Wisconsin Business Law Blog : Waukesha, New Berlin, Oconomowoc Corporate & Real Estate Lawyer & Attorney

A recent Wisconsin Supreme Court decision has significant implications regarding liability of corporate officers for negligence, and direct actions against insurance company.

Casper v. American International South Ins. Co, 2011 WI 81 involves an automobile accident caused by an employee of trucking companies who was under the influence of prescription drugs at the time of the accident.  The CEO of one of the companies was named as a defendant  He was not involved in the hiring or supervision of the driver, but had approved the trucking route used by the driver, which allegedly violated federal trucking safety regulations.  The argument was made he could not be held personally liable for negligence committed with the scope of his employment.

The unanimous court refused to accept this argument, in effect acknowledging that there could be circumstances when a corporate officer can be held personally liable for such negligence.  The court noted that the even the business judgment rule, which provides protection for corporate officers acting in the course of their duties, protects officers and directors only for negligent acts harming shareholders, not third parties.

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This entry was co-authored by Thomas Schober & Jackie Messler:

Have you ever wondered, "Is my electronic signature binding?" As law catches up to technology, we are finally getting an answer to this question.

As a result of new laws, more and more can be accomplished electronically. Both federal and Wisconsin laws provide for the validity of documents and transactions completed electronically. The federal law, E-SIGN, provides that a signature, contract, or other record relating to a transaction may not be denied legal effect, validity, or enforceability solely because it is electronic. 15 U.S.C. § 7001. The Wisconsin law, E-Commerce, provides that a record, signature, or contract may not be denied legal effect or enforceability solely because it is in electronic form. Wis. Stat. § 137.15. 

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In a recent decision, Rassmussen v. General Motors Corp., 2011 WI 52 (July 11, 2011), the Wisconsin Supreme Court held that personal jurisdiction of a defendant under Wisconsin's "long-arm statute" cannot be based merely on its agency relationship with an entity having sufficient contacts with the state.

The Court was addressing a class action suit brought against various automobile manufacturers for price fixing.  Among those manufactures was Nissan Japan.  The plaintiff maintained that its subsidiary, Nissan North America, which unquestionably engages in substantial activity within the state, functions as Nissan Japan's alter-ego and that therefore Wisconsin courts have personal jurisdiction of Nissan Japan.

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Wisconsin Governor, Scott Walker, is ready to sign Wisconsin's new "concealed carry law." This law will go into effect this coming November 1, and will permit those who obtain a license the ability to carry a concealed weapon. Businesses who do not want people to bring weapons onto their premises may prohibit such activity by conspicously posting an appropriate notices on signs not less than 5" by 7" by all entrances.

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On June 26, Governor Scott Walker signed into law Wisconsin's 2011-2013 biennial budget bill. This bill increases the amount that one may sue in Small Claims from "$5,000 or less" to "$10,000 or less." This means that claims for money judgments, garnishments, attachments or actions to enforce a lien upon movable assets may now be brought in Small Claims Court, so long as the amount in controversy is $10,000 or less.

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