LRB-1515/1
PJH:kjf:rs
2009 - 2010 LEGISLATURE
May 20, 2009 - Introduced by Senators Kreitlow, Sullivan and Lehman,
cosponsored by Representatives
Dexter, Richards, Kaufert, Zepnick, Mason,
Berceau and A. Williams. Referred to Committee on Judiciary, Corrections,
Insurance, Campaign Finance Reform, and Housing.
SB213,1,2
1An Act to create 802.02 (1) (c) and 802.12 (2) (am) of the statutes;
relating to:
2notification of alternative dispute resolution in foreclosure actions.
Analysis by the Legislative Reference Bureau
Under current law, a lender or mortgage holder that wishes to foreclose on a
home must file a complaint in circuit court setting forth the facts that support a
foreclosure and stating the relief the lender or mortgage holder seeks. After being
properly served with the complaint, the homeowner may answer the complaint and
the matter will proceed to trial, the parties may settle the dispute, or the court may
rule in favor of one party or the other based solely on the pleadings filed with the
court.
Current law offers alternative dispute resolution to parties in a civil action.
Alternative dispute resolution may consist of binding or nonbinding arbitration,
direct negotiation or a settlement discussion between the parties that is facilitated
by a neutral third party, an evaluation of the merits of the case and a discussion of
possible resolutions of the matter by a neutral third party or a panel of citizens
chosen by the parties, or an abbreviated trial on some or all of the issues in dispute.
Alternative dispute resolution may be requested by either party in a civil case or may
be ordered by the judge.
This bill requires the lender, mortgage holder, or any other party bringing a
foreclosure action against a homeowner to include, in its pleading that sets forth a
claim for relief, a statement that either party may request the court to order
alternative dispute resolution for the foreclosure claim. Under the bill, if either of
the parties elects alternative dispute resolution, the time periods for any responsive
pleadings in the case are tolled until the alternative dispute resolution is concluded.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB213, s. 1
1Section
1. 802.02 (1) (c) of the statutes is created to read:
SB213,2,72
802.02
(1) (c) If the claim for relief is for the foreclosure of a mortgage on real
3estate under ch. 846, a statement that either party may request the court to order
4the parties to select a settlement alternative under s. 802.12 as a means to attempt
5settlement of the claim, by submitting a request to the court and serving a copy of
6that request on the other party no later than 5 days before an answer is otherwise
7due.
SB213, s. 2
8Section
2. 802.12 (2) (am) of the statutes is created to read:
SB213,2,159
802.12
(2) (am) If the action includes a claim for relief for the foreclosure of a
10mortgage on real estate under ch. 846, a party to the action requests the court to order
11the parties to select a settlement alternative and serves that request on the other
12party no later than 5 days before an answer is otherwise due, and the court
13determines that the request is timely and the action or proceeding is an appropriate
14one in which to invoke a settlement alternative, the time periods for any responsive
15pleading are tolled until the selected settlement alternative is concluded.
SB213,2,1817
(1) This act first applies to actions commenced on the effective date of this
18subsection.
