Capital City Sheet Metal, Inc. v. Voytovich

Timm Fehrman, president of Fehr-man Homes, Inc., appeals from a judgment holding him jointly and severally liable with the corporation for $3,831.86. Capital City Sheet Metal, Inc., a subcontractor of Fehrman Homes, the general contractor on a project, initiated the lawsuit.

The issue is whether, under the facts, Fehrman may be held personally liable to Capital City under the theft-by-contractor statute, § 779.02(5), STATS., which imposes a trust in favor of due or about-to-become-due claims of subcontractors and suppliers on all funds paid by the owner to the general contractor — and also…