prejudgment interest

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Illinois Governor Pritzker signed into law Senate Bill 72 (SB 72), which includes prejudgment interest and amends the Illinois Interest on Judgment Act 735 ILCS 2-1303 (Act). The amendment imposes six-percent prejudgment interest on economic and noneconomic damages in personal injury and wrongful death cases. Prior to SB 72’s passing, Illinois generally only recognized post-judgment interest at nine-percent per annum, running from when the judgment was made to the time it was satisfied. Personal injury plaintiffs generally could not recover losses incurred before judgment, but will be able to following SB 72’s effective date on July 1, 2021.

HB 3360, vetoed by Gov. Pritzker on March 25, would have imposed 9 percent prejudgment interest on personal injury and wrongful death claims in Illinois. This is the governor’s first bill rejection in two years and his ninth veto since taking office.

HB 3360’s pathway to Gov. Pritzker’s desk was unusual: it was passed quickly and quietly during the Illinois legislature’s January lame duck session, where lawmakers worked through the night to get the bill finalized. The governor was expected to sign the bill as soon as it passed, but, surprisingly, a wait ensued after it reached his desk, suggesting that the bill would require some work. See our prior analysis of HB 3360’s provisions.

On January 13, 2021, the Illinois General Assembly passed House Bill 3360 (Bill) which, if signed by Governor Pritzker, would impose a 9 percent per annum prejudgment interest rate in wrongful death and personal injury tort actions. Illinois law does not currently recognize prejudgment interest in such tort actions, only allowing a post-judgment interest rate of 9 percent per annum running from the date of the judgment’s entry through the date of satisfaction. 735 ILCS 5/2-1303(a). While 5 percent prejudgment interest is permitted in certain cases where liability is clear and damages are readily ascertainable, such interest has never been permitted in personal injury cases, as damages are too difficult to calculate in advance.