Tuesday, November 22, 2005

A Deal Is A Deal


This strikes me as a silly little case to make it all the way to the Wisconsin Supreme Court but over four years Rainbow Rental v Ameritech Yellow Pages (pdf) made a slow journey through the court system to today’s decision.
On August 8, 1999, Rainbow contracted with API for the listing of its business in the November 1, 1999, edition of the Oconomowoc and Waukesha Ameritech Pages Plus Yellow Pages telephone directories, in addition to the May 1, 2000, edition of the Watertown Ameritech Pages Plus Yellow Pages telephone directory. API subsequently omitted Rainbow's entire listing from each of the directories.
In brief, Rainbow Dude signs a standard business contract with Ameritech to advertise in the yellow pages and oops, Ameritech forgets to print the ads. The contract has a prominent stipulated damages clause that says (paraphrasing), Dude if we forget to run your ads you get your money back and future ad credit for the same amount. Dude ain’t happy with cash back and free advertising so he finds lawyers to sue the bastards. Today the Wisconsin Supreme Court says sorry Dude, a deal is deal and you signed it.
In sum, under the revamped telecommunications industry, the Rainbow-API contract is like any other contract entered into between two voluntary and knowledgeable business entities in a competitive field. … Therefore, we affirm the circuit court’s grant of summary judgment in favor of API.
In my simple mind I always thought this is how the courts should work. The court listens to both sides, reflects on the law and then tells one party that if you sign a contract you live with the deal. In its own small way this is a business friendly decision from our top judges which is increasing rare with this current court.

Rainbow Dude may have had better luck with the Wisconsin legal system by tripping over the phone book, injuring some cherished and deeply loved body part, then suing the doctors if they failed to completely predict and reverse the consequences of being mortal. Yeah, I know its hyperbole but this same court believes the will of the people expressed through their legislature is unconstitutionally limiting trial lawyer driven non-economic damages.
AMA Response to Wisconsin Decision: "Wisconsin's stable health care environment is endangered by today's state Supreme Court decision to weaken the state's medical liability reforms. The Wisconsin Supreme Court superceded the will of the people and removed caps on non-economic damages in medical liability actions. This action sends yet another message to Washington that we need federal liability reforms to protect all America's patients.
Dr. Hetsko wrote it and I believe him.