At the urging of the Plaintiffs’ bar, the Illinois State Legislature—at the last minute in a lame duck session, passed a draconian and unconstitutional new measure that will harm tort litigants for years to come if it is signed by the Governor and becomes law. Currently, prejudgment interest does not accrue on personal injury claims. The legislation—House Bill 3360, provides that prejudgment interest would accrue from notice of the injury, not the date of filing suit, and at a rate of 9%.
When the holiday season rolls around, most people think of thanksgiving dinners, Christmas shopping and spending time with family and friends. As folks prepare for the holiday season, insurance defense counsel prepare for the increased potential for year-end insurance settlements. Both the plaintiffs and the defendants have incentives for settling cases before the beginning of the new year. Plaintiff’s would enjoy some extra shopping money for the holidays. From a tax perspective, money received in the current year is better than turning the tax calendar year over, since taxes are usually only going up. This is an incentive for individual plaintiffs and their attorneys to receive the settlement money and fees before the next tax year.