Rankings Drop Driven in Part by Judicial Behavior

 

The U.S. Chamber Institute for Legal Reform (ILR) routinely conducts a survey of in-house general counsels, senior litigators, and other senior executives at companies with at least $100 million in annual revenues with recent litigation experience in each state (within the last four years). 75% of survey respondents reported that a state’s litigation environment is likely to impact important business decisions at their companies such as whether to locate or do business in the state.

Down from 15^th in 2012, Wisconsin now ranks 20^th overall.  This drop was very disappointing given the significant reforms recently enacted in Wisconsin. As stated in the ILR Report, the Wisconsin ranking drop was driven by a poor ranking of our judiciary.  Survey participants ranked Wisconsin substantially lower this year in several key areas related to judges, including on enforcement of venue requirements (nine spot drop), treatment of class actions (20 spot drop), impartiality (eight spot drop) and on competence (10 spot drop).

• Overall treatment of tort and contract litigation – Wisconsin is ranked 21^st.
• Having and enforcing meaningful venue requirements – Wisconsin is ranked 22^nd.
• Treatment of class action suits and mass consolidation suits – Wisconsin is ranked 28^th.
• Damages – Wisconsin is ranked 17^th.
• Timeliness of summary judgement or dismissal – Wisconsin is ranked 16^th.
• Discovery – Wisconsin is ranked 17^th.
• Scientific and technical evidence – Wisconsin is ranked 19^th.
• Judges’ impartiality – Wisconsin is ranked 20^th.
• Judges’ competence – Wisconsin is ranked 24^th.
• Juries’ fairness – Wisconsin is ranked 21^st.

Full survey results can be found here.

Last week US District Judge Edward Chen, of the Northern District of California, certified a class of up to 160,000 California Uber drivers who could seek mileage and tip reimbursement from Uber. Attorneys for Uber unsuccessfully argued that its relationships with individual drivers were too unique to be represented by a single class of plaintiffs.

Shannon Liss-Riordan, a prolific plaintiffs’ class-action lawyer, has filed lawsuits against Uber, Lyft, Homejoy, Postmates, and Caviar – five of the largest “on-demand” start-ups in the world. She argues Uber gives its drivers employee-like duties while treating them as independent contractors in order to skirt its obligations as an employer. Uber argues it is simply a software platform that connects drivers with people looking for rides.

If Uber drivers are found to be employees, Uber would be required to pay overtime, unemployment insurance, workers compensation, and potentially expenses such as gas and vehicle wear and tear. Start-up advocates fear that this could put many “on-demand” start-ups out of business or prevent new ones from being created due to labor costs.