Section 2301 Enacts New Rules for Civil Settlements in Illinois, Affecting Defendants and Insurers

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Governor Quinn signed Public Act 098-0548, amending the Illinois Code of Civil Procedure, on August 26, 2013, which took effect on January 1, 2014.

The new statute, 735 ILCS 5/2-2301, or better known as Section 2301, addresses settlements and liens in civil cases by providing deadlines for exchanging settlement documents and payment after a civil matter is settled. Furthermore, Section 2301 imposes penalties upon defendants, such as the entry of judgement and costs if the defendant fails to provide the settlement draft within 30 days of the receipt of certain settlement documents.

This new law applies to cases involving personal injury, property damage, wrongful death and tort actions that involve claims for money actions. The statute does not apply to class action lawsuits, and exempts certain entities, including the State of Illinois, state agencies, state employees, municipalities and local governments.

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