Earlier this morning, the American Tort Reform Association (ATRA) joined the Illinois Civil Justice League (ICJL) in sending a letter to Governor J.B. Pritzker strongly urging him to veto House Bill 3360 which passed the Illinois State House at 3:08am Wednesday.
“We urge the governor to veto this rushed and misguided bill,” ATRA President Tiger Joyce said. “Given the state’s economic standing, we hope the governor will seek solutions to create a stronger economy – and not push the state deeper into disrepair,” he added.
In the letter sent to the Governor, the presidents of the two organizations expressed concern that House Bill 3360 would reverse long-standing Illinois law that generally does not permit personal injury claimants to recover interest on their losses. The legislation would assess prejudgment interest not just on out-of-pocket losses, like lost wages or medical expenses, but also noneconomic damages, which are not devalued by inflation or passage of time.
“Another problem we pointed out is that the bill triggers the accrual of prejudgment interest at an unfair and premature point in time. Additionally, the proposed 9% interest rate is grossly unfair and bears no relationship to current economic conditions. The bill represents nothing more than a shakedown of Illinois employers and a sop to personal injury lawyers,” Joyce suggested.
“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. This is the last thing that business needs to contend with during the ongoing COVID crisis,” ICJL President John Pastuovic continued.
While several aspects of the legislation would brand Illinois an outlier, House Bill 3360 appears to be unique among all states in that it allows the court to seize a portion of the prejudgment interest award and divert it to any agency or department of the State. “This would, in effect, turn Illinois judges into tax collectors and reveals that the purpose of the legislation is not to compensate a claimant for the time value of out-of-pocket losses, but simply to expand the State’s revenue,” Pastuovic concluded.
The legislature has up to 30 days to send the bill to the governor and the governor then has up to 60 days to sign or veto the legislation.