Statutory Interpretation-Separation of Powers

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WI Court of Appeals – District III

Case Name: Wisconsin State Legislature v. Josh Kaul

Case No.: 2022AP000431

Officials: Lazar, J

Focus: Statutory Interpretation-Separation of Powers

The Wisconsin State Legislature and Adam Jarchow appealed a circuit court ruling that allowed the attorney general to deposit settlement funds into accounts under the Department of Justice’s discretion, instead of the general fund, as required by WIS. STAT. § 165.10. The Legislature argued that this violated a 2017 statutory revision (Act 369), which mandates that all settlement funds be deposited into the general fund. The court, however, agreed with the Attorney General, who argued that the statute referred to a “general fund” rather than the “general purpose revenue fund.”

In the cross-appeal, the Attorney General contended that the court mistakenly ruled that filing a civil action with a consent decree constituted the “prosecution” of a civil action under WIS. STAT. § 165.08(1). The court upheld the decision, agreeing that filing a lawsuit, even with a consent decree, constitutes the commencement of a civil action.

The court ruled that the Legislature and Jarchow had standing to challenge the issue and reversed the circuit court’s decision regarding settlement funds, concluding the Attorney General must deposit all settlement funds into the general fund. The court affirmed the Attorney General’s interpretation of civil action prosecution in the cross-appeal.

Affirmed in part, reversed in part and remanded.

Decided 12/18/24

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