On October 11, the Assembly Committee on Consumer Protection held a public hearing on Assembly Bill 464, a proposal to regulate nonrecourse civil litigation advance payments in Wisconsin. A coalition of the state’s leading business associations testified and registered in support of the bill at the hearing.
Author: Hamilton
Legislation Circulating to Protect Motor Carriers from Unreasonable Nuclear Verdicts
Legislation is circulating for introduction in Wisconsin that would cap the recovery of noneconomic damages from trucking companies and commercial drivers. The aim of the bill is to protect employers from unreasonable “nuclear verdicts” and stabilize insurance costs for the trucking industry.
Wisconsin Supreme Court Accepts Redistricting Case; Protasiewicz Will Not Recuse
The Wisconsin Supreme Court has accepted a lawsuit challenging the legality of Wisconsin’s state legislative maps. Two petitions for original action were filed in August, each asking the supreme court to bypass the typical trial and appellate court process and rule that Wisconsin’s current state legislative maps are unconstitutional.
Legislative Update: January–July 2023
As is often the case, the first sixth months of the 2023-24 legislative session were largely focused on the biennial budget process. The Wisconsin Civil Justice Council has worked to maintain and improve the state’s civil litigation climate by providing input on the state budget and other relevant pieces of legislation.
5 Walworth, LLC v. Engerman Contracting, Inc. (CGL Coverage)
In 5 Walworth, LLC v. Engerman Contracting, Inc. (2023 WI 51), the Wisconsin Supreme Court held that three insurers were not entitled to summary judgement on their duty to defend several companies under the terms of their commercial general liability policies.
Pepsi-Cola Metropolitan Bottling Company, Inc. v. Employers Insurance Company of Wausau (Anti-Assignment Clause)
In Pepsi-Cola Metropolitan Bottling Company, Inc. v. Employers Insurance Company of Wausau (2023 WI 42), the Wisconsin Supreme Court did not reach a decision in a case involving an insurer’s duty to defend and the applicability of an anti-assignment clause. As a per curiam opinion, the supreme court’s decision did not establish a precedent; however, the published court of appeals decision was affirmed.
Fleming v. Amateur Athletic Union of the United States, Inc. (Statute of Limitations)
In Fleming v. Amateur Athletic Union of the United States, Inc. (2023 WI 40), the Wisconsin Supreme Court held that an extended statute of limitations did not apply to a negligence claim.
Litigation Financing: Coalition Asks Federal Committee to Adopt Disclosure Rule
On May 8, a broad national coalition of 35 business associations and tort reform advocates sent a letter to the federal Advisory Committee on Civil Rules regarding third party litigation funding. The letter asks the committee to amend Rule 26 of the Federal Rules of Civil Procedure to require disclosure of a litigation financing agreement in any civil action filed in federal court.
Finance Committee Overhauls 2023-25 State Budget, Removes Problematic Policies
Last week, the Joint Committee on Finance began voting on motions to reshape the 2023-25 state budget as originally proposed by Gov. Tony Evers (D) in his executive budget. The committee process, expected to conclude by mid-June, will result in the final budget bill that will be voted on by the full Legislature.
Lawsuit Against Burford Capital Reveals Dangers of Litigation Financing
Third party litigation funding or “litigation financing” is a form of investing in which hedge funds and other financiers invest in a lawsuit in exchange for a portion of any settlement or judgement award. The investment provides cash to plaintiffs to litigate a claim, while the financier—thanks to its sophisticated underwriting—anticipates the case to end in a large enough judgement or settlement to satisfy its obligations.