PREJUDGMENT INTEREST-REDUCTION
The modification in the prejudgment interest rate is expected to influence the financial outcomes of civil cases, particularly those involving personal injuries and wrongful death claims. By lowering the rate, it may discourage some claims as plaintiffs could expect reduced compensatory amounts if they are required to wait for the resolution of their cases. Supporters of the bill argue that this change will reflect a more realistic approach to current economic conditions and help in reducing excessive financial burdens on defendants.
SB0080, introduced by Senator Jil Tracy, proposes an amendment to the Code of Civil Procedure in Illinois, specifically targeting the prejudgment interest rates applicable to damages claims for personal injury and wrongful death. The bill reduces the prejudgment interest rate from 6% to 5% per annum. This change is intended to have immediate effect, symbolizing a significant shift in how interest is calculated on judgments awarded in civil actions involving personal injury or wrongful death claims.
However, this legislative move is not without opposition. Critics suggest that reducing the prejudgment interest rate could significantly impact the rights of plaintiffs, particularly those who are financially vulnerable and rely on sufficient damages to cover medical expenses and loss of income following an injury. The debate centers on whether the reduced rate serves to adequately compensate victims of wrongful acts or if it disproportionately favors defendants by limiting potential payouts in civil litigation.