SB1440 101ST GENERAL ASSEMBLY

LRB101 06112 LNS 51133 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1440

Introduced 2/13/2019, by Sen. Jil Tracy

SYNOPSIS AS INTRODUCED:

735 ILCS 5/2-801	from Ch. 110, par. 2-801
735 ILCS 5/2-802	from Ch. 110, par. 2-802
735 ILCS 5/2-803	from Ch. 110, par. 2-803
735 ILCS 5/2-808 new
735 ILCS 5/2-809 new
735 ILCS 5/2-810 new

Amends the Code of Civil Procedure in relation to class actions. Adds additional requirements concerning: prerequisites to the maintenance of a class action (including provisions that a class action may be certified only if: the plurality of the class members are residents of Illinois or if the plurality of the class members were physically in Illinois when the cause of action arose; and a class action is superior to other available methods for the fair and efficient adjudication of the controversy); where a class action may be brought; preliminary determinations to be made by the court; notice to the class; coupon and other noncash settlements; loss by class members under a proposed settlement; and attorney's fees.

A BILL FOR

AN ACT concerning civil procedure.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by changing Sections 2-801, 2-802, and 2-803 and adding Sections 2-808, 2-809, and 2-810 as follows:

(735 ILCS 5/2-801) (from Ch. 110, par. 2-801)

Sec. 2-801. Prerequisites for the maintenance of a class action.

(a) An action may be maintained as a class action only in the any court sitting in the county of this State in which: (i) the defendant's principal office is located; (ii) the plurality of class members who are Illinois residents reside; or (iii) the cause of action arose for the plurality of class members. and A party may sue or be sued as a representative party of the class only if the court finds:

(1) The class is so numerous that joinder of all members is impracticable.

(2) There are questions of fact or law common to the class, which common questions predominate over any questions affecting only individual members, and a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; and (D) the difficulties likely to be encountered in the management of a class action.

(3) The representative parties will fairly and adequately protect the interest of the class.

(4) The class action is an appropriate method for the fair and efficient adjudication of the controversy.

(b) Notwithstanding the provisions of subsection (a), a class action may be certified only if the plurality of the class members are residents of this State or if the plurality of the class members were physically in this State when the cause of action arose.

(Source: P.A. 82-280.)

(735 ILCS 5/2-802) (from Ch. 110, par. 2-802)

Sec. 2-802. Order and findings relative to the class.

(a) Preliminary determinations. Before making any of the determinations set forth in subsections (b) and (c) of this Section, the court shall determine whether the action that has been brought as a class action has been commenced in the court sitting in the county of this State in which: (i) the defendant's principal office is located; (ii) the plurality of class members who are Illinois residents reside; or (iii) the cause of action arose for the plurality of class members. If the court determines that the action has not been commenced in such a county, the court may not permit the action to be maintained as a class action pursuant to subsections (b) and (c).

(b) Determination of Class. As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it may be so maintained and describe those whom the court finds to be members of the class. This order may be conditional and may be amended before a decision on the merits.

(c) (b) Class Action on Limited Issues and Sub-classes. When appropriate, an action may be brought or maintained as a class action with respect to particular issues, or divided into sub-classes and each sub-class treated as a class. The provisions of this rule shall then be construed and applied accordingly.

(Source: P.A. 82-280.)

(735 ILCS 5/2-803) (from Ch. 110, par. 2-803)

Sec. 2-803. Notice to class members.

(a) For any class certified under this Part 8, the court may direct appropriate notice to the class.

(b) For any class certified under this Part 8, the court must direct to class members the best notice practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort. The notice must concisely and clearly state in plain, easily understood language:

(1) the nature of the action;

(2) the definition of the class certified;

(3) the class claims, issues, or defenses;

(4) that a class member may enter an appearance through counsel if the member so desires;

(5) that the court will exclude from the class any member who requests exclusion, with instructions stating when and how members may elect to be excluded; and

(6) the binding effect of a class judgment on class members under this Part 8. in class cases. Upon a determination that an action may be maintained as a class action, or at any time during the conduct of the action, the court in its discretion may order such notice that it deems necessary to protect the interests of the class and the parties.

An order entered under subsection (a) of Section 2-802 of this Act, determining that an action may be maintained as a class action, may be conditioned upon the giving of such notice as the court deems appropriate.

(Source: P.A. 83-707.)

(735 ILCS 5/2-808 new)

Sec. 2-808. Judicial scrutiny of coupon and other noncash settlements. The court may approve a proposed settlement under which the class members receive coupons or other similar noncash benefits or would otherwise be required to expend funds to obtain part or all of the proposed benefits only after a hearing to determine whether, and making a written finding that, the settlement is fair, reasonable, and adequate for class members.

(735 ILCS 5/2-809 new)

Sec. 2-809. Protection against loss by class members. The court may approve a proposed settlement under which any class member is obligated to pay sums to class counsel that would result in a net loss to the class member only if the court makes a written finding that the nonmonetary benefits to the class member outweigh the monetary loss.

(735 ILCS 5/2-810 new)

Sec. 2-810. Attorney's fees. Any attorney representing any member or members of the plaintiff class in a class action may seek payment of attorney's fees and costs pursuant to a petition filed with the court. The court shall make a determination based on findings of fact that the amount awarded for attorney's fees and costs is reasonable and commensurate with the benefits conferred upon the members of the class represented by the petitioners for fees and costs.