Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB280 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 280
5	5	May 17, 2023 - Introduced by Representatives TUSLER, RETTINGER, BRANDTJEN,
6	6	MURPHY, MURSAU, SNYDER and WICHGERS, cosponsored by Senators JACQUE
7	7	and WIMBERGER. Referred to Committee on State Affairs.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to create chapter 798 of the statutes; relating to: statutory recognition
10	10	of specialized treatment court and commercial court dockets.
11	11	Analysis by the Legislative Reference Bureau
12	12	This bill statutorily recognizes specialized dockets for treatment courts and for
13	13	commercial cases. The bill recognizes in statute treatment courts, which are defined
14	14	in the bill to include adult drug treatment court, juvenile drug treatment court,
15	15	operating while intoxicated treatment court, mental health treatment court, family
16	16	dependency treatment court, veterans treatment court, hybrid treatment court, and
17	17	tribal healing to wellness court.
18	18	The bill also statutorily recognizes a specialized docket for commercial cases.
19	19	Under the bill, the chief justice of the Wisconsin Supreme Court, taking into
20	20	consideration recommendations from the relevant chief judges of the judicial
21	21	administrative districts, must select circuit court judges who will be assigned to the
22	22	commercial court docket upon each judge's agreement to serve. The bill provides that
23	23	a judge who presides over cases on the commercial court docket is not prohibited from
24	24	working on any other assigned docket.
25	25	Under the bill, certain commercial case types must be assigned to the
26	26	commercial court docket, including cases involving any of the following: 1) the
27	27	governance or internal affairs of business organizations; 2) tortious or statutorily
28	28	prohibited business activity, unfair competition, or antitrust claims; 3) the sale,
29	29	consolidation, or merger of a business organization or the conversion, share
30	30	exchange, or sale of substantially all of the assets of a business organization; 4) the
31	31	issuance, sale, or transfer of securities; 5) intellectual property rights; 6) the
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35	35	ASSEMBLY BILL 280
36	36	relationship between a franchisor and franchisee or similar distribution
37	37	relationship; 7) certain claims or disputes involving the Uniform Commercial Code,
38	38	when the amount in controversy exceeds $100,000; (8) receiverships in excess of
39	39	$250,000; (9) confirmation of arbitration awards and compelling or enforcing
40	40	arbitration awards when the amount in controversy exceeds $100,000; and (10) real
41	41	estate construction disputes when the amount in controversy exceeds $250,000. The
42	42	bill provides that certain types of cases are ineligible for assignment to the
43	43	commercial court docket, including small claims cases, cases involving a
44	44	governmental entity or political subdivision seeking to enforce a statutory or
45	45	regulatory restriction or prohibition, or disputes between landlords and tenants.
46	46	The commercial court docket created under the bill is a commercial case docket
47	47	that generally involves disputes between commercial entities rather than
48	48	individuals and does not include actions typically involving individuals such as
49	49	personal injury suits, products liability, malpractice, or other tort claims, or landlord
50	50	and tenant disputes or similar claims. Under the bill, parties may jointly move for
51	51	discretionary assignment of a case to the commercial court docket if the case is one
52	52	that is not identified under the mandatory criteria, but is not otherwise ineligible for
53	53	assignment. The bill provides that a decision granting or denying a motion for a
54	54	discretionary assignment of a case to the commercial court docket is final and
55	55	nonappealable.
56	56	The bill also allows that parties to a case that is filed in a judicial administrative
57	57	district that does not have a dedicated commercial court docket may, in certain
58	58	circumstances, jointly petition for transfer of the case to a commercial court docket.
59	59	Under the bill, no party may withdraw a request for transfer to the commercial court
60	60	docket after a judicial assignment of the case has been made.
61	61	The people of the state of Wisconsin, represented in senate and assembly, do
62	62	enact as follows:
63	63	SECTION 1. Chapter 798 of the statutes is created to read:
64	64	CHAPTER 798
65	65	SPECIALTY COURTS
66	66	798.01 Legislative findings. The legislature finds all of the following:
67	67	(1) Specialized dockets for treatment courts and for commercial cases have
68	68	existed in this state and across the country for a number of years in recognition of
69	69	the fact that the interests of justice in general, and of litigants in particular, are
70	70	substantially enhanced when judges and other court personnel commit to take
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81	81	SECTION 1
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83	83	specific training in the subject matter areas of a particular specialized docket and
84	84	then apply that training and expertise to the unique issues before the court. The use
85	85	of specialized dockets increases efficiencies and improve outcomes in the handling
86	86	of these cases.
87	87	(2) The commercial court docket has existed in this state for 5 years as a pilot
88	88	project in a number of counties and judicial districts and has been shown to reduce
89	89	substantially the time it takes to obtain a decision and increase the level of
90	90	satisfaction of the parties with the results in commercial disputes.
91	91	798.05 Treatment court dockets. (1) PURPOSE; AUTHORITY. The purpose of
92	92	this section is to statutorily recognize specialized dockets for treatment courts.
93	93	Treatment courts are designed to operate within the framework of the existing state
94	94	court system and specifically address underlying issues relating to criminal
95	95	behavior. Treatment courts provide treatment while working with a
96	96	multidisciplinary team to deploy a range of graduated rewards and sanctions with
97	97	the goal of engaging participants in treatment long enough to successfully address
98	98	any addiction or mental health issues and end the cycle of recidivism.
99	99	(2) DEFINITION. In this section, “treatment court” includes any of the following:
100	100	(a) Adult drug treatment court.
101	101	(b) Juvenile drug treatment court.
102	102	(c) Operating while intoxicated treatment court.
103	103	(d) Mental health treatment court.
104	104	(e) Family dependency treatment court.
105	105	(f) Veterans treatment court.
106	106	(g) Hybrid treatment court.
107	107	(h) Tribal healing to wellness court.
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134	134	SECTION 1 ASSEMBLY BILL 280
135	135	798.15 Commercial court docket. (1) PURPOSE; AUTHORITY. The purpose of
136	136	this section is to statutorily recognize a specialized docket for commercial cases in
137	137	state circuit courts. The commercial court docket is designed to operate within the
138	138	framework of the existing state court system with minimal impact on the balance of
139	139	court operations. It is intended to leverage judicial expertise in commercial law and
140	140	disputes with commercial litigants' desire to tailor case management practices best
141	141	suited for resolving substantial business disputes fairly and expeditiously.
142	142	(2) DEFINITIONS. In this section:
143	143	(a) “Business organization” includes a sole proprietorship, corporation,
144	144	partnership, limited liability company, limited partnership, professional
145	145	association, benefits corporation, service corporation, joint venture, bank, savings
146	146	bank, savings and loan association, or business trust. A “business organization”
147	147	excludes an individual, a family trust, or a political subdivision or governmental
148	148	entity.
149	149	(b) “Consumer contract or transaction” means a consumer contract or
150	150	transaction that is primarily for personal, family, or household purposes.
151	151	(3) SCOPE. (a) The commercial court procedures outlined in this section apply
152	152	to judicial administrative districts that have established specialized dockets for
153	153	commercial cases on the effective date of this paragraph .... [LRB inserts date], and
154	154	to any commercial court docket established after the effective date of this paragraph
155	155	.... [LRB inserts date], beginning on the date that docket is established. Courts with
156	156	specialized dockets for commercial cases shall be referred to as the commercial court.
157	157	(b) 1. The chief justice of the supreme court, after considering the
158	158	recommendation of the chief judge of the encompassing judicial administrative
159	159	district, shall select the circuit court judges in the judicial administrative districts
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187	187	SECTION 1
188	188	ASSEMBLY BILL 280
189	189	who will be assigned to the commercial court docket upon each judge's agreement to
190	190	so serve. The chief justice of the supreme court shall select at least all of the following
191	191	to participate in the commercial court under this section:
192	192	a. No fewer than 4 circuit court judges within the 2nd judicial administrative
193	193	district.
194	194	b. No fewer than 4 circuit court judges within the 3rd judicial administrative
195	195	district.
196	196	c. No fewer than 4 circuit court judges within the 5th judicial administrative
197	197	district.
198	198	d. No fewer than 4 circuit court judges within the 8th judicial administrative
199	199	district.
200	200	e. No fewer than 4 circuit court judges within the 10th judicial administrative
201	201	district.
202	202	f. No fewer than 4 circuit court judges within any judicial administrative
203	203	district that adds a commercial court docket.
204	204	2. A judge who presides in a commercial court docket is not prohibited from
205	205	working on any other assigned docket.
206	206	3. The chief justice of the supreme court may add additional judicial
207	207	administrative districts to the commercial court docket upon the recommendation of
208	208	the director of state courts.
209	209	(4) MANDATORY ASSIGNMENT OF CASES TO THE COMMERCIAL COURT DOCKET. (a) Any
210	210	case of a type described under par. (b) that is filed in a circuit court in which a
211	211	commercial court docket has been established shall be assigned to the commercial
212	212	court docket as provided under sub. (7).
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238	238	SECTION 1 ASSEMBLY BILL 280
239	239	(b) The commercial court shall have jurisdiction over any of the following types
240	240	of cases:
241	241	1. Cases involving the governance or internal affairs of business organizations,
242	242	including any of the following:
243	243	a. Claims between or among owners or constituents of a business organization.
244	244	b. Claims against officers, directors, or managers of a business organization.
245	245	c. Claims involving the indemnity of owners, officers, directors, or managers
246	246	of a business organization.
247	247	d. Claims involving the interpretation of the rights and obligations under the
248	248	law governing business organizations, such as chs. 178 to 181, 183, 185, 204, 214,
249	249	215, and 221 to 223, or any similar statute or law from another jurisdiction.
250	250	e. Claims involving the interpretation of the rights and obligations under any
251	251	agreement governing a business organization, such as the articles of incorporation,
252	252	bylaws, operating agreements, membership agreements, or partnership agreement
253	253	of the business organization.
254	254	2. Cases involving tortious or statutorily prohibited business activity, unfair
255	255	competition, or antitrust, including any of the following:
256	256	a. Claims under ch. 133.
257	257	b. Claims under s. 100.30 (5m) or (5r).
258	258	c. Claims under s. 134.01.
259	259	d. Claims of tortious interference with a business organization.
260	260	e. Claims involving restrictive covenants and agreements not to compete or
261	261	solicit.
262	262	f. Claims involving confidentiality agreements.
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289	289	SECTION 1
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291	291	3. Cases involving the sale, consolidation, or merger of a business organization
292	292	or the conversion, share exchange, or sale of substantially all of the assets of a
293	293	business organization.
294	294	4. Cases involving the issuance, sale, or transfer of securities, including claims
295	295	for securities fraud under ch. 551, or any similar statute or law from another
296	296	jurisdiction.
297	297	5. Cases involving intellectual property rights, including any of the following:
298	298	a. Claims to determine the use, ownership, or status of trademarks, trade
299	299	secrets, or copyrights.
300	300	b. Claims under s. 134.90.
301	301	c. Claims involving any agreement relating to the licensing of any intellectual
302	302	property right, including patent rights.
303	303	6. Cases involving the relationship between a franchisor and franchisee or
304	304	similar distribution relationship, including any of the following:
305	305	a. Claims arising from ch. 135 or any similar statute or law from another
306	306	jurisdiction.
307	307	b. Claims arising from s. 134.93 or any similar statute or law from another
308	308	jurisdiction.
309	309	c. Claims arising from ch. 553 or any similar statute or law from another
310	310	jurisdiction.
311	311	7. Cases involving claims or disputes under ch. 402, 403, 404, 405, or 409, or
312	312	any similar statute or law from another jurisdiction, when the amount in controversy
313	313	exceeds $100,000, exclusive of interest, costs, and attorney fees.
314	314	8. Cases involving receiverships in excess of $250,000.
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340	340	SECTION 1 ASSEMBLY BILL 280
341	341	9. Cases involving confirmation of arbitration awards and compelling or
342	342	enforcing arbitration awards when the amount in controversy exceeds $100,000.
343	343	10. Cases involving commercial real estate construction disputes when the
344	344	amount in controversy exceeds $250,000.
345	345	(5) DISCRETIONARY ASSIGNMENT OF CASES TO THE COMMERCIAL COURT DOCKET. (a)
346	346	In addition to the cases identified under sub. (4) and that are not otherwise excluded
347	347	under sub. (6), parties to a case in a judicial administrative district in which there
348	348	is a commercial court docket may jointly move the chief judge of that judicial
349	349	administrative district for discretionary assignment of the case to that commercial
350	350	court docket. If the motion for discretionary assignment is granted, the case may be
351	351	assigned to a commercial court docket.
352	352	(b) In deciding a motion for discretionary assignment of a case to a commercial
353	353	court docket, the chief judge of the encompassing judicial administrative district
354	354	shall consider the parties to the dispute, the nature of the dispute, the complexity of
355	355	the issues presented, and whether the commercial court's resolution of the case will
356	356	provide needed guidance to influence future commercial behavior or assist in
357	357	resolving future disputes. The decision granting or denying a motion for a
358	358	discretionary assignment of a case to a commercial court docket is final and
359	359	nonappealable.
360	360	(6) INELIGIBLE CASE TYPES. The following cases may not be assigned to the
361	361	commercial court docket:
362	362	(a) Cases involving small claims under ch. 799.
363	363	(b) Cases involving a governmental entity or political subdivision seeking to
364	364	enforce a statutory or regulatory restriction or prohibition.
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391	391	SECTION 1
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393	393	(c) Unless the claim or dispute identified in this subsection is ancillary and
394	394	incidental to a case assigned to the commercial court docket under sub. (4), cases
395	395	involving a consumer contract or transaction; disputes between landlords and
396	396	tenants; domestic relations claims; labor claims; receivership, insolvency, or
397	397	liquidation cases, except as provided in sub. (4) (b) 8.; malpractice claims; personal
398	398	injury claims; product liability claims; civil rights claims; tax disputes; cases seeking
399	399	to compel arbitration or to affirm or disaffirm an arbitration award, except as
400	400	provided in sub. (4) (b) 9.; construction claims, except as provided in sub. (4) (b) 10.;
401	401	or environmental claims.
402	402	(7) IDENTIFICATION AND ASSIGNMENT OF CASES TO COMMERCIAL COURT DOCKET. (a)
403	403	Plaintiff duties. At the time of the filing of the complaint under s. 801.02 (1), the
404	404	plaintiff in a civil action shall state on the face of the complaint whether the case
405	405	qualifies for the commercial court docket under sub. (4) and is not ineligible for
406	406	assignment under sub. (6).
407	407	(b) Clerk of court duties. 1. For cases filed in which a circuit court judge in that
408	408	county has already been assigned a commercial court docket, the clerk of court shall
409	409	assign the case to the commercial court docket and to one of the judges designated
410	410	for the commercial court docket. In the event of a request for judicial substitution,
411	411	the case shall be transferred to another circuit court judge who is assigned to the
412	412	commercial court docket in that judicial administrative district.
413	413	2. Within a judicial administrative district participating in the commercial
414	414	court docket, but in which no circuit court judge has been assigned to the commercial
415	415	court docket, upon the filing of a qualifying case, the clerk of court shall notify the
416	416	chief judge of the encompassing judicial administrative district who shall assign one
417	417	of the commercial court docket judges from the other counties in the judicial
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444	444	SECTION 1 ASSEMBLY BILL 280
445	445	administrative district. The chief judge's selection shall be made pursuant to s.
446	446	751.03 (3). In the event a request for substitution is filed regarding the judge chosen
447	447	by the chief judge of the encompassing judicial administrative district, the chief
448	448	judge shall then assign another judge from the judicial administrative district who
449	449	has been appointed for commercial court cases.
450	450	(c) Omission by plaintiff; defendant's and 3rd-party defendant's rights and
451	451	prerogatives of the circuit court. In the event the duties set forth in par. (a) are not
452	452	met, the circuit court may sua sponte, or upon a motion filed by a defendant or a 3rd
453	453	party with his or her or its responsive pleading or responsive motion, order the
454	454	transfer of a case to the commercial court docket if the court determines that the case
455	455	meets the mandatory criteria of sub. (4) and is not ineligible for assignment under
456	456	sub. (6).
457	457	(d) Action number assignment. On assignment of any matter to the commercial
458	458	court docket, the matter shall retain the civil action number assigned to it by the
459	459	clerk of court upon the filing of the complaint.
460	460	(8) DISPUTES REGARDING ASSIGNMENTS OF CASES TO THE COMMERCIAL COURT
461	461	DOCKET. (a) Contesting the assignment of a case to the commercial court docket. 1.
462	462	After assignment of a case to the commercial court docket, the judge assigned to the
463	463	case may sua sponte, or upon motion of any party, reconsider whether assignment
464	464	of that case to the commercial court docket is appropriate under the requirements
465	465	of sub. (4) and is not ineligible for assignment under sub. (6). Any party filing a
466	466	reconsideration motion under this paragraph shall file the motion no later than the
467	467	earlier of the following:
468	468	a. Before any judicial ruling is rendered on any issue of material substance in
469	469	the case.
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497	497	SECTION 1
498	498	ASSEMBLY BILL 280
499	499	b. Twenty days after the case is assigned to the commercial court docket.
500	500	2. If the assigned commercial court judge concludes that the case does not
501	501	qualify for assignment to the commercial court docket, the judge shall return the case
502	502	to the general civil case docket.
503	503	(b) Review. Any party aggrieved by the outcome of a motion for reconsideration
504	504	under par. (a) may request the chief judge of the judicial administrative district in
505	505	which the commercial court sits to review the reconsideration decision. A decision
506	506	by the chief judge of the judicial administrative district resolving the question of
507	507	which docket shall be assigned the case is final and nonappealable.
508	508	(9) TRANSFERRING A CASE TO A COMMERCIAL COURT DOCKET. (a) Parties from
509	509	judicial administrative districts that do not have a dedicated commercial court
510	510	docket may petition to have their cases administered within a commercial court
511	511	docket. To facilitate consideration of such petitions, the director of state courts shall
512	512	periodically designate a district court administrator to be the court administrative
513	513	officer for the commercial court docket and shall also designate a circuit court judge
514	514	serving as a commercial court judge at the time of designation to be the supervising
515	515	commercial court judge.
516	516	(b) Parties described under par. (a) may jointly petition for transfer of a case
517	517	to a commercial court docket if all of the following are true:
518	518	1. The case is a type identified in sub. (4) and is not ineligible for assignment
519	519	to a commercial court docket under sub. (6).
520	520	2. The parties agree to use the forms and procedures developed for use in the
521	521	commercial court docket.
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546	546	SECTION 1 ASSEMBLY BILL 280
547	547	3. The parties agree that all proceedings will be conducted in the courtroom of
548	548	the judge to which the case is assigned under par. (c), except that if the case proceeds
549	549	to trial, the trial will be conducted in the county where the case was originally filed.
550	550	(c) The procedure for a joint petition for transfer shall be as follows:
551	551	1. When parties petition for the transfer of a commercial court case from a
552	552	district that does not then have a commercial court docket, they shall file that
553	553	petition with the clerk of court in the county where the case is originally filed and also
554	554	file a copy of that petition with the court administrative officer designated by the
555	555	director of state courts. The supervising commercial court judge shall determine
556	556	where the case should be transferred based upon workload and the reasonable
557	557	convenience of the parties and shall confer with the chief judge of that judicial
558	558	administrative district as to which commercial court judge is best able to accept that
559	559	additional workload assignment. The parties requesting the assignment to the
560	560	commercial court docket shall agree that the judge assigned to the case may direct
561	561	that all matters, other than trial, be held either in the assigned judge's home
562	562	courtroom or by electronic means. Trials shall be held in the county in which the case
563	563	was originally filed. The clerk of the circuit court of the county where the case was
564	564	originally filed shall continue to be responsible to accept filings, clerk on the record
565	565	proceedings, and perform all other duties applicable to that case. Any judgments
566	566	rendered as a result of such proceedings shall be docketed in the county in which the
567	567	matter was originally filed and any appeal shall be made to the court of appeals in
568	568	the appellate district where the case was originally filed.
569	569	2. The supervising commercial court docket judge shall consider the caseload
570	570	of the judges designated for the commercial court docket, the nature of the case for
571	571	which the petition was submitted, and the work requirements for cases already
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573	573	2
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596	596	25 - 13 -2023 - 2024 Legislature
597	597	LRB-3042/1
598	598	SWB:all
599	599	SECTION 1
600	600	ASSEMBLY BILL 280
601	601	pending in the commercial court docket when determining whether to allow the
602	602	transfer of a case under this paragraph.
603	603	3. The supervising commercial court docket judge shall, upon allowing a
604	604	transfer, assign the case to the commercial court docket and to one of the judges
605	605	designated for the commercial court docket in a participating judicial administrative
606	606	district.
607	607	4. In the event of a request for judicial substitution in a case transferred under
608	608	this subsection and assigned to the commercial court docket, the chief judge of the
609	609	judicial administrative district in which the assignment is made shall then assign
610	610	another judge from the judicial administrative district who has been appointed for
611	611	commercial court cases.
612	612	(d) No party may withdraw a request for transfer to the commercial court
613	613	docket after a judicial assignment has been made under par. (c).
614	614	(END)
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