Matthies v. Positive Safety Manufacturing Co.Matthies v. Positive Safety Manufacturing Co.
¶ 1. On August 22, 1992, David R. Matthies' hand was injured by a punch press. At the time of the accident, joint and several liability was a common-law rule in Wisconsin which permitted a plaintiff to recover his or her damages from any one of two or more persons whose joint or concurring negligent acts caused the plaintiffs injury.
Wisconsin Natural Gas Co. v. Ford, Bacon & Davis Constr. Corp.,
¶ 2. The circuit court correctly determined that
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¶ 3. The pertinent facts are not in dispute. Mat-thies was a machine operator at Mirro-Foley Company in Chilton, Wisconsin. On August 22,1992, while operating a punch press, Matthies' left hand was severely injured. According to medical records submitted to the trial court, parts of four fingers were severed.
¶ 4. On July 19, 1995, David Matthies and his wife, Eva Matthies, filed their complaint, in which David Matthies brought claims of common-law negligence and strict liability.
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Matthies brought these
¶ 5. Matthies' complaint alleges that he was operating the punch press using a foot pedal and a pullback device. A pull-back device is a harness that, if operating correctly, pulls back the machine operator so that the operator's hand cannot be caught in the punch press at the point where the press pinches the metal. The complaint also alleges that Positive Safety, the manufacturer of the pull-back caused Matthies' injuries because, inter alia, the pull-back was ineffective, or defective and unreasonably dangerous.
¶ 6. On February 2, 1998, Positive Safety moved for a declaratory order that (1)
¶ 7. On January 29, 1999, the circuit court concluded that retroactive application of
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¶ 8. The legislature enacted 1995 Wisconsin Act 17 before Matthies filed his complaint, but after his accident. 1995 Wisconsin Act 17 amended
Section 1. 895.045 of the statutes is renumbered 895.045(1) and amended to read:
895.045(1) (title) COMPARATIVE NEGLIGENCE. Contributory negligence shall does not bar recovery in an action by any person or the preson's person's legal representative to recover damages for negligence resulting in death or in injury to рerson or property, if such that negligence was not greater than the negligence of the person against whom recovery is sought, but any damages allowed shall be diminished in the proportion to the amount of negligence attributable attributed to the person recovering. The negligence of the plaintiff shall be measured separately against the negligence of each person found to be causally negligent. The liability of each person found to be causally negligent whose percentage of causal negligence is less than 51% is limited to the percentage of the total causal negligence attributed to that person. A person found to be causally negligent whose percentage of causal negligence is 51% or more shall be jointly and severally liable for the damages allowed.
¶ 9. Wisconsin Stat.
¶ 10. Some cases only involve one tortfeasor, and so, the negligence is divided, if appropriate, between the two. Where cases involve multiple tortfeasоrs, "this court has repeatedly interpreted the comparative negligence statute as clearly providing that the comparison of negligence between the plaintiff and multiple tort-feasors involves a separate comparison between the plaintiff and each of the defendants."
Soczka v. Rechner,
¶ 11. Joint and several liability among multiple tortfeasors has long been a common-law rule in Wisconsin and predates the adoption of the comparative negligence statute.
See Kingston,
The doctrine was initially applied at common law to situations where there was a concert of action or breach of a joint duty on the part of multiple tortfeasors. Thus, persons who acted in concert or breached a common duty causing injury were considered to be joint tortfeasors and each could be held liable for the entire amount of the damages. Later, the doctrine was extended to cases where a plaintiff sustained an indivisible injury, harm or damage as a result of the independent, separate, but concurring tortious acts of two or more persons. "When two actors negligently conduct themselves so as to injure another, they become jointly and severallyliable to the other if their actions concur in time to directly produce injury or to create an injury producing situation."
Ford, Bacon & Davis,
¶ 12. Also from early on, Wisconsin common law allowed for contributiоn between or among multiple joint tortfeasors.
Bielski v. Schulze,
[W]e conclude the amount of liability for contribution of tort feasors who sustain a common liability by reason of causal negligence should be determined in proportion to the percentage of causalnegligence attributable to each. We make it plain at the outset that this refinement of the rule of contribution does not apply to or change the plaintiffs right to recover against any defendant tort feasor the total amount of his damage to which he is entitled.
Bielski,
¶ 13. Even though this court has held that contribution does not affect joint and several liability, the court has been repeatedly asked to modify joint and several liability to conform to contribution. However, the court has rejected these requests and imposed joint and several liability even though the party's proportionate share of liability was less than another defendant's.
See Chille v. Howell,
¶ 14. The legislature's amendment of
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¶ 15. Whether a statute has a retroactive effect upon Matthies' negligence claim "involves the construction of a statute [
¶ 16. It is evident from the legislature's express language that the legislature intended
¶ 17. Here, the language in 1995 Wis. Act 17 that it first applies to actions commenced on its effective date, indicates that
¶ 18. Also, the "legislative history suggests that the legislature deliberately chose this retroactivе application."
Martin,
¶ 19. In addition to determining whether the legislature intended
¶ 20. In
Neiman,
the statutory change after the claim at issue arose affected the defendant's liability, not the plaintiff s recovery. At the time of the accident which caused Kristine Neiman's child to be stillborn,
¶ 21. Matthies contends that he has an accrued or vested right to recover all of his damages frоm any defendant that may be jointly and severally liable for his injuries, including Positive Safety, and applying
¶ 22. Matthies has a vested right in his claim for negligence. "[A]n existing right of action which has accrued under the rules of the common law or in accordance with its principles is a vested property right."
Hunter v. School Dist. Gale-Ettrick-Trempealeau,
¶ 23. Matthies' right to recover those damages adjudged due to him under joint and several liability would be affected by retroactive application of
"Upon principle, every statute, which takes away or impairs vested rights acquired under existing laws, or creates a new obligation, imposes а new duty, orattaches a new disability, in respect to transactions or considerations already passed, must be deemed retrospective."
Welch v. Henry,
¶ 24. Matthies' right to recover those damages adjudged due to him is impaired notwithstanding consideration of insolvent or immune individuals or entities which may also be jointly and severally liable, contrary to Positive Safety's contention.
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Granted, Matthies cannot recovеr any damages from his employer, Mirro-Foley, nor can Positive Safety recover from Mirro-Foley any damages paid to Matthies' under
¶ 25. Wisconsin Stat.
rv
¶ 26. "Retroactive legislation enjoys a presumption of constitutionality, and the challenger bears the burden of overcoming that presumption."
14
Martin,
because retroactive legislation presents unique constitutional problems in that it often unsettles important rights, it is viewed with some degree of suspicion and must be analyzed within a framework different from that of prospective legislation. "The [retroactive] aspects of legislation,’as well as the prospective aspects, must meet the test of due process, and the justifications for the latter may not suffice for the former."
Martin,
¶ 27. That Matthies has a vested property right which has been substantially impaired by retroactive application of Wis, Stat.
¶ 28. In
Martin,
¶ 29. On the other side of the equation, retroactive application of the damages cap had a profound effect upon the private interest at issue, namely, the Martins' right to recover their actual noneconomic damages.
In contrast, the Martins' right to unlimited damages was a fixed, substantive right. If the cap isapplied to the Martins the impairment of their right will be severe: the Martins will lose $1,150,000 of their noneconomic damages. Further, they will have had no meaningful notice of such impairment. And, because of the seriousness nature of their injuries, they will be forced to help pay for "fixing" the system, while others less severely injured will not. The taking is substantial; the unfairness is palpable.
Accordingly, when we balance the public interest against the private interest affected here, kеeping in mind basic considerations of fairness, we conclude that the private interest outweighs the minimal public -interest served by the retroactive application of the cap.
Id. at 211.
¶ 30. More recently, in
Neiman,
¶ 31. With
Neiman
and
Martin
in mind, we turn to considering the public interest served by retroactive
¶ 32. As an initial matter, we note that there is nothing in the Legislative Reference Bureau's legislative drafting file which indicates that the legislature amended
¶ 33. Positive Safety contends that the public interest served by
¶ 34. Even if fairness were served by
¶ 36. Positive Safety also argues that
¶ 37. Although there may be a public interest in fairness to warrant modification of joint and several liability, the same does not justify retroactive application of
The possibility of imposing an excessive burden on the administration of justice was a compelling judicial reason for the limitation placed on the retrospective application оf this court's decision in [Bielski], which changed our contribution rule and discarded the concept of gross negligence. This is best described by former Mr. Justice Thomas E. Fairchild in his article in 46 Marquette L. Rev. 1, 15:
"In Bielski the court limited the retrospective application of the change in law with respect to contribution and gross negligence. Here again were elements of law which are ordinarily not relied upon by people who are about to engage in tortious conduct. Yet the court was mindful of the fact that if full retrospective application were given, burdens of further litigation would probably be imposed on litigants and the public in cases where claims had been substantially disposed of by litigation or settlement. Such burdens would seem to be wasteful."
Fitzgerald,
¶ 38. We next turn to the other side of the
Martin
balancing test, and consider the private interest which would be affected by the retroactive application of
¶ 40. At the time that Matthies' claim accrued, Matthies could recover all of the damages that may be awarded him from Positive Safety under the common law doctrine of joint and several liability if Positive Sаfety was found to be causally negligent. Wisconsin Stat.
¶ 41. "Our analysis also requires that we examine the fairness of the retroactive taking."
Martin,
The cap was published one day and it became law the next. Without any meaningful notice, the Martins were stripped of their right to unlimited damages because they did not file on June 13,1986, the day before the announced cap became effective. ...
Id.
Similarly,
¶ 42. The lack of meaningful notice is also inherently unfair because Matthies had no notice that he should have filed this action on May 16,1995, the date of publication, instead of May 17, 1995, or after. However, another plaintiff who was injured after Matthies, but filed a negligence claim before, could fully recover (notwithstanding any contributory negligence) from any one of two or more joint tortfeasors. The intrinsic unfairness in the lack of notice here bolsters the conclusion that the legislature typically enacts legislation to apply prospectively, rather than retroactively, so as to avoid disrupting settled expectations.
Strong common-law tradition defines the legislature's primary function as declaring law to regulate future behavior. Thus, as a matter of justice, no law should be enforced before people can learn of its existence and conduct themselves accordingly. In short, retroactivity disturbs the stability of past transactions.
¶ 43. Here, the settled expectations are all on the side of Matthies. The
Martin
balancing does not consider Positive Safety's private interest.
¶ 44. Now that the respective interests have been considered, the court balances them.
Having considered the loss of rights incurred.. .and the unfair manner in which that loss was occasioned, we must engage in the due process analysis recited earlier to determine whether the retroactive application of [the statute at issue] is constitutional. To restate that analysis, we must balance the public interest served by the retroactive application of the [statute at issue] against the private interests that are overturned by it, including any unfairness inherent in such application.
Id. at 210-11.
¶ 45. There is little in the balance on the side of a public interest served by retroactive application of
¶ 46. In contrast, retroactive application of
¶ 48. At the time that Matthies was injured by the punch press, there were no limits on his right to recover all of the damages adjudged due to him from any party found to be jointly and severally liable. The enactment of
By the Court. — The order of the circuit court is affirmed.
Notes
Causal negligence is that negligence which is a substantial factor in causing the injuries or damage.
See Merco Distrib. Corp. v. Commercial Police Alarm Co.,
All subsequent references to the Wisconsin Statutes are to the 1995-96 volumes unless otherwise indicated.
Eva Matthies' claim for loss of society and companionship is not at issue.
In August 1996, the Matthies settled with Allen-Bradley, E.W. Bliss, and their insurers, and they were dismissed from the lawsuit with prejudice.
We address the applicability of
Wisconsin Stat. § 808.03(2) provides:
(2) APPEALS BY PERMISSION. A judgment or order not appeal-able as a matter of right under sub. (1) may be appealed to the court of appeals in advance of a final judgment or order upon leave granted by the court if it determines that an appeal will:
(a) Materially advance the termination of the litigation or clarify further proceedings in the litigation;
(b) Protect the petitioner from substantial or irreparable injury; or
(c) Clarify an issue of general importance in the administration of justice.
Wisconsin Stat. (Rule) § 809.61 provides in pertinent part:
The supreme court may take jurisdiction of an appeal or other proceeding in the court of appeals upon certification by the court of appeals or upon the supreme court's own motion.
The parties do not dispute the constitutionality of this part of the amendments to
Obviously, since the amendment of
Since joint and several liability relates to the extent of Positive Safety's liability, and not the existence of that liability, the court's determination of the effect of applying
In Hunter,
"this court concluded that an amended statute of limitations could not work to bar a plaintiffs cause of action
In cases concerning the past two major legislative changes to comparative negligence, this court measured whether those changes had retroactive effect based upon when the negligence claim accrued, i.e., when the accident and injury occurred. When, in 1931, the legislature eradicated contributory negligence as an absolute bar to recovery,
Similarly, when the legislature again modified contributory negligence in 1971, similar to the 1931 legislation, the 1971 modification toоk effect on the day after it was published.
See
1971 Assembly Bill 50 (which was enacted as ch. 47, Laws of 1971). The court again held that the modification was not retroactive, i.e., it did not apply to actions that had accrued prior to the amendment.
Holzem v. Mueller,
Positive Safety also contends both in its briefs and at oral argument that even before the amendment to
"Whether or not a legislative act that applies retroactively violates due process is a question of law, which this court reviews
de novo." Neiman v. Am. Nat'l Prop. and Cas. Co.,
Due process is a right guaranteed by the United States and Wisconsin Constitutions. Article I, Section 1 of the Wisconsin Constitution provides: "All people are born equally free and independent, and have certain inherent rights; among these are life, liberty and the pursuit of happiness; to secure these rights, governments are instituted, deriving their just powers from the consent of the governed." This due process clause is substantially equivalent to its counterpart in the federal constitution.
Neiman,
Regarding a contract clause challenge to a statutory modification of temporary total disability benefits, the court indicated that "[i]f the legislation constitutes a substantial impairment, there must exist a significant and legitimate public purpose behind the legislation. . . .If the impairment is less than substantial, a diminished degree of scrutiny is required."
Chappy,
Senate Amendment 1, to Senate Substitute Amendment 1, subsequently replaced "party" with "person."
Positive Safety also refers to a number of out-of-state decisions to assert various public interests served by
There is, however, an important distinction between
Bielski v. Schulze,
The new rules shall apply generally whether the cause of action has heretofore arisen or not except that they shall not apply in the following situations: (1) Where a judgment based upon the old rules has been entered and no motion to vacate it has been made or appeal taken before this date; (2) where verdicts have been rendered sufficient to dispose of the case under the former rules but where application of the new rules would require a new trial not required for other reasons; (3) when settlements have been effected with one co-tort-feasor in such manner as would sufficiently protect him from liability for contribution under the former rules.
Id. at 19.
Here, in contrast, the trigger, the right to recovery, arises at that point in time when that right accrues, i.e., at the time that the plaintiff is injured.
Martin,
Referring himself and Positive Safety's counsel, Mat-thies' counsel stated at oral argument that "we both recognized very clearly that this is a case where the employer may well be more than 51% at fault."
Because we find that retroactive application of
We do not address
amicus curiae
Civil Trial Counsel of Wisconsin's contentions regarding the constitutionality of the prospective application of