ATRA Disappointed With IL Supreme Court BIPA Expansion

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The American Tort Reform Association (ATRA) is disappointed in today’s decision out of the Illinois Supreme Court to expand the statute of limitations to five years for Biometric Information Privacy […]

The American Tort Reform Association (ATRA) is disappointed in today’s decision out of the Illinois Supreme Court to expand the statute of limitations to five years for Biometric Information Privacy Act (BIPA) claims, reversing an intermediate appellate court that put a one-year limit on claims.

This decision will have far-reaching consequences for businesses in Illinois and across the country, and will only exacerbate Cook County’s status as a “Judicial Hellhole®.”

“This decision is a setback for any businesses that operate in Illinois,” ATRA President Tiger Joyce said. “Expanding the statute of limitations for BIPA claims will only encourage more lawsuits and create an environment of legal uncertainty for businesses which will be exposed to an undue risk of litigation for an extended period of time.”

Trial lawyers have cashed in on the existing ambiguity in BIPA by targeting businesses that use this technology. They’ll often find a business that didn’t follow a small, technical portion of the law, then use that as a basis for a class action lawsuit, even though their clients didn’t suffer any harm or injury.

The large monetary penalties associated with BIPA have led to a surge in lawsuit filings under BIPA in recent years, and the expansion of the statute of limitations will only add fuel to the fire.

The climate for lawsuit abuse in Illinois is already bad, as demonstrated by the $228 million verdict delivered in the first-ever BIPA case that went to trial last year. The case was originally filed in Cook County and ended with a federal jury delivering the massive verdict, even though the plaintiffs didn’t claim any actual injury.

“The decision by the Illinois Supreme Court to expand the statute of limitations for BIPA claims will only increase the number of frivolous lawsuits and make it even harder for businesses to defend themselves,” Joyce said. “It’s time for the state to rein in these excessive penalties and put a stop to the endless cycle of lawsuit abuse that is driving up costs for consumers and businesses alike.”

In the recent annual report from the American Tort Reform Foundation, Cook County, Illinois was named the fifth-worst “Judicial Hellhole®” in the nation. The report cites the prevalence of no-injury lawsuits filed under BIPA.

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