Examining the Uncertainty of the Illinois Prejudgment Interest Statute

On July 1, 2021, Illinois Public Act 102-0006 (SB 0072) went into effect. This legislation amended Section 1303 of the Illinois Code of Civil Procedure and provided for the award of prejudgment interest in personal injury or wrongful death actions. However, the amendment imposed constraints on prejudgment interest by providing that, if a defendant in a personal injury or wrongful death action made a settlement offer within 12 months after the case was filed, and the settlement offer was rejected or not accepted by the plaintiff within 90 days, then the amount of prejudgment interest eventually awarded at trial would only accrue on the difference between the amount of the judgment (less any punitive damages, attorney’s fees or court costs awarded) and the amount of the settlement offer. If the money judgment awarded plaintiff was less than the rejected settlement offer, no prejudgment interest would be granted.

On May 27th, 2022, Cook County Circuit Court Judge Marcia Maras found this settlement-based cap unconstitutional in the case Hyland v. Advocate Health and Hospitals Corp., et al, No. 17 L 003541. In Hyland, the Court found that the amendment violated the right to trial by jury in that it deprived juries of the ability to determine damages. The Court further found that the amendment violated the Illinois constitution’s ban on special legislation because it applied only to defendants in wrongful death and personal injury cases, and therefore wrongfully discriminated against different groups of defendants in tort claims.

This ruling, made at the Circuit Court level, will not be binding on future Illinois courts. However, the Circuit Court’s determination will open the door to further challenges on prejudgment interest claims brought in future personal injury and wrongful death cases. For now, the cap on prejudgment interest remains in question, and parties to personal injury and wrongful death cases should consider the potential impact of prejudgment interest.