Wisconsin appeals court upholds civil theft damages against dealership owner
The Seventh Circuit rejected a challenge to $321,330 in exemplary damages involving a decade-long family business dispute.
An appeals court has upheld a decision requiring Chris Schneider to pay $321,330 in exemplary damages for civil theft related to a family car dealership in La Crosse, Wisconsin. According to the Times of India, the US Court of Appeals for the Seventh Circuit issued the ruling on October 30, 2026, in the case of Carl Schneider v. Chris Schneider.
The dispute involved Hybrid Car Store Inc., which was founded by Carl Schneider in 1976. His son, Chris Schneider, served as the general manager after becoming a partial owner. A legal conflict arose after Chris Schneider became the majority shareholder following a 2008 transfer of interest from Narcelle Schneider, which a state court later ruled violated existing agreements.
The federal court identified three specific instances of civil theft. These included using $56,250 of company funds to settle a personal legal debt, providing $191,500 in rent subsidies to Dahl Automotive without informing the trust, and using a dividend meant for the trust to cover a 2021 promissory note.
Chris Schneider argued he believed he had the authority to make these payments and that previous litigation barred these claims. The appeals court rejected these arguments, stating the 2021 note involved new actions and that there was no error in finding he used company money without authorisation.
The US District Court for the Western District of Wisconsin had previously ordered the dissolution of the company and appointed a receiver. The court also ordered the business to pay the trust $553,905.49.