COURT OF APPEALS

DECISION

DATED AND FILED

August 20, 2024

Samuel A. Christensen

Clerk of Court of Appeals

NOTICE

This opinion is subject to further editing. If 

published, the official version will appear in 

the bound volume of the Official Reports. 

A party may file with the Supreme Court a 

petition to review an adverse decision by the 

Court of Appeals. See WIS. STAT. § 808.10 

and RULE 809.62. 

Appeal No. 2021AP1837 Cir. Ct. No. 2011CV18551

STATE OF WISCONSIN IN COURT OF APPEALS

DISTRICT I

SCOTT SMITH,

PLAINTIFF-RESPONDENT,

ALPHA CARGO TECHNOLOGY LLC,

PLAINTIFF,

V.

GREG KLEYNERMAN AND RED FLAG CARGO SECURITY SYSTEMS LLC,

DEFENDANTS-APPELLANTS.

APPEAL from an order of the circuit court for Milwaukee County: 

LINDSEY GRADY, Judge. Reversed and cause remanded with directions. 

Before White, C.J, Donald, P.J., and Geenen, J.
No. 2021AP1837

2

Per curiam opinions may not be cited in any court of this state as precedent 

or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3). 

¶1 PER CURIAM. The underlying litigation in this case has spanned 

well over a decade. This appeal arises from a circuit court decision and order 

denying in part Greg Kleynerman’s application for an order of satisfaction of

judgment due to bankruptcy pursuant to WIS. STAT. § 806.19(4) (2021-22).

1

 For 

the reasons set forth below, we reverse and remand this case and instruct the 

circuit court to enter an order: (1) indicating that the judgment at issue is satisfied 

in full; and (2) directing the Clerk of the Circuit Court to denote the full 

satisfaction of the judgment on Wisconsin’s judgment and lien docket. 

BACKGROUND

¶2 Scott Smith and Kleynerman owned a company together, Alpha 

Cargo Technology LLC (“Alpha Cargo”). In 2011, Smith filed a complaint 

asserting multiple claims over the sale of certain asserts held by Alpha Cargo. 

¶3 In 2014, a jury awarded Smith $499,000 in monetary damages.2 The 

circuit court entered an order for a money judgment, and the judgment was 

docketed on September 15, 2017. 

 

1

 All references to the Wisconsin Statutes are to the 2021-22 version unless otherwise 

noted. 

2

 Kleynerman appealed the jury award and this court affirmed. Smith v. Kleynerman,

No. 2015AP207, unpublished slip op. (WI App June 16, 2016). Our supreme court accepted 

review and an equally divided court affirmed this court’s decision without issuing a separate 

opinion. Smith v. Kleynerman, 2017 WI 22, 374 Wis. 2d 1, 892 N.W.2d 734. 
No. 2021AP1837

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¶4 In January 2018, Smith applied for the entry of a charging order 

against Kleynerman’s interest in Red Flag Cargo Security Systems LLC (“Red 

Flag”) as a means of satisfying the judgment. See WIS. STAT. § 183.0705 (2017-

18) (stating that “[o]n application to a court of competent jurisdiction by any 

judgment creditor or member, the court may charge the member’s limited liability 

company interest with payment of the unsatisfied amount of the judgment”).3

¶5 In March 2018, the circuit court entered a charging order against 

Kleynerman’s interest in Red Flag. The charging order included the following 

two provisions:

[Kleynerman’s] interest in [Red Flag] is subjected to a 

charging order in favor of and for the benefit of Smith in 

the amount of Smith’s unsatisfied judgment against 

Kleynerman; and 

[Red Flag] shall pay to Plaintiff Smith, any and all present 

and future distributions or draws that Kleynerman may be 

entitled to as a member of [Red Flag], until the judgment is 

satisfied in full, including interest and costs.

¶6 Subsequently, in July 2018, Kleynerman filed a voluntary petition

for bankruptcy under Chapter 7 in federal court. On December 12, 2019, 

Kleynerman was granted a discharge. Kleynerman believed that the discharge 

rendered the charging order unenforceable. 

¶7 In March 2021, Smith’s counsel sent a letter to Red Flag asserting

that Kleynerman’s bankruptcy discharge did not avoid or eliminate Smith’s lien 

against Kleynerman’s interest in Red Flag. 

 

3

 We note that Chapter 183 was repealed and recreated in 2021. See 2021 Wis. Act 258, 

§ 616. The current version of WIS. STAT. § 183.0705 contains different language. 
No. 2021AP1837

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¶8 In April 2021, Kleynerman filed an “Application for Order of 

Satisfaction of Judgment(s) Due to Discharge in Bankruptcy.” The application 

sought to have Smith’s judgment satisfied pursuant to WIS. STAT. § 806.19(4). 

Smith objected. 

¶9 After a hearing, Smith sought an order finding that the application 

did not eliminate his personal property judgment lien against Kleynerman’s 

interest in Red Flag. Smith asserted in pertinent part that WIS. STAT. § 806.19(4) 

only eliminates a lien on real property, not personal property. 

¶10 On September 9, 2021, the circuit court issued a written decision and 

order denying the application “as it relates to personal property, specifically 

Kleynerman’s interest in Red Flag,” and granting the application “only as it relates 

to real property.” 

¶11 Subsequently, Kleynerman and Red Flag filed a motion seeking 

“clarification and/or reconsideration” of the circuit court’s decision. The motion 

requested clarification regarding whether the judgment was deemed satisfied. In 

addition, the motion requested clarification regarding the continued enforceability 

of the charging order. 

¶12 The circuit court addressed the motion at a hearing. The court stated 

that it was “not reconsidering the decision.” The court, however, ordered counsel 

for the parties to confer and attempt to agree on a solution that would provide 

satisfaction with respect to Kleynerman’s real property. The parties were unable 

to agree on a resolution and the court did not take any further action. 

¶13 Kleynerman and Red Flag appeal. Additional relevant facts are 

discussed below. 
No. 2021AP1837

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DISCUSSION

¶14 On appeal, Kleynerman and Red Flag contend that the circuit court 

failed to properly satisfy the judgment pursuant to WIS. STAT. § 806.19(4), and the 

charging order is unenforceable. 

¶15 To start, we consider whether the issues in this appeal have been 

rendered moot by additional federal litigation that has taken place during the 

pendency of this appeal. “An issue is moot when its resolution will have no 

practical effect on the underlying controversy.” PRN Assocs. LLC v. DOA, 2009 

WI 53, ¶25, 317 Wis. 2d 656, 766 N.W.2d 559. Generally, appellate courts 

decline to reach moot issues. Portage Cnty. v. J.W.K., 2019 WI 54, ¶12, 386 

Wis. 2d 672, 927 N.W.2d 509. 

¶16 Following the circuit court’s decision underlying this appeal, 

Kleynerman sought to reopen his bankruptcy case and have the bankruptcy court 

enter an order providing that the $499,000 debt and the lien on Kleynerman’s 

interest in Red Flag no longer exists. The bankruptcy court issued a written 

decision reopening the case and ordered in relevant part that Smith’s charging 

order lien on Kleynerman’s interest in Red Flag was “avoided in its entirety,”

which the Seventh Circuit Court of Appeals ultimately affirmed. In re Gregory 

Kleynerman, 93 F.4th 1071, 1075 (7th Cir. 2024). Smith did not seek review of 

the Seventh Circuit Court of Appeals’ decision in the United States Supreme 

Court.4 

 

4

 We held this appeal in abeyance pending the Seventh Circuit Court of Appeals’

decision. After the Seventh Circuit’s decision was released, the parties submitted additional 

filings addressing whether the decision rendered this appeal moot. 
No. 2021AP1837

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¶17 Smith contends that based on the Seventh Circuit’s decision, “there 

is nothing more for this [c]ourt to decide that will have a practical impact on these 

parties.” 

¶18 Kleynerman and Red Flag agree that the issue of whether the 

charging order needs to be eliminated is now moot based on the Seventh Circuit’s 

decision. However, they contend that this court should still address the 

satisfaction of judgment issue. 

¶19 Based on Kleynerman and Red Flag’s concession that the charging 

order issue is now moot, we decline to address this issue. See J.W.K., 386 Wis. 2d 

672, ¶12. However, we address the merits of the satisfaction of the judgment 

issue. Kleynerman and Red Flag assert, and Smith does not refute, that 

Wisconsin’s judgment and lien docket continues to show that Smith’s judgment is 

unsatisfied, and operates as a lien on any Milwaukee County real estate 

Kleynerman owns. See WIS. STAT. § 806.15(1) (stating that “[e]very judgment 

properly entered in the judgment and lien docket showing the judgment debtor’s 

place of residence shall, for [ten] years from the date of entry, be a lien on all real 

property of every person against whom the judgment is entered”). Thus, we agree 

the unsatisfied judgment continues to have a “practical effect” on Kleynerman. 

See PRN Assocs., 317 Wis. 2d 656, ¶25.

¶20 Kleynerman and Red Flag argue that the satisfaction of judgment

application in this case fulfilled all the requirements set forth in WIS. STAT.

§ 806.19(4)(a)-(c), thus, the judgment is required to be fully satisfied. 

¶21 When interpreting a statute, we start with the language of the statute. 

State ex rel. Kalal v. Circuit Ct. for Dane Cnty., 2004 WI 58, ¶45, 271 Wis. 2d 

633, 681 N.W.2d 110. If the meaning of the words of a statute is plain, we stop 
No. 2021AP1837

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our inquiry and apply the words chosen by the legislature. Id. “[S]tatutory 

language is interpreted in the context in which it is used; not in isolation but as 

part of a whole; in relation to the language of surrounding or closely-related 

statutes[.]” Id., ¶46. We review the language of a statute de novo. Clean Wis., 

Inc. v. DNR, 2021 WI 72, ¶10, 398 Wis. 2d 433, 961 N.W.2d 611. 

¶22 WISCONSIN STAT. § 806.19(4)(a) provides that:

Any person who has secured a discharge of a judgment 

debt in bankruptcy and any person interested in real 

property to which the judgment attaches may submit an 

application for an order of satisfaction of the judgment and 

an attached order of satisfaction to the clerk of the court in 

which the judgment was entered.

Section 806.19(4)(b) details the form in which an application filed under 

section (4)(a) must be made and what information needs to be included. 

Section (4)(bm) requires that the copy of the order of bankruptcy discharge 

attached shall be either a certified copy or a photocopy, and section (4)(c) requires 

that any person submitting such an application shall serve a copy of the 

application and attached proposed order on each judgment creditor within five 

business days after the date of submission. 

¶23 Here, Smith does not dispute that Kleynerman’s application 

complied with the requirements set forth in WIS. STAT. § 806.19(4)(a)-(c). The 

application is in a similar form as the template provided in section (4)(b), the 

application includes a photocopy of the discharge order as required by 

section (4)(bm), and Kleynerman filed an affidavit of mailing demonstrating full 

compliance with the service requirements for application pursuant to 

section (4)(c). Thus, we conclude that the circuit court erred in refusing to deem 

the judgment fully satisfied. 
No. 2021AP1837

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¶24 Therefore, we reverse and remand with instructions for the circuit 

court to enter an order indicating that the judgment is satisfied in full and directing 

the Clerk of the Circuit Court to denote the full satisfaction of the judgment on 

Wisconsin’s judgment and lien docket.5 

By the Court.—Order reversed and cause remanded with directions.

This opinion will not be published. See WIS. STAT.

RULE 809.23(1)(b)5.

 

5

 See WIS. STAT. § 806.19(4)(d) (stating that after a judge has signed an order granting 

an application for satisfaction, “the clerk shall satisfy of record each judgment described in the 

application”).