Illinois Legislature Passes Bill Allowing 9% Pre-Judgment Interest for Personal Injury Lawsuits

January 2021

By: Jeffrey F. Clement

On January 13, 2021, the Illinois Legislature passed HB 3360. The Bill subjects personal injury actions in Illinois to 9% per annum pre-judgment interest accruing “on the date the defendant has notice of the injury from the incident itself or a written notice.” As to personal injuries/wrongful deaths occurring before the effective date, the interest runs from the effective date of the Act or the date the alleged tortfeasor has notice of the injury, whichever is later. The Bill was clearly designed to benefit the plaintiff’s trial bar who have complained that Covid-19 has resulted in defendants/insurers delaying on resolving or paying out personal injury actions. 

Having passed the Illinois Legislature, the Bill heads to Governor Pritzker for signature and/or veto.

If signed into law, the Bill would constitute a significant change in the law as it allows for pre-judgment interest in tort actions. Pre-judgment interest has historically been reserved for contract or debt collection actions involving liquidated damages. Notably, the Bill also allows interest to run on “all damages set forth in the judgment.” Conceivably, this would allow for the recovery of pre-judgment interest on the following item of damages where pre-judgment interest was previously not available:

1. Non-economic damages, such as pain and suffering.

2. Future damages that have not yet been incurred, including future medical expenses and future wages.

Only local governmental entities were exempted from the Bill. As to actions against any agency or department of the State, courts are authorized to apportion pre-judgment interest between a plaintiff and the State based on various factors. However, as to all other defendants, the Bill provides no exceptions or factors for courts to determine in awarding interest, such as delay by Plaintiff in filing the lawsuit or in prosecuting the case once filed.

We will continue to monitor this Bill and will advise of any developments if signed into law.