Insurance Law

(Riley, D-Hazel Crest; Hutchinson, D-Chicago Heights) authorizes county boards to increase the court automation fee and the court document fee from $15 to $25. These fees are currently being paid by civil litigants and convicted defendants.The ceiling for defendants will be $15 for the court automation fee. Passed the House and awaiting a Senate Revenue Committee vote in the Senate.

(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.

(Raoul, D-Chicago) makes several changes to the settlement of a claim for money damages. (1) Requires the settling defendant to tender a release within 14 days of the settlement. (2) If court approval of the settlement is required, it requires the plaintiff to timely tender to the settling defendant of a copy of the court order approving the settlement. (3) Requires the plaintiff to tender to settling defendant documentation about a known third-party lienholder or subrogation interest. (4) Requires a settling defendant to pay all sums due to the plaintiff within 21 days of tender of the executed release and lienholder documentation. (4) Awards interest under Section 2-1303 of the Code of Civil Procedure for failure to pay within 21 days from plaintiff’s tender of the executed release unless good cause is shown otherwise. (5) Senate Bill 1912 doesn’t apply to actions against the State, State employees, or anyone else who may be indemnified under the State Employee Indemnification Act. It is on third reading in the Senate.