Wisconsin Supreme Court Issues Decision Affecting Arbitration Agreements
The Wisconsin Supreme Court’s ruling July 8, 2010 in 'Estate of
Robert C. Parker v. Beverly Enterprises, Inc.', 2010 WI 71
(2008AP2440-LV), makes clear appellate courts have the ability
to review orders compelling arbitration.
For the time being, it appears the Supreme Court will continue
with its policy of deferring to the judgment of the lower courts
when it comes to arbitration, effectively limiting the review of
arbitration decisions. However, this decision, penned by Justice
Ann Walsh Bradley, announces that the Court has jurisdiction
over orders compelling arbitration, but chooses not to exercise
that jurisdiction out of respect for the lower courts and value
found in arbitration.
Two cases from the 1970s, 'Teamsters Union Local No. 695 v.
County of Waukesha', 57 Wis.2d 62, 203 N.W.2d 707 (1973), and
'Worthington v. Farmers Ins.', 64 Wis.2d 108, 218 N.W.2d 373
(1974), held that orders compelling arbitration were not
appealable. The Court says that while this is still good case
law, the statutes interpreted changed with the 1978
reorganization of the Wisconsin court system, so the underlying
law is no longer accurate. Article VII, § 3 of the Wisconsin
Constitution and related statutes give appellate courts broad
jurisdiction over all orders and judgments of the circuit
courts.
This means that in the future the Court could change its mind
about the value of encouraging arbitration or deferring to lower
courts, and begin to review orders to arbitrate or even court
certified outcomes of arbitration.
Justice Annette Kingsland Ziegler wrote a separate concurrence
to state that she would go further than the majority and say
that orders compelling arbitration should not be appealable by
right, but only by permission of the appellate court.
