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Friday, June 05, 2009

Mailbag; Brett Davis Writes;

Remove Policy Changes to Liability Law in Budget
Now that the Joint Finance Committee (JFC) has made changes to and passed the state budget, the bill will soon come before the full State Assembly. It is rumored that the budget could be before the Assembly for a final vote as soon as Wednesday, June 10th.

Perhaps one of the most harmful and unknown items in the state budget proposal that I will fight to have removed is known as Joint and Several Liability, or contributory negligence. This provision relates to the liability laws in court cases.

Under current Wisconsin law, in order for someone to be 100% financially liable, they must be at least 51% at fault. This law, which was passed in 1995 as a bipartisan compromise, has kept Wisconsin in the legal mainstream with other states.

However, changes to Joint and Several Liability were passed by JFC that will dramatically change the legal landscape in Wisconsin, making our state one of the worst in the nation when dealing with liability law.

Under the changes, the new law would lower the threshold for liability so that if a defendant is only 20% responsible, they can be found 100% liable for any damages. It also provides that a less at fault defendant can be sued by an even more at fault plaintiff. Additionally, if a person is found to be 99% liable and has no insurance or is unable to pay, his or her liability could be then unfairly distributed to a defendant that is only 1% liable, putting them at risk to potentially pay 100% of the costs.

To me, it does not make sense to make someone who is only 1% at fault pay 100% of the damages; just because they have insurance or assets. For the average family, this will mean higher insurance costs as insurance companies raise rates to buffer against future lawsuits.

Equally as important, this provision is an example of non-fiscal policy in the state budget and should be removed. It does nothing to create jobs, foster economic development, or help balance the state budget. In fact, this provision does the exact opposite. It will force manufacturers and businesses across the state to rethink their decisions, and may force some to relocate to other states where the litigation environment is not nearly as hostile as Wisconsin. Therefore, I am working with my colleagues to garner enough votes to have this provision stripped from the state budget when it is taken up in the State Assembly.

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