Governor Pritzker Vetoes Pre-Judgment Interest Legislation- Revised Bill to be Sent to the Governor

April 2021

By: Jeffrey F. Clement

As BCM reported previously in January, the Illinois Legislature passed HB3360, which would have imposed 9% per annum pre-judgment interest on all categories of damages in a personal injury action running from the date the alleged tortfeasor has notice of the injury. In our prior alert, we highlighted many issues with the Bill, including its broad reach and punitive nature. We can now report that Governor Pritzker has vetoed HB3360. However, the Governor did indicate he would consider compromised legislation.

Indeed, compromised Senate Bill 72 has now been submitted to the Governor. Under Senate Bill 72, pre-judgment interest would (1) be at lower rate of 6% per annum, (2) be cut off at five years in all events, (3) start running from the date of the filing of the Complaint, (4) be tolled in the event of a voluntary dismissal and (5) not apply to claims against public entities. Senate Bill 72 is also markedly different from HB 3360 because it provide a mechanism for settlement offers. Specifically, if the defendant does better at trial than an offer made within a certain time prior to trial, interest is not applied. It also provides that interest does not apply to punitive damages, sanctions, statutory attorney’s fees, statutory costs and the amount of the highest timely-written settlement offer. However, Senate Bill 72 retains the provision allowing pre-judgment interest on non-economic damages.

Despite these changes, many industry groups remain opposed to this compromised Bill. Therefore, we will continue to monitor this matter as the imposition of pre-judgment interest on tort litigation would constitute a substantial change in law in Illinois.