Illinois Gov. Signs SB0072: Prejudgment Desire Act

Table of Contents1 Important Provisions and Critical Discrepancies2 A New Possibility for Defendants: Credit score

Illinois Governor J.B. Pritzker a short while ago signed into law SB0072 (the “Prejudgment Desire Act”), a revised edition of the invoice he had earlier vetoed and that we talked about in a prior notify. The Prejudgment Fascination Act will amend the Code of Civil Method (735 ILCS 5/2-1303) to offer plaintiffs with prejudgment fascination on particular damages awarded in Illinois particular injuries and wrongful demise circumstances.[1] While the new legislation dials back again some of the controversial factors of its predecessor invoice – for illustration, the nine percent desire accruing when the defendant gets observe of the personal injury – the new regulation nevertheless increases the potential danger that providers encounter in defending personalized harm and wrongful loss of life satisfies. Contrary to the before invoice, on the other hand, the new legislation offers defendants an possibility to cut down their threat by means of settlement offers.

Important Provisions and Critical Discrepancies

The Prejudgment Desire Act goes into influence on July 1, 2021, and will entitle plaintiffs to prejudgment curiosity in situations of carelessness and demanding liability, as well as in scenarios of willful or wanton or intentional misconduct. The before bill confronted intensive opposition, and – very likely in response – the Prejudgment Desire Act revised a range of controversial provisions.

Initial, prejudgment interest will now accrue at a price of 6 per cent yearly. The 9 per cent fascination rate that was at first proposed would have been a better price than that imposed in almost any other state that permits for prejudgment curiosity in personalized personal injury instances. The Prejudgment Desire Act also caps curiosity at a greatest of 5 a long time.

Second, fascination will begin to accrue only from the date the lawsuit is submitted and not from the day the company has detect of the injuries. For scenarios submitted just before July 1, desire will begin to accrue on July 1. This vivid-line rule will each avoid plaintiffs from delaying suit in purchase to get paid supplemental fascination and will also avoid litigation arising from disputes above whether or not a defendant really gained observe. Relatedly, in the function that a plaintiff voluntarily dismisses the match (which plaintiffs may possibly do as of correct prior to the trial begins), then prejudgment fascination will be tolled concerning the time of the voluntary dismissal and the time of the refiling.

Third, the Act excludes the operating of desire on specified sorts of damages. Specifically, the Act excludes “punitive damages, sanctions, statutory attorney’s costs, and statutory expenditures.” It is vital to note, nonetheless, that plaintiffs may possibly continue to gain interest on future lost wages, clinical costs, and discomfort and struggling damages.

Fourth, the Act eradicated a controversial provision that experienced been bundled in the earlier monthly bill and would have supplied judges discretion to divert a part of the awarded fascination to any point out company or division. Critics argued that this provision would have turned judges into quasi tax collectors.

Finally, the Act offers defendants dealing with prejudgment fascination an selection to mitigate the measurement of a probable curiosity award by receiving a “credit” for selected settlement delivers.

A New Possibility for Defendants: Credit score for Settlement Offers

The Prejudgment Desire Act provides a new provision allowing defendants to lower interest awarded as a result of a “credit.”

To be suitable for the credit, a defendant need to make a prepared settlement give in just 12 months soon after the day the lawsuit is submitted or by July 1, 2021, whichever is later on. If the plaintiff both rejects the give or fails to acknowledge it inside 90 times, then the amount of money available is credited against any verdict that forms the basis for the fascination (i.e., damages not which include punitive damages, sanctions, statutory attorney’s fees, and statutory fees). The plaintiff is entitled to prejudgment curiosity only on the big difference amongst the verdict and the turned down offer you. If the rejected offer quantity is equal to or exceeds the verdict, then no prejudgment fascination would be awarded.

For example, if a defendant made a penned settlement offer of $40,000 within the 12-thirty day period period of time, the plaintiff rejected the present, and the verdict was $50,000, then prejudgment interest would be assessed only on $10,000. If, in the exact same state of affairs, the verdict is equal to or significantly less than $40,000, then the plaintiff would not recuperate any prejudgment interest.


Even though the Prejudgment Interest Act will – for the first time – matter these defending tort actions in Illinois to prejudgment curiosity, it also provides an solution for mitigating that risk. The Act presents clearer assistance for when desire commences to accrue, when it stops accruing, and what damages may well sort the basis for that fascination.

[1] The monthly bill exempts state and nearby community entity defendants from prejudgment desire.