Aimed at improving the state's business climate, Wisconsin Governor Scott Walker signed into law a comprehensive tort reform bill.
Passed as part of a special legislative session aimed at the creation of jobs, the tort reform legislation, most notably, imposes a cap on punitive damages and amends state product liability law.
Gov. Walker noted, "Improving Wisconsin's litigation climate is vital to reviving our economy. [This bill] sends a message directly to job creators that Wisconsin is open for business."
Caps on Punitive Damages
The legislation imposes a cap on the amount of punitive damages that may be recovered in all tort cases, except cases involving the operation of a motor vehicle while intoxicated. Punitive damages are now limited to the greater of two times the compensatory (economic) damages recovered or $200,000. Prior to this law, there was no cap on the amount of punitive damages recoverable by injured plaintiffs.
Punitive damages are not automatically awarded in all tort cases. Such damages are meant to punish the person who caused the accident or injury, so they are reserved for cases when it can be shown that the defendant acted maliciously or was intentionally reckless.
The new bill does not change an injured individual's right to compensatory damages, which are meant to compensate the individual for actual economic loss, such as medical bills and ongoing treatment and lost wages.
Product Liability Change
The legislation also provides a presumption that a product is not defective if a product meets state and federal standards. This presumption is rebuttable, however.
Critics of this change to Wisconsin's product liability law, including the State Bar of Wisconsin's Board of Governors, believe that the law protects the manufacturers of defective products, puts the risk of dangerous products on the consumer and "creates a disincentive to make the safest possible product."
The legislation was supported by the Wisconsin Defense Counsel, an association of defense attorneys, and opposed by the Wisconsin Association for Justice, an association of plaintiffs' attorneys. Parts of the bill were also opposed by the State Bar of Wisconsin's Board of Governors.
The legislation signed by Gov. Walker alters the personal injury landscape in Wisconsin, making it more difficult for plaintiffs to fully recover for their injuries. If you are injured, however, you can still seek compensation for your injuries. Speak with an experienced personal injury attorney if you have been injured by the carelessness of another.
