Opinion ID: 4546475
Heading Depth: 1
Heading Rank: 1

Heading: Restitution Generally

Text: ¶113 Absent a substantial reason not to, a circuit court must order a defendant to pay restitution to any victim of a crime 2 No. 2018AP875-CR.bh considered at sentencing. Wis. Stat. § 973.20(1r). Thus, payment of restitution is the norm. As relevant here, restitution may be awarded for all special damages that could be recovered in a civil action against the defendant. § 973.20(5)(a). Special damages, in contrast to general damages, constitute any readily ascertainable pecuniary expenditure paid out because of the crime. Huml v. Vlazny, 2006 WI 87, ¶41 n.11, 293 Wis. 2d 169, 716 N.W.2d 807 (quoted source omitted) (comparing general damages such as pain and suffering). ¶114 For every restitution claim, the victim has the burden to prove the amount of loss suffered as a result of the defendant's crime. Wis. Stat. § 973.20(13)(a), (14)(a). When disputing a restitution claim, the defendant has the burden to demonstrate his financial resources and earning ability, as well as his dependents' needs and earning ability. § 973.20(13)(a), (14)(b). ¶115 The defendant can also assert against a restitution claim any defense that he or she could raise in a civil action for the loss sought to be compensated. Wis. Stat. § 973.20(14)(b) (emphasis added). Muth asserted two: (a) setoff and (b) accord and satisfaction. When raised against a restitution claim, both defenses are aimed at reducing the bottom-line amount. But each gets there through a different path. ¶116 Broadly, a setoff theory involves dueling claims of indebtedness. The defendant seeks to reduce an amount owed on the plaintiff's claim based on his own claim that the plaintiff is indebted to him from a separate transaction. See Piotrowski v. Czerwinski, 138 Wis. 396, 400, 120 N.W. 268 (1909) (explaining 3 No. 2018AP875-CR.bh that defendants had an equitable right to set off their own claims of indebtedness against the plaintiff's action on notes the defendants made); see also Setoff, Black's Law Dictionary (11th ed. 2019) (A debtor's right to reduce the amount of a debt by any sum the creditor owes the debtor; the counterbalancing sum owed by the creditor.). The restitution statute explicitly recognizes the validity of setoff in a related context. It provides that restitution paid in a criminal proceeding shall be set off against any judgment in favor of the victim in a civil action if it arose from the same events. Wis. Stat. § 973.20(8). ¶117 Accord and satisfaction, on the other hand, is an agreement between parties to discharge a disputed claim or debt. Hoffman v. Ralston Purina Co., 86 Wis. 2d 445, 453, 273 N.W.2d 214 (1979). That is, the parties agree to a performance different from and in lieu of actual performance on the claim or debt in dispute. See Huml, 293 Wis. 2d 169, ¶36 n.9 ('Accord and satisfaction' means '[a]n agreement to substitute for an existing debt some alternative form of discharging that debt, coupled with the actual discharge of the debt by the substituted performance.' (quoting Black's Law Dictionary (7th ed. 1999) (alteration in original)). The defense comprises two basic elements: the accord is the parties' agreement, while the satisfaction is performance on that agreement. See Flambeau Prods. Corp. v. Honeywell Info. Sys., Inc., 116 Wis. 2d 95, 112-14, 341 N.W.2d 655 (1984).2 To ascertain whether these elements are present, a court 2A preeminent contract law treatise describes the same two elements as such: 4 No. 2018AP875-CR.bh applies ordinary principles of contract law. Hoffman, 86 Wis. 2d at 453. The accord requires an offer, an acceptance, and consideration, and the satisfaction requires performance complying with the parties' agreement. Id. When both elements are proved, the defense bars actions to enforce the discharged claim. Id.