Does Wisconsin Law Promote Jobs or Punish Lemon Law Attorney?

If you are Vince Megna you might feel like there is a bull’s-eye on the back of your pinstriped suit. There is a reason for that. He is a very successful lawyer in Wisconsin.

A list of Megna’s verdicts and settlements involve so many car companies that it reads like the program of a international car show. His success in the niche of lemon law litigation prompted The Washington Post to label him the “King of Lemon Laws”. The legal monarch’s track record eventually drew the attention of auto industry players in Wisconsin who are also politically connected.

Settlement became the tipping point

Megna brought a suit against a Burlington Wisconsin car dealership which allegedly performed $5,000 in unauthorized repairs on his client’s vehicle. The case which dated back to 2007 was about to go to trial when the parties reached an agreement.

In the end the dealership agreed to pay “$12,500 for damages, $151,250 in legal fees and $5,284 in costs”. The owner of the car dealership is a Republican donor in a state whose legislature and governorship is controlled by that party, which is why this whole episode is of note. Megna is a Democrat.

Statutory fallout

In December Governor Scott Walker signed a bill that limits attorneys’ fees to three times the amount of damages which are being sought. Under the new law Megna’s payout would have been limited to $15,000, unless the judge would have determined that higher fees were warranted, which is a provision of the new law.

As a result Megna has said that he will not represent Republicans, which Wisconsin’s Office of Lawyer Regulation says is within his prerogative.

The law which was passed during a special legislative session devoted to jobs was promoted as a way to protect job creators and improve the business climate in Wisconsin.

Real world results

Whether it is in the courtroom or the boardroom it is no secret that profit is the grease that keeps the wheels of commerce moving forward. In this case there is plenty of negative public sentiment on both sides of the issue. The U.S. Congress may be the only group in the country to be held in lower regard than aggressive lawyers or driven corporate heads.

So is this a decision about two legitimate goals – job creation and consumer protection or is it a choice between unfettered corporate power and the application of the free market system to the legal process. While the ultimate impact will be evident in the future legal decisions in Wisconsin, it is clear that the playing field has been changed subject to a fluid political climate.

The balance of power has shifted from the complaining car owner to the deeper pockets of the corporate entity. Consumers will be hard pressed to match the larger resources of the corporations now that the rewards to their legal advocates have been limited.

Todd Richmond, Wis. Gov signs bill capping attorney fees, Businessweek.com

Vincemegna.com


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