Koble Investments v. Marquardt: Wisconsin Supreme Court Clarifies WCA Does Not Apply to Residential Leases

06.24.26

By Sophia Smith, Boardman Clark Law Clerk

On June 5, 2026, the Wisconsin Supreme Court issued its decision in Koble Investments v. Marquardt, addressing whether the Wisconsin Consumer Act (WCA) applies to residential leases. The Wisconsin Supreme Court overturned the Court of Appeals and declined to apply WCA-based consumer protections to standard residential leasing agreements.

Background

The case arose when a landlord, Koble, served its tenant, Marquardt, with an eviction notice during the COVID-19 eviction moratorium. Marquardt responded by filing counterclaims alleging that Koble violated Wis. Stat. § 427.104(1)(j) of the WCA, which prohibits attempting to collect a debt from a consumer transaction where there is an “agreement to defer payment.”

Marquardt argued that her lease qualified as a consumer transaction involving an “agreement to defer payment,” bringing it within the scope of the WCA, and that Koble violated this provision by serving an eviction notice at a time when the moratorium suspended the right to do so.

The Court of Appeals agreed with this characterization and, for the first time since the WCA’s enactment in 1971, held that a residential lease could qualify as a “consumer transaction” involving an “agreement to defer payment.”

Wisconsin Supreme Court Holding

The Wisconsin Supreme Court reversed, concluding that the WCA does not apply in this context because a typical residential lease with monthly rent payments is not an “agreement to defer payment” under Wis. Stat. § 427.104.

The Court explained that deferral involves delaying payment of an existing debt. In a residential lease, however, rent obligations arise month by month. A tenant does not incur a debt for the entire lease term when the lease is signed. Instead, each rent payment corresponds to a new month of occupancy.

As the Court described, a lease is a “contemporaneous exchange of consideration—one month of rent in exchange for one more month of occupancy.” Because future rent obligations do not yet exist, there is nothing to defer. A residential lease therefore is not an installment contract, and it does not fall within the scope of Wis. Stat. § 427.104. The Court also emphasized that, for more than 50 years, residential leasing has been governed by Chapter 704 of the Wisconsin Statutes, not the WCA.

Consistent with that conclusion, the Court held that Wis. Stat. § 427.104 does not apply to residential leases with monthly rent obligations. As a result, Marquardt did not prevail on her WCA claim, and neither she nor her attorney were entitled to recover attorney fees or costs.

Key Takeaways

The Koble decision provides several takeaways for landlords and business owners:

• Residential leases do not involve “deferred payment” and are not governed by the WCA on that basis.
• Rent accrues as it becomes due each month, not as a single, deferred obligation.
• Wisconsin’s landlord-tenant statutes, not consumer credit laws, continue to govern residential leasing relationships.

Conclusion

The Koble Investments v. Marquardt decision reinforces the distinction between consumer credit law and residential landlord-tenant law in Wisconsin. By rejecting the application of the Wisconsin Consumer Act to residential leases, the Wisconsin Supreme Court confirmed that monthly rent obligations are not the type of deferred payment arrangements contemplated by the WCA. For landlords and businesses, the ruling provides helpful clarity and predictability, reaffirming that Chapter 704 remains the primary legal framework governing residential leasing relationships.

• Real Estate/Leases