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Failure to State Claim

By: Derek Hawkins//June 5, 2019//

Failure to State Claim

By: Derek Hawkins//June 5, 2019//

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WI Supreme Court

Case Name: Ann Cattau, et al. v. National Insurance Services of Wisconsin, Inc., et al.

Case No.: 2019 WI 46

Focus: Failure to State Claim

We review an unpublished decision of the court of appeals affirming an order of the circuit court that dismissed plaintiffs’ claims. Plaintiffs, a group of 61 retired Neenah teachers and administrators, sued MidAmerica Administrative & Retirement Solutions, Inc. (MidAmerica) and National Insurance Services of Wisconsin, Inc. (NIS). MidAmerica and NIS moved to dismiss for failure to state a claim upon which relief may be granted. The plaintiffs attempted to plead breach of fiduciary duty, negligent misrepresentation, strict responsibility misrepresentation, and negligence, all arising from MidAmerica and NIS’s alleged mismanagement of their retirement benefits.

The court of appeals affirmed the circuit court’s dismissal of plaintiffs’ claims against MidAmerica and NIS. The court of appeals held that our decision in Data Key Partners v. Permira Advisers LLC, 2014 WI 86, 356 Wis. 2d 665, 849 N.W.2d 693, created a new, heightened pleading standard in Wisconsin, and that under this new standard, plaintiffs had failed to state a claim upon which relief may be granted. We granted review and unanimously conclude that our decision in Data Key did not change Wisconsin’s pleading standard as previously articulated in Strid v. Converse, 111 Wis. 2d 418, 422-23, 331 N.W.2d 350 (1983). Accordingly, we reverse the decision of the court of appeals in this regard. However, notwithstanding that unanimous conclusion, we are equally divided as to whether the plaintiffs have stated a claim upon which relief may be granted against MidAmerica or NIS based on the Data Key/Strid standard. Therefore, the decision of the court of appeals is affirmed by an equally divided court. Wingra Redi-Mix, Inc. v. Burial Sites Pres. Bd., 2018 WI 54, ¶1, 381 Wis. 2d 601, 912 N.W. 392.

Accordingly, because we unanimously conclude that our decision in Data Key did not change Wisconsin’s pleading standard as previously articulated in Strid, we reverse the decision of the court of appeals’ interpretation of Data Key. However, notwithstanding our unanimous conclusion, we are equally divided as to whether the plaintiffs have stated a claim upon which relief may be granted against MidAmerica or NIS based on the Data Key/Strid standard. Therefore, the decision of the court of appeals is affirmed by an equally divided court. Wingra Redi-Mix, 381 Wis. 2d 601, ¶1.

Affirmed

Concur:

Dissent:

Full Text


Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.

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