{"id":11702,"date":"2024-07-18T19:55:24","date_gmt":"2024-07-18T19:55:24","guid":{"rendered":"https:\/\/wifamily.news\/?p=11702"},"modified":"2024-07-18T19:57:37","modified_gmt":"2024-07-18T19:57:37","slug":"backers-of-wisconsin-business-courts-fret-for-future-of-experiment","status":"publish","type":"post","link":"https:\/\/wifamily.news\/?p=11702","title":{"rendered":"Backers of Wisconsin business courts fret for future of experiment"},"content":{"rendered":"<p>This post originally appeared at <a href=\"https:\/\/www.badgerinstitute.org\/backers-of-wisconsin-business-courts-fret-for-future-of-experiment\/\">https:\/\/www.badgerinstitute.org\/backers-of-wisconsin-business-courts-fret-for-future-of-experiment\/<\/a><\/p>\n<h4 class=\"wp-block-heading\"><em><strong>Specialized docket wins bipartisan support but faces a changed Supreme Court<\/strong><\/em><\/h4>\n<p>Advocates for a business court system operating since 2017 in Wisconsin are worried that a politicized state Supreme Court will dissolve the successful pilot program sometime this fall.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"alignright size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"704\" src=\"https:\/\/e74sq7k37a8.exactdn.com\/wp-content\/uploads\/2024\/07\/wisconsin-business-courts-1024x704.jpg?strip=all&amp;lossy=1&amp;ssl=1\" alt=\"Image depicting business persons coming to a court to settle commerical matters\" class=\"wp-image-52842\" style=\"width:380px;height:auto\" \/><\/figure>\n<\/div>\n<p>The <a href=\"https:\/\/www.wicourts.gov\/services\/attorney\/comcourtpilot.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Commercial Docket Pilot Project<\/a> has the support of Chief Justice Annette Ziegler, and the court agreed to consider a <a href=\"https:\/\/www.wicourts.gov\/supreme\/docs\/1605epetition.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">petition<\/a> filed by the Wisconsin Business Court Advisory Committee to continue the courts through July 2026 sometime after a public comment period that runs through Sept. 23.<\/p>\n<p>Decision-making by the high court, however, has shifted considerably since it last approved extending the pilot in June 2022. With the election of Justice Janet Protasiewicz last year giving the court its first liberal majority since 2008, judges who have volunteered to hear business cases for the project say they are concerned that politics might scuttle what they consider a valuable judicial service.<\/p>\n<p>So far, neither Protasiewicz, nor the other three justices in the progressive bloc, have spoken publicly about the business court pilot, and it\u2019s unlikely they will with a petition hearing pending.\u00a0<\/p>\n<p>In the interim, supporters are trying to deliver the message that the business court program is apolitical and that it has bipartisan support \u2014 and perhaps most important, that an efficiently run business court is a tool for economic development in the state.<\/p>\n<div class=\"wp-block-image\">\n<figure data-wp-interactive=\"core\/image\" class=\"alignright size-large is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"817\" height=\"1024\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/e74sq7k37a8.exactdn.com\/wp-content\/uploads\/2024\/07\/wisconsin-business-court-survey-817x1024.jpg?strip=all&amp;lossy=1&amp;ssl=1\" alt=\"\" class=\"wp-image-52847\" style=\"width:418px;height:auto\" \/><button class=\"lightbox-trigger\" type=\"button\" aria-label=\"Enlarge image\" data-wp-init=\"callbacks.initTriggerButton\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-style--right=\"context.imageButtonRight\" data-wp-style--top=\"context.imageButtonTop\"><\/p>\n<p>\t\t<\/button><figcaption class=\"wp-element-caption\">Click to expand<\/figcaption><\/figure>\n<\/div>\n<p>\u201cPeople on the right and the left are in favor of this court,\u201d said Michael Aprahamian, a Waukesha County circuit court judge who currently has eight business cases on his docket. \u201cThis is just one of many specialty courts in this state. I see it as a way for the courts to be more effective and efficient.\u201d\u202f<\/p>\n<p>Circuit Judge James Morrison, who has run the program for the seven northeastern counties in the Eighth Judicial Administrative District, said surveys done by the judges in the program show satisfaction from all parties involved.<\/p>\n<p>Those surveys show overwhelming support for making the pilot program permanent; that litigants believe their cases were resolved at a lower cost and in less time; and that the specialized court reduced delays and continuations.\u00a0\u00a0<\/p>\n<p>\u201cI think people don\u2019t realize that the people most affected by these cases are not the fat-cat business owners. They are the suppliers and the customers,\u201d Morrison said. \u201cThis is a volunteer assignment for me. I do it because I like it, it\u2019s challenging, and it needs to be done. I\u2019m just trying to be effective.\u201d\u00a0<\/p>\n<h4 class=\"wp-block-heading\"><strong>More data gathering<\/strong>\u00a0<\/h4>\n<p>The <a href=\"https:\/\/www.wicourts.gov\/supreme\/docs\/1605epetition.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">petition<\/a>, filed May 30 by Laura Brenner, Business Court Advisory Committee chair, focuses attention on the positive feedback from parties involved in cases so far heard in the court.\u00a0<\/p>\n<p>\u201cWe\u2019ve heard from practitioners of all political bents saying this court is really helpful,\u201d Brenner said. \u201cSomehow, there was an erroneous impression created that people were picking political sides, and that is not at all true.\u201d\u00a0<\/p>\n<p>The petition also echoes Morrison\u2019s contention that data gathering in support of making the program permanent suffered for more than a year because of the pandemic. The request for extension includes a seven-point plan to promote and explain the business court.\u00a0<\/p>\n<p>\u201cAll of the work we\u2019ve done is volunteer,\u201d Morrison said. \u201cWe didn\u2019t have funding for data gathering. We feel like we just need more time to make our case.\u201d\u00a0<\/p>\n<p>A hearing before the state Supreme Court is made all the more important with the failure of a<a href=\"https:\/\/docs.legis.wisconsin.gov\/2023\/proposals\/sb275\" target=\"_blank\" rel=\"noreferrer noopener\"> bill <\/a>in the Legislature this past session that would have codified the business court, which is not unlike the roughly 100 other specialty courts in the state for cases involving mental health, domestic violence and veterans\u2019 affairs.\u00a0<\/p>\n<p>Former Chief Justice Pat Roggensack, under whose leadership the pilot was launched, supported the move to have the Legislature pass a business courts bill, Assembly Speaker Robin Vos, a supporter of the business court, said.\u00a0<\/p>\n<p>Despite the efforts of the authors of the twin bills in the Senate and the Assembly, Democrats did not sign on and the bill died in committee, Vos said.\u00a0<\/p>\n<p>\u201cThis program had strong early bipartisan support,\u201d Vos said. \u201cBut I think it says something about our current political climate that we can\u2019t extend a pilot program that is clearly not partisan.\u201d\u202f\u00a0<\/p>\n<p>Political rancor first surfaced in March 2022, as the Badger Institute <a href=\"https:\/\/www.badgerinstitute.org\/expertise-as-a-public-good\/\" target=\"_blank\" rel=\"noreferrer noopener\">reported<\/a>, with the publication of an editorial by former Dane County Circuit Court Judge Richard Niess calling for the business courts to be disbanded. Niess alleged the pilot was created secretively to serve big business.\u00a0<\/p>\n<p>While the contentions were quickly rebutted in an <a href=\"https:\/\/www.jsonline.com\/story\/opinion\/2022\/04\/15\/wisconsin-business-court-dispensing-justice-serving-public\/7316571001\/\" target=\"_blank\" rel=\"noreferrer noopener\">editorial<\/a> by Paul Swanson, former president of the State Bar of Wisconsin, some of Niess\u2019 misperceptions linger among some members of the judiciary in Wisconsin, Morrison said. \u201cI just don\u2019t understand the hostility,\u201d he said.\u00a0<\/p>\n<h4 class=\"wp-block-heading\"><strong>In other states<\/strong>\u00a0<\/h4>\n<p>The most successful business court system in the country is in Delaware, President Biden\u2019s home state, and one historically governed by Democrats, Morrison said.\u00a0<\/p>\n<p>Delaware\u2019s Court of Chancery has created many of the precedents that inform corporate law in the 25 states, including Wisconsin, that have business courts. New business courts in Texas and Utah are expected to begin hearing cases later this year.\u00a0<\/p>\n<p>Roughly two-thirds of the companies in the S&amp;P 500 and Fortune 500 are among the 2 million businesses across the country that are incorporated in Delaware. And the chief reason for its success, as <a href=\"https:\/\/www.duanemorris.com\/articles\/what_can_new_texas_business_courts_learn_from_experiences_sister_states_0424.html\" target=\"_blank\" rel=\"noreferrer noopener\">two lawyers<\/a> who spent their careers in the Court of Chancery said, is the antithesis of partisanship and politics.\u00a0<\/p>\n<p>\u201cThe traits cited as the driving force behind the Delaware Court of Chancery\u2019s more than 225 years of success include predictability, stability, and the ability to move cases forward promptly to disposition,\u201d the attorneys wrote recently. \u201cThe key trait among those, however, is \u2018predictability.\u2019\u201d\u00a0<\/p>\n<p>That reputation is being tested, most recently by Elon Musk, who <a href=\"https:\/\/www.wsj.com\/business\/tesla-texas-incorporation-delaware-edcbd0dd\" target=\"_blank\" rel=\"noreferrer noopener\">reincorporated<\/a> Tesla from Delaware to Texas in June, months ahead of a September launch of business courts in the state\u2019s five largest cities.\u00a0<\/p>\n<p>Musk said the reincorporation would save the company $250,000 in Delaware franchise taxes but would also free the company from \u201cundue meddling\u201d by the court in the company\u2019s relations between its corporate board and its shareholders, according to a Wall Street Journal<a href=\"https:\/\/www.wsj.com\/business\/shareholder-agreements-delaware-corporate-law-b083e768\" target=\"_blank\" rel=\"noreferrer noopener\"> story<\/a> earlier this week.\u00a0<\/p>\n<p>In response in part to Musk\u2019s move, the Delaware General Assembly is considering a bill that would free companies from having to change or amend their charters or articles of incorporation when entering into shareholder agreements, according to the story.\u00a0<\/p>\n<p>Kathaleen McCormick, head of the Court of Chancery, called it a \u201crushed reaction\u201d from the General Assembly. \u201cThe reason Delaware has been successful is because it\u2019s perceived as neutral and balanced between management and public investors,\u201d Chancery veteran Joel Fleming, a partner with Boston-based Equity Litigation Group, told the Wall Street Journal.\u00a0<\/p>\n<p>It\u2019s the model of efficiency without meddling that prompted Gov. Greg Abbott to sign the<a href=\"https:\/\/legiscan.com\/TX\/text\/HB19\/id\/2819557\" target=\"_blank\" rel=\"noreferrer noopener\"> bill<\/a> last year creating the business courts in Texas. \u201cBy appointing judges with commercial law expertise,\u201d Abbott said in a press release after the signing, \u201cwe can provide a more predictable and efficient process for resolving business disputes, which is crucial for economic growth.\u201d\u00a0<\/p>\n<p>Vos isn\u2019t sure the progressive majority in the Wisconsin Supreme Court will embrace the idea of predictability and efficiency in a stand-alone business court system. Should a majority of justices vote not to extend the pilot, Vos said he would support legislation to resuscitate it in the next session.\u00a0<\/p>\n<p>That bill would have to be signed by Gov. Tony Evers, who has a record of vetoing legislation for political reasons, Vos said.\u00a0<\/p>\n<p>\u201cI\u2019ve heard no complaints, nothing but good things about our business courts,\u201d he said. \u201cI think the record in other states is for quickly and efficiently resolving cases with a huge economic impact. There is really not anything political about this.\u201d\u00a0<\/p>\n<p>Brenner acknowledged that the politics of the state Supreme Court has changed, but said she thinks the newest justice, Protasiewicz, will listen with no preconceptions.\u00a0<\/p>\n<p>\u201cI\u2019m hoping the justices keep an open mind and look at the evidence,\u201d she said.<\/p>\n<p><em>Mark Lisheron is the Managing Editor of the Badger Institute.\u00a0Permission to reprint is granted as long as the author and Badger Institute are properly cited.<\/em><\/p>\n<p>var gform;gform||(document.addEventListener(&#8220;gform_main_scripts_loaded&#8221;,function(){gform.scriptsLoaded=!0}),window.addEventListener(&#8220;DOMContentLoaded&#8221;,function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,initializeOnLoaded:function(o){gform.domLoaded&amp;&amp;gform.scriptsLoaded?o():!gform.domLoaded&amp;&amp;gform.scriptsLoaded?window.addEventListener(&#8220;DOMContentLoaded&#8221;,o):document.addEventListener(&#8220;gform_main_scripts_loaded&#8221;,o)},hooks:{action:{},filter:{}},addAction:function(o,n,r,t){gform.addHook(&#8220;action&#8221;,o,n,r,t)},addFilter:function(o,n,r,t){gform.addHook(&#8220;filter&#8221;,o,n,r,t)},doAction:function(o){gform.doHook(&#8220;action&#8221;,o,arguments)},applyFilters:function(o){return gform.doHook(&#8220;filter&#8221;,o,arguments)},removeAction:function(o,n){gform.removeHook(&#8220;action&#8221;,o,n)},removeFilter:function(o,n,r){gform.removeHook(&#8220;filter&#8221;,o,n,r)},addHook:function(o,n,r,t,i){null==gform.hooks[o][n]&amp;&amp;(gform.hooks[o][n]=[]);var e=gform.hooks[o][n];null==i&amp;&amp;(i=n+&#8221;_&#8221;+e.length),gform.hooks[o][n].push({tag:i,callable:r,priority:t=null==t?10:t})},doHook:function(n,o,r){var t;if(r=Array.prototype.slice.call(r,1),null!=gform.hooks[n][o]&amp;&amp;((o=gform.hooks[n][o]).sort(function(o,n){return o.priority-n.priority}),o.forEach(function(o){&#8220;function&#8221;!=typeof(t=o.callable)&amp;&amp;(t=window[t]),&#8221;action&#8221;==n?t.apply(null,r):r[0]=t.apply(null,r)})),&#8221;filter&#8221;==n)return r[0]},removeHook:function(o,n,t,i){var r;null!=gform.hooks[o][n]&amp;&amp;(r=(r=gform.hooks[o][n]).filter(function(o,n,r){return!!(null!=i&amp;&amp;i!=o.tag||null!=t&amp;&amp;t!=o.priority)}),gform.hooks[o][n]=r)}});<\/p>\n<div class=\"gf_browser_chrome gform_wrapper gravity-theme gform-theme--no-framework\" data-form-theme=\"gravity-theme\" data-form-index=\"0\" id=\"gform_wrapper_21\">\n<div id=\"gf_21\" class=\"gform_anchor\"><\/div>\n<div class=\"gform_heading\">\n<h2 class=\"gform_title\">Submit a comment<\/h2>\n<p class=\"gform_description\">\n<p class=\"gform_required_legend\">&#8220;<span class=\"gfield_required gfield_required_asterisk\">*<\/span>&#8221; 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