Wisconsin court strikes liability cap

Physicians worry the decision may harm the state's steady medical liability climate.

By Mike Norbut, AMNews staff. Aug. 1, 2005.

The Wisconsin Supreme Court last month struck down the state's long-standing cap on noneconomic damages in medical liability lawsuits, leaving physicians across the state concerned that patients' access to care will be dramatically compromised.

In a 4-3 decision, the court, which in the past has upheld such caps, recognized the latest challenge, declaring the cap to be a violation of the plaintiff's constitutional right to equal protection guarantees. The court did not find any rational relationship between "the classifications of victims in the $350,000 cap on noneconomic damages and the legislative objective of compensating victims of medical malpractice fairly," nor did it see a specific connection between the amount of the cap and the notion that it helps lower liability insurance premiums, according to the majority opinion.

The court reversed the Wisconsin Court of Appeals decision on the issue, and sent the case back to the trial court for a ruling consistent with its opinion. The plaintiffs in the case, Ferdon v. Wisconsin Patients Compensation Fund, also challenged a state law requiring future medical awards exceeding $100,000 be placed in an expense fund and be paid out over time, but the court sent the issue back to the circuit court for further argument.

The ruling on noneconomic damage caps, which physicians credit as a critical factor in maintaining a steady liability climate, sent a shock wave through a medical community that had grown accustomed to the protection. The state originally established a $1 million cap in 1985, but the law expired in 1991. In 1995, the state enacted a new $350,000 cap that is regularly adjusted for inflation. It stood at $445,775 at the time of the court's ruling.