Wisconsin Supreme Court Set To Rule On Lame-Duck Settlement Law Amid Ideological Shift In Legal Interpretation

The Wisconsin Supreme Court will hear a 2018 lame-duck law case involving AG Josh Kaul and the Legislature. The ruling could shift control of settlement funds.

By: AXL Media

Published: Mar 9, 2026, 8:37 AM EDT

Source: The information in this article was sourced from Wisconsin Watch.

The 2018 Lame-Duck Legacy and Financial Oversight

At the heart of the current dispute is a 2018 law enacted just before the Democratic administration took office, designed to curb executive power. The Legislature contends that this law mandates the attorney general to deposit all settlement funds into the general fund, thereby placing them under direct legislative control. Attorney General Josh Kaul argues that the Department of Justice (DOJ) maintains the legal authority to manage these funds within DOJ-controlled accounts while remaining in compliance with the statute.

Judicial Ideology and the "Interpretation Flip"

Observers are highlighting a significant shift in how the judges involved are approaching the text. Typically, conservative legal theory prioritizes a strict, plain-meaning interpretation, while liberal theory often considers broader legislative intent. However, in a recent appellate ruling, conservative Judge Maria Lazar focused on the Legislature's intent to "bring all settlement funds under legislative control." Conversely, liberal Judge Lisa Neubauer's dissent criticized this approach, suggesting that a strict reading of the law actually provides the attorney general with significant "wiggle room."

Separation of Powers and Recent Precedents

This case follows a string of rulings from the now liberal-majority court that have sought to redefine the boundaries between state branches. In June, the court unanimously struck down provisions requiring the attorney general to seek legislative approval for most civil settlements. These decisions suggest an interest among the justices in restoring a traditional separation of powers, ensuring that the Legislature does not overreach into the executive branch's core duty of executing the law.