Illinois Governor Signs Law Imposing Six-Percent Prejudgment Interest

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.

SB 72's history is unique: it originated as House Bill 3360 (HB 3360) and passed through both houses of the Illinois General Assembly at 3:00 a.m. on the last day of the lame duck session on January 13. HB 3360 was vetoed by the Governor on March 25, but a revised version, SB 72, quickly returned to his desk for his signature.