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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 280
May 17, 2023 - Introduced by Representatives TUSLER, RETTINGER, BRANDTJEN,
MURPHY, MURSAU, SNYDER and WICHGERS, cosponsored by Senators JACQUE
and WIMBERGER. Referred to Committee on State Affairs.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to create chapter 798 of the statutes; relating to: statutory recognition
of specialized treatment court and commercial court dockets.
Analysis by the Legislative Reference Bureau
This bill statutorily recognizes specialized dockets for treatment courts and for
commercial cases. The bill recognizes in statute treatment courts, which are defined
in the bill to include adult drug treatment court, juvenile drug treatment court,
operating while intoxicated treatment court, mental health treatment court, family
dependency treatment court, veterans treatment court, hybrid treatment court, and
tribal healing to wellness court.
The bill also statutorily recognizes a specialized docket for commercial cases.
Under the bill, the chief justice of the Wisconsin Supreme Court, taking into
consideration recommendations from the relevant chief judges of the judicial
administrative districts, must select circuit court judges who will be assigned to the
commercial court docket upon each judge's agreement to serve. The bill provides that
a judge who presides over cases on the commercial court docket is not prohibited from
working on any other assigned docket.
Under the bill, certain commercial case types must be assigned to the
commercial court docket, including cases involving any of the following: 1) the
governance or internal affairs of business organizations; 2) tortious or statutorily
prohibited business activity, unfair competition, or antitrust claims; 3) the sale,
consolidation, or merger of a business organization or the conversion, share
exchange, or sale of substantially all of the assets of a business organization; 4) the
issuance, sale, or transfer of securities; 5) intellectual property rights; 6) the
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relationship between a franchisor and franchisee or similar distribution
relationship; 7) certain claims or disputes involving the Uniform Commercial Code,
when the amount in controversy exceeds $100,000; (8) receiverships in excess of
$250,000; (9) confirmation of arbitration awards and compelling or enforcing
arbitration awards when the amount in controversy exceeds $100,000; and (10) real
estate construction disputes when the amount in controversy exceeds $250,000. The
bill provides that certain types of cases are ineligible for assignment to the
commercial court docket, including small claims cases, cases involving a
governmental entity or political subdivision seeking to enforce a statutory or
regulatory restriction or prohibition, or disputes between landlords and tenants.
The commercial court docket created under the bill is a commercial case docket
that generally involves disputes between commercial entities rather than
individuals and does not include actions typically involving individuals such as
personal injury suits, products liability, malpractice, or other tort claims, or landlord
and tenant disputes or similar claims. Under the bill, parties may jointly move for
discretionary assignment of a case to the commercial court docket if the case is one
that is not identified under the mandatory criteria, but is not otherwise ineligible for
assignment. The bill provides that a decision granting or denying a motion for a
discretionary assignment of a case to the commercial court docket is final and
nonappealable.
The bill also allows that parties to a case that is filed in a judicial administrative
district that does not have a dedicated commercial court docket may, in certain
circumstances, jointly petition for transfer of the case to a commercial court docket.
Under the bill, no party may withdraw a request for transfer to the commercial court
docket after a judicial assignment of the case has been made.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. Chapter 798 of the statutes is created to read:
CHAPTER 798
SPECIALTY COURTS
798.01 Legislative findings. The legislature finds all of the following:
(1) Specialized dockets for treatment courts and for commercial cases have
existed in this state and across the country for a number of years in recognition of
the fact that the interests of justice in general, and of litigants in particular, are
substantially enhanced when judges and other court personnel commit to take
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specific training in the subject matter areas of a particular specialized docket and
then apply that training and expertise to the unique issues before the court. The use
of specialized dockets increases efficiencies and improve outcomes in the handling
of these cases.
(2) The commercial court docket has existed in this state for 5 years as a pilot
project in a number of counties and judicial districts and has been shown to reduce
substantially the time it takes to obtain a decision and increase the level of
satisfaction of the parties with the results in commercial disputes.
798.05 Treatment court dockets. (1) PURPOSE; AUTHORITY. The purpose of
this section is to statutorily recognize specialized dockets for treatment courts.
Treatment courts are designed to operate within the framework of the existing state
court system and specifically address underlying issues relating to criminal
behavior. Treatment courts provide treatment while working with a
multidisciplinary team to deploy a range of graduated rewards and sanctions with
the goal of engaging participants in treatment long enough to successfully address
any addiction or mental health issues and end the cycle of recidivism.
(2) DEFINITION. In this section, “treatment court” includes any of the following:
(a) Adult drug treatment court.
(b) Juvenile drug treatment court.
(c) Operating while intoxicated treatment court.
(d) Mental health treatment court.
(e) Family dependency treatment court.
(f) Veterans treatment court.
(g) Hybrid treatment court.
(h) Tribal healing to wellness court.
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798.15 Commercial court docket. (1) PURPOSE; AUTHORITY. The purpose of
this section is to statutorily recognize a specialized docket for commercial cases in
state circuit courts. The commercial court docket is designed to operate within the
framework of the existing state court system with minimal impact on the balance of
court operations. It is intended to leverage judicial expertise in commercial law and
disputes with commercial litigants' desire to tailor case management practices best
suited for resolving substantial business disputes fairly and expeditiously.
(2) DEFINITIONS. In this section:
(a) “Business organization” includes a sole proprietorship, corporation,
partnership, limited liability company, limited partnership, professional
association, benefits corporation, service corporation, joint venture, bank, savings
bank, savings and loan association, or business trust. A “business organization”
excludes an individual, a family trust, or a political subdivision or governmental
entity.
(b) “Consumer contract or transaction” means a consumer contract or
transaction that is primarily for personal, family, or household purposes.
(3) SCOPE. (a) The commercial court procedures outlined in this section apply
to judicial administrative districts that have established specialized dockets for
commercial cases on the effective date of this paragraph .... [LRB inserts date], and
to any commercial court docket established after the effective date of this paragraph
.... [LRB inserts date], beginning on the date that docket is established. Courts with
specialized dockets for commercial cases shall be referred to as the commercial court.
(b) 1. The chief justice of the supreme court, after considering the
recommendation of the chief judge of the encompassing judicial administrative
district, shall select the circuit court judges in the judicial administrative districts
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who will be assigned to the commercial court docket upon each judge's agreement to
so serve. The chief justice of the supreme court shall select at least all of the following
to participate in the commercial court under this section:
a. No fewer than 4 circuit court judges within the 2nd judicial administrative
district.
b. No fewer than 4 circuit court judges within the 3rd judicial administrative
district.
c. No fewer than 4 circuit court judges within the 5th judicial administrative
district.
d. No fewer than 4 circuit court judges within the 8th judicial administrative
district.
e. No fewer than 4 circuit court judges within the 10th judicial administrative
district.
f. No fewer than 4 circuit court judges within any judicial administrative
district that adds a commercial court docket.
2. A judge who presides in a commercial court docket is not prohibited from
working on any other assigned docket.
3. The chief justice of the supreme court may add additional judicial
administrative districts to the commercial court docket upon the recommendation of
the director of state courts.
(4) MANDATORY ASSIGNMENT OF CASES TO THE COMMERCIAL COURT DOCKET. (a) Any
case of a type described under par. (b) that is filed in a circuit court in which a
commercial court docket has been established shall be assigned to the commercial
court docket as provided under sub. (7).
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(b) The commercial court shall have jurisdiction over any of the following types
of cases:
1. Cases involving the governance or internal affairs of business organizations,
including any of the following:
a. Claims between or among owners or constituents of a business organization.
b. Claims against officers, directors, or managers of a business organization.
c. Claims involving the indemnity of owners, officers, directors, or managers
of a business organization.
d. Claims involving the interpretation of the rights and obligations under the
law governing business organizations, such as chs. 178 to 181, 183, 185, 204, 214,
215, and 221 to 223, or any similar statute or law from another jurisdiction.
e. Claims involving the interpretation of the rights and obligations under any
agreement governing a business organization, such as the articles of incorporation,
bylaws, operating agreements, membership agreements, or partnership agreement
of the business organization.
2. Cases involving tortious or statutorily prohibited business activity, unfair
competition, or antitrust, including any of the following:
a. Claims under ch. 133.
b. Claims under s. 100.30 (5m) or (5r).
c. Claims under s. 134.01.
d. Claims of tortious interference with a business organization.
e. Claims involving restrictive covenants and agreements not to compete or
solicit.
f. Claims involving confidentiality agreements.
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3. Cases involving the sale, consolidation, or merger of a business organization
or the conversion, share exchange, or sale of substantially all of the assets of a
business organization.
4. Cases involving the issuance, sale, or transfer of securities, including claims
for securities fraud under ch. 551, or any similar statute or law from another
jurisdiction.
5. Cases involving intellectual property rights, including any of the following:
a. Claims to determine the use, ownership, or status of trademarks, trade
secrets, or copyrights.
b. Claims under s. 134.90.
c. Claims involving any agreement relating to the licensing of any intellectual
property right, including patent rights.
6. Cases involving the relationship between a franchisor and franchisee or
similar distribution relationship, including any of the following:
a. Claims arising from ch. 135 or any similar statute or law from another
jurisdiction.
b. Claims arising from s. 134.93 or any similar statute or law from another
jurisdiction.
c. Claims arising from ch. 553 or any similar statute or law from another
jurisdiction.
7. Cases involving claims or disputes under ch. 402, 403, 404, 405, or 409, or
any similar statute or law from another jurisdiction, when the amount in controversy
exceeds $100,000, exclusive of interest, costs, and attorney fees.
8. Cases involving receiverships in excess of $250,000.
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9. Cases involving confirmation of arbitration awards and compelling or
enforcing arbitration awards when the amount in controversy exceeds $100,000.
10. Cases involving commercial real estate construction disputes when the
amount in controversy exceeds $250,000.
(5) DISCRETIONARY ASSIGNMENT OF CASES TO THE COMMERCIAL COURT DOCKET. (a)
In addition to the cases identified under sub. (4) and that are not otherwise excluded
under sub. (6), parties to a case in a judicial administrative district in which there
is a commercial court docket may jointly move the chief judge of that judicial
administrative district for discretionary assignment of the case to that commercial
court docket. If the motion for discretionary assignment is granted, the case may be
assigned to a commercial court docket.
(b) In deciding a motion for discretionary assignment of a case to a commercial
court docket, the chief judge of the encompassing judicial administrative district
shall consider the parties to the dispute, the nature of the dispute, the complexity of
the issues presented, and whether the commercial court's resolution of the case will
provide needed guidance to influence future commercial behavior or assist in
resolving future disputes. The decision granting or denying a motion for a
discretionary assignment of a case to a commercial court docket is final and
nonappealable.
(6) INELIGIBLE CASE TYPES. The following cases may not be assigned to the
commercial court docket:
(a) Cases involving small claims under ch. 799.
(b) Cases involving a governmental entity or political subdivision seeking to
enforce a statutory or regulatory restriction or prohibition.
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(c) Unless the claim or dispute identified in this subsection is ancillary and
incidental to a case assigned to the commercial court docket under sub. (4), cases
involving a consumer contract or transaction; disputes between landlords and
tenants; domestic relations claims; labor claims; receivership, insolvency, or
liquidation cases, except as provided in sub. (4) (b) 8.; malpractice claims; personal
injury claims; product liability claims; civil rights claims; tax disputes; cases seeking
to compel arbitration or to affirm or disaffirm an arbitration award, except as
provided in sub. (4) (b) 9.; construction claims, except as provided in sub. (4) (b) 10.;
or environmental claims.
(7) IDENTIFICATION AND ASSIGNMENT OF CASES TO COMMERCIAL COURT DOCKET. (a)
Plaintiff duties. At the time of the filing of the complaint under s. 801.02 (1), the
plaintiff in a civil action shall state on the face of the complaint whether the case
qualifies for the commercial court docket under sub. (4) and is not ineligible for
assignment under sub. (6).
(b) Clerk of court duties. 1. For cases filed in which a circuit court judge in that
county has already been assigned a commercial court docket, the clerk of court shall
assign the case to the commercial court docket and to one of the judges designated
for the commercial court docket. In the event of a request for judicial substitution,
the case shall be transferred to another circuit court judge who is assigned to the
commercial court docket in that judicial administrative district.
2. Within a judicial administrative district participating in the commercial
court docket, but in which no circuit court judge has been assigned to the commercial
court docket, upon the filing of a qualifying case, the clerk of court shall notify the
chief judge of the encompassing judicial administrative district who shall assign one
of the commercial court docket judges from the other counties in the judicial
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administrative district. The chief judge's selection shall be made pursuant to s.
751.03 (3). In the event a request for substitution is filed regarding the judge chosen
by the chief judge of the encompassing judicial administrative district, the chief
judge shall then assign another judge from the judicial administrative district who
has been appointed for commercial court cases.
(c) Omission by plaintiff; defendant's and 3rd-party defendant's rights and
prerogatives of the circuit court. In the event the duties set forth in par. (a) are not
met, the circuit court may sua sponte, or upon a motion filed by a defendant or a 3rd
party with his or her or its responsive pleading or responsive motion, order the
transfer of a case to the commercial court docket if the court determines that the case
meets the mandatory criteria of sub. (4) and is not ineligible for assignment under
sub. (6).
(d) Action number assignment. On assignment of any matter to the commercial
court docket, the matter shall retain the civil action number assigned to it by the
clerk of court upon the filing of the complaint.
(8) DISPUTES REGARDING ASSIGNMENTS OF CASES TO THE COMMERCIAL COURT
DOCKET. (a) Contesting the assignment of a case to the commercial court docket. 1.
After assignment of a case to the commercial court docket, the judge assigned to the
case may sua sponte, or upon motion of any party, reconsider whether assignment
of that case to the commercial court docket is appropriate under the requirements
of sub. (4) and is not ineligible for assignment under sub. (6). Any party filing a
reconsideration motion under this paragraph shall file the motion no later than the
earlier of the following:
a. Before any judicial ruling is rendered on any issue of material substance in
the case.
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b. Twenty days after the case is assigned to the commercial court docket.
2. If the assigned commercial court judge concludes that the case does not
qualify for assignment to the commercial court docket, the judge shall return the case
to the general civil case docket.
(b) Review. Any party aggrieved by the outcome of a motion for reconsideration
under par. (a) may request the chief judge of the judicial administrative district in
which the commercial court sits to review the reconsideration decision. A decision
by the chief judge of the judicial administrative district resolving the question of
which docket shall be assigned the case is final and nonappealable.
(9) TRANSFERRING A CASE TO A COMMERCIAL COURT DOCKET. (a) Parties from
judicial administrative districts that do not have a dedicated commercial court
docket may petition to have their cases administered within a commercial court
docket. To facilitate consideration of such petitions, the director of state courts shall
periodically designate a district court administrator to be the court administrative
officer for the commercial court docket and shall also designate a circuit court judge
serving as a commercial court judge at the time of designation to be the supervising
commercial court judge.
(b) Parties described under par. (a) may jointly petition for transfer of a case
to a commercial court docket if all of the following are true:
1. The case is a type identified in sub. (4) and is not ineligible for assignment
to a commercial court docket under sub. (6).
2. The parties agree to use the forms and procedures developed for use in the
commercial court docket.
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3. The parties agree that all proceedings will be conducted in the courtroom of
the judge to which the case is assigned under par. (c), except that if the case proceeds
to trial, the trial will be conducted in the county where the case was originally filed.
(c) The procedure for a joint petition for transfer shall be as follows:
1. When parties petition for the transfer of a commercial court case from a
district that does not then have a commercial court docket, they shall file that
petition with the clerk of court in the county where the case is originally filed and also
file a copy of that petition with the court administrative officer designated by the
director of state courts. The supervising commercial court judge shall determine
where the case should be transferred based upon workload and the reasonable
convenience of the parties and shall confer with the chief judge of that judicial
administrative district as to which commercial court judge is best able to accept that
additional workload assignment. The parties requesting the assignment to the
commercial court docket shall agree that the judge assigned to the case may direct
that all matters, other than trial, be held either in the assigned judge's home
courtroom or by electronic means. Trials shall be held in the county in which the case
was originally filed. The clerk of the circuit court of the county where the case was
originally filed shall continue to be responsible to accept filings, clerk on the record
proceedings, and perform all other duties applicable to that case. Any judgments
rendered as a result of such proceedings shall be docketed in the county in which the
matter was originally filed and any appeal shall be made to the court of appeals in
the appellate district where the case was originally filed.
2. The supervising commercial court docket judge shall consider the caseload
of the judges designated for the commercial court docket, the nature of the case for
which the petition was submitted, and the work requirements for cases already
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pending in the commercial court docket when determining whether to allow the
transfer of a case under this paragraph.
3. The supervising commercial court docket judge shall, upon allowing a
transfer, assign the case to the commercial court docket and to one of the judges
designated for the commercial court docket in a participating judicial administrative
district.
4. In the event of a request for judicial substitution in a case transferred under
this subsection and assigned to the commercial court docket, the chief judge of the
judicial administrative district in which the assignment is made shall then assign
another judge from the judicial administrative district who has been appointed for
commercial court cases.
(d) No party may withdraw a request for transfer to the commercial court
docket after a judicial assignment has been made under par. (c).
(END)
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