Court Opinion

ID: 9883966
Source: CourtListenerOpinion
Date Created: 2023-10-06 02:28:32.302183+00
Date Added: 2024-06-11T07:48:33.933745
License: Public Domain

*605JON E WILCOX, J.
*606¶ 103. The majority correctly states that Wisconsin has abandoned the lex loci delicti rule in favor of a more flexible rule, which takes into account the policies and interests of the jurisdictions involved in order to determine the jurisdiction with the most significant relationship to the lawsuit and the parties. Wilcox v. Wilcox, 26 Wis. 2d 617, 621, 631, 133 N.W.2d 408 (1966). I also agree there are significant contacts that would support the application of either Wisconsin or Manitoba law. See majority op. at ¶ 52. However, I disagree with the majority's conclusion that the contacts, when viewed in light of the five guiding factors we adopted in Heath v. Zellmer, 35 Wis. 2d 578, 595-96, 151 N.W.2d 664 (1967), are insufficient to overcome the weak presumption that the forum law should apply.
¶ 104. In our choice of law analysis, we have traditionally started, as the majority notes, with the weak presumption that the law of the forum state applies. Zelinger v. State Sand & Gravel Co., 38 Wis. 2d 98, 106, 156 N.W.2d 466 (1968); Wilcox, 26 Wis. 2d at 634; Heath, 35 Wis. 2d at 593. We then apply an "interest analysis" to the contacts of the interested jurisdictions, where we place less emphasis on the quantitative contacts of the parties and focus on the relevance of the contacts to the policies of the place of the wrong and the forum. Zelinger, 38 Wis. 2d at 105. If this analysis demonstrates that the jurisdiction where *607the wrong took place is preferable to the forum jurisdiction, the law of the location of the tort will be applied.
¶ 105. In conducting this analysis, we are guided by the factors we adopted in Heath. Heath, 35 Wis. 2d at 596 (citing Robert Leflar, Choice-Influencing Considerations in Conflicts Law, 41 N.Y.U. L. Rev. 267, 282 (1966)). These factors are: (1) the predictability of results; (2) the maintenance of interstate and international order; (3) simplification of the judicial task; (4) advancement of the forum's governmental interests; and (5) application of the better rule of law. Id. These factors are considered in each case and vary according to the precise issue involved. Here, I would hold that they lead to the conclusion that Manitoba law is more appropriately applied to determine what Gillette and Ostlund were legally entitled to collect.
¶ 106. With regard to the first factor, the predictability of results, the majority concludes that it is reasonable to assume that the parties expected that Wisconsin law would apply to claims under the policy. Majority op. at ¶ 54. The majority argues that this conclusion promotes uniformity of interpretation regardless of where the injury occurs. Id. I do not think there is a basis for making such an assumption.
¶ 107. "Predictability" under this factor is not an element of pre-selection that controls the choice of law in an accident. Rather, the predictability must arise when all of the relevant facts are made available and analyzed. Heath, 35 Wis. 2d at 599. The analysis must lead to a reasonable certainty based on a rational analysis, as opposed to the certain but irrational selection of the site of the tort, Conklin v. Horner, 38 Wis. 2d *608468, 479-80, 157 N.W.2d 579 (1968), or as the majority suggests in this case, the site where the contract was made.
¶ 108. A lay person driving across a state or international border probably gives little thought to which jurisdiction's damages laws would be reasonable to apply in the event of an accident, and the rule applied by the majority — that the parties would assume that Wisconsin law applies under the contract — does provide some certainty, but is no more rational than assuming that the law of the fortuitous site of the accident would apply. Although a UIM claim is an action against the contract, Sahloff v. W. Cas. & Sur. Co., 45 Wis. 2d 60, 70, 171 N.W.2d 914 (1969), the choice of the underlying negligence law is not guaranteed. As we have stated previously, "a tort which is not intended can never, by definition, be the subject of advance planning with reference to a particular state's law." Conklin, 38 Wis. 2d at 478. Although it may be reasonable to assume that the parties expected that the law of the state where the contract was made should apply, it is equally reasonable to assume that a Wisconsin resident who drives in Manitoba, and then is involved in a collision involving a Manitoba resident who is driving a vehicle licensed and registered in Manitoba would have tort damages computed under Manitoba law. Thus, I do not think that predictability, as guided by this factor, is necessarily fostered by the application of Wisconsin law.
¶ 109. With regard to the second factor, the maintenance of interstate and international order, the majority notes that under these circumstances, Manitoba is minimally concerned and Wisconsin is substantially concerned. Majority op. at ¶ 55. The majority points out that the location was happenstance and that the imposition of noneconomic damages would not affect *609administrative costs or driving habits in Manitoba. Id. at ¶¶ 56-57. In light of how we have treated this factor previously, I think this elevation of the forum state's concerns with regard to international comity comes across as somewhat parochial.
¶ 110. As pointed out by the majority, both Manitoba and Wisconsin have real interests at stake. Id. at ¶ 52. However, Manitoba is more than "minimally concerned," as the majority suggests, because the negligent activity in question here did occur on Manitoba's highways, and involved a Manitoba resident. See Conklin, 38 Wis. 2d at 479. Moreover, I fail to see how comity, the flow of commerce, or travel between Wisconsin and Manitoba (or, more generally, between the United States and Canada) would either be promoted or discouraged under the application of either law, as I doubt that any judicial decisions regarding automobile insurance would be likely to have such an effect. See Zelinger, 38 Wis. 2d at 109. At most, I would conclude that this factor does not favor either jurisdiction's law.
¶ 111. In its analysis of the third factor — whether the judicial task will be simplified by the application of one law or the other — the majority notes that the Wisconsin court can simply and easily apply Manitoba law as well as Wisconsin law on noneconomic damages, and that this renders this factor neutral. Majority op. at ¶¶ 59-60. I disagree.
¶ 112. It is true that the Wisconsin court could competently apply both Manitoba and Wisconsin law, since Wisconsin courts often are required to interpret the law of other states and the federal government. However, applying Wisconsin law here will, as the majority concedes, require the Wisconsin court to calculate the noneconomic damages on top of the liability damages already calculated under Manitoba law. Fur*610ther, as the majority correctly points out, if Wisconsin law is applied to the present case, the liability of an underinsured motorist would be determined under one system of law, while a straight liability suit would be determined under a different system. Id. (citing Zenker v. Allstate Ins. Co., No. CIV A. 93-2614, 1993 WL 300132, *6 n.3 (E.D. Pa. 1993)). Although the majority attempts to minimize this factor, both of these results would undoubtedly make the litigation more complex, significantly increase the amount of money and time spent on litigation, and ultimately increase the judicial burden. For these reasons, I would find that this factor clearly supports the application of Manitoba law.
¶ 113. The fourth factor, the advancement of the forum's governmental interests, is admittedly one of the most important. Conklin, 38 Wis. 2d at 481. The majority finds that this factor promotes the use of Wisconsin law, since Wisconsin has a strong interest in compensating its residents who are victims of torts, majority op. at ¶ 61, and that the Manitoba statute barring noneconomic damages is contrary to Wisconsin policy. Id. at ¶ 63. The majority concludes that this factor also shows a preference for Wisconsin law.
¶ 114. Although I agree that Wisconsin has a policy of compensating tort victims, I cannot conclude that the policy is necessarily better served by applying Wisconsin law. The fact that Manitoba law allows for different, albeit less, recovery is not a per se indication that the Manitoba law is less reasonable or that it goes against the public policies of Wisconsin. As the majority recognizes, the Wisconsin legislature itself has limited tort damages in some circumstances. Id. (citing Wis. Stat. § 893.55(4) (1999-2000)). Under Manitoba law, there is no question that Gillette and Ostlund will be compensated for their medical expenses and their lost *611wages. As such, the Wisconsin policy of compensation for tort victims will not be contravened.
¶ 115. Finally, I agree with the majority's conclusion that neither Wisconsin law nor Manitoba law is necessarily a "better rule of law." Majority op. at ¶ 66. As the majority points out, denying noneconomic damages is not anachronistic, and is founded on a rational basis. I agree that, at most, this factor is inconclusive.
¶ 116. After reviewing the five factors, I would find that the choice of law analysis demonstrates that Manitoba law is properly applied in this case. In my opinion, most of the choice of law factors are neutral at best, and those that show any preference for one jurisdiction over the other — particularly the judicial economy factor — tend to favor the application of Manitoba law. Here, I think that the application of Manitoba law would provide a consistent result, would comport with the public policies of Wisconsin tort law, and most notably, would promote judicial efficiency. For that reason, I would hold that the damages which Gillette and Ostlund are legally entitled to collect for the purpose of their UIM policy should be measured by Manitoba tort law, and I would reverse the decision of the court of appeals.
¶ 117. For the foregoing reasons, I dissent.
¶ 118. (dissenting). I agree with some portions of the majority's opinion. I agree that Wisconsin contract law governs the interpretation of this insurance policy. I also agree that the insurance policy's UIM provision, promising to pay "damages for bodily injury an insured is legally entitled to collect from the owner or driver of an underinsured motor vehicle," is reasonably interpreted to mean "that an insurance company will compensate an insured for *612damages for bodily injury that the insured actually incurs up to the amount of damages for which a driver of an underinsured motor vehicle is liable under the applicable law up to the policy's liability limits." Majority op. at ¶ 48.