On Tuesday, February 16, Governor Tony Evers gave his second biennial budget address and released his 2021-23 executive budget. All told, the governor proposes an operating budget of $45.4 billion in fiscal year (FY) 2021-22 and $45.6 billion in FY 2022-23. On the civil justice front, the governor’s budget includes several proposals of concern to the WCJC and its members.
Category: WCJC News
Assembly Speaker Vos Proposes COVID-19 Liability Protections
December 1, 2020, Assembly Speaker Robin Vos (R-Rochester) released a Legislative Fiscal Bureau memorandum summarizing a legislative proposal as a next step in the state’s response to the COVID-19 pandemic.
COVID-19 Premises Liability Legislation Circulating in Wisconsin Legislature
Sen. Chris Kapenga (R-Delafield), Rep. Mark Born (R-Beaver Dam), and Rep. Dan Knodl (R-Germantown) are circulating legislation to shield Wisconsin businesses, schools, universities, and other entities from the threat of lawsuits alleging liability for COVID-19 exposures. Such protections would only apply to those who take adequate precautions to keep their premises safe.
On September 9, a broad coalition of over 60 groups, including the Wisconsin Civil Justice Council, Wisconsin Manufacturers & Commerce, the National Federation of Independent Businesses – Wisconsin, the Wisconsin Association of School Boards, the Wisconsin Builders Association, the Wisconsin Restaurant Association, the Midwest Food Products Association, Associated Builders and Contractors of Wisconsin, and many local chamber of commerce sent a memo urging legislators to co-sponsor and act on the bill.
The Legislature likely will not re-convene until January. When the Legislature reconvenes, enactment of these protections will be a major initiative of the Wisconsin Civil Justice Council.
U.S. Chamber Institute for Legal Reform Poll: Bipartisan Majority of Americans Support COVID-19 Liability Protections
A bipartisan majority of Americans support protecting businesses from lawsuits related to coronavirus, according to a U.S. Chamber Institute for Legal Reform (ILR) poll released earlier this month.
“The global pandemic has caused tremendous economic harm to our nation. As employers plan to reopen safely and sustainably, the last thing they need is to face a financially crippling lawsuit despite their best effort to comply with public health guidelines,” said ILR President Harold Kim.
61 percent of poll respondents generally support coronavirus lawsuit protections. Support for liability protections grew when respondents were asked about specific sectors. Provided businesses are following the latest health guidelines, 84 percent support protecting essential businesses like grocery stores and pharmacies. 82 percent support protecting restaurants, stores and other businesses from lawsuits by people claiming to have contracted coronavirus there. 74 percent support protecting companies who ask sick employees to stay home. 75 percent support lawsuit protections for hand sanitizer and cleaning supply companies. Majorities of Republicans, Democrats, and Independents all expressed their support for these policies.
Wisconsin Civil Justice Council and a coalition of businesses are asking the Wisconsin Legislature to adopt these types of reforms to protect Wisconsin businesses as the state begins to reopen.
U.S. Chamber Releases Research on Third Party Litigation Financing
Recent research from the U.S. Chamber Institute for Legal Reform (ILR) looks at how the third party litigation financing industry has over the last decade grown exponentially, fueling abusive litigation. According to the ILR paper, third party litigation financing is now at least a $10 billion industry. These investors in lawsuits encourage filing of frivolous cases and often drive up the cost of litigation and settlements, as well as presenting a variety of ethics issues.
The ILR policy paper recommends several approaches lawmakers can take to address third party litigation financing, including some that have already been enacted in Wisconsin.
Wisconsin was the first state to enact third party litigation financing transparency requirements in 2017 Act 235, authored by Sens. Tom Tiffany (R-Minocqua) & David Craig (R-Big Bend) and Reps. Mark Born (R-Beaver Dam) & John Nygren (R-Marinette). Former Wisconsin Gov. Scott Walker signed the historic legislation into law just over two years ago. The law provides that, unless stipulated or otherwise ordered by the court, a party shall provide to the other parties any agreement under which any person, other than an attorney permitted to charge a contingent fee for representing a party, has a right to receive compensation that is contingent on and sourced from any proceeds of the civil action, by settlement, judgement, or otherwise.
Other policies recommended by ILR to address third party litigation financing include banning fee sharing arrangements between lawyers and non-lawyers and banning third party litigation financing in class actions.
WCJC Files Amicus Brief Urging Appeals Court to Stay Copycat Shareholder Litigation
The Wisconsin Civil Justice Council and Metropolitan Milwaukee Chamber of Commerce have filed an amicus brief in Yandoli v. REV Group, Inc. arguing the court should stay state court proceedings in a securities class action lawsuit when an identical class action case is ongoing in federal court.
Plaintiffs filed actions against REV Group, a Milwaukee manufacturer, when its stock price dropped after its initial public offering. Plaintiffs in three federal lawsuits and the instant state case claim REV Group violated Sections 11 and 15 of the federal 1933 Act. The federal litigation consists of not only the same claims but also the same defendants, factual allegations, alleged class, and relief sought. Wisconsin courts typically stay proceedings when a class action involving federal laws is filed in federal court. However, the state circuit court in this case denied the defendants’ motion to stay because the named plaintiff differs from the named plaintiff in the federal litigation.
The WCJC brief asks the Court of Appeals District II to overturn the circuit court’s decision and stay the state case while the federal case is pending. The brief argues that:
- The circuit court’s decision not to stay the state level proceedings will harm Wisconsin businesses by allowing for meritless duplicative securities litigation. If permitted to stand, the holding will encourage a parade of opportunistic plaintiff attorneys to file duplicative lawsuits, forcing Wisconsin businesses to defend identical lawsuits in different venues.
- Allowing such “copycat” shareholder litigation to proceed in Wisconsin will significantly increase costs and harm Wisconsin’s business climate. Costs of defending these lawsuits will be borne by shareholders, employees, and consumers in Wisconsin. Furthermore, the “litigation tax” companies must consider in an unfavorable business climate would disincentivize growth and investment in the Wisconsin economy.
- The circuit court’s decision contravenes the purpose of the Commercial Court Pilot Project to increase efficiency and predictability in business litigation in Wisconsin. If the lower court’s decision is allowed to stand, it would open the Business Court (in which this case was filed) to numerous lawsuits that were never intended when the pilot rule was put into place by the Wisconsin Supreme Court. Allowing this type of litigation to proceed in the Business Court undermines the success of the project, which was expanded statewide beginning April 1, 2019.
Wisconsin Civil Justice Council Releases 2018 President’s Report
WCJC released today the 2018 President’s Report from WCJC President Bill G. Smith. The report overviews WCJC’s successful 2017-18 legislative session.
Earlier this year, WCJC lobbied in support of 2017 Assembly Bill 773, which was signed into law by Gov. Scott Walker as 2017 Wisconsin Act 235. Act 235 amended Wisconsin’s civil discovery laws, which will reduce costs for businesses by curtailing the amounts of unnecessary, expensive discovery, and make Wisconsin the first state in the nation to shine the light on third-party litigation funding, the growing practice in which third parties “invest” in litigation and drive up the cost of lawsuits.
In addition to legislation, WCJC is also vigilant with respect to the courts. The biggest victory in 2018 before the Supreme Court was Mayo v. Wisconsin Injured Patients and Families Compensation Fund, where the Court upheld Wisconsin’s statutory limit on noneconomic damages in medical malpractice cases.
Finally, WCJC issued its comprehensive 2018 Guide to the Wisconsin Supreme Court and Judicial Evaluation, which reviews the most important cases decided by the Court affecting the business community.
WCJC has been extremely active again in 2017-18, and looks forward to continued success in 2019.
Download the 2018 President’s Report here: https://www.wisciviljusticecouncil.org/wwcms/wp-content/uploads/2018/12/Presidents-report-2018.pdf.
2018-19 ATRA Judicial Hellholes Report Highlights Wis. Accomplishments
The American Tort Reform Association recently released its 2018-19 Judicial Hellholes report. While the report’s focus is to recognize some of the worst-ranking civil justice climates in the country, the report also highlights several “Points of Light,” including civil justice reform accomplishments in Wisconsin over the past year.
The report recognizes the Wisconsin Supreme Court’s decision to uphold the constitutionality of a $750,000 limit on noneconomic damages in medical malpractice cases (Mayo v. Wisconsin Injured Patients and Families Compensation Fund, 2018 WI 78). WCJC had filed an amicus brief in the case, successfully arguing that the liability limit is constitutional.
The report also highlights civil justice reforms in AB 773 (signed into law as 2017 Wisconsin Act 235). Act 235 enacted several e-discovery and class action reforms to lower the costs of litigation for businesses, as well as groundbreaking provisions requiring transparency in third-party litigation funding.
WCJC Files Amicus Brief Urging Appeals Court to Stay Copycat Shareholder Litigation
Wisconsin Civil Justice Council (WCJC) has filed an amicus brief in Yandoli v. REV Group, Inc. arguing the Waukesha County Circuit Court erred by denying the defendants’ motion to stay the court proceeding in a securities class action lawsuit when an identical class action case was filed first in federal court.
Plaintiffs filed actions against REV Group, a Milwaukee manufacturer, when its stock price dropped after its initial public offering. Plaintiffs in three federal lawsuits and the instant state case claim REV Group violated Sections 11 and 15 of the federal 1933 Act. The federal litigation consists of not only the same claims but also the same defendants, factual allegations, alleged class, and relief sought. Wisconsin courts typically stay proceedings when a class action involving federal laws is filed in federal court. However, the court in this case denied the defendants’ motion to stay.
The WCJC brief asks the Court of Appeals District II to grant leave for the defendants to appeal the circuit court’s decision not to stay the state case while the federal case is pending. The brief argues that:
- The circuit court’s decision not to stay the state level proceedings will harm Wisconsin businesses by allowing for meritless duplicative securities litigation. If permitted to stand, the holding will encourage a parade of opportunistic plaintiff attorneys to file duplicative lawsuits, forcing Wisconsin businesses to defend identical lawsuits in different venues.
- Allowing such “copycat” shareholder litigation to proceed in Wisconsin will significantly increase costs and harm Wisconsin’s business climate. Costs of defending these lawsuits will be borne by shareholders, employees, and consumers in Wisconsin. Furthermore, the “litigation tax” companies must consider in an unfavorable business climate would disincentivize growth and investment in the Wisconsin economy.
- The circuit court’s decision contravenes the purpose of the Commercial Court Pilot Project to increase efficiency and predictability in business litigation in Wisconsin. If the lower court’s decision is allowed to stand, it would open the Business Court (in which this case was filed) to numerous lawsuits that were never intended when the pilot rule was put into place by the Wisconsin Supreme Court.
WCJC Presents James E. Hough Distinguished Service Award to Bob Fassbender
On Oct. 12, 2018, W
CJC presented the James E. Hough Distinguished Service Award to Robert Fassbender. Bob helped co-found the Wisconsin Civil Justice Council in 2009 and served as its Executive Director until he retired from the Hamilton Consulting Group in December 2017. During his tenure as Executive Director, WCJC experienced unprecedented success, which started in 2009 when WCJC helped defeat numerous bills introduced at the behest of the plaintiff’s bar. Beginning in 2011 and lasting through 2017, Bob helped lead the coalition in passing an unprecedented number of civil justice bills supporting the business community and helping Wisconsin gain national recognition.
The Distinguished Service Award is presented in honor of James E. Hough, former Hamilton Consulting Group partner, who for many years represented Wisconsin business interests in civil justice matters before the Wisconsin Legislature.