Hauer v. Union State Bank of Wautoma
Wisconsin Court of Appeals
532 N.W.2d 456 (1995)
Kathy Hauer (plaintiff) suffered a brain injury in 1987 and was adjudicated mentally incompetent and appointed a guardian. Hauer’s neurologist testified that she regained competency, and the guardianship was terminated in 1988. Hauer lived off government assistance and interest from a mutual fund. Ben Eilbes (defendant) had defaulted on a loan from Union State Bank of Wautoma (the Bank) (defendant). Hauer wanted to invest in Eilbes’s business. Eilbes negotiated with the Bank to give Hauer a loan using the fund as collateral. Eilbes told the Bank he would pay off his loan with Hauer’s investment. Hauer’s stockbroker told the Bank that Hauer needed the fund and had a brain injury. The Bank agreed to loan Hauer $30,000. Eilbes and Hauer met with the Bank to go over the terms. The Bank did not notice anything suggesting Hauer was incompetent. Hauer gave the money to Eilbes and could not pay back the loan. Hauer sued Eilbes and the Bank. Eilbes was dismissed, because he was filing bankruptcy. The Bank counterclaimed for the balance of the loan. Hauer testified that she did not understand the nature and consequences of the transaction. Experts testified that Hauer was incompetent when she entered the contract. The jury found Hauer incompetent and concluded that the Bank acted in bad faith. The Bank moved to set aside the verdict. The trial court refused, entered judgment against the Bank, and ordered the return of Hauer’s collateral. The Bank appealed to the Wisconsin Court of Appeals.
Rule of Law
Holding and Reasoning (Snyder, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 726,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 726,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,700 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.