The US Court of Appeals for the Seventh Circuit upheld a $321,330 judgment against Chris Schneider on October 30, 2026, rejecting his appeal of a lower court’s finding that he committed civil theft. The ruling confirms that Schneider knowingly misused company funds from Hybrid Car Store Inc. in La Crosse, Wisconsin, for personal purposes without authorization. This decision effectively ends a decade-long legal war between the son and the trust established by his parents, Carl and Narcelle Schneider.
The dispute traces back to the company’s foundation in 1976 by Carl Schneider. Chris joined as general manager and eventually held a 62.5% stake after his mother transferred her 37.5% interest to him in 2008. Carl challenged that transfer in 2014, arguing it violated estate agreements. A state court ruled against Chris, ordering him to pay $562,500 for the improperly received ownership interest and $56,250 in withheld dividends. Schneider then arranged for the company to issue him a loan of $281,196.61 and a dividend of $281,303.39 to satisfy that judgment.
The financial irregularities deepened as the company indemnified Schneider for $395,574.81 in legal fees, which he used to repay the loan and take the remainder in cash. He never repaid the $56,250 drawn from the company’s account to satisfy his personal debt. Additionally, Schneider directed the company to pay $191,500 in rent subsidies to Dahl Automotive, a deal brokered in 2018 without informing the trust. The district court identified these actions, along with the misuse of a dividend to cover a disputed 2021 promissory note created in Carl’s name, as three distinct instances of civil theft.
Wisconsin law permits exemplary damages for civil theft, which the district court awarded at $321,330. The court also ordered the company to pay the trust $553,905.49 and directed the dissolution of Hybrid Car Store Inc. The Seventh Circuit found no clear error in these findings, noting that Schneider’s actions breached his fiduciary duties to the shareholders. The appeals court rejected his argument that an earlier lawsuit barred the trust from seeking these specific damages.
A receiver has been appointed to oversee the company’s affairs as it winds down. The trust, represented by Carl and his daughter Mary Schneider, will now manage the distribution of remaining assets. This case highlights the severe financial and legal consequences of mixing personal obligations with corporate funds in family businesses.