Schara v. Thiede
In Schara v. Thiede, 58 Wis. 2d 489, 206 N.W.2d 129 (Wis 1973), the parties agreed that one would operate a tavern as his own business under the other's liquor license for the remainder of the term of that license. 206 N.W.2d at 130.
This was done to avoid the expense of obtaining a new liquor license. Although the agreement purported to be an employment contract, the parties clearly understood that it was a front for the underlying agreement.
In a dispute over the terms of the lease, the court held that the right to the lease was "expressly conditioned upon his faithful performance as 'manager' pursuant to the illegal agreement." 206 N.W.2d at 132.
The court concluded that the contract "was so permeated with illegality" that it was not severable. 206 N.W.2d at 133.