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| Public Act 098-0548 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Code of Civil Procedure is amended by adding | ||||
Part 23 to Article II as follows: | ||||
(735 ILCS 5/Art. II Pt. 23 heading new) | ||||
Part 23. Settlement | ||||
(735 ILCS 5/2-2301 new) | ||||
Sec. 2-2301. Settlement of claims; payment. | ||||
(a) In a personal injury, property damage, wrongful death, | ||||
or tort action involving a claim for money damages, a release | ||||
must be tendered to the plaintiff by the settling defendant | ||||
within 14 days of written confirmation of the settlement. | ||||
Written confirmation includes all communication by written | ||||
means. | ||||
(b) In a personal injury, property damage, wrongful death, | ||||
or tort action involving a claim for money damages in which the | ||||
law requires court approval of a settlement, the plaintiff | ||||
shall tender to the defendant a copy of the court order | ||||
approving the settlement. | ||||
(c) In a personal injury, property damage, wrongful death, | ||||
or tort action involving a claim for money damages in which | ||||
there is a known third-party right of recovery or subrogation | ||
interest (including attorney's liens, healthcare provider | ||
liens, or rights of recovery claimed by Medicare, the Centers | ||
for Medicare and Medicaid Services, the Illinois Department of | ||
Healthcare and Family Services, or private health insurance | ||
companies), the plaintiff may protect the third-party's right | ||
of recovery or subrogation interest, where applicable, by | ||
tendering to the defendant: | ||
(1) A signed release of the attorney's lien. | ||
(2) Either: | ||
(i) a signed release of a healthcare provider lien; | ||
or | ||
(ii) a letter from the plaintiff's attorney | ||
agreeing to hold the full amount of the claimed lien in | ||
the plaintiff's attorney's client fund account pending | ||
final resolution of the lien amount; or | ||
(iii) an offer that the defendant hold the full | ||
amount of the claimed right to recovery pending final | ||
resolution of the amount of the right of recovery; or | ||
(iv) documentation of any other method of | ||
resolution of the liens as agreed by the parties. | ||
(3) Either: | ||
(i) documentation of the agreement between the | ||
plaintiff and Medicare, the Centers for Medicare and | ||
Medicaid Services, the Illinois Department of | ||
Healthcare and Family Services, or the private health | ||
insurance company as to the amount of the settlement | ||
that will be accepted in satisfaction of right of | ||
recovery; or | ||
(ii) a letter from the plaintiff's attorney | ||
agreeing to hold the full amount of the claimed right | ||
to recovery in the plaintiff's attorney's client fund | ||
account pending final resolution of the amount of the | ||
right to recovery; or | ||
(iii) an offer that the defendant hold the full | ||
amount of the claimed right to recovery pending final | ||
resolution of the amount of the right of recovery; or | ||
(iv) documentation of any other method of | ||
resolution of the liens as agreed by the parties. | ||
(d) A settling defendant shall pay all sums due to the | ||
plaintiff within 30 days of tender by the plaintiff of the | ||
executed release and all applicable documents in compliance | ||
with subsections (a), (b), and (c) of this Section. | ||
(e) If, after a hearing, the court having jurisdiction over | ||
the parties finds that timely payment has not been made by a | ||
defendant pursuant to subsection (d) of this Section, judgment | ||
shall be entered against that defendant for the amount set | ||
forth in the executed release, plus costs incurred in obtaining | ||
the judgment and interest at the rate specified under Section | ||
2-1303 of this Code, calculated from the date of the tender by | ||
the plaintiff under subsection (d) of this Section. | ||
(f) As used in this Section, "tender" means personal | ||
delivery or delivery by a means providing a return receipt. | ||
(g) This Section applies to all personal injury, property | ||
damage, wrongful death, and tort actions involving a claim for | ||
money damages, except as otherwise agreed by the parties. This | ||
Section does not apply to: | ||
(1) the State of Illinois; | ||
(2) any State agency, board, or Commission, as defined | ||
in Section 1-7 of the Illinois State Auditing Act; | ||
(3) any State officer or employee sued in his or her | ||
official capacity; | ||
(4) any person or entity that is being represented by | ||
the Attorney General and provided indemnification by the | ||
State pursuant to the State Employee Indemnification Act; | ||
(5) any municipality or unit of local government as | ||
defined under Article VII of the Illinois Constitution; and | ||
(6) class action lawsuits. | ||
Section 99. Effective date. This Act takes effect January | ||
1, 2014.
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