Topic:
Tort cases and settlement
(Raoul, D-Chicago) amends the Code of Civil Procedure create an enforcement mechanism for cases that settle but the defendant won’t comply with the settlement. It is limited to cases seeking money damages involving personal injury, wrongful death, or tort action. It requires a settling defendant pay all sums due to the plaintiff within 21 days of tender of all applicable documents required under this new Section.
The procedure is as follows:
(1) Requires a “settling defendant” to tender a release to the plaintiff within 14 days of written confirmation of the settlement. If the law requires court approval of a settlement, the plaintiff must tender to the defendant a copy of the court order approving the settlement.
(2) If there is a known third-party right of recovery or subrogation interest, the plaintiff may protect the third-party’s right of recovery or subrogation interest by tendering to the defendant:
(a) A signed release of the attorney’s lien.
(b) Any of the following:
(i) a signed release of a healthcare-provider lien;
(ii) a letter from the plaintiff’s attorney agreeing to hold the full amount of the claimed lien in his or her client-fund account pending final resolution of the lien amount; or
(iii) an offer that the defendant hold the full amount of the claimed right of recovery pending final resolution of the amount of the right of recovery.
(c) Any of the following:
(i) documentation of the agreement between the plaintiff and Medicare, the Centers for Medicare and Medicaid Services, the Illinois Department of Healthcare and Family Services, or the private health insurance company as to the amount of the settlement that will be accepted in satisfaction of right of recovery; (ii) a letter from the plaintiff’s attorney agreeing to hold the full amount of the claimed right to recovery in his or her client-fund account pending final resolution of the amount of the right to recovery; or
(iii) an offer that the defendant hold the full amount of the claimed right to recovery pending final resolution of the amount of the right of recovery.
(3) If the applicable court finds after a hearing that timely payment has not been made under this Section, judgment must be entered against that defendant for the amount in the executed release, costs incurred in obtaining the judgment, and 9% interest from the date of the plaintiff’s tender.
(4) Senate Bill 1912 exempts units of local government, the State of Illinois, and state employees. Parties may agree to some other procedure if they wish. It passed the Senate yesterday and is in the House.