Racine Steel Castings v. Hardy

426 N.W.2d 33, 144 Wis. 2d 553, 1988 Wisc. LEXIS 53
CourtWisconsin Supreme Court
DecidedJune 16, 1988
Docket86-1016
StatusPublished
Cited by31 cases

This text of 426 N.W.2d 33 (Racine Steel Castings v. Hardy) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Racine Steel Castings v. Hardy, 426 N.W.2d 33, 144 Wis. 2d 553, 1988 Wisc. LEXIS 53 (Wis. 1988).

Opinion

LOUIS J. CECI, J.

This case is before the court on petition for review of a decision of the court of appeals, Racine Steel Castings v. Hardy, 139 Wis. 2d 232, 407 N.W.2d 299 (Ct. App. 1987), which affirmed a judgment of the circuit court for Milwaukee county, George A. Burns, Jr., circuit judge. The issue presented for review concerns the constitutionality of sec. 102.29(3), Stats. In particular, respondent, Racine Steel Castings (Racine Steel), asserts an equal protection claim under the equal protection clause of the fourteenth amendment of the United States Constitution, challenging the provision of sec. 102.29(3) which bars an employer from recovering sums paid in worker’s compensation benefits from amounts awarded in a malpractice action for the aggravation of an injury by a physician, chiropractor, or podiatrist. 1 Racine Steel bases its equal protection challenge upon the assertion that there is no rational basis for precluding employer reimbursement from medical malpractice proceeds awarded against a physician, chiropractor, or podiatrist, while permitting employer *558 reimbursement from proceeds awarded in all other third-party actions, including actions against those health care providers not enumerated under sec. 102.29(3). The court of appeals found the statute unconstitutional. We reverse.

This case arose from the slip-and-fall injury of petitioner, John R. Hardy (Hardy), suffered on July 15, 1981, during the course of his employment with Racine Steel. Hardy sought treatment for discomfort associated with his work injury from Jose Kanshepol-sky, M.D. (Dr. Kanshepolsky). Dr. Kanshepolsky performed a surgical procedure upon Hardy described as an "anterior cervical fusion,” which rendered him a quadriplegic. It is undisputed that Racine Steel has paid and will continue to pay worker’s compensation benefits to Hardy for his aggravated injury.

Hardy filed a submission of controversy with the patients compensation panel pursuant to ch. 655, Stats. (1983-84), alleging negligence on the part of Dr. Kanshepolsky, on March 7, 1983. On November 30, 1984, the panel found Dr. Kanshepolsky negligent in his treatment of Hardy. A settlement was then reached between Dr. Kanshepolsky and Hardy. During the pendency of the case before the patients compensation panel, on August 29,1983, Racine Steel filed a summons and complaint, seeking a declaratory judgment that sec. 102.29(3) is unconstitutional and that Racine Steel was entitled to subrogation against any proceeds of the medical malpractice claim. Subsequently, on February 26, 1986, the trial court found sec. 102.29(3) unconstitutional and held that Racine Steel was accordingly entitled to subrogation. Specifically, the trial court held:

*559 "[Section 102.29(3)] denies equal protection to all Wisconsin employers whose employees’ work-related injuries are aggravated by doctors, chiropractors or podiatrists. This limited classification, as analyzed above, makes no sense, is wholly arbitrary and frustrates the general purpose and sound public policy of third-party liability as set forth in 102.29(1) of the Workers’ Compensation Act. Because it is arbitrary and has no rational basis, it must 'rest on grounds wholly irrelevant to the achievement of the State’s objective,’ as set forth in McGowan v. Maryland, supra.”

Because the court found the equal protection argument dispositive, it did not resolve the due process issue.

The court of appeals affirmed the decision of the trial court, likewise finding no rational basis to support the statutory classification. Racine Steel, 139 Wis. 2d at 239-40. We disagree and reverse the decision of the court of appeals.

The question before us concerns the constitutionality of a statute, which is a question of law reviewable by this court without deference to the decisions of the courts below. Guertin v. Harbour Assurance Co. of Bermuda, Ltd., 141 Wis. 2d 622, 633, 415 N.W.2d 831 (1987). This court has recently restated the great deference accorded to legislative classifications: "In analyzing a statute’s constitutionality, '[e]very presumption must be indulged to sustain the law if at all possible and, wherever doubt exists as to a legislative enactment’s constitutionality, it must be resolved in favor of constitutionality —’” State ex rel. Jones v. Gerhardstein, 141 Wis. 2d 710, 733, 416 N.W.2d 883 (1987) (quoting Chappy v. Labor & Industry Review *560 Commission, 136 Wis. 2d 172, 185, 401 N.W.2d 568 (1987)). The burden is upon the challenger of a statutory classification to prove abuse of legislative discretion beyond a reasonable doubt. In Matter of Care & Maintenance of K.C.: K.C. v. Department of Health & Social Services, 142 Wis. 2d 906, 914-15, 420 N.W.2d 37 (1988); Sambs v. City of Brookfield, 97 Wis. 2d 356, 370, 293 N.W.2d 504, cert. denied 449 U.S. 1035 (1980). More specifically, in reviewing a statutory classification under an equal protection analysis, unless the statute impinges upon a fundamental right or creates a classification based upon a suspect criterion, the statute will be upheld if there exists a rational basis to support the challenged classification. Matter of Care & Maintenance of K.C., 142 Wis. 2d at 916. Where a fundamental right or suspect class is implicated, strict scrutiny will be applied to examine the statute. Id.

Because neither party in the present case asserts the existence of a fundamental right or implication of a suspect class, this court will examine the challenged classification under sec. 102.29(3) for a rational basis. Under this rational basis analysis, "[e]qual protection of the law is denied only where the legislature has made irrational or arbitrary classification. ... The basic test is not whether some inequality results from the classification, but whether there exists any reasonable basis to justify the classification.” Guertin, 141 Wis. 2d at 634 (quoting Omernik v. State, 64 Wis. 2d 6, 18-19, 218 N.W.2d 734 (1974)). Moreover, where the legislative rationale is not apparent, the investigation for a rational basis is not completed:

*561 "[I]t is the court’s obligation to locate or to construct, if possible, a rationale that might have influenced the legislature and that reasonably upholds the legislative determination. The rationale which the court locates or constructs is not likely to be indisputable. But it is not our task to determine the wisdom of the rationale or the legislation. The legislature assays the data available and decides the course to follow.” Sambs, 97 Wis. 2d at 371.

Section 102.29 generally governs third-party liability to recipients of worker’s compensation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Waukesha County v. J.W.J.
2017 WI 57 (Wisconsin Supreme Court, 2017)
State v. Dennis H.
2002 WI 104 (Wisconsin Supreme Court, 2002)
State v. Allen M.
571 N.W.2d 872 (Court of Appeals of Wisconsin, 1997)
L.L.N. v. Clauder
552 N.W.2d 879 (Court of Appeals of Wisconsin, 1996)
Wadsworth v. State
911 P.2d 1165 (Montana Supreme Court, 1996)
State v. Hall
540 N.W.2d 219 (Court of Appeals of Wisconsin, 1995)
Doering v. WEA Ins. Group
532 N.W.2d 432 (Wisconsin Supreme Court, 1995)
State v. Heft
517 N.W.2d 494 (Wisconsin Supreme Court, 1994)
Szarzynski v. YMCA, Camp Minikani
517 N.W.2d 135 (Wisconsin Supreme Court, 1994)
State v. Hanson
513 N.W.2d 700 (Court of Appeals of Wisconsin, 1994)
Nelson v. Rothering
496 N.W.2d 87 (Wisconsin Supreme Court, 1993)
Wisconsin Power & Light Co. v. Public Service Commission
492 N.W.2d 159 (Court of Appeals of Wisconsin, 1992)
Phillips v. Wisconsin Personnel Commission
482 N.W.2d 121 (Court of Appeals of Wisconsin, 1992)
Sutton Ex Rel. Sutton v. Kaarakka
464 N.W.2d 29 (Court of Appeals of Wisconsin, 1990)
John v. John
450 N.W.2d 795 (Court of Appeals of Wisconsin, 1989)
State v. McKenzie
446 N.W.2d 77 (Court of Appeals of Wisconsin, 1989)
State v. Migliorino
442 N.W.2d 36 (Wisconsin Supreme Court, 1989)
Richards v. Cullen
442 N.W.2d 574 (Court of Appeals of Wisconsin, 1989)
City of Milwaukee v. Nelson
439 N.W.2d 562 (Wisconsin Supreme Court, 1989)
J.J.G. v. L.J.
441 N.W.2d 273 (Court of Appeals of Wisconsin, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
426 N.W.2d 33, 144 Wis. 2d 553, 1988 Wisc. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/racine-steel-castings-v-hardy-wis-1988.