SB0184 96TH GENERAL ASSEMBLY

LRB096 04725 AJO 14788 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB0184

Introduced 2/3/2009, by Sen. William R. Haine

SYNOPSIS AS INTRODUCED:

735 ILCS 5/2-1303.1 new

Amends the Code of Civil Procedure. Provides that prejudgment interest must be awarded in an action at law or in arbitration from the date the party from whom damages are sought is given written notice of the claim for money damages or the action or arbitration is filed, whichever is earlier, until the award or judgment is entered. Provides that the notice must refer to the statute and be tendered by personal service by the sheriff or a private process server; certified mail, return receipt requested; or any documented method considered an accepted business practice. The notice may be sent by the party seeking money damages or his or her attorney to the party from whom money damages are sought, that party's attorney, or that party's liability insurer. Provides that the monthly prejudgment interest rate shall be calculated by the Comptroller and published on his or her website each month. Provides that the monthly prejudgment interest rate shall be calculated by adding 2% to the interest rate of the one-year Treasury constant maturity stated in the last H15 report of the previous month, published by the Federal Reserve System. Provides that a defendant may avoid paying prejudgment interest by making a written offer of settlement to the plaintiff any time after that defendant files an answer, but no later than 120 days after filing an answer. Provides that if the plaintiff does not accept that offer of settlement in writing within 30 days of receipt, and the plaintiff's award or judgment against that defendant is less than or equal to that offer of settlement, no prejudgment interest may be awarded against that defendant. The parties may agree in writing to extend the 120-day period. Provides that these provisions do not apply to: (1) A unit of local government, school district, community college district, or other governmental entity. (2) An action in small claims. (3) A claim for punitive damages. (4) If the action is governed by a more specific State statute, including but not limited to the Interest Act, or preemptive federal law. Provides that these provisions apply only to causes of action accruing on or after the effective date. Effective January 1, 2010.

A BILL FOR

AN ACT concerning civil law.

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 adding Section 2-1303.1 as follows:

(735 ILCS 5/2-1303.1 new)

Sec. 2-1303.1. Prejudgment interest.

(a) If a party seeks money damages in an action at law or in arbitration, prejudgment interest must be awarded from the date the party from whom money damages are sought is given written notice of the claim for money damages or the action or arbitration is filed, whichever is earlier, until the award or judgment is entered. Actions at law include counter claims, third party actions, and claims for contribution. The written notice of the claim for money damages must reference this Section and be tendered by (1) personal service by the sheriff or private process server; (2) certified mail, return receipt requested; or (3) any method in which delivery is documented and tracked by accepted business practices. The written notice may be tendered by the party seeking money damages or his or her attorney and may be tendered to the party from whom money damages are sought, that party's attorney, or that party's liability insurer.

(b) The monthly prejudgment interest rate shall be calculated by the Comptroller and published on his or her website each month. The monthly prejudgment interest rate shall be calculated by adding 2% to the interest rate of the one-year Treasury constant maturity stated in the last H15 report of the previous month, published by the Federal Reserve System.

(c) The prejudgment interest rate to be applied to an award or judgment is the monthly prejudgment interest rate calculated and published by the comptroller in the month preceding the date that the award or judgment is entered.

(d) Any defendant may avoid paying prejudgment interest by making a written offer of settlement to the plaintiff at any time after that defendant has filed an answer to a complaint, petition, or demand for arbitration but no later than 120 days after filing an answer. If the plaintiff does not accept that offer of settlement in writing within 30 days of his or her receipt of it, and the plaintiff's award or judgment against that defendant is less than or equal to that offer of settlement, no prejudgment interest may be awarded against that defendant. The parties may agree in writing to extend the 120-day period for defendant to make a written offer of settlement.

(e) This Section does not apply to any of these parties, claims, or circumstances:

(1) A unit of local government, as defined Section 1 of Article VII of the Constitution, a school district, a community college district, or any other governmental entity.

(2) An action in small claims.

(3) A claim for punitive damages.

(4) If the action is governed by a more specific State statute, including but not limited to the Interest Act, or preemptive federal law.

(f) This Section applies only to causes of action accruing on or after the effective date of this amendatory Act of the 96th General Assembly.

Section 99. Effective date. This Act takes effect January 1, 2010.