affidavit shall be furnished
(2) The items, any or all of which may be paid under sub. (1), by the sheriff at least 5 days before the expiration of the redemp-
are as follows: tion period.
(a) Any past due or defaulted principal or interest of a prior (5) If the lienor at the time of making such payment has an
lien. equal priority with other lienors, and the property securing such
(b) Any interest or amortized installment due under a prior liens does not sell for a sufficient sum to pay all liens, the person
lien. making such payments shall be repaid the amounts thereof before
(c) Premiums and assessment on insurance policies necessary the other equal lienors receive any share in the proceeds of such
to protect the security of the lienor making such payments or of sale.
any prior lien and authorized under the terms of either such lien. History: 1987 a. 378 s. 76; Stats. 1987 s. 779.98; 1987 a. 403; 1993 a. 301, 486.

2021−22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances
Board Orders filed before and in effect on August 1, 2024. Published and certified under s. 35.18. Changes effective after August
1, 2024, are designated by NOTES. (Published 8−1−24)

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