Topic:
Tort cases and settlement problems
(Raoul, D-Chicago; Sims, D-Chicago) amends the Code of Civil Procedure to create an enforcement mechanism for cases in which the parties agree to settle, but the defendant won't comply with the agreement. 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 the plaintiff within 30 days of tender of all applicable documents required under this new section.
It 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. 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
(1) A signed release of the attorney's lien; and
(2) A letter from the plaintiff's attorney agreeing to hold the full amount of the claimed lien in the plaintiff's attorney's client-fund account pending final resolution of lien amount; or
(a) A signed release of the healthcare-provider lien or documentation of the agreement between the plaintiff and Medicare or private health insurance company as to the amount of the settlement that will be accepted in satisfaction of the right of recovery; or
(b) An offer that the defendant hold the full amount of the claimed right to recovery pending a final resolution of the right to recovery; or
(c) Documentation of any other resolution of the liens as agreed to by the parties.
If the court finds, after a hearing, that payment has not been made within 30 days of tender of the necessary documents, judgment must be entered against that defendant for the amount in the executed release, costs incurred in obtaining the judgment, and 9 percent interest from the date of the plaintiff's tender. The Act exempts units of local government, the State of Illinois, and state employees.
Effective January 1, 2014.