Legal Memorandum: Statute of Limitations for a Claim of Bad Faith

Issue: Under Wisconsin law, what is the statute of limitations for an action sounding in bad faith?

     Under Wisconsin law the statute of limitations for a claim of bad faith is two years from the denial of the claim.  Warmka v. Hartland Cicero Mut. Ins. Co., 136 Wis. 2d 31, 36, 400 N.W.2d 923, 925 (1987).  An assertion that an allegation of bad faith is “conclusory” and is contradicted by the correspondence does not suffice to justify dismissal.  See Theune v. City of Sheboygan, 57 Wis. 2d 417, 420, 204 N.W.2d 470, 471 (1973) (“When a complaint is tested on demurrer, it is not the duty of the court to hypothesize whether a plaintiff can prove the allegations.  It is sufficient that the facts alleged, if proved, spell out a cause of action.”)  Note that “demurrer” is simply the old term for motion to dismiss.

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