Illinois Pre-Judgment Interest Statute “Unconstitutional”

On May 27, 2022, Judge Marcia Maras of the Circuit Court of Cook County issued an order finding that Illinois’ pre-judgment interest statute was unconstitutional. The law, which became effective July 1, 2021, implemented a scheme of pre-judgment interest for all personal injury or wrongful death cases in the State. Under the law, pre-judgment interest would begin accruing on the date the plaintiff filed a lawsuit and would accrue at a rate of 6% per year. The law also contained a provision that would potentially reduce the amount of pre-judgment interest a defendant would be ordered to pay where the defendant made a written settlement offer within 12 months after the filing of the lawsuit, and the final judgment was equal to or lesser than the written settlement offer that was rejected by the plaintiff.

As Judge Maras’s ruling is a trial-level decision, it does not apply to all cases pending in Illinois. However, other defendants will be able to use her ruling to make direct challenges to SB 72 in individual cases until there is a definitive ruling from the Illinois Supreme Court. The plaintiff has the right to a direct appeal to the Illinois Supreme Court under Rule 302. For the now, all defendants in personal injury and wrongful death cases in Illinois should strongly consider filing an affirmative defense to any request for pre-judgment interest in a complaint, citing to its unconstitutionality.

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