Friday, January 15, 2021
Illinois law has not previously recognized prejudgment interest in tort actions for personal injury or wrongful death. Instead, Illinois’ judgment interest statute only imposes post-judgment interest in tort actions at the rate of 9 percent per year from the date of the judgment’s entry through the date of the judgment’s satisfaction. See 735 ILCS 5/2-1303(a) (section 1303). This may change, however, following the General Assembly’s passage of House Bill 3360 on January 13, 2021, which amends section 1303 to impose prejudgment interest in tort actions.
House Bill 3360 states that prejudgment interest at the rate of 9 percent per year is to be imposed in all tort actions seeking recovery for personal injury or wrongful death. It states further that prejudgment interest begins to accrue “on the date the defendant has notice of the injury from the incident itself or a written notice”:
(This story has been updated).
A bill that will increase the amount of interest personal injury plaintiffs can collect if successful in court easily passed the House early in the morning Wednesday, 69-42.
House Bill 3360, sponsored by Rep. Jay Hoffman (D-Belleville) and Rep. Marcus Evans, Jr. (D-Chicago), will lengthen the pre-judgment interest accrual period to when an alleged wrongdoer has notice of the injury versus when a plaintiff files suit. Because of the state s statute of limitations law, that could add as much as two years of interest at 9 percent a year owed by defendants.
The bill was among a few controversial proposals rammed through just before the legislature s lame duck session ended Wednesday and before members elected in November were seated.