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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Code of Civil Procedure is amended by adding | ||||||
5 | Part 23 to Article II as follows: | ||||||
6 | (735 ILCS 5/Art. II Pt. 23 heading new) | ||||||
7 | Part 23. Settlement | ||||||
8 | (735 ILCS 5/2-2301 new) | ||||||
9 | Sec. 2-2301. Settlement of claims; payment. | ||||||
10 | (a) In a personal injury, property damage, wrongful death, | ||||||
11 | or tort action involving a claim for money damages, a release | ||||||
12 | must be tendered to the plaintiff by the settling defendant | ||||||
13 | within 14 days of written confirmation of the settlement. | ||||||
14 | Written confirmation includes all communication by written | ||||||
15 | means. | ||||||
16 | (b) In a personal injury, property damage, wrongful death, | ||||||
17 | or tort action involving a claim for money damages in which the | ||||||
18 | law requires court approval of a settlement, the plaintiff | ||||||
19 | shall tender to the defendant a copy of the court order | ||||||
20 | approving the settlement. | ||||||
21 | (c) In a personal injury, property damage, wrongful death, | ||||||
22 | or tort action involving a claim for money damages in which |
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1 | there is a known third-party right of recovery or subrogation | ||||||
2 | interest (including attorney's liens, healthcare provider | ||||||
3 | liens, or rights of recovery claimed by Medicare, the Centers | ||||||
4 | for Medicare and Medicaid Services, the Illinois Department of | ||||||
5 | Healthcare and Family Services, or private health insurance | ||||||
6 | companies), the plaintiff may protect the third-party's right | ||||||
7 | of recovery or subrogation interest, where applicable, by | ||||||
8 | tendering to the defendant: | ||||||
9 | (1) A signed release of the attorney's lien. | ||||||
10 | (2) Either: | ||||||
11 | (i) a signed release of a healthcare provider lien; | ||||||
12 | or | ||||||
13 | (ii) a letter from the plaintiff's attorney | ||||||
14 | agreeing to hold the full amount of the claimed lien in | ||||||
15 | the plaintiff's attorney's client fund account pending | ||||||
16 | final resolution of the lien amount; or | ||||||
17 | (iii) an offer that the defendant hold the full | ||||||
18 | amount of the claimed right to recovery pending final | ||||||
19 | resolution of the amount of the right of recovery; or | ||||||
20 | (iv) documentation of any other method of | ||||||
21 | resolution of the liens as agreed by the parties. | ||||||
22 | (3) Either: | ||||||
23 | (i) documentation of the agreement between the | ||||||
24 | plaintiff and Medicare, the Centers for Medicare and | ||||||
25 | Medicaid Services, the Illinois Department of | ||||||
26 | Healthcare and Family Services, or the private health |
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1 | insurance company as to the amount of the settlement | ||||||
2 | that will be accepted in satisfaction of right of | ||||||
3 | recovery; or | ||||||
4 | (ii) a letter from the plaintiff's attorney | ||||||
5 | agreeing to hold the full amount of the claimed right | ||||||
6 | to recovery in the plaintiff's attorney's client fund | ||||||
7 | account pending final resolution of the amount of the | ||||||
8 | right to recovery; or | ||||||
9 | (iii) an offer that the defendant hold the full | ||||||
10 | amount of the claimed right to recovery pending final | ||||||
11 | resolution of the amount of the right of recovery; or | ||||||
12 | (iv) documentation of any other method of | ||||||
13 | resolution of the liens as agreed by the parties. | ||||||
14 | (d) A settling defendant shall pay all sums due to the | ||||||
15 | plaintiff within 30 days of tender by the plaintiff of the | ||||||
16 | executed release and all applicable documents in compliance | ||||||
17 | with subsections (a), (b), and (c) of this Section. | ||||||
18 | (e) If, after a hearing, the court having jurisdiction over | ||||||
19 | the parties finds that timely payment has not been made by a | ||||||
20 | defendant pursuant to subsection (d) of this Section, judgment | ||||||
21 | shall be entered against that defendant for the amount set | ||||||
22 | forth in the executed release, plus costs incurred in obtaining | ||||||
23 | the judgment and interest at the rate specified under Section | ||||||
24 | 2-1303 of this Code, calculated from the date of the tender by | ||||||
25 | the plaintiff under subsection (d) of this Section. | ||||||
26 | (f) As used in this Section, "tender" means personal |
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1 | delivery or delivery by a means providing a return receipt. | ||||||
2 | (g) This Section applies to all personal injury, property | ||||||
3 | damage, wrongful death, and tort actions involving a claim for | ||||||
4 | money damages, except as otherwise agreed by the parties. This | ||||||
5 | Section does not apply to: | ||||||
6 | (1) the State of Illinois; | ||||||
7 | (2) any State agency, board, or Commission, as defined | ||||||
8 | in Section 1-7 of the Illinois State Auditing Act; | ||||||
9 | (3) any State officer or employee sued in his or her | ||||||
10 | official capacity; | ||||||
11 | (4) any person or entity that is being represented by | ||||||
12 | the Attorney General and provided indemnification by the | ||||||
13 | State pursuant to the State Employee Indemnification Act; | ||||||
14 | (5) any municipality or unit of local government as | ||||||
15 | defined under Article VII of the Illinois Constitution; and | ||||||
16 | (6) class action lawsuits. | ||||||
17 | Section 99. Effective date. This Act takes effect January | ||||||
18 | 1, 2014.
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