2008AP3135 Society Insurance v. LIRC

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Constitutional Law
Due process; contract clause

Retroactive application of secs. 102.17(4) and 102.66(1), to shift responsibility for traumatic work injuries from the Work Injury Supplemental Benefit Fund to the employer or insurer, is unconstitutional.

"Shifting the burden of traumatic injury benefits or treatment expense to self-insured employers or insurers to maintain the solvency of the Fund, as Society contends, provides weak support for retroactive application of Wis. Stat. §§ 102.17(4) and 102.66(1). We reiterate that the record is devoid of any evidence demonstrating that the legislature intended §§ 102.17(4) and 102.66(1) to apply retroactively to maintain the solvency of the Fund.

However, assuming that requiring insurers to pay for time-barred traumatic injury claims maintains the solvency of the Fund, we think this weighs in Society's favor because it demonstrates the significant financial burden being shifted to insurers. This is so because in order to impact the solvency of the Fund, time-barred traumatic injury claims must necessarily involve payment of significant benefits or treatment expense."

"The evidence in the record supports our conclusion that the challenged legislation will expose Society to potentially significant losses. For the years 2004 through 2007, Liska submitted medical expenses totaling either $5,512.23 or $11,481.52, depending on whether Liska's health insurer is to be reimbursed. We view this as significant. Also, weighing in Society's favor is the unfairness resulting from its inability to recoup its losses through increased premiums. See supra ¶48."

Affirmed.

2008AP3135 Society Insurance v. LIRC

Roggensack, J.

Attorneys: For Appellant: Hart, David A., III, Madison; For Respondent: Goonan, James W., Madison; Kulkoski, Grace Marie, Madison

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