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Statutory Interpretation

By: Derek Hawkins//July 16, 2019//

Statutory Interpretation

By: Derek Hawkins//July 16, 2019//

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WI Supreme Court

Case Name: Rural Mutual Insurance Company v. Lester Buildings, LLC, et al.

Case No.: 2019 WI 70

Focus: Statutory Interpretation 

Rural Mutual Insurance Company seeks review of an unpublished per curiam decision of the court of appeals affirming the circuit court’s grant of summary judgment dismissing Rural Mutual’s subrogation claims. The circuit court determined that Rural Mutual’s claims against Lester Buildings, LLC, Phoenix Insurance Company, Van Wyks, Inc., and West Bend Mutual Insurance Company were barred pursuant to a subrogation waiver contained in a Lester Buildings’ contract with Rural Mutual’s insured, Jim Herman, Inc. (“Herman”). The circuit court also found that Wis. Stat. § 895.447 did not void that subrogation waiver.

The court of appeals affirmed the circuit court and dismissed Rural Mutual’s claims. However, the court of appeals declined to address whether Wis. Stat. § 895.447 voided the subrogation waiver, reasoning that the argument was insufficiently developed. We granted review as to two issues: Does § 895.447 void the subrogation waiver at issue? And was the subrogation waiver an unenforceable exculpatory contract contrary to public policy?

We conclude that Wis. Stat. § 895.447 does not void the subrogation waiver in Lester Buildings’ contract because the waiver does not limit or eliminate tort liability. We also conclude that the subrogation waiver is not an unenforceable exculpatory contract contrary to public policy. We therefore affirm the court of appeals.

Affirmed

Concur:

Dissent: KELLY, J. dissents, joined by A.W. BRADLEY, J. (opinion filed).
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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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