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Article Highlights Recently Enacted Civil Liability Reforms throughout the Country

The Federalist Society this week published an article, Tort Reform Update: Recently Enacted Legislative Reforms and State Court Challenges, authored by WCJC’s Andrew Cook discussing the numerous civil liability reform bills passed throughout the country the last two years. In addition, the article discusses recent decisions involving state court challenges to previously enacted civil liability reforms.

The article notes that over the last two years numerous civil liability reforms have been enacted in nearly half of the states, with Wisconsin leading the way. Other states passing multiple civil liability reforms during the 2011-12 legislative sessions include Alabama, North Carolina, and Tennessee. Continue reading “Article Highlights Recently Enacted Civil Liability Reforms throughout the Country”

Final Disposition of 2011-2012 Legislation

Assembly Bills

Links Summary/Status

SS AB 12

Committee

History

Attorney Fees

Summary: Requires courts to consider 14 criteria when awarding reasonable attorney fees and caps court awarded attorneys fees at three times compensatory damages.

Status: Introduced Oct. 11, 2011; Referred to the committee on Judiciary and Ethics; Public hearing held Oct. 21; Failed to pass pursuant to Senate Joint Resolution 1.

SS AB 13

Committee

History

Attorney Fees

Summary: Provides immunity from liability to drug and device manufacturers and sellers under certain circumstances

Status: Introduced Oct. 11, 2011; Referred to the committee on Judiciary and Ethics; Failed to pass pursuant to Senate Joint Resolution 1.

SS AB 14

Committee

History

Interest Rates on Judgments

Summary: Under current law, Wisconsin has one of the highest pre- and post-judgment interest rates in the nation at 12 percent. This bill sets the interest rate on judgments for tort cases and consumer protection cases at one percent plus the prime rate as reported by the Federal Reserve Board until the amount is paid.

Status: Introduced Oct. 11, 2011; Referred to the committee on Judiciary and Ethics; Public hearing held Oct. 21; Passage as amended recommended (5-3) Nov. 1. Laid on the table Nov. 3, 2011.

SS AB 22

Committee

History

Trespasser Liability

Summary: Codifies existing common law as it pertains to the duty of care that possessors of land owe to trespassers and to prevent courts from adopting the new Restatement Third Torts, which expands liability for possessors of land.

Status: Introduced Oct. 18, 2011; Referred to the committee on Judiciary and Ethics; Public hearing held Oct. 21; Passage as amended recommended (7-1) Nov. 1; Laid on the table Nov. 3, 2011.

AB 40

Finance

History

State Budget

Summary: State finances and appropriations.

Status: Introduced March 1, 2011. Referred to Joint Committee on Finance; Statewide public hearings held by Joint Finance; Passed the Assembly (60-38) June 14; Passed the Senate (19-14) June 16; Presented to the Governor June 24; Approved by the Governor with partial veto June 26; Published July 7

AB 147

Severson

History

Statements of Condolence by Healthcare Provider

Summary: Provides that a statement or conduct of a health care provider that expresses apology, benevolence, compassion, condolence, fault, liability, remorse, responsibility, or sympathy to a patient or patient’s relative or representative is not admissible into evidence or subject to discovery in any civil action or administrative hearing regarding the health care provider as evidence of liability or as an admission against interest.

Status: Introduced May 23, 2011. Referred to Assembly committee on Health; Public hearing held June 1; Passage recommended (7-3) Sept. 7; Passed the Assembly (62-33, paired 2) Nov. 1; Referred to Senate committee on Judiciary, Utilities, Commerce, and Government Operations;

AB 223

Finance

History

Administrative Agency Actions

Summary: Eliminates financial and entity size limitations for prevailing parties to be eligible to receive costs in administrative agency actions, allowing an award of costs to any trust or person, other than the state, that is a prevailing party unless the court finds the agency was substantially justified in taking its position or if such an award would be unjust under the circumstances.

Status: Introduced Aug. 18,, 2011. Referred to Assembly committee on Judiciary and Ethics; Public hearing held Sept. 29;

AB 286

Kleefisch

History

Employment Discrimination – Felony Convictions

Summary: Permits an employer to refuse to employ or to bar or terminate from employment an individual who has been convicted of a felony and who has not been pardoned for that felony and preempting cities, villages, towns, and counties from adopting provisions concerning employment discrimination based on arrest or conviction record that prohibit activity that is allowed under the state fair employment law.

Status: Introduced Sept. 29, 2011. Referred to Assembly committee on Labor and Workforce Development; Public hearing held Oct. 12; Passage recommended (6-3) Dec. 7

AB 289

Litjens

History

Employment Discrimination – Compensatory/Punitive Damages

Summary: Eliminates compensatory and punitive damages for acts of employment discrimination or unfair honesty or genetic testing.

Status: Introduced Sept. 29, 2011; Referred to the committee on Judiciary and Ethics; Public hearing held Oct. 27;

AB 436

Taylor

History

Employment Applications-Conviction Records

Summary: Prohibits consideration of the conviction record of an applicant for employment before the applicant has been selected for an interview.

Status: Introduced Dec. 20, 2011; Referred to the committee on Criminal Justice and Corrections.

AB 459

Richards

History

Punitive Damages

Summary: Eliminates the limitation on the amount of punitive damages that may be awarded to a plaintiff.

Status: Introduced Jan. 4, 2012; Referred to the committee on Judiciary and Ethics.

AB 495

Strachota

History

Liability

Summary: Duties and liabilities of ski area operators.

Status: Introduced Jan. 25, 2012; Referred to the committee on Tourism, Recreation and State Properties; Public hearing held Feb. 8

Senate Bills

Links Summary/Status

SS SB 12

Committee

History

Attorney Fees

Summary: Requires courts to consider 14 criteria when awarding reasonable attorney fees and caps court awarded attorneys fees at three times compensatory damages.

Status: Introduced Oct. 11, 2011; Referred to the committee on Judiciary, Utilities, Commerce, and Government Operations; Public hearing held Oct. 19; Passage as amended recommended (3-2); Passed the Senate (17-15) Oct. 27; Passed the Assembly Nov. 4.; Signed by the Governor as 2011 Wis. Act 92 on Dec. 7, 2011.

SS SB 13

Committee

History

Product Liability

Summary: Provides immunity from liability to drug and device manufacturers and sellers under certain circumstances.

Status:Introduced on Oct. 11, 2011. Referred to committee on Judiciary, Utilities, Commerce, and Government Operations; Failed to pass pursuant to Senate Joint Resolution 1.

SS SB 14

Committee

History

Interest Rates on Judgements

Summary: Under current law, Wisconsin has one of the highest pre- and post-judgment interest rates in the nation at 12 percent. This bill sets the interest rate on judgments for tort cases and consumer protection cases at one percent plus the prime rate as reported by the Federal Reserve Board until the amount is paid.

Status: Introduced Oct. 11, 2011; Referred to the committee on Judiciary, Utilities, Commerce, and Government Operations; KPublic hearing held Oct. 26; Passage as amended recommended Nov. 1; Passed the Senate (17-16) Nov. 2; Passed the Assembly (59-36, paired 2) Nov. 3; Signed by the Governor as 2011 Wis. Act 69 on Nov. 18, 2011.

SS SB 22

Committee

History

Trespasser Liability

Summary: Codifies existing common law as it pertains to the duty of care that possessors of land owe to trespassers and to prevent courts from adopting the new Restatement Third Torts, which expands liability for possessors of land.

Status: Introduced Oct. 18, 2011; Public hearing held Oct. 26, 2011; Passage as amended recommended (5-0) Nov. 1; Passed the Senate Nov. 2; Passed the Assembly (80-15, paired 2) Nov. 3; Presented to the Governor Dec. 5; Signed by the Governor as 2011 Wis. Act 93 on Dec. 7.

SB 27

Sullivan

History

State Budget

Summary: State finances and appropriations.

Status: Introduced Mar. 1, 2011; Referred to Joint Committee on Finance; Statewide public hearings held by Joint Finance April 7-13; Laid on the table May 16.

SB 103

Galloway

History

Statements of Condolence by Healthcare Provider

Summary: Provides that a statement or conduct of a health care provider that expresses apology, benevolence, compassion, condolence, fault, liability, remorse, responsibility, or sympathy to a patient or patient’s relative or representative is not admissible into evidence or subject to discovery in any civil action or administrative hearing regarding the health care provider as evidence of liability or as an admission against interest.

Status: Introduced May 24, 2011; Referred to committee on Judiciary, Utilities, Commerce, and Government Operations; Public hearing held June 2; Passage as amended recommended (3-2) July 6;

SB 202

Grothman

History

Employment Discrimination – Compensatory/Punitive Damages

Summary:Eliminates compensatory and punitive damages for acts of employment discrimination or unfair honesty or genetic testing.

Status: Introduced Sept. 27, 2011. Referred to committee on Judiciary, Utilities, Commerce, and Government Operations; Public hearing held Oct. 19; Passage recommended (3-2) Oct. 26; Passed the Senate (17-16) Nov. 3; Concurred in by the Assembly Feb. 21

SB 207

Darling

History

Employment Discrimination – Felony Convictions

Summary: Permits an employer to refuse to employ or to bar or terminate from employment an individual who has been convicted of a felony and who has not been pardoned for that felony and preempting cities, villages, towns, and counties from adopting provisions concerning employment discrimination based on arrest or conviction record that prohibit activity that is allowed under the state fair employment law.

Status: Introduced Sept. 28, 2011. Referred to committee on Labor, Public Safety, and Urban Affairs; Public hearing held Oct. 24; Passage as amended recommended (4-1) Nov. 2;

SB 342

Taylor

History

Punitive Damages

Summary: Eliminates the limitation on the amount of punitive damages that may be awarded to a plaintiff..

Status: Introduced Dec. 19, 2011; Referred to the Senate committee on Judiciary, Utilities, Commerce, and Government Operations;

SB 373

Taylor

History

Product Liability

Summary: 2011 Wisconsin Act 2 (Act 2) made a number of changes to the law governing civil actions involving product liability claims brought under a theory of strict liability and to civil actions against manufacturers, distributors, sellers, and promoters of products. This bill makes several changes to certain provisions enacted under Act 2.

Status: Introduced Jan. 10, 2012; Referred to the Senate committee on Judiciary, Utilities, Commerce, and Government Operations; Public hearing held Jan. 19

SB 388

Grothman

History

Liability

Summary: Duties and liabilities of ski area operators.

Status: Introduced Jan. 19, 2012; Referred to the committee on Judiciary, Utilities, Commerce, and Government Operations; Public hearing held Feb. 8; Passage as amended recommended (3-2) Mar. 2; Passed by the Senate Mar. 7; Referred to the Assembly.

Updated Mar. 9, 2012

Court Strikes Down Punitive Damages Against Restaurant in Case Involving Human Hair Placed in Food

On December 5, 2012, the Court of Appeals, Dist. II, struck down an award of punitive damages to a patron of Texas Roadhouse who found human hair deliberately placed in his food by the restaurant’s employee.

The jury awarded the plaintiff $100,000 against Texas Roadhouse, which appealed the decision. In reversing the trial court, the court of appeals held that the trial court erred in upholding the punitive damages award because the jury did not find Texas Roadhouse causally negligent.

The case is Hansen v. Texas Roadhouse, Inc., 2010AP3137.

Wisconsin’s Business Climate Continues to Improve Thanks to Civil Justice Reforms

Wisconsin’s business climate continues to improve thanks to the pro-growth reforms enacted during the 2011-12 legislative session, including recently enacted civil justice reforms.

Wisconsin jumped up to No. 13 in the nation according to Site Selection Magazine’s “Top U.S. Business Climates” survey. The study listed a state’s legal climate as a top issue for corporate executives when deciding where to locate its business. The study included other factors, such as regulatory procedures and ease of permitting, economic development, taxes, utility and transportation infrastructure, and workforce skills.

Continue reading “Wisconsin’s Business Climate Continues to Improve Thanks to Civil Justice Reforms”

Wisconsin Supreme Court Accepts New Cases

The Wisconsin Supreme Court twice this month has issued a list of new cases it plans to hear and decide over the next few months. To view the list of the cases accepted by the court along with of a summary of each, click here and here.

WCJC will provide a summary of each case of interest to the business community when oral arguments take place and after the court issues a decision.

Court of Appeals Voids Settlement Reached Between Parties without Their Attorneys’ Knowledge; Allows Lemon Law King to Get Attorney’s Fees

On October 16, the Court of Appeals, Dist. I, held that a settlement reached between the plaintiff and the defendant, which excluded attorney’s fees for the plaintiff’s attorney, was void on public policy grounds. The case is Betz v. Diamond Jim’s Auto Sales.

The case involved a lawsuit filed by the self-proclaimed Lemon Law King, Vince Megna, against Diamond Jim’s Auto Sales involving the sale of a used car to the plaintiff, Randy Betz.

The lawsuit alleged intentional fraud, advertising injury, and violation of the statute licensing automobile dealers. The plaintiff sued under statues that contain fee shifting provisions, which allow the court to award attorney’s fees to the plaintiff’s attorney in the event the plaintiff prevails in the case. Continue reading “Court of Appeals Voids Settlement Reached Between Parties without Their Attorneys’ Knowledge; Allows Lemon Law King to Get Attorney’s Fees”

One of Judge Kloppenburg’s First Opinions Favors Employee over Employer in WFMLA Case

Judge JoAnne Kloppenburg was recently elected to the Court of Appeals, District IV, which is located in Dane County. District IV hears appeals from from circuit courts throughout southern, southwestern, western, and central Wisconsin.

In one of her first published decisions involving businesses, Judge Kloppenburg overturned a Dane County Circuit Court decision dismissing a lawsuit against Kraft Foods Global, Inc. The circuit court held that the lawsuit was not timely filed, and therefore dismissed the case. The case is Hoague v. Kraft Foods Global, Inc.

The case involved a complaint by an employee against Kraft Foods for an alleged violation of the Wisconsin Family and Medical Leave Act (WFMLA). The Wisconsin Equal Rights Division ruled in favor of the employee and ordered Kraft Foods to pay the employee over $18,000 for loss of back pay, along with another $12,000 for attorney’s fees and costs. Continue reading “One of Judge Kloppenburg’s First Opinions Favors Employee over Employer in WFMLA Case”

Wisconsin Supreme Court Hears Oral Argument in Case Deciding whether Physical Assault Qualifies as an “Accident” for Purposes of Insurance Coverage

The Wisconsin Supreme Court on Tuesday, October 23, heard oral argument in a case that will determine whether a physical assault at a party qualifies as an “accident” for purposes of insurance coverage under a homeowner’s policy. The case is Schinner v. Gundrum, 2012 WI App. 31, 340 Wis. 2d 195 (2011AP1564). Continue reading “Wisconsin Supreme Court Hears Oral Argument in Case Deciding whether Physical Assault Qualifies as an “Accident” for Purposes of Insurance Coverage”