POSTED: Monday, February 8th, 2010 at 1:00 am

BY: dmc-admin

The Wisconsin Supreme Court has voted to grant review in one case. The case number, issues, and county of origin are listed below.

2009AP728 Wis. Med. Society v. Michael L. Morgan

This certification from District IV Court of Appeals asks the Supreme Court to review two issues related to legislation that transferred $200 million from the Injured Patients and Families Compensation Fund to the Medical Assistance Trust Fund: (1) whether the Wisconsin Medical Society and David Hoffman, M.D. (the health care providers) have a protectable property interest in the Injured Patients and Families Compensation Fund (the Fund); and (2) whether a statute that retroactively repudiates a government’s contractual obligation is constitutional.

Background: The health care providers brought this action against the Secretary of the Department of Administration, Michael Morgan, in his official capacity, claiming that his actions implementing the fund transfer under 2007 Wis. Act 20, § 9225, part of the 2007-09 state budget, were illegal.

The health care providers claim the transfer is (1) an unconstitutional taking of property rights without just compensation; (2) an unconstitutional impairment of contractual rights; (3) an improperly promulgated tax; (4) a denial of rights to equal protection under the law; (5) a violation of statutorily required provision; and (6) a deprivation of constitutional rights under the color of state law, contrary to 42 U.S.C. § 1983.

The health care providers sought a declaration that the Act is illegal and an order directing that the $200 million plus interest be returned to the Fund, with an award of their attorney fees. Secretary Morgan countered that he was entitled to summary judgment because (1) the health care providers have no property interest in the Fund; and (2) the health care providers’ claims were barred by the doctrine of sovereign immunity.

The circuit court granted summary judgment in favor of Secretary Morgan, concluding that the health care providers did not have a protectable property interest in the Compensation Fund, and that their remaining claims were barred by sovereign immunity.

Amicus curiae briefs have been received from the Wisconsin Hospital Association, as well as a joint brief from the Wisconsin Academy of Family Physicians, the American Academy of Family Physicians, the Wisconsin Chapter of the American College of Physicians, the Milwaukee District Association of Osteopathic Physicians and Surgeons, and the American Medical Association. An additional amicus brief has been submitted by Dean Health Systems Inc., Marshfield Clinic and Gunderson Lutheran Health System, Inc. Further, the Medical College of Wisconsin has submitted an amicus brief.

A decision by the Supreme Court would have statewide impact.

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