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Johnson v. ABC Insurance Co.9/24/2002
. Roger and Barbara Johnson appeal from a judgment of the trial court granting the motion for summary judgment brought on behalf of the defendants, Gander Mountain, L.L.C. and Reliance National Indemnity Company. The Johnsons contend that, under the language of a purchase agreement in which Gander Mountain, L.L.C. (Gander Mountain II) purchased all the retail stores and assets of Gander Mountain, Inc. (Gander Mountain I) as part of Gander Mountain I's Chapter 11 bankruptcy reorganization plan, Gander Mountain II agreed to assume the liability for all the torts of Gander Mountain I that occurred subsequent to the filing of Gander Mountain I's bankruptcy petition, including Johnson's product liability and negligence claims. Because the relevant contractual language in § 3.1.1 of the purchase agreement is ambiguous, we conclude that the trial court erred in granting summary judgment. Accordingly, we reverse and remand with directions for the trial court to conduct a hearing to determine the intent of the parties regarding § 3.1.1 of the purchase agreement.
I. Background.
. In 1993, Roger Johnson purchased a tree stand from Gander Mountain I, located in Brookfield, Wisconsin. The tree stand was designed and manufactured by Warren & Sweat Manufacturing Company. On November 1, 1997, Johnson was hunting when the tree stand unhooked from a tree and he fell several feet to the ground. As a result, he was injured. On October 24, 2000, Johnson and his wife, Barbara Johnson, filed a summons and complaint alleging claims of strict products liability and common law negligence against Gander Mountain II, Warren & Sweat Manufacturing Company, and Reliance National Indemnity Company, the liability insurer of Gander Mountain II.
. In August 1996, approximately fifteen months before Johnson was injured, Gander Mountain I filed for Chapter 11 bankruptcy . After filing for bankruptcy, Gander Mountain I entered into a reorganization plan with Gander Mountain II. Under the plan, as set forth in the purchase agreement, Gander Mountain II purchased all of Gander Mountain I's retail stores and all related assets. On January 31, 1997, approximately nine months before Johnson's injury, the purchase agreement was approved by the United States Bankruptcy Court for the Eastern District of Wisconsin.
. On August 31, 2001, in response to Johnson's complaint, Gander Mountain II moved for summary judgment on the grounds that it did not assume any post-confirmation liability upon the purchase of Gander Mountain I. On October 23, 2001, the trial court granted the motion for summary judgment concluding that the language of the purchase agreement clearly and unambiguously demonstrated that the parties did not intend Gander Mountain II to assume any post-confirmation liability.
II. Analysis.
. This appeal involves issues decided pursuant to summary judgment. Our review of the circuit court's decision to grant summary judgment is de novo. Green Spring Farms v. Kersten, 136 Wis. 2d 304, 315-17, 401 N.W.2d 816 (1987). Our methodology is the same as the trial court's. See Preloznik v. City of Madison, 113 Wis. 2d 112, 116, 334 N.W.2d 580 (Ct. App. 1983). Summary judgment must only be granted if the evidence demonstrates "that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Wis. Stat. Rule 802.08(2). Therefore, we will reverse a grant of summary judgment if a review of the record reveals that disputed material facts exist or undisputed material facts exist from which reasonable alternative inferences may be drawn. Grams v. Boss, 97 Wis. 2d 332, 339, 294 N.W.2d 473 (1980).
. Additio
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