Wisconsin Civil Justice Council 

The Wisconsin Legislature's Joint Finance Committee kicked off their first votes on the 2019-21 state budget this week by removing key provisions of Gov. Tony Evers's budget, including a problematic provision that would have reinstated qui tam lawsuits in Wisconsin. Also in this edition of the WCJC newsletter, read about important cases moving through the courts, including Clean Wisconsin cases and the extraordinary session litigation.

Please contact  Andy Cook or Paige Scobee  if you have any questions on these or other civil justice matters.

Please feel free to forward this newsletter to others who may benefit from the information it contains.

JFC Removes Qui Tam Provision from Gov. Evers Budget

In its first executive session on the 2019-21 state budget on May 9, the Wisconsin Legislature's Joint Finance Committee voted to remove a provision of Gov. Tony Evers's budget that would have restored a private individual's ability to bring a qui tam claim against a person who makes a false claim against the state. Gov. Evers's budget bill would have reinstated the qui tam law, not just for alleged Medicaid fraud, but for all state agencies.

WCJC actively lobbied against the qui tam provision and were successful in convincing the Joint Finance Committee to remove the provision. WCJC met with key committee members and submitted a memo explaining why the law is unnecessary and would only benefit plaintiff attorneys.
 
Continue reading about the state budget.
 
Wisconsin Supreme Court Restores Extraordinary Session Appointments

In the latest development in extraordinary session case League of Women Voters v. Evers, a 4-3 Wisconsin Supreme Court  restored  the 82 appointments that Gov. Tony Evers had rescinded. A Dane County Circuit Court judge had issued a temporary injunction on the appointments approved in the 2018 extraordinary session, allowing Evers to rescind the appointees, who included Public Service Commissioner Ellen Nowak. After a court of appeals issued a stay of the temporary injunction, there was disagreement between Evers and the legislature as to whether the appointees should be reinstated. 
 
Oral arguments in League of Women Voters will be held next week.
 
   
Legislature to Intervene in Act 21 Cases

The Legislature's Joint Committee on Legislative Organization has voted to intervene in two cases addressing the application of  2011 Act 21 . The 2011 legislation clarified that agencies may not enforce requirements unless explicitly permitted by statute or properly promulgated rule. The two cases, both titled Clean Wisconsin, Inc. v. DNR, would clarify the general scope of Act 21 in environmental cases.
 

SUPREME COURT
Subtitle
Month Year
Roggensack Re-Elected as Wisconsin Supreme Court Chief Justice

The Wisconsin Supreme Court has re-elected Chief Justice Patience Roggensack as Chief Justice for another two-year term. The Chief Justice serves as the administrative leader of the Wisconsin Court system.
 
 
Wisconsin Supreme Court Accepts New Cases

The Wisconsin Supreme Court recently accepted several new cases. Issues of note to be decided by the Supreme Court include Clean Wisconsin cases determining the applicability of Act 21, Department of Transportation authority to regulate outdoor advertising, and the fraudulent transfer statute of limitations.
 
 
Daniel v. Armslist, LLC (Communications Decency Act Liability)

In Daniel v. Armslist, LLC (2019 WI 47), the Wisconsin Supreme Court held that the federal Communications Decency Act (CDA) prohibited liability claims against a website for publishing a third-party seller's firearms advertisement. The underlying claim is against Armslist.com, which connects arms buyers and sellers with each other. Radcliffe Haughton, who had been legally prohibited from firearm ownership, obtained a firearm via an ad posted on Armslist by a third-party seller and used the gun to kill four people.
 
 
Cattau v. National Insurance Services of Wisconsin, Inc. (Pleading Standard)

In Cattau v. National Insurance Services of Wisconsin, Inc. ( 2019 WI 46), a unanimous Wisconsin Supreme Court held that Data Key Partners v. Permira Advisers, LLC did not heighten the pleading standard in Wisconsin. However, the court was divided as to whether plaintiffs in this case stated a claim upon which relief could be granted.
 
 
Maple Grove Country Club, Inc. v. Maple Grove Estates Sanitary District (Notice of Claim)

In Maple Grove Country Club, Inc. v. Maple Grove Estates Sanitary District (2019 WI 43), the Wisconsin Supreme Court held that failure to comply with the notice of claim statute is an affirmative defense. If a party fails to set forth the affirmative defense in a responsive pleading, the defense is waived.
 

Security Finance v. Brian Kirsch (Wisconsin Consumer Act)

In Security Finance v. Brian Kirsch (2019 WI 42), the Wisconsin Supreme Court held that debtors sued without first receiving a notice of right to cure default may not sue a creditor for damages under the Wisconsin Consumer Act.
 
 
Town of Lincoln v. City of Whitehall (Annexation of Town)

In Town of Lincoln v. City of Whitehall (2019 WI 37), the Wisconsin Supreme Court held that a petition for direct annexation not signed by all property owners is not a petition "by unanimous approval," allowing a town to challenge the petition more broadly.
 
 
COURT OF APPEALS
Subtitle
Month Year
Wagner v. Allstate Property and Casualty Insurance Co. (Judicial Estoppel)

In Wagner v. Allstate Property and Casualty Insurance Co. (2018AP162), the Court of Appeals District IV declined to dismiss a personal injury case based on the doctrine of judicial estoppel. The court said it was unclear whether the plaintiff intentionally contradicted her claim in a previous bankruptcy case.
 
 
Moustakis v. DOJ (Public Records)

In Moustakis v. DOJ (2018AP373), the Court of Appeals District III held that the public records law is constitutional as applied to elected officials.
 
 
Society Insurance v. Bessemer Plywood Co. (Duty to Defend)

In Society Insurance v. Bessemer Plywood Co. (2018AP224), the Court of Appeals District III held that an insurer had no duty to defend because an injury occurred during the course of employment; therefore, the policy's employment exclusion applied.
 
 
Swanson v. Gatzke (Dental Malpractice)

In Swanson v. Gatzke (2018AP305), the Court of Appeals District III held that a circuit court erred in changing jury apportioned negligence in this dental malpractice case.
 
 
Gene Frederickson Trucking and Excavating, Inc. v. Wagner (Prima Facie Tort)

In Gene Frederickson Trucking and Excavating, Inc. v. Wagner (2018AP436), the Court of Appeals District III declined to adopt a new "prima facie tort" under Wisconsin law.
 
 
Carlin Lake Association, Inc. v. Carlin Club Properties, LLC (County Ordinances)

In Carlin Lake Association, Inc. v. Carlin Club Properties, LLC (2017AP2439), the Court of Appeals District III upheld an injunction on a business's pumping and transporting well water on its property and allowed riparian property owners' claims that the activity violated county ordinances to proceed.
 
 

May 10, 2019

Written and compiled by 

Paige Scobee

Hamilton Consulting Group

Wisconsin Civil Justice Council 
10 E. Doty Street 
Suite 500 
Madison, WI 53703
(608) 310-5312

News Clips
Politics

Legal
GOP sends Evers letter complaining about prison raises : Wisconsin Law Journal, May 8, 2019.
Wisconsin Assembly plans vote on victims amendment : Wisconsin Law Journal, May 8, 2019.
Former district attorney loses another public records fight : Wisconsin Law Journal, May 7, 2019.
 
More News Clips


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