Ferdon v. Wisconsin Patients Compensation Fund

2005

Venue: WI SC

Facts: Ferndon got injured while being born: partly paralized and deformed tight arm. Seems a doctor was negligent.

Posture: Damages awarded to Ferndon at trial. The WI Patients Compensation Fund moves to have those damages reduced, because there's a statutory cap on them.

Issue: Is the statutory limitation violative of WI Const Art I § 1?

Holding: Yes. It's regressive and doesn't have a rational basis.

Rule: Rational basis is required for treating people differently.

Reasoning: Poor people have to have access to justice; they have to file suite on a contingency fee basis, because they can't pay fees. This cap has a disparate effect on patients with families. We all want reasonable malpractice insurance premiums, but there's no showing that a $350K cap on noneconomic damages is dational. In fact, it's arbitrary. And it places the burden on injured plaintiffs, not on insurers.

Dicta: Dissent (Prosser): the court is playing games with the concept of rational basis, and is effectively engineering a new standard of scrutiny in order to achieve its desired objective.