Heritage Farms, Inc. v. Markel Insurance
2012 WI 26
Wis.2012Background
- Heritage Farms and other landowners suffered extensive forest-fire damage from the 2003 Crystal Lake Fire in Marquette and Waushara Counties.
- The jury found the fire was negligently caused by Jeffrey Knaack who ignited and failed to extinguish a burn pile at Lake of the Woods Campground.
- Heritage Farms sought double damages and reasonable costs under Wis. Stat. § 26.21(1) plus 12% interest from the verdict date.
- The circuit court initially ruled § 26.21(1) did not apply to Markel; it awarded fees but denied double damages and interest from the verdict date.
- The court of appeals affirmed; this court reversed in Heritage Farms I, holding § 26.21(1) is not limited to railroad tortfeasors and does not require gross negligence.
- On remand, the circuit court again denied mandatory double damages, prompting this decision; the court now holds double damages are mandatory when the fire results from willfulness, malice, or negligence, and addresses interest under § 814.04(4).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 26.21(1) awards double damages as matter of course or discretionary | Heritage Farms: mandatory/did not require discretionary weighing | Markel: discretionary based on conduct | Double damages are mandatory when the fire was caused through negligence, willfulness, or malice. |
| Whether the mandatory double damages rule should apply prospectively or retroactively | Apply retroactively | Apply prospectively | Rule applies retroactively. |
| Whether Heritage Farms is entitled to 12% prejudgment interest on double damages from the verdict date and on attorney fees from the award date | Interest should run from verdict for both double damages and fees | Interest on fees from verdict date is inappropriate; constitutional challenges to § 814.04(4) fail | Interest on double damages runs from the verdict date; interest on attorney fees runs from the date of the fee award. |
| Whether § 814.04(4) is unconstitutional on its face or as applied to Markel | Not applicable; argument moot if § 814.04(4) is found unconstitutional | § 814.04(4) is unconstitutional in some applications | § 814.04(4) is not unconstitutional beyond a reasonable doubt. |
Key Cases Cited
- Heritage Farms, Inc. v. Markel Ins. Co. (Heritage Farms I), 316 Wis. 2d 47 (Wis. 2009) (established § 26.21(1) not limited to railroads and not requiring gross negligence)
- Campenni v. Walrath, 180 Wis. 2d 548 (Wis. 1994) (interest on verdict calculated from the first verdict when damages are liquidated)
- Nelson v. Travelers Ins. Co., 102 Wis. 2d 159 (Wis. 1981) (prejudgment interest when damages are determinate from verdict)
- Kalal v. Circuit Court for Dane County, 271 Wis. 2d 633 (Wis. 2004) (statutory interpretation principles; plain meaning and context)
- State ex rel. Buswell v. Tomah Area Sch. Dist., 301 Wis. 2d 178 (Wis. 2007) (sunburst prospectivity factors for new rules of law)
- Hartlaub v. Coachmen Indus., Inc., 143 Wis. 2d 791 (Wis. Ct. App. 1988) (process for evaluating penalties and discretion in damages)
