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Friday, March 29, 2024

Illinois House passes bill increasing pre-judgment interest for personal injury plaintiffs

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(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.

It came together in just a few days. The bill passed the House in April 2019 as a mortgage foreclosure filing fee proposal, but then died in Rules after moving to the Senate. It was resurrected Jan. 11, amended as a pro-trial lawyer bill.

"This legislation further tilts the playing field in the direction of the trial bar," said critic John Pastuovic, president of the Illinois Civil Justice League.

"House Bill 3360 encourages the expansion of frivolous lawsuits and puts pressure on small businesses and other companies to settle lawsuits or face crushing financial consequences. They are essentially being forced to choose between going to trial or settle to stop the interest meter from running. This is the last thing that business needs to contend with during the ongoing COVID crisis."

Having passed both Chambers, the bill will head to Gov. Pritzker for signature.

Nearly 100 groups and individuals opposed the bill, including the Illinois Chamber of Commerce, Illinois State Medical Society, Illinois Defense Counsel, National Association of Mutual Insurance Companies and other business, medical and defense interests.

The Illiinois Trial Lawyers Association was primary supporter of the bill.

Co-sponsor Hoffman, himself a trial lawyer, has a law office in Edwardsville at the same address and suite as Eudora Global, an investment firm controlled by former asbestos attorney Jeffrey Cooper and with ties to Hunter Biden.

Hoffman had been in contention to lead the House, after long-time Speaker Michael Madigan - facing disintegrating support amid growing scandal - on Monday suspended his campaign for the seat he's held for 36 years.

Trial lawyers have long been among the biggest donors to the Democratic Party in Illinois and to Madigan’s political purses.

On Wednesday afternoon, however, House members voted to elect Rep. Chris Welch (D-Westchester) as Speaker. He received 69 votes, while defending recently re-surfaced allegations about a 2002 arrest by Hillsdale police for alleged domestic battery of his girlfriend at the time.

Another controversial bill that passed early Wednesday was a measure opponents described as "defunding police." 

The criminal justice reform package included the elimination of cash bail and would let some criminal offenders who cannot afford bond to be released before court hearing. 

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