Default Judgment in Wisconsin: What You Should Know

When a party in a lawsuit fails to respond or participate, the court may issue a default judgment, deciding the case in favor of the other party without a trial. In Wisconsin, default judgments carry significant legal and financial consequences, making it essential for defendants to understand their obligations and options.

Grounds for a Default Judgment

A default judgment occurs when a defendant fails to take necessary legal action within the required timeframe. The most common reason is failing to file an answer or responsive pleading after being served with a summons and complaint. Under Wisconsin Statutes § 806.02, the failure to file a responsive pleading that “joins an issue of law or fact” within the statutorily prescribed time period (which can be either 20, 40, or 45 days), a litigant can request a default judgment from the Court.

Filing and Service Requirements

Before a party can obtain a default judgment, the Summons and Complaint must be served in compliance with Wisconsin law. Under Wisconsin Statutes § 801.02, a civil action starts when these documents are filed with the circuit court and properly served on the defendant. Service must comply with strict procedural rules to ensure the defendant receives formal notice.

Personal service, typically performed by a sheriff or private process server, is preferred under Wisconsin Statutes § 801.11. If personal service is unsuccessful, substitute service—such as leaving the documents with a competent household member—may be used. Service by publication is allowed only after demonstrating diligent efforts to locate and serve the defendant personally (or by substitute service).

Proper service alone is not enough; proof of service must be documented and filed with the court. The individual who served the documents must submit an affidavit detailing when, where, and how service was completed. Once a plaintiff files for default judgment, they must submit an affidavit that defines the basis for which a default judgment is appropriate.

Defendant’s Response Options

A defendant served with a summons and complaint has several options to respond before a default judgment is entered. The most direct option is filing an answer. The answer must address each allegation by admitting, denying, or stating a lack of knowledge to respond. A timely answer prevents default and preserves the party’s ability to contest the claims.

A party can also file a dispositive motion in lieu of an answer, such as a motion to dismiss under Wisconsin Statutes § 802.06(2). A motion to dismiss under 806.02(2) will argue that the lawsuit should not proceed due to legal deficiencies, such as lack of jurisdiction or improper service.

Procedures for Entry

If a defendant fails to respond within the required timeframe, the plaintiff can move for default judgment under Wisconsin Statutes § 806.02. This requires filing a motion with an affidavit confirming the defendant’s lack of action, detailing the date of service and expiration of the response deadline. Courts require strict compliance with procedural rules before granting judgment.

Vacating or Reopening

After a default judgment has been entered, Wisconsin law allows a party to set aside the ruling under specific circumstances. Wisconsin Statutes § 806.07 provides grounds for vacating a default judgment, including excusable neglect, newly discovered evidence, or procedural irregularities. However, the burden is on the defendant to show that reopening the case serves the interests of justice.

A motion to vacate must be filed within a reasonable time, and for excusable neglect, no later than one year after the judgment. Excusable neglect includes situations beyond the defendant’s control, such as a medical emergency or reliance on incorrect legal advice. Defendants must submit an affidavit explaining their inaction and often must show a meritorious defense to the claim. If the court finds the default resulted from a legitimate mistake rather than willful disregard, it may set aside the judgment. If a judgment was entered due to improper service or clerical error, courts may be more inclined to grant relief.

Consequences for Noncompliance

A default judgment becomes an enforceable court order, granting the plaintiff the right to collect damages or other relief. In Wisconsin, this can lead to wage garnishment, bank levies, and property liens. A judgment also negatively impacts creditworthiness, appearing on credit reports and making it difficult to secure loans, housing, or employment. Some professional licenses may be subject to suspension if a judgment remains unpaid, particularly in regulated fields such as finance or healthcare.

If you have had a judgment (or default judgment) entered against you or your business, please contact the experienced business litigation attorneys at Halling & Cayo, S.C. today to discuss your options. You may be able to have the judgment set aside or work out a resolution with the judgment creditor. Our attorneys have decades of experience helping people just like you.