AUGUST 1, 2021. ILLINOIS PREJUDGMENT INTEREST STATUTE

Governor Pritzker recently signed into law Public Act 102-0006 (SB 0072), amending Section 735 ILCS 5/2-1303 of the Illinois Code of Civil Procedure which provides for interest on judgments. The amendment allows an award for prejudgment interest in all actions seeking damages for personal injury or wrongful death caused by negligence, willful and wanton conduct, intentional conduct or strict liability. The amendment provides for an award of pre-judgment interest, accruing on the date of the filing of the action, unless the filing date precedes July 1, 2021. If the filing date precedes July 1, 2021, interest begins to accrue on the later of July 1, 2021 or the date of the filing of the action. Prejudgment interest is to be awarded in the amount of 6% per annum, and accrues on the entire judgment but not on amounts awarded for punitive damages, sanctions, statutory attorney’s fees and statutory costs. There is a 5 year cap on the accrual of prejudgment interest.

The amendment also provides that prejudgment interest shall only be awarded on the difference between the judgment and the highest written settlement offer, where the judgment exceeds the last written settlement offer made within 12 months of the later of July 1, 2021 or the date of filing of the action, and the plaintiff either fails to accept the offer or rejects it within 90 days of the offer. Withdrawal of the offer is not considered a rejection of it under the statute. No prejudgment interest is to be awarded where the judgment is equal to or less than the highest written settlement offer that was made.

If you have any questions about this amendment allowing for prejudgment interest, send us an email at info@magmilelaw.com

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