Illinois General Assembly - Full Text of SB1912
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Full Text of SB1912  98th General Assembly

SB1912enr 98TH GENERAL ASSEMBLY

  
  
  

 


 
SB1912 EnrolledLRB098 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.
14Written confirmation includes all communication by written
15means.
16    (b) In a personal injury, property damage, wrongful death,
17or tort action involving a claim for money damages in which the
18law requires court approval of a settlement, the plaintiff
19shall tender to the defendant a copy of the court order
20approving the settlement.
21    (c) In a personal injury, property damage, wrongful death,
22or tort action involving a claim for money damages in which

 

 

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

 

 

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1        insurance company as to the amount of the settlement
2        that will be accepted in satisfaction of right of
3        recovery; or
4            (ii) a letter from the plaintiff's attorney
5        agreeing to hold the full amount of the claimed right
6        to recovery in the plaintiff's attorney's client fund
7        account pending final resolution of the amount of the
8        right to recovery; or
9            (iii) an offer that the defendant hold the full
10        amount of the claimed right to recovery pending final
11        resolution of the amount of the right of recovery; or
12            (iv) documentation of any other method of
13        resolution of the liens as agreed by the parties.
14    (d) A settling defendant shall pay all sums due to the
15plaintiff within 30 days of tender by the plaintiff of the
16executed release and all applicable documents in compliance
17with subsections (a), (b), and (c) of this Section.
18    (e) If, after a hearing, the court having jurisdiction over
19the parties finds that timely payment has not been made by a
20defendant pursuant to subsection (d) of this Section, judgment
21shall be entered against that defendant for the amount set
22forth in the executed release, plus costs incurred in obtaining
23the judgment and interest at the rate specified under Section
242-1303 of this Code, calculated from the date of the tender by
25the plaintiff under subsection (d) of this Section.
26    (f) As used in this Section, "tender" means personal

 

 

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1delivery or delivery by a means providing a return receipt.
2    (g) This Section applies to all personal injury, property
3damage, wrongful death, and tort actions involving a claim for
4money damages, except as otherwise agreed by the parties. This
5Section does not apply to:
6        (1) the State of Illinois;
7        (2) any State agency, board, or Commission, as defined
8    in Section 1-7 of the Illinois State Auditing Act;
9        (3) any State officer or employee sued in his or her
10    official capacity;
11        (4) any person or entity that is being represented by
12    the Attorney General and provided indemnification by the
13    State pursuant to the State Employee Indemnification Act;
14        (5) any municipality or unit of local government as
15    defined under Article VII of the Illinois Constitution; and
16        (6) class action lawsuits.
 
17    Section 99. Effective date. This Act takes effect January
181, 2014.