
This is a shared post between
Publicus Proventus and
Family and Consumer Law: The Blog.
How much does justice cost? That depends on who's doing the selling. If you're a Wisconsin court, justice can cost as much as $150,000. If you're a Wisconsin legislator, "justice" goes at the bargain basement price of $10,000.
Recently, the Wisconsin Assembly introduced a bill that would limit attorney's fees to a maximum of 3 times the award of
compensatory damages awarded to a plaintiff in a case. The bill, in
its current form as SB12, creates a new statute that incorporates the traditional factors that go into determining an attorney fee award in fee-shifting cases, and would apply the 3x-limit only to cases in which compensatory damages are awarded. In a case where
only injunctive or declaratory relief is awarded, a plaintiff could still get a full award of fees, while if you get an award of damages
and injunctive relief, the court must merely
presume that the 3x cap is reasonable.
On its face, this statute is absurd. It applies
across the board, meaning that mortgage brokers under chapter 224, negligent banks under section 138.052, lenders who don't provide notice to tenants, landlords who fail to make promised repairs or rent life-threatening apartments, and, last but not least,
murderers, cannot be hit up for attorney's fees.
That's right: The Republicans want to make sure
murderers and thieves don't pay more than a nominal amount of fees. Section 895.446, the "treble damages" statute, allows for an award of compensatory (or "actual") damages, plus tripling of those, plus
actual fees, for people who are (among other things) victims of theft by fraud and crimes against bodily security. This bill would help immunize people like that from getting sued by making it harder for people to pay their lawyers.
Most consumer cases, of course, are over relatively nominal amounts of money -- with the attorney's fees/fee shifting being used to encourage attorneys to take on these cases and enforce consumer protection laws. With an attorney general who's more interested in letting the governor off the hook than enforcing consumer protection laws (
J.B. "Van" Hollen once said most consumer complaints amount to people crying about not getting enough Chicken McNuggets) that type of private enforcement...
...
private enforcement, Republicans, by
private businesses like mine, which employs 33 people in our office alone...
... would seem important, unless it's
more important to you -- "you" being "Republicans" -- to sell a little "justice" old-school style, by taking money to pass laws:
Republicans in the Legislature are trying to pass a bill to cap attorney fees that can be awarded in response to a case in which a firm owned by a GOP donor had to pay more than $150,000 in legal costs. The legal fees were included in a settlement after a man who bought a car from John Lynch Pontiac-Chevrolet alleged he had to pay nearly $5,000 for repairs he never approved. In response, Rep. Robin Vos (R-Burlington) has written a bill that would limit the amount of attorney fees that could be paid in such cases to three times the amount that is disputed in a case. In the Lynch case, the attorney fees would have been limited to $15,000 because the case centered on $5,000 in repairs. The Burlington dealership is owned by David Lynch, a Vos constituent who has made 36 contributions to Republicans totaling $10,650 since 2008. He gave nothing to Democrats during that time.
(
S0urce.) Lynch, of course, is mad that he had to pay $151,000 in legal fees in the case he got sued in. Those are fees he
agreed to pay, in a settlement, but why should a good, cash-carrying businessman be held to his agreement when there are legislators to be bought and sold?
Should Lynch be mad? Should he be able to buy a change in legislation that will let him rip people off in the future? Before you decide, consider the
actual opinion and the background facts of the case that got Lynch so mad he decided to buy himself some "justice," Republican-style.
The case in question is captioned
Kaskin v. John Lynch Chevrolet-Pontiac, 767 N.W.2d 394, 2009 WI App 65 (Wis. App., 2009). Kaskin was a guy who bought a brand new truck and when it hit 3300 miles, developed some troubles with it. So he took it to John Lynch, which provided him an estimate of
one penny to repair it -- because John Lynch, owned by a major Republican contributor, assumed that the truck was under warranty.)*
*What was that thing my third grade teacher said about assuming things?
A week later, John Lynch, owned by a Good Republican, called Kaskin and said that bad fuel had ruined the injectors and they'd replaced them all.
Oh, and, they added,
You owe us $5,000 smackeroos.**
**Not a direct quote from the Good Republican.
Kaskin didn't think he should have to pay; after all, he'd been estimated
one penny as a cost, hadn't been asked whether they should go ahead, and now owed $5,000 smackeroos. But John Lynch, owned by a Good Republican, would not release this truck.***
***I note that by repairing the truck before telling Kaskin what the problem was -- the claimed bad fuel -- John Lynch, owned by a Good Republican, may have done the car manufacturer or the gas dealer a favor there. If "bad gas" really had ruined the fuel injector, a questionable proposition given that "bad gas" typically requires buildup to ruin a fuel injector and the car had only been driven 3300 miles so far, then Kaskin could have maybe figured out where he bought the bad gas and tried to hold them liable for the $5k. If, on the other hand, it was a fuel injector problem, Kaskin might have had remedies against the manufacturer under laws like the lemon law. But by repairing the problem without even telling Kaskin, John Lynch, owned by a Good Republican who was no doubt watching out for other "small" (giant) corporations, might have spoilt the evidence, which in turn could eventually have prohibited Kaskin from making a claim against those other potential culprits.
Hmmm.
So Kaskin paid the $5,000 smackeroos -- I promise that's the last time I'll use that word in this post -- and sued, ultimately losing in the circuit court because, the court reasoned (siding with John Lynch, owned by a Good Republican and therefore entitled to special treatment in the legislature, if not the Court of Appeals, as we'll see) Kaskin hadn't suffered any
pecuniary loss: He'd paid $5,000, and gotten $5,000 worth of repairs.
Not so fast... the Court of Appeals didn't say, but should have. The circuit court said that it didn't matter if Kaskin authorized the repairs or not -- remember, he'd said that John Lynch, Good Republican Car Company, could go ahead with repairs
if they cost no more than a penny -- but the Court of Appeals thought otherwise because they did something I like to call "
reading the law."
In fact, they began their opinion by making everyone else do just
that:
WISCONSIN ADMIN. CODE § ATCP 132.09(1), (4)(e) (Oct.2004) states, in pertinent part, that "[n]o shop may ... [d]emand or receive payment for unauthorized repairs, or for repairs that have not been performed." We hold that a major purpose of this provision is to prevent either unexpected repairs, unexpected expense or both. Therefore, if the work done here was unauthorized, then the harm to the consumer, Randy W. Kaskin, was that he was deprived of his prescribed right to be informed and his concomitant right to consent or refuse consent. The remedy for a violation of this right is that the repair shop must forego being paid, even if the shop did, in fact, satisfactorily repair the vehicle.
If you're John Lynch, owned by a Good Republican, that's not starting off on the right foot for an appellate opinion in case accusing you of doing unauthorized repairs. It's always easier for people who want to rip off consumers if you don't, you know,
read the law, the requirements of which the Court of Appeals said are both "
clear cut" and "
stringent."
*4*4 Don't you just hate it when you're subject to a clear cut and stringent law that says "Maybe you should call your customer and let them know you're going to charge them five thousand simoleons [I made no promises about other slang] before you actually hold their brand new truck hostage?
But, I mean,
what's the big deal with telling consumers
what you're going to do and what
it's going to cost? That is,
can't you trust a company owned by a Good Republican?Apparently not, as the Court of Appeals found reason to explain. The idea of requiring authorization is to have
informed consent for repairs, and
The "informed consent" concept is an integral part of consumer protection law, not only here, but across the nation. Many states have adopted stringent rules regarding motor vehicle repair. See Jay M. Zitter, Annotation, Automobile Repairman's Duty to Provide Customer with Information, Estimates, or Replaced Parts, Under Automobile Repair Consumer Protection Act, 25 A.L.R.4th 506 (2008). These states have crafted statutes or rules requiring disclosures by automotive repairers before work is begun, just as this state does. Why? Washington State's automobile repair law provides an answer. Its code "is a consumer protection statute designed to foster fair dealing and to eliminate misunderstandings in a trade replete with frequent instances of unscrupulous conduct." Bill McCurley Chevrolet, Inc. v. Rutz, 61 Wash.App. 53, 808 P.2d 1167, 1169 (1991).
A
trade replete with frequent instances of unscrupulous conduct? How DARE the Court of Appeals imply that John Lynch, owned by a Good Republican, would do something
unscrupulous. He hadn't even
tried buying a change in the law to immunize him from further consumer protection lawsuits based on him scamming customers yet!
But to make up for implying that sometimes car repair shops might act
less than scrupulously, the Court of Appeals gave John Lynch, owned by a Good Republican, a Good Idea:
The repair shop ...believe[s] this construction to be unfair, especially if, as they claim is undisputed in this case, the repairs made actually fixed the vehicle in a satisfactory manner such that the consumer received a valuable benefit. We understand that and commiserate with the repair shop and amicus curiae to the extent that the repair shop acted in good faith in not engaging in excessive and unnecessary repair. But to paraphrase an oft-repeated and now trite expression, the law is what the law is. If the association feels that the statutory damage provision is out of proportion to the harm done by the lack of authorized consent, its recourse is through the legislature.
That was back in 2009 when the Court of Appeals issued that opinion. April, 2009, in fact. So, one might ask, why didn't John Lynch, owned by a Good Republican, go
immediately to the legislature to demand that the
law not be what the law is?One might ask.
Perhaps, one might then theorize, John Lynch didn't go running to the legislature because John Lynch went on to read what
else the Court of Appeals said:
And frankly, our view is that the requirement of a written repair estimate with an estimated price is a simple procedure that does not impose a great economic burden on repair shops. This is important because the policy makers in this instance obviously weighed that insignificant cost to the marketplace against the need to curtail the persistent practices of exploitive merchants bent on targeting the unknowledgeable motor vehicle owner. The policy makers no doubt intended to protect consumers against misunderstandings arising from less-than-clear estimates and the legal disputes and litigation that result from the fait accompli nature of claims for repair work already done.
I'm sure that was it. I'm sure that John Lynch, owned by a Good Republican, was not just lying in wait and contributing only to Republican causes until the Republicans captured the legislature and he could buy himself a law that would make it okay to engage in
persistent practices ... bent on targeting the unknowledgeable motor vehicle owner.
In fact, I bet that it was simply a change in the market. Economic downturn and all that, right, that made the
insignificant cost of "
asking a customer to approve a repair before doing it" no longer
insignificant.
That was probably it.
Even then, the case wasn't
over: the Court of Appeals simply remanded for the circuit court to determine whether Kaskin had actually authorized the repairs... and Lynch promptly
settled, paying the $150,000 in fees plus damages.
Now, keep in mind, that John Lynch, owned by a Good Republican, had
many many options. They could have
(a) called the manufacturer to ask if the repairs were under warranty.
(b) called the customer to ask if
he had determined that the repairs were under warranty
(c) called the customer to say "
Repairs'll be $5,000, want us to do them?"
(d) once they realized the customer was mad, they could have refunded some or all of his money, losing only $5,000.
They didn't do
any of that. They chose to litigate, and litigate so strenuosly that they and their opponents racked up a presumed
$300,000 plus in lawyers' fees -- suing over whether the customer should or should not have paid $5,000.
In other words, John Lynch, owned by a Good Republican, felt it was worth spending $150,000+ in lawyers' fees to defend his right to keep $5,000 -- but felt it was
unfair that Kaskin got to spend $150,000+ in order to
not pay $5,000.
In other other words, John Lynch, owned by a Good Republican, wanted an
uneven playing field. He wanted to force a consumer, who
doesn't know about repairs and
wasn't given a choice in this case to litigate against a well-heeled car dealership, with the outcome being
at best the consumer would get $5,000. Which means that absent the fee-shifting provision built in to the statutes,
Kaskin would never have sued.
Never.
And the consumer protection laws requiring that repair shops
get your permission before charging you $5,000 and then holding your car hostage until you pay it would be
meaningless.THAT is what your Republican Party stands for nowadays. Your right to get ripped off by people who know more than you and can't be bothered to make a phone call to get your permission.