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Civil Procedure – Retroactive interest – constitutionality

By: WISCONSIN LAW JOURNAL STAFF//January 15, 2015//

Civil Procedure – Retroactive interest – constitutionality

By: WISCONSIN LAW JOURNAL STAFF//January 15, 2015//

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Wisconsin Court of Appeals

Civil

Civil Procedure – Retroactive interest – constitutionality

Retroactive reduction of the interest rate applicable to a judgment under sec. 807.01(4) is unconstitutional.

“Precedents establish that there was no public interest sufficient to outweigh the substantial impairment of laws that (1) retroactively applied a cap on certain medical malpractice damages, see Martin v. Richards, 192 Wis. 2d 156, 531 N.W.2d 70 (1995); (2) retroactively increased limits on certain wrongful death damages, see Neiman v. American Nat’l Prop. & Cas. Co., 2000 WI 83, 236 Wis. 2d 411, 613 N.W.2d 160; and (3) retroactively abrogated, in part, joint and several liability in a negligence claim, see Matthies, 244 Wis. 2d 270. Cintas 2 acknowledges these precedents but offers no argument concerning what public interests the amendment of WIS. STAT. § 807.01(4) serves that would outweigh the substantial impairment of individual private interests. The act itself contains no such provision or explanation,2 and we can think of nothing that distinguishes the public/private interests balance in this case from the balance determined in those precedents.”

“Having concluded that WIS. STAT. § 807.01 is substantive, not procedural, we further conclude that retroactively changing the interest rate that attaches to a statutory offer of settlement under § 807.01(4) would be unconstitutional. The applicable rate of interest under § 807.01(4) is the rate that was in effect on the date that the offer of settlement was filed.”

Affirmed in part, and Reversed in part.

Recommended for publication in the official reports.

2013AP2323 Johnson v. Cintas Corp. No. 2

Dist. II, Kenosha County, Bastianelli, J., Brown, J.

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