Illinois Prejudgment Interest Act Effective July 1, 2021
On May 28, 2021, Illinois Governor J.B. Pritzker signed into law Senate Bill 72 providing for prejudgment interest on all damages in personal injury and wrongful death claims at the rate of six percent (6%) per year. Prior to now, Illinois law did not provide for the award of prejudgment interest in tort actions for personal injury or wrongful death. Instead, the judgement interest statute in Illinois imposed post-judgment interest in tort actions that accrued at the rate of nine percent (9%) per year after a court issued a judgment award. The Prejudgment Interest Act, now codified at 735 ILCS 5/2-1303, and which becomes law on July 1, 2021, allows for the calculation of prejudgment interest to begin accruing in most personal injury and wrongful death cases, and will take effect immediately on cases that are currently pending in the Illinois courts.
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