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90_SB0710enr
735 ILCS 5/13-206 from Ch. 110, par. 13-206
810 ILCS 5/3-118 from Ch. 26, par. 3-118
Amends the Code of Civil Procedure. Provides that a
cause of action on a promissory note with a due date accrues
on the due date or the date to which the due date is
accelerated. Provides that an action to enforce an
obligation to pay a demand promissory note must be commenced
within 10 years after the demand and provides that an action
is barred if no demand is made and neither principal nor
interest has been paid during a 10-year period. Amends the
Uniform Commercial Code by eliminating language setting forth
the statute of limitations on notes payable at a definite
time and notes payable on demand.
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1 AN ACT to amend certain Acts in relation to rights and
2 remedies.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. The Metropolitan Transit Authority Act is
6 amended by changing Section 41 as follows:
7 (70 ILCS 3605/41) (from Ch. 111 2/3, par. 341)
8 Sec. 41. No civil action shall be commenced in any court
9 against the Authority by any person for any injury to his
10 person unless it is commenced within one year from the date
11 that the injury was received or the cause of action accrued.
12 Within six (6) months from the date that such an injury was
13 received or such cause of action accrued, any person who is
14 about to commence any civil action in any court against the
15 Authority for damages on account of any injury to his person
16 shall file in the office of the secretary of the Board and
17 also in the office of the General Counsel for the Authority
18 either by himself, his agent, or attorney, a statement, in
19 writing, signed by himself, his agent, or attorney, giving
20 the name of the person to whom the cause of action has
21 accrued, the name and residence of the person injured, the
22 date and about the hour of the accident, the place or
23 location where the accident occurred and the name and address
24 of the attending physician, if any. If the notice provided
25 for by this section is not filed as provided, any such civil
26 action commenced against the Authority shall be dismissed and
27 the person to whom any such cause of action accrued for any
28 personal injury shall be forever barred from further suing.
29 Any person who notifies the Authority that he or she was
30 injured or has a cause of action shall be furnished a copy of
31 Section 41 of this Act. Within 10 days after being notified
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1 in writing, the Authority shall either send a copy by
2 certified mail to the person at his or her last known address
3 or hand deliver a copy to the person who shall acknowledge
4 receipt by his or her signature. When the Authority is
5 notified later than 6 months from the date the injury
6 occurred or the cause of action arose, the Authority is not
7 obligated to furnish a copy of Section 41 to the person. In
8 the event the Authority fails to furnish a copy of Section 41
9 as provided in this Section, any action commenced against the
10 Authority shall not be dismissed for failure to file a
11 written notice as provided in this Section. Compliance with
12 this Section shall be liberally construed in favor of the
13 person required to file a written statement.
14 (Source: P.A. 87-597.)
15 Section 3. The Illinois Insurance Code is amended by
16 changing Section 143a as follows:
17 (215 ILCS 5/143a) (from Ch. 73, par. 755a)
18 Sec. 143a. Uninsured and hit and run motor vehicle
19 coverage.
20 (1) No policy insuring against loss resulting from
21 liability imposed by law for bodily injury or death suffered
22 by any person arising out of the ownership, maintenance or
23 use of a motor vehicle that is designed for use on public
24 highways and that is either required to be registered in this
25 State or is principally garaged in this State shall be
26 renewed, delivered, or issued for delivery in this State
27 unless coverage is provided therein or supplemental thereto,
28 in limits for bodily injury or death set forth in Section
29 7-203 of the Illinois Vehicle Code for the protection of
30 persons insured thereunder who are legally entitled to
31 recover damages from owners or operators of uninsured motor
32 vehicles and hit-and-run motor vehicles because of bodily
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1 injury, sickness or disease, including death, resulting
2 therefrom. Uninsured motor vehicle coverage does not apply to
3 bodily injury, sickness, disease, or death resulting
4 therefrom, of an insured while occupying a motor vehicle
5 owned by, or furnished or available for the regular use of
6 the insured, a resident spouse or resident relative, if that
7 motor vehicle is not described in the policy under which a
8 claim is made or is not a newly acquired or replacement motor
9 vehicle covered under the terms of the policy. The limits
10 for any coverage for any vehicle under the policy may not be
11 aggregated with the limits for any similar coverage, whether
12 provided by the same insurer or another insurer, applying to
13 other motor vehicles, for purposes of determining the total
14 limit of insurance coverage available for bodily injury or
15 death suffered by a person in any one accident. No policy
16 shall be renewed, delivered, or issued for delivery in this
17 State unless it is provided therein that any dispute with
18 respect to the coverage and the amount of damages shall be
19 submitted for arbitration to the American Arbitration
20 Association and be subject to its rules for the conduct of
21 arbitration hearings as to all matters except medical
22 opinions. As to medical opinions, if the amount of damages
23 being sought is equal to or less than the amount provided for
24 in Section 7-203 of the Illinois Vehicle Code, then the
25 current American Arbitration Association Rules shall apply.
26 If the amount being sought in an American Arbitration
27 Association case exceeds that amount as set forth in Section
28 7-203 of the Illinois Vehicle Code, then the Rules of
29 Evidence that apply in the circuit court for placing medical
30 opinions into evidence shall govern. Alternatively, disputes
31 with respect to damages and the coverage shall be determined
32 or for determination in the following manner: Upon the
33 insured requesting arbitration, each party to the dispute
34 shall select an arbitrator and the 2 arbitrators so named
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1 shall select a third arbitrator. If such arbitrators are not
2 selected within 45 days from such request, either party may
3 request that the arbitration be submitted to the American
4 Arbitration Association. Any decision made by the arbitrators
5 shall be binding for the amount of damages not exceeding the
6 limits for bodily injury or death set forth in Section 7-203
7 of the Illinois Vehicle Code. All 3-person arbitration cases
8 proceeding in accordance with any uninsured motorist coverage
9 conducted in this State in which the claimant is only seeking
10 monetary damages up to the limits set forth in Section 7-203
11 of the Illinois Vehicle Code shall be subject to the
12 following rules:
13 (A) If at least 60 days' written notice of the
14 intention to offer the following documents in evidence is
15 given to every other party, accompanied by a copy of the
16 document, a party may offer in evidence, without
17 foundation or other proof:
18 (1) bills, records, and reports of hospitals,
19 doctors, dentists, registered nurses, licensed
20 practical nurses, physical therapists, and other
21 healthcare providers;
22 (2) bills for drugs, medical appliances, and
23 prostheses;
24 (3) property repair bills or estimates, when
25 identified and itemized setting forth the charges
26 for labor and material used or proposed for use in
27 the repair of the property;
28 (4) a report of the rate of earnings and time
29 lost from work or lost compensation prepared by an
30 employer;
31 (5) the written opinion of an opinion witness,
32 the deposition of a witness, and the statement of a
33 witness that the witness would be allowed to express
34 if testifying in person, if the opinion or statement
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1 is made by affidavit or by certification as provided
2 in Section 1-109 of the Code of Civil Procedure;
3 (6) any other document not specifically
4 covered by any of the foregoing provisions that is
5 otherwise admissible under the rules of evidence.
6 Any party receiving a notice under this paragraph
7 (A) may apply to the arbitrator or panel of arbitrators,
8 as the case may be, for the issuance of a subpoena
9 directed to the author or maker or custodian of the
10 document that is the subject of the notice, requiring the
11 person subpoenaed to produce copies of any additional
12 documents as may be related to the subject matter of the
13 document that is the subject of the notice. Any such
14 subpoena shall be issued in substantially similar form
15 and served by notice as provided by Illinois Supreme
16 Court Rule 204(a)(4). Any such subpoena shall be
17 returnable not less than 5 days before the arbitration
18 hearing.
19 (B) Notwithstanding the provisions of Supreme Court
20 Rule 213(g), a party who proposes to use a written
21 opinion of an expert or opinion witness or the testimony
22 of an expert or opinion witness at the hearing may do so
23 provided a written notice of that intention is given to
24 every other party not less than 60 days prior to the date
25 of hearing, accompanied by a statement containing the
26 identity of the witness, his or her qualifications, the
27 subject matter, the basis of the witness's conclusions,
28 and his or her opinion.
29 (C) Any other party may subpoena the author or
30 maker of a document admissible under this subsection, at
31 that party's expense, and examine the author or maker as
32 if under cross-examination. The provisions of Section
33 2-1101 of the Code of Civil Procedure shall be applicable
34 to arbitration hearings, and it shall be the duty of a
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1 party requesting the subpoena to modify the form to show
2 that the appearance is set before an arbitration panel
3 and to give the time and place set for the hearing.
4 (D) The provisions of Section 2-1102 of the Code of
5 Civil Procedure shall be applicable to arbitration
6 hearings under this subsection.
7 (2) No policy insuring against loss resulting from
8 liability imposed by law for property damage arising out of
9 the ownership, maintenance, or use of a motor vehicle shall
10 be renewed, delivered, or issued for delivery in this State
11 with respect to any private passenger or recreational motor
12 vehicle that is designed for use on public highways and that
13 is either required to be registered in this State or is
14 principally garaged in this State and is not covered by
15 collision insurance under the provisions of such policy,
16 unless coverage is made available in the amount of the actual
17 cash value of the motor vehicle described in the policy or
18 $15,000 whichever is less, subject to a $250 deductible, for
19 the protection of persons insured thereunder who are legally
20 entitled to recover damages from owners or operators of
21 uninsured motor vehicles and hit-and-run motor vehicles
22 because of property damage to the motor vehicle described in
23 the policy.
24 There shall be no liability imposed under the uninsured
25 motorist property damage coverage required by this subsection
26 if the owner or operator of the at-fault uninsured motor
27 vehicle or hit-and-run motor vehicle cannot be identified.
28 This subsection shall not apply to any policy which does not
29 provide primary motor vehicle liability insurance for
30 liabilities arising from the maintenance, operation, or use
31 of a specifically insured motor vehicle.
32 Each insurance company providing motor vehicle property
33 damage liability insurance shall advise applicants of the
34 availability of uninsured motor vehicle property damage
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1 coverage, the premium therefor, and provide a brief
2 description of the coverage. Each insurer, with respect to
3 the initial renewal, reinstatement, or reissuance of a policy
4 of motor vehicle property damage liability insurance shall
5 provide present policyholders with the same information in
6 writing. That information need be given only once and shall
7 not be required in any subsequent renewal, reinstatement or
8 reissuance, substitute, amended, replacement or supplementary
9 policy. No written rejection shall be required, and the
10 absence of a premium payment for uninsured motor vehicle
11 property damage shall constitute conclusive proof that the
12 applicant or policyholder has elected not to accept uninsured
13 motorist property damage coverage.
14 An insurance company issuing uninsured motor vehicle
15 property damage coverage may provide that:
16 (i) Property damage losses recoverable thereunder
17 shall be limited to damages caused by the actual physical
18 contact of an uninsured motor vehicle with the insured
19 motor vehicle.
20 (ii) There shall be no coverage for loss of use of
21 the insured motor vehicle and no coverage for loss or
22 damage to personal property located in the insured motor
23 vehicle.
24 (iii) Any claim submitted shall include the name
25 and address of the owner of the at-fault uninsured motor
26 vehicle, or a registration number and description of the
27 vehicle, or any other available information to establish
28 that there is no applicable motor vehicle property damage
29 liability insurance.
30 (iv) Any dispute with respect to the coverage and the
31 amount of damages shall be submitted for arbitration to the
32 American Arbitration Association and be subject to its rules
33 for the conduct of arbitration hearings or for determination
34 in the following manner: Upon the insured requesting
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1 arbitration, each party to the dispute shall select an
2 arbitrator and the 2 arbitrators so named shall select a
3 third arbitrator. If such arbitrators are not selected
4 within 45 days from such request, either party may request
5 that the arbitration be submitted to the American Arbitration
6 Association. Any arbitration proceeding under this subsection
7 seeking recovery for property damages shall be subject to the
8 following rules:
9 (A) If at least 60 days' written notice of the
10 intention to offer the following documents in evidence is
11 given to every other party, accompanied by a copy of the
12 document, a party may offer in evidence, without
13 foundation or other proof:
14 (1) property repair bills or estimates, when
15 identified and itemized setting forth the charges
16 for labor and material used or proposed for use in
17 the repair of the property;
18 (2) the written opinion of an opinion witness,
19 the deposition of a witness, and the statement of a
20 witness that the witness would be allowed to express
21 if testifying in person, if the opinion or statement
22 is made by affidavit or by certification as provided
23 in Section 1-109 of the Code of Civil Procedure;
24 (3) any other document not specifically
25 covered by any of the foregoing provisions that is
26 otherwise admissible under the rules of evidence.
27 Any party receiving a notice under this paragraph
28 (A) may apply to the arbitrator or panel of arbitrators,
29 as the case may be, for the issuance of a subpoena
30 directed to the author or maker or custodian of the
31 document that is the subject of the notice, requiring the
32 person subpoenaed to produce copies of any additional
33 documents as may be related to the subject matter of the
34 document that is the subject of the notice. Any such
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1 subpoena shall be issued in substantially similar form
2 and served by notice as provided by Illinois Supreme
3 Court Rule 204(a)(4). Any such subpoena shall be
4 returnable not less than 5 days before the arbitration
5 hearing.
6 (B) Notwithstanding the provisions of Supreme Court
7 Rule 213(g), a party who proposes to use a written
8 opinion of an expert or opinion witness or the testimony
9 of an expert or opinion witness at the hearing may do so
10 provided a written notice of that intention is given to
11 every other party not less than 60 days prior to the date
12 of hearing, accompanied by a statement containing the
13 identity of the witness, his or her qualifications, the
14 subject matter, the basis of the witness's conclusions,
15 and his or her opinion.
16 (C) Any other party may subpoena the author or
17 maker of a document admissible under this subsection, at
18 that party's expense, and examine the author or maker as
19 if under cross-examination. The provisions of Section
20 2-1101 of the Code of Civil Procedure shall be applicable
21 to arbitration hearings, and it shall be the duty of a
22 party requesting the subpoena to modify the form to show
23 that the appearance is set before an arbitration panel
24 and to give the time and place set for the hearing.
25 (D) The provisions of Section 2-1102 of the Code of
26 Civil Procedure shall be applicable to arbitration
27 hearings under this subsection.
28 (3) For the purpose of the coverage the term "uninsured
29 motor vehicle" includes, subject to the terms and conditions
30 of the coverage, a motor vehicle where on, before or after
31 the accident date the liability insurer thereof is unable to
32 make payment with respect to the legal liability of its
33 insured within the limits specified in the policy because of
34 the entry by a court of competent jurisdiction of an order of
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1 rehabilitation or liquidation by reason of insolvency on or
2 after the accident date. An insurer's extension of coverage,
3 as provided in this subsection, shall be applicable to all
4 accidents occurring after July 1, 1967 during a policy period
5 in which its insured's uninsured motor vehicle coverage is in
6 effect. Nothing in this Section may be construed to prevent
7 any insurer from extending coverage under terms and
8 conditions more favorable to its insureds than is required by
9 this Section.
10 (4) In the event of payment to any person under the
11 coverage required by this Section and subject to the terms
12 and conditions of the coverage, the insurer making the
13 payment shall, to the extent thereof, be entitled to the
14 proceeds of any settlement or judgment resulting from the
15 exercise of any rights of recovery of the person against any
16 person or organization legally responsible for the property
17 damage, bodily injury or death for which the payment is made,
18 including the proceeds recoverable from the assets of the
19 insolvent insurer. With respect to payments made by reason of
20 the coverage described in subsection (3), the insurer making
21 such payment shall not be entitled to any right of recovery
22 against the tort-feasor in excess of the proceeds recovered
23 from the assets of the insolvent insurer of the tort-feasor.
24 (5) This amendatory Act of 1967 shall not be construed
25 to terminate or reduce any insurance coverage or any right of
26 any party under this Code in effect before July 1, 1967. This
27 amendatory Act of 1990 shall not be construed to terminate or
28 reduce any insurance coverage or any right of any party under
29 this Code in effect before its effective date.
30 (6) Failure of the motorist from whom the claimant is
31 legally entitled to recover damages to file the appropriate
32 forms with the Safety Responsibility Section of the
33 Department of Transportation within 120 days of the accident
34 date shall create a rebuttable presumption that the motorist
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1 was uninsured at the time of the injurious occurrence.
2 (7) An insurance carrier may upon good cause require the
3 insured to commence a legal action against the owner or
4 operator of an uninsured motor vehicle before good faith
5 negotiation with the carrier. If the action is commenced at
6 the request of the insurance carrier, the carrier shall pay
7 to the insured, before the action is commenced, all court
8 costs, jury fees and sheriff's fees arising from the action.
9 The changes made by this amendatory Act of 1997 apply to
10 all policies of insurance amended, delivered, issued, or
11 renewed on and after the effective date of this amendatory
12 Act of 1997.
13 (Source: P.A. 89-206, eff. 7-21-95.)
14 Section 5. The Code of Civil Procedure is amended by
15 changing Section 13-206 as follows:
16 (735 ILCS 5/13-206) (from Ch. 110, par. 13-206)
17 Sec. 13-206. Ten year limitation. Except as provided in
18 Section 2-725 of the "Uniform Commercial Code", actions on
19 bonds, promissory notes, bills of exchange, written leases,
20 written contracts, or other evidences of indebtedness in
21 writing, shall be commenced within 10 years next after the
22 cause of action accrued; but if any payment or new promise to
23 pay has been made, in writing, on any bond, note, bill,
24 lease, contract, or other written evidence of indebtedness,
25 within or after the period of 10 years, then an action may be
26 commenced thereon at any time within 10 years after the time
27 of such payment or promise to pay. For purposes of this
28 Section, with regard to promissory notes dated on or after
29 the effective date of this amendatory Act of 1997, a cause of
30 action on a promissory note payable at a definite date
31 accrues on the due date or date stated in the promissory note
32 or the date upon which the promissory note is accelerated.
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1 With respect to a demand promissory note dated on or after
2 the effective date of this amendatory Act of 1997, if a
3 demand for payment is made to the maker of the demand
4 promissory note, an action to enforce the obligation of a
5 party to pay the demand promissory note must be commenced
6 within 10 years after the demand. An action to enforce a
7 demand promissory note is barred if neither principal nor
8 interest on the demand promissory note has been paid for a
9 continuous period of 10 years and no demand for payment has
10 been made to the maker during that period.
11 (Source: P.A. 82-280.)
12 Section 10. The Uniform Commercial Code is amended by
13 changing Section 3-118 as follows:
14 (810 ILCS 5/3-118) (from Ch. 26, par. 3-118)
15 Sec. 3-118. Statute of limitations.
16 (a) (Blank). Except as provided in subsection (e), an
17 action to enforce the obligation of a party to pay a note
18 payable at a definite time must be commenced within 6 years
19 after the due date or dates stated in the note or, if a due
20 date is accelerated, within 6 years after the accelerated due
21 date.
22 (b) (Blank). Except as provided in subsection (d) or
23 (e), if demand for payment is made to the maker of a note
24 payable on demand, an action to enforce the obligation of a
25 party to pay the note must be commenced within 6 years after
26 the demand. If no demand for payment is made to the maker,
27 an action to enforce the note is barred if neither principal
28 nor interest on the note has been paid for a continuous
29 period of 10 years.
30 (c) Except as provided in subsection (d), an action to
31 enforce the obligation of a party to an unaccepted draft to
32 pay the draft must be commenced within 3 years after dishonor
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1 of the draft or 10 years after the date of the draft,
2 whichever period expires first.
3 (d) An action to enforce the obligation of the acceptor
4 of a certified check or the issuer of a teller's check,
5 cashier's check, or traveler's check must be commenced within
6 3 years after demand for payment is made to the acceptor or
7 issuer, as the case may be.
8 (e) An action to enforce the obligation of a party to a
9 certificate of deposit to pay the instrument must be
10 commenced within 6 years after demand for payment is made to
11 the maker, but if the instrument states a due date and the
12 maker is not required to pay before that date, the 6-year
13 period begins when a demand for payment is in effect and the
14 due date has passed.
15 (f) An action to enforce the obligation of a party to
16 pay an accepted draft, other than a certified check, must be
17 commenced (i) within 6 years after the due date or dates
18 stated in the draft or acceptance if the obligation of the
19 acceptor is payable at a definite time, or (ii) within 6
20 years after the date of the acceptance if the obligation of
21 the acceptor is payable on demand.
22 (g) Unless governed by other law regarding claims for
23 indemnity or contribution, an action (i) for conversion of an
24 instrument, for money had and received, or like action based
25 on conversion, (ii) for breach of warranty, or (iii) to
26 enforce an obligation, duty, or right arising under this
27 Article and not governed by this Section must be commenced
28 within 3 years after the cause of action accrues.
29 (Source: P.A. 87-582; 87-1135.)
30 Section 99. The provisions changing Section 41 of the
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1 Metropolitan Transit Authority Act take effect on July 1,
2 1998.