Prompt Payment Required in Illinois Personal Injury Settlements

Prompt Payment Required in Illinois Personal Injury Settlements

By James Bizzieri 

Earlier this year, the Illinois General Assembly passed 736 ILCS 5/2-2301, requiring defendants and insurance companies settling personal injury cases to pay all sums due to the plaintiff agreed upon during negotiations within 30 days of signing the settlement documents. This rule of civil procedure went into effect on January 1^st and was passed in response to concerns over delayed payments issued to injured parties, which sometimes would take up to 6 months longer than the deadline in the settlement agreed to by the parties. The law pertains to lawsuits regarding personal injury, damage to property, wrongful death, or other tort actions.

What the Law Means for You

According to this law, which does not apply to class action suits or cases involving the state or its agents or employees, a defendant in a personal injury suit has 14 days from the date on which a written confirmation of settlement has been exchanged to present a proposed release to the plaintiff. A release is a document in which the plaintiff agrees to give up any legal right to sue or continue a case against the defendant in exchange for payment of a settlement or other agreed upon benefit. Once the plaintiff and plaintiff’s attorney agree to the language stipulated in the document, it is signed by the plaintiff and returned to the defendant and defendant’s attorney. Once the signed agreement is received personally or via USPS mail return receipt, the defendant has up to 30 days to pay. Failure to pay within the 30 days may result in the court rendering judgment against the defendant in the amount set forth in the release, plus costs of obtaining the judgment and interest from the date of delivery of release by plaintiff.

Similarly, the statute also concerns the delay of payment issues regarding liens against plaintiffs from Medicare, Medicaid, health care providers and health care insurance companies. These programs and parties have a “super lien” on judgments issued or settlements reached from a third party for medical bills resulting from the defendant’s negligence – meaning their interests are protected and take priority. As such, parties to a settlement or judgment must pay the lien prior to disbursing funds. Failure to pay off a lien – or even failure to ascertain that one exists – may result in penalties and fines against all the parties to the case, including attorneys and insurers. Often times, payments to plaintiffs were delayed as much as six months to one year because of these liens. The new law now provides more legal options: if the plaintiff instructs the defendant to hold the settlement funds in the trust fund of either party’s attorney until the lien is exonerated – or provides the defendant with another manner in which to resolve the lien(s) – the 30-day requirement of payment will not be delayed.

Contact an Experienced Chicago Attorney

Personal injury law is complicated. An experienced and skilled attorney is needed to handle the case, particularly during settlement negotiations. Contact a Chicago area personal injury attorney today for a consultation. If you have been injured due to the negligence or wrongdoing of another, a personal injury attorney at Bizzieri Law Offices can guide you through the entire process and obtain monetary damages to which you may be entitled.

What’s the Process? Understanding Your Illinois Personal Injury Lawsuit

What’s the Process? Understanding Your Illinois Personal Injury Lawsuit

By James Bizzieri

According to the Centers for Disease Control & Prevention, approximately 37.9 million emergency room visits are injury-related. Personal injury claims arise when someone is injured as a result of another's negligence. Personal injury attorneys usually are retained on a contingency fee basis, meaning that legal fees are collected if and when your case succeeds. The most common type of personal injury cases, based on injury statistics, include motor vehicle accidents, medical malpractice and work-related injuries. If you believe you have a personal injury claim, here is what you can expect.

Your Claim – The Investigation Process

Once hired, your attorney will carefully research your case. With thorough diligence a personal injury lawyer will be able to better understand how the incident occurred and the extent of your injuries, possible damages you may be entitled to, and the costs involved in pursuing the case. The attorney will communicate with all interested parties including the insurance company, any expert witnesses if needed, and opposing counsel representing the party who caused your injury. Throughout this entire process your legal counsel will inform you of any significant developments.

Settlement – Reaching an Agreement Before Trial

A majority of personal injury cases never make it to trial because the parties decide to settle out of court. Your attorney will negotiate with the insurance company’s legal counsel representing the party who caused your injury and an offer may be made in exchange for not pursuing the case to trial. If the opposing party does make a settlement offer, your attorney will inform you about the details – a legal and ethical requirement – and advise as to whether or not it should be accepted. An attorney will not settle a case without your permission; ultimately it is the client’s decision whether the settlement is acceptable or not.

Litigation – Going to Trial: Should the negotiation process be unsuccessful, the next step in a personal injury claim is for your attorney to file a lawsuit in the appropriate court. Once a complaint is filed, a judge will set deadlines for each phase of the litigation. Depending on the complexity of the case, the time frame from initial suit to final judgment could range from several months to a number of years. The litigation process can be divided up into phases:

Pre-trial: During the pretrial phase your attorney files a complaint detailing the allegations, damages and relief sought. The defendant’s attorney files an answer, which may include affirmative defenses. Discovery also begins and may include the taking of depositions, interrogatories, and requests for documents. Finally, either party’s attorney may file a motion before or after discovery has finished requesting the court take action, and the court may then set hearing.

Trial: If your case goes to trial, each attorney advocates for his or her client by presenting a case before the court. The order of the trial will go as follows: jury selection, opening statements of each party, testimony of witnesses and cross-examination by opposing counsel, closing arguments (including rebuttals), jury instruction by the judge, and jury deliberation and verdict.

The determination left for the jury includes whether or not the defendant is legally responsible for the injuries suffered by you (known as liability) and, if the defendant is found liable, what amount of damages should be awarded. Damages may include compensatory damages, which are designed to make you “whole” again, are aimed at placing you in the same position you were in before the injury occurred. Examples of compensatory damages include: lost wages, medical expenses, funeral expenses and repair or replacement of damaged property. Punitive damages, which are intended to punish the defendant for causing the injury and deter others from doing the same, may also be awarded. These damages are not common and require the defendant’s actions to be willful and wanton.

Mediation – An Alternative to the Courtroom

Mediation is a form of alternative dispute resolution available to parties involved in a lawsuit. Mediation can be requested at any time during the case and involves all parties, legal counsel and a neutral third-party mediator. During mediation, each party presents their case and settlement negotiations are conducted through the mediator. Parties are usually in separate rooms and the neutral mediator goes between the parties until an agreement has been reached. Because mediations are non-binding, the parties do not have to accept the offer.

Personal injury law is complex and, therefore, a skilled expert in the field may be the best advocate for your case. Contact a Chicago area personal injury attorney today for a consultation about your case. If you have been injured due to the negligence or wrongdoing of another, a personal injury attorney at Bizzieri Law Offices can guide you through the entire process and obtain monetary damages to which you may be entitled.