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Statutory Interpretation and Exemplary Damages

By: Derek Hawkins//December 6, 2017//

Statutory Interpretation and Exemplary Damages

By: Derek Hawkins//December 6, 2017//

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WI Supreme Court

Case Name: Estate of Stanley G. Miller c/o Genevieve Miller v. Diane Storey

Case No.: 2017 WI 99

Focus: Statutory Interpretation and Exemplary Damages

There are four issues on this appeal. First, we consider whether Wis. Stat. § 895.446 is an “action based in tort” under Wis. Stat. § 799.01(1)(cr) or an “other civil action” under § 799.01(1)(d). As to the first issue, we conclude that Wis. Stat. § 895.446 is an “other civil action” under Wis. Stat. § 799.01(1)(d) based on fundamental principles of statutory interpretation and the established distinctions between statutory civil claims and common law tort claims. Because we conclude that § 895.446 is an “other civil action,” we consequently conclude that the damages cap is $10,000 under § 799.01(1)(d) and that double costs are authorized under Wis. Stat. § 807.01(3). As to the second issue, we conclude that attorney fees are included within the meaning of “costs of investigation and litigation” under Wis. Stat. § 895.446(3)(b) because Stathus v. Horst, 2003 WI App 28, 260 Wis. 2d 166, 659 N.W.2d 165, a judicial interpretation by the court of appeals, has long stood for that proposition, and the legislature, despite taking other, subsequent action in that very statute, has not legislated so as to alter that interpretation.

As to the third issue, we conclude that the court of appeals did not err when it considered the issue of exemplary damages, in part because the issue raised was a legal question, the parties thoroughly briefed the issue, and there were no disputed issues of fact. As to the fourth issue, we conclude that our analysis as to the first issue renders analysis of the fourth issue unnecessary because our reversal of the court of appeals’ holdings on actual damages and double costs obviates the substance of the Estate’s remaining arguments. Thus, we reverse the decision of the court of appeals as to the first and second issues and affirm the decision of the court of appeals as to the third issue. Because we reverse on the first issue, we need not decide the fourth issue. We remand for further proceedings consistent with this opinion.

Affirmed in part, reversed in part, and remanded

Concur: KELLY, J. concurs and dissents, joined by R. G. BRADLEY, J.

Dissent: ABRAHAMSON, J. dissents

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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