Pritzker vetoes prejudgement interest litigation bill while similar legislation advances

[March 26, 2021]  By Kevin Bessler

(The Center Square) – Gov. J.B. Pritzker vetoed a trial lawyers bill that would have allowed plaintiffs in all personal injury and wrongful death cases to collect 9% interest per year on money they were awarded by a court starting when the incident took place.

In a veto message, Pritzker said the bill would be burdensome for hospitals and medical professionals, potentially driving up health care costs and deterring physicians from practicing in Illinois.

He added that the majority of Illinois hospitals are self-insured and as a result, would be required to pay the costs of the legislation directly, at a time when they can least afford the added expense. Pritzker said the 9% interest rate was higher than the rates used in other states that already have similar laws on the books. He also said the prejudgement interest shouldn't apply to pain and suffering damages.

"It is in the best interest of all Illinoisans for this issue to be fully negotiated with an opportunity for input from all stakeholders, advocates, and other interested parties," Pritzker wrote.

Larry Rodgers, president of the Illinois Trial Lawyers Association, said the bill was designed to deter companies who are sued from stalling or delaying cases that would be successful at trial.

Gov. J.B. Pritzker speaks at an event in Springfield on Tuesday, March 23, 2021.

Courtesy of BlueRoomStream

“Rather than accepting responsibility for their wrongful conduct and fairly compensating injured people or their families, insurance companies, corporations and other wrongdoers frequently deny timely justice to those injured or killed due to negligence,” Rodgers said.

Mark Denzler, president and CEO of the Illinois Manufacturers’ Association, said the bill would significantly increase litigation costs on manufacturers, hospitals and doctors who have been on the front lines during the pandemic.

“Manufacturers across Illinois that have created life-saving vaccines, produced personal protective equipment for first responders and health care professionals and kept grocery stores stocked with safe and nutritious food will be hit with tens of millions of dollars in additional costs,” Denzler said.

In response to Pritzker’s request that the bill’s sponsors engage in discussions with the defense bar regarding how the bill could be amended to make the prospect of prejudgement interest fairer for defendants, the two sides negotiated.

As a result, the Illinois Trial Lawyers Association proposed an amendment to HB 3360 that addressed several of the defense bar’s concerns with the bill. Senate Bill 72 was passed by both houses and heads to the governor for his signature.