093_HJ0045

                                     LRB093 14226 LCB 19736 r

 1                       HOUSE JOINT RESOLUTION

 2        WHEREAS, The Illinois General  Assembly  recognizes  that
 3    nationwide   the   size  of  civil  judgments  has  increased
 4    dramatically in recent years; in 2002 alone,  there  were  22
 5    judgments over $100 million; and

 6        WHEREAS,  Damage  awards  in  Illinois have escalated; in
 7    Cook County, the size of median verdicts  increased  by  more
 8    than  300% in the period between 1990 and 1994, when compared
 9    with the preceding 5 year  period;  and  in  Madison  County,
10    there  were  2  verdicts over $250 million (including one for
11    over $10 billion) handed down in a 2  week  period  in  March
12    2003; and

13        WHEREAS,  Studies and press reports suggest that Illinois
14    has  developed  a  reputation  as   a   place   where   large
15    multi-national  corporations  frequently face extraordinarily
16    large judgments; and

17        WHEREAS, This reputation could  drive  away  many  large,
18    healthy businesses that, but for the threat of being hit with
19    a  massive  judgment  that  would  endanger the jobs of their
20    employees and the financial well being of their stockholders,
21    would open their doors in our State; and

22        WHEREAS, The economy of  Illinois  could  suffer  due  to
23    competition from neighboring states that are not perceived as
24    litigation havens; and

25        WHEREAS,  Preserving  a  healthy  climate for business is
26    important so that Illinois can remain competitive with  other
27    states  in attracting businesses to our State and can prevent
28    the businesses that are already here from leaving; and

29        WHEREAS, Illinois  Supreme  Court  Rule  305(a)  requires
30    defendants  to  post an appeal bond in the full amount of the
31    judgment, interests, and costs in order to stay the execution
 
                            -2-      LRB093 14226 LCB 19736 r
 1    of a judgment during an appeal; and

 2        WHEREAS, Because damage awards have escalated  in  recent
 3    years,  posting  an  appeal  bond  in  the full amount of the
 4    judgment, interest,  and  costs  can  be  an  extraordinarily
 5    onerous  requirement; and defendants who are unable to post a
 6    bond may be forced either to declare bankruptcy in  order  to
 7    stay  the execution of the judgment or otherwise forego their
 8    appeal and settle with the plaintiffs; and

 9        WHEREAS, This "either or" scenario may prevent defendants
10    from meaningfully exercising their right to appeal,  a  right
11    that  is  guaranteed by Article VI, Section 6 of the Illinois
12    Constitution and that  helps  to  ensure  that  trial  courts
13    across  the  State  act  consistently  with  each  other,  as
14    evidenced  by  the  fact that the one third of Illinois trial
15    court judgments in civil cases are reversed in  some  aspect;
16    and

17        WHEREAS,  Twenty-four  other states have acted since 2000
18    to protect a defendant's right to appeal  by  revising  their
19    rules with respect to appeal bonds; and

20        WHEREAS,  The  Supreme  Court of Illinois has before it a
21    petition to amend Illinois Supreme Court Rule 305 in light of
22    the escalating size of judgments; therefore, be it

23        RESOLVED,  BY  THE  HOUSE  OF  REPRESENTATIVES   OF   THE
24    NINETY-THIRD  GENERAL  ASSEMBLY OF THE STATE OF ILLINOIS, THE
25    SENATE CONCURRING HEREIN, that the Supreme Court of  Illinois
26    should   give  careful  consideration  to  amending  Illinois
27    Supreme Court Rule 305, with due consideration to the actions
28    of other states  in  this  area,  in  order  to  ensure  that
29    Illinois  retains  a competitive business environment; and be
30    if further

31        RESOLVED, That a suitable  copy  of  this  resolution  be
 
                            -3-      LRB093 14226 LCB 19736 r
 1    presented to each justice of the Supreme Court of Illinois.