Illinois Enacts Prejudgment Interest For Personal Injury, Wrongful Death Lawsuits

On May 28, 2021, Illinois Governor JB Pritzker signed Illinois Senate Bill 72 (the Prejudgment Interest Act) into law, which allows 6% prejudgment interest in personal injury or wrongful death lawsuits. The new legislation takes effect on July 1, 2021 and will have an immediate impact on personal injury cases in Illinois.

Governor Pritzker previously vetoed a similar bill introduced in January 2021. That bill sought to add prejudgment interest at the rate of 9% and started the accrual of the interest "on the date the defendant has notice of the injury from the incident itself or a written notice."

For injuries that occur before the effective date of the new law, prejudgment interest will begin to accrue on the later of July 1, 2021 or the date the lawsuit is filed. No prejudgment interest will accrue for longer than five years. Another limitation of the new law is that it does not apply to lawsuits filed against the state, a local unit of government, a school