SB2108 96TH GENERAL ASSEMBLY

LRB096 05800 AJO 15878 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2108

Introduced 2/20/2009, by Sen. Dale A. Righter

SYNOPSIS AS INTRODUCED:

735 ILCS 5/2-1303.1 new

Amends the Code of Civil Procedure. In actions for money damages in actions at law or in arbitration, authorizes either party to make an offer of settlement. If the offer is refused, the offering party is authorized prejudgment interest at 9% per annum from the date of the offer to the entry of the award or judgment if the offer was better for the refusing party than the award or judgment. Sets forth requirements for tender of an offer. Exempts actions by or against a governmental entity, actions in small claims, claims for punitive damages, actions governed by a contractual provision authorizing prejudgment interest, and actions governed by a more specific statute. Applies to causes of action accruing after January 1, 2010. Effective January 1, 2010.

A BILL FOR

AN ACT concerning prejudgment interest.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by adding Section 2-1303.1 as follows:

(735 ILCS 5/2-1303.1 new)

Sec. 2-1303.1. Prejudgment interest.

(a) If a party seeks money damages in an action at law or in arbitration and (i) before trial commences, that party makes a written offer of settlement in a specific dollar amount to a party from whom damages are sought, (ii) the offer is refused, and (iii) judgment for the party making the offer and against the party to whom the offer is made is more than the amount of the offer, then prejudgment interest at the rate of 9% per annum must be awarded from the date the offer was made until the award or judgment is entered.

(b) If a party seeks money damages in an action at law or in arbitration and (i) before trial commences, a party against whom damages are sought makes a written offer of settlement in a specific dollar amount to a party seeking damages, (ii) the offer is refused, and (iii) judgment against the party making the offer and for the party to whom the offer is made is less than the amount of the offer, then prejudgment interest at the rate of 9% per annum from the date the offer was made until the award or judgment is entered must be deducted from the award or judgment.

(c) In this Section, "actions at law" include counterclaims, third-party actions, and claims for contribution.

(d) A written offer under this Section must reference this Section and be tendered by (i) personal service by the sheriff or private process server; (ii) certified mail, return receipt requested; or (iii) any method in which delivery is documented and tracked by accepted business practices. The written offer may be tendered by a party, his or her attorney, or his or her liability insurer and may be tendered to the other party, his or her attorney, or his or her liability insurer.

(e) This Section does not apply to any of these parties or situations:

(1) A unit of local government, as defined Section 1 of Article VII of the Illinois Constitution, a school district, a community college district, or any other governmental entity.

(2) Actions in small claims.

(3) Claims for punitive damages.

(4) If the cause of action and its legal dispute are subject to a written contract or agreement between the litigants in which prejudgment interest is authorized by the contract or agreement entered into after January 1, 2010.

(5) If the cause of action and its legal dispute are governed by a more specific statute.

Section 99. Effective date. This Act takes effect January 1, 2010.