Wisconsin's cap on medical malpractice awards for noneconomic damages such as pain and suffering is unconstitutional, a split state Supreme Court ruled today. (7/13/05)

The court ruled 4-3 that the Legislature's rationale for implementing the caps on noneconomic damages was too broad and speculative, and ruled the law violated the Wisconsin Constitution's equal protection guarantees.

The court said its decision does not strike down all caps under Wisconsin law in medical malpractice cases. Rather, its decision applies only to those for noneconomic damages, awards meant to compensate for mental distress, loss of enjoyment of normal activity and loss of society and companionship.

Matthew Ferdon was injured when he was born, leaving him with a right arm that will never function properly. During delivery, the doctor pulled on Matthew's head, leaving him with an injury called obstetric brachial plexus palsy. That left his right arm paralyzed and deformed.

His parents sued, and Matthew was awarded $403,000 for future medical expenses and $700,000 in non-economic damages. His parents received $87,600 for the personal care they will render for Matthew until he is 18. The trial court had reduced the award under the caps adn the parents appealed.

Just last year, the court upheld a similar limit on wrongful death awards in medical malpractice cases. Industry leaders had been watching this appeal closely due to a change of one Justice on the court. That change appears to signal the potential for a more plaintiff-leaning court on medmal issues. No reaction has been announced from industry representatives of malpractice insurance carriers in the state, many of whom had submitted "amicus" briefs in the appeal.

In 1995, the state Legislature approved a $350,000 limit on noneconomic damages for medical practice awards. The law also included an annual inflation adjustment on the cap.