Business groups oppose legislation that adds punitive damages in select court cases

[May 17, 2023]  By Greg Bishop | The Center Square

(The Center Square) – Opposition is growing over a piece of legislation advancing in Springfield that would allow for punitive damages in wrongful death cases.

The Illinois House passed House Bill 219, which would reverse current law that prohibits insurers from paying punitive damages in wrongful death cases. Many states that do allow for punitive damages also limit both punitive and non-economic damages in some way, which Illinois does not.

"This type of legislation is in 34 other states," the bill's sponsor, state Rep. Jay Hoffman, D-Swansea, said. "I believe it's a victims' rights legislation and I believe its important that punitive damages for bad actors be available in wrongful death cases."

During a House Judiciary Committee hearing Tuesday, state Rep. Dan Ugaste, R-Geneva, said without a monetary cap, some companies may not survive paying out a large jury award.

“The plaintiff has to be considered, absolutely, but there's a company there and maybe there are some bad actors within that company, but there’s probably a whole lot of employees relying on that company to feed their families and everything else that may be adversely impacted by this as well,” Ugaste said.

A coalition of business groups, including the Illinois Chamber of Commerce, the Illinois Manufacturers Association and the Illinois Retail Merchants Association, have voiced opposition to the measure.

Illinois state Sen. Jay Hoffman, D-Swansea, during debate in Springfield - BlueRoomStream

“Two years ago, in the waning hours of the lame duck session, Democrats in the General Assembly imposed prejudgment interest on lawsuits adding immense pressure to defendants to settle cases regardless of the merits of the case. And now, with only days remaining in the spring legislative session, it’s déjà vu with a last-minute amendment adding punitive damages to certain, select court cases. Lawmakers should not upend decades of legal precedent in order to tilt the playing field even more in favor of wealthy trial attorneys. This will further solidify Illinois’ reputation as a poor place to do business and make job creators take a second look at expanding or investing in Illinois,” the group said in a statement.

Insurance groups, including the American Property Casualty Insurance Association and the Illinois Insurance Association, have also criticized the bill.

“A policy shift of this significance, expanding wrongful death recovery to allow for punitive damages, would likely have a detrimental impact on Illinois civil defendants, consumers, businesses, health care providers, and insurers due to increased claims, litigation, jury verdicts, and settlements. This would significantly increase insured losses, placing upward pressure on premiums,” they said in a statement to The Center Square.

Illinois and the counties of Cook, St. Clair and Madison, ranked No. 5 this year on the American Tort Reform Association’s “Judicial Hellhole” list, saying the state's tort costs cost the state more than 140,000 jobs and nearly $9.6 billion in wages and $27.5 billion in economic output annually.

Greg Bishop reports on Illinois government and other issues for The Center Square. Bishop has years of award-winning broadcast experience and hosts the WMAY Morning Newsfeed out of Springfield.