SB1912 EngrossedLRB098 08938 HEP 40600 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Code of Civil Procedure is amended by adding
5Part 23 to Article II as follows:
 
6    (735 ILCS 5/Art. II Pt. 23 heading new)
7
Part 23. Settlement

 
8    (735 ILCS 5/2-2301 new)
9    Sec. 2-2301. Settlement of claims; payment.
10    (a) In a personal injury, property damage, wrongful death,
11or tort action involving a claim for money damages, a release
12must be tendered to the plaintiff by the settling defendant
13within 14 days of written confirmation of the settlement.
14    (b) In a personal injury, property damage, wrongful death,
15or tort action involving a claim for money damages in which the
16law requires court approval of a settlement, the plaintiff
17shall tender to the defendant a copy of the court order
18approving the settlement.
19    (c) In a personal injury, property damage, wrongful death,
20or tort action involving a claim for money damages in which
21there is a known third-party right of recovery or subrogation
22interest (including attorney's liens, healthcare provider

 

 

SB1912 Engrossed- 2 -LRB098 08938 HEP 40600 b

1liens, or rights of recovery claimed by Medicare, the Centers
2for Medicare and Medicaid Services, the Illinois Department of
3Healthcare and Family Services, or private health insurance
4companies), the plaintiff may protect the third-party's right
5of recovery or subrogation interest, where applicable, by
6tendering to the defendant:
7        (1) A signed release of the attorney's lien.
8        (2) Either:
9            (i) a signed release of a healthcare provider lien;
10        or
11            (ii) a letter from the plaintiff's attorney
12        agreeing to hold the full amount of the claimed lien in
13        the plaintiff's attorney's client fund account pending
14        final resolution of the lien amount; or
15            (iii) an offer that the defendant hold the full
16        amount of the claimed right to recovery pending final
17        resolution of the amount of the right of recovery.
18        (3) Either:
19            (i) documentation of the agreement between the
20        plaintiff and Medicare, the Centers for Medicare and
21        Medicaid Services, the Illinois Department of
22        Healthcare and Family Services, or the private health
23        insurance company as to the amount of the settlement
24        that will be accepted in satisfaction of right of
25        recovery; or
26            (ii) a letter from the plaintiff's attorney

 

 

SB1912 Engrossed- 3 -LRB098 08938 HEP 40600 b

1        agreeing to hold the full amount of the claimed right
2        to recovery in the plaintiff's attorney's client fund
3        account pending final resolution of the amount of the
4        right to recovery; or
5            (iii) an offer that the defendant hold the full
6        amount of the claimed right to recovery pending final
7        resolution of the amount of the right of recovery.
8    (d) A settling defendant shall pay all sums due to the
9plaintiff within 21 days of tender by the plaintiff of all
10applicable documents in compliance with subsections (a), (b),
11and (c) of this Section.
12    (e) If, after a hearing, the court having jurisdiction over
13the parties finds that timely payment has not been made by a
14defendant pursuant to subsection (d) of this Section, judgment
15shall be entered against that defendant for the amount set
16forth in the executed release, plus costs incurred in obtaining
17the judgment and interest at the rate specified under Section
182-1303 of this Code, calculated from the date of the tender by
19the plaintiff under subsection (d) of this Section.
20    (f) As used in this Section, "tender" means personal
21delivery or delivery by a means providing a return receipt.
22    (g) This Section applies to all personal injury, property
23damage, wrongful death, and tort actions involving a claim for
24money damages, except as otherwise agreed by the parties and
25for those actions against this State, any State agency, or any
26State employee or foster parent or other entity or person that

 

 

SB1912 Engrossed- 4 -LRB098 08938 HEP 40600 b

1is being represented and provided indemnification in
2accordance with the provisions of the State Employee
3Indemnification Act. This Section does not apply to units of
4local government.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.