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* Veto message…
March 25, 2021
To the Honorable Members of The Illinois House of Representatives, 102nd General Assembly:
Today I veto House Bill 3360 from the 101st General Assembly, which provides for the recovery of prejudgment interest on all damages set forth in a judgment in any action brought to recover damages for personal injuries or wrongful death, whether by negligence, willful and wanton misconduct, intentional conduct, or strict liability of the other person or entity. HB 3360 would be effective immediately.
While I support joining the majority of states that allow prejudgment interest in personal injury cases in order to encourage their prompt resolution, the provisions of HB 3360 would be burdensome for hospitals and medical professionals beyond the national norm, potentially driving up healthcare costs for patients and deterring physicians from practicing in Illinois. The majority of Illinois hospitals are self-insured, and, as a result, would be required to pay the costs of this legislation directly, at a time when they can least afford this added expense.
HB 3360 imposes a rate of 9% per annum prejudgment interest, which would begin to accrue on the date the defendant has notice of the injury. Even states with prejudgment interest, such as Michigan or Wisconsin, provide a more reasonable rate structure by tying the interest rate to market conditions such as the federal prime rate, as opposed to a flat rate. The proposed 9% flat rate is higher than many of these market-based rates adopted by other states, even when accounting for additional percentages that many states add to the market- based rates as part of the calculation of prejudgment interest. Because many businesses have been severely and negatively affected by today’s economic climate, 9% interest is high and tying to market conditions would be less onerous. A 9% rate could similarly be damaging to entities like hospitals.
Further, HB 3360 would allow for prejudgment interest to be calculated on non-economic damages such as pain and suffering and loss of normal life. Again, when we compare this legislation to states that have prejudgment interest, many of them exclude non-economic damages from the calculation. For example, the prejudgment interest statutes in Massachusetts and Minnesota limit the application of prejudgment interest in personal injury cases to pecuniary damages. Minnesota law explicitly excludes future, punitive or noncompensatory damages.
While I appreciate the hard work of the House and Senate sponsors of the bill and their commitment to advocate for injured Illinoisans, HB 3360 simply didn’t receive sufficient input from some of the most impacted parties, including health care providers. At a time when the health care industry and the medical professionals who have dedicated their lives over the past year to combating a deadly virus are in need of support, I cannot in good conscience sign a bill that would place these individuals and entities in further financial distress.
I have urged the sponsors to return to negotiate a compromise that includes stronger protections for health care providers while encouraging the faster resolution of these cases that can leave families devastated for years. It is in the best interest of all Illinoisans for this issue to be fully negotiated with an opportunity to for input from all stakeholders, advocates, and other interested parties.
I understand that this compromise legislation is now advancing through the General Assembly with these suggested changes and additional feedback from stakeholders.
Therefore, pursuant to Section 9(b) of Article IV of the Illinois Constitution of 1970, I hereby return House Bill 3360, entitled “AN ACT concerning civil law,” with the foregoing objections, vetoed in its entirety.
The Senate approved the compromise bill which had already passed the House minutes after the veto was issued.
…Adding… Illinois State Medical Society President Robert W. Panton, MD…
The physicians of Illinois are deeply disappointed that, now, a second plaintiff lawyer-backed bill has cleared the Illinois General Assembly. When it became apparent that Governor Pritzker would veto a previously-passed prejudgment interest measure (HB 3360), the Illinois Trial Lawyers Association moved around a few words and numbers to come up with a slightly modified bill (SB 72) that delivers virtually the same harm as the initial legislation. ISMS vehemently opposes SB 72 and calls on Governor Pritzker to veto it.
If enacted, this new law would allow for imposition of six percent prejudgment interest annually in medical liability cases. This is a wholly new form of “punitive” damages not previously allowed in Illinois. Prejudgment interest will drive up the cost of medical liability insurance, force doctors away from our state and increase the cost of health care. Bottom line, patients will suffer.
ISMS advocates for policies that improve Illinois’ healthcare system and expand access to medical care for patients. SB 72 runs counter to both of these goals.
* IMA…
“We urge Gov. JB Pritzker to veto this legislation, which will dramatically increase litigation costs on manufacturers, hospitals, and doctors that have been on the front lines during the pandemic. Manufacturers across Illinois that have created life-saving vaccines, produced personal protective equipment for first responders and health care professionals and kept grocery stores stocked with safe and nutritious food will be hit with tens of millions of dollars in additional costs,” said Mark Denzler, president & CEO of the Illinois Manufacturers’ Association. “Illinois’ manufacturers need support from policy makers to create jobs and spur investment in communities around the state, not higher costs that will only stand in the way of our economic recovery.”
* Leader McConchie…
“During the global pandemic, Illinois health care workers answered the call to serve their country - and all of us - in a time of crisis,” said Illinois Senate Republican Leader Dan McConchie (R-Hawthorn Woods). “Right now, other states are working to protect businesses and health care workers from frivolous COVID-19 lawsuits. Here in Illinois, instead of thanking these life-saving heroes, we are instead exposing them to more liability.
“Today, the Illinois Senate Democrats voted to increase these liabilities and payouts for all personal injury lawsuits.
“Additionally, this legislation will increase costs for Illinois small business owners who are simply attempting to get people back to work in our communities. The cost increases caused by President Harmon’s bill will be passed along to consumers or force reductions in health care, retail products, services and, most importantly, Illinois jobs.
“People who are harmed by the negligence or wrongdoing of other parties deserve to be compensated, and they ought not be limited or obstructed in their search for justice. But SB 72, addresses these noble aims with punishments and regulations that will put small businesses and health care workers at risk, unfairly punish any party wishing to dispute claims against it, and drive up health care, product and insurance costs for almost everyone in Illinois.
“Our job as legislators is to come together to make Illinois a safer, fairer and more prosperous place to work and live. This legislation does none of the above. It just hurts the Illinoisans who need us the most right now.
“I strongly urge Gov. Pritzker to veto SB 72 so the legislature may bring the business, insurance and health care communities to the table to discuss a more reasonable strategy that will protect both jobs and justice in Illinois.”
posted by Rich Miller
Thursday, Mar 25, 21 @ 1:50 pm
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The doctors were invited to the table…..in fact the table was taken to the doctors. They refused to engage. Now they complain. Should have gotten off the sidelines.
Comment by Eloy Thursday, Mar 25, 21 @ 2:18 pm
Reducing the interest by a third, from 9 to 6-I’m getting 6 from the physician’s response, I didn’t read the bill-, is more than moving “ around a few words and numbers”.
Comment by Perrid Thursday, Mar 25, 21 @ 2:49 pm
I’d prefer the rate be tied to market conditions, but this is better.
Comment by Nick Thursday, Mar 25, 21 @ 3:12 pm
JB is the most progressive Governor in America except for rolling over to the interests wealthy Trial lawyers in Illinois.
This law passing will increase costs for working class people to satisfy an important funder of Democratic politicians.
Comment by Lucky Pierre Thursday, Mar 25, 21 @ 3:15 pm
Actually looking at the link
It appears to be 7 percent interest, which still seems high. But I don’t notice any language about punitive and/or emotional harm.
Comment by Nick Thursday, Mar 25, 21 @ 3:18 pm
Compromise - 9 –> 7.
So much for a market based or tied rate
Comment by Fav Human Thursday, Mar 25, 21 @ 3:22 pm
The prime rate is 3.25% but let’s just double it and add a 1/2 a point as a thank you to a wealthy special interest groups who certainly get what they pay for
Comment by Lucky Pierre Thursday, Mar 25, 21 @ 4:50 pm
Not many PI cases go all the way to judgment. Most settle before or even during trial. As I read it, interest only applies to the small number of cases that go to verdict.
Comment by northsider (the original) Thursday, Mar 25, 21 @ 7:08 pm