Lawsuits are serious matters. They’re costly, time-consuming, and stressful to litigate in any court. In particular, businesses must carefully weigh the pros and cons of prosecuting or defending a situation due to the impact it can have on client and investor relations.
A law firm with knowledge of business litigation in both state and federal courts is critical to a favorable outcome. Experienced litigators can describe how similar cases were handled, explain the differences between state and federal legal standards, and outline the steps involved.
Not All Cases are Created Equal
One of the most important distinctions between federal and state courts are the types of cases they may take. Typically, civil litigation cases involving broad categories of state laws are handled by Wisconsin circuit courts, which are located in 72 counties around the state. These courts are located in major cities and serve many types of business cases, including:
- Breach of contract claims (purchase agreements, non-competes, construction contracts, leases)
- Business torts (harmful conduct like fraud, unfair competition, defamation)
- Shareholder or partnership disputes (breach of fiduciary duties, misappropriation of company assets, dissolution of partnership)
- Employment claims
- Debt collection and enforcement of judgments
- Deceptive trade practices under state law
In addition to the most common disputes, circuit courts also hear cases involving real estate transactions, commercial landlord-tenant conflicts, and disputes over business dissolutions or receiverships. These courts are structured to handle a high volume of civil cases and offer access to local judges familiar with Wisconsin business norms.
Wisconsin has two federal district courts: the Eastern District, with courthouses in Milwaukee and Green Bay, and the Western District, located in Madison. These courts hear specific types of cases, such as:
- Diversity jurisdiction: when the litigant and defendant are from different states and the dollar value at stake is $75,000 or more
- Federal law issues like job discrimination, the Americans with Disabilities Act, or antitrust cases
- Removal cases: these are cases filed in state court that meet specific criteria to be “removed” to federal court
Cases are managed differently in state and federal courts. Federal courts follow the Federal Rules of Civil Procedure which is a higher, more stringent standard for aspects of the process including discovery and motions. State court judges can be more flexible, even while following federal rules for certifying expert witnesses.
Costs can be higher for federal court cases due to the exacting nature of their rules of procedure and higher standards for expert witnesses. Also, federal judges are more inclined to grant summary judgement if there is no genuine dispute of the facts.
Local people and local precedent influence the outcome of circuit court cases. A litigant may prefer state court for a jury trial because local people chosen for juries can favor regional business practices and a local business’s reputation. State law precedents govern claims brought in state court, making these venues most appropriate for disputes rooted in Wisconsin statute or common law. It is essential to consult with legal counsel when choosing where to file or defend a lawsuit, as venue selection can significantly influence the outcome of the case.
Federal courts interpret federal statutes and are less influenced by local precedent. This can affect case strategy, particularly for businesses that believe regional context or local goodwill may benefit their position in a jury trial. An experienced attorney can help assess where such strategic advantages may exist.
The Benefits of a Trusted, Experienced Legal Partner
The professionals at Kerkman and Dunn have decades of experience in both state and federal courts to help Milwaukee-area businesses navigate complex disputes efficiently and effectively. Putting your trust in an experienced legal partner is the first step to returning your full attention to running your business.
