1. (1) Upon motion by any party under s. ATCP 1.14, and in accordance with s. 227.483, Stats., if the administrative law judge finds that a party has initiated or pursued a frivolous action, claim or defense in a contested case, the administrative law judge may order the party to reimburse another party for the direct costs, including reasonable attorney fees, that the other party has incurred in responding to that frivolous action, claim or defense.

2. (2) An administrative law judge may not find that an action, claim or defense is frivolous under sub. (1) unless the administrative law judge finds at least one of the following:

   1. (a) The action, claim or defense was initiated or pursued in bad faith, solely for the purpose of harassing or maliciously injuring another.
   2. (b) The party or party’s attorney knew or should have known that the action, claim or defense was without any reasonable basis in law or equity, and could not be supported by a good faith argument for an extension, modification, or reversal of existing law.
3. (3) If an administrative law judge issues an order under sub. (1) against a party other than a public agency, the administrative law judge may assess those costs against the party or the party’s attorney, or may allocate the cost assessment between the party and the party’s attorney.

History

History: CR 09-054: cr. Register December 2010 No. 660, eff. 1-1-11.