Opinion ID: 1745643
Heading Depth: 1
Heading Rank: 6

Heading: retroactive application of the statute

Text: [2, 3] As a general rule, legislation is presumed to apply prospectively unless the statutory language reveals, by express language or necessary implication, an intent that it apply retroactively. Chappy, 136 Wis. 2d at 180. This court has recently stated that the presumption against retroactive legislation has its basis in the characteristics of legislation and concepts of justice. See Employers Insurance v. Smith, 154 Wis. 2d 199, 453 N.W.2d 856 (1990). Strong common-law tradition defines the legislature's primary function as declaring law to regulate future behavior. Thus, as a matter of justice, no law should be enforced before people can learn of its existence and conduct themselves accordingly. In short, retroactivity disturbs the stability of past transactions. See id. In the instant cases, the custodial parents recognize this general rule. They argue, however, that the rule against retroactive legislation does not apply when a statute is remedial or procedural, rather than substantive, in nature. The contention is that sec. 767.32(1m), Stats., is a remedial or procedural law because it prescribes the procedure that the circuit court is to follow in revising an order or judgment for child support. The custodial parents maintain that, because sec. 767.32(1m) is remedial or procedural in nature, it is to have retroactive application unless there is a clearly expressed legislative intent to the contrary or unless retroactive application would disturb contracts or vested rights. We are unpersuaded that the statute can be defined as merely procedural. [4, 5] A remedial or procedural law prescribes the method to be used in enforcing a right or remedy, while a substantive law creates, defines, or regulates rights or obligations. See City of Madison v. Town of Madison, 127 Wis. 2d 96, 102, 377 N.W.2d 221 (Ct. App. 1985). Prior to the enactment of sec. 767.32(1m), Stats., a child support obligor had a long-standing and well-established right to petition a Wisconsin court for retroactive modification of the amount of child support due under an order or judgment for support. The circuit courts had discretion to modify, reduce, or eliminate accumulated child support arrearages when the parent obligated to pay support was able to demonstrate sufficient cause or justification for the reduction. Section 767.32(1m) eliminated a child support obligor's right to petition for retroactive modification of support and thereby redefined his or her obligation with respect to accumulated support arrearages. We do not believe that such a substantial change in the legal rights and obligations of a child support obligor can be so lightly characterized as merely remedial or procedural in nature. We therefore conclude that sec. 767.32(1m) is a substantive law. [6] We now turn to the question of whether the presumption in favor of prospective application has been expressly or impliedly overcome by the language or history of sec. 767.32(1m), Stats. We find nothing in the language of the statute itself or in its legislative history which indicates that the legislature intended the prohibition contained in sec. 767.32(1m) to reach back to orders or judgments for support entered prior to the effective date of the statute. Therefore, we conclude that sec. 767.32(1m) applies prospectively only and that child support arrearages which accrue, or have accrued, pursuant to an order or judgment for support entered prior to August 1, 1987, may be reduced or eliminated in accordance with the legal principles applicable to the reduction of support arrearages prior to the effective date of the statute. A discussion of those principles and the manner in which they apply in the instant cases follows.