SB 26 Would Expand Court Jurisdiction, Drive Away Businesses, and Raise Costs for Residents
The American Tort Reform Association today issued a strong warning to Illinois lawmakers and Governor J.B. Pritzker as the General Assembly rushes to pass Senate Bill 26 before adjournment.
Yesterday the Illinois House adopted a problematic amendment to an unrelated bill that would change Illinois from a ‘specific jurisdiction’ state to a ‘general jurisdiction’ state.
“With this last-minute amendment, S.B. 26 is now one of the single worst pieces of legislation, nationwide, that we have seen this year,” said Tiger Joyce, president of ATRA. “This would open the floodgates to lawsuits from around the country, making every business registered in Illinois a target. For lawmakers to sneak this in at the final hour is incredibly telling of just how detrimental this legislation would be for hardworking Illinois families.”
The Illinois General Assembly is scheduled to adjourn by tomorrow at 11:59 p.m. Central Time. The amended version of the bill has been sent back to the Senate for concurrence.
“We urge the Senate to reject this reckless legislation and for Governor Pritzker to veto it if it reaches his desk,” Joyce said. “Lawmakers should be working to fix Illinois’ broken legal climate, not making it even more hostile to job creators and families.”
The legislation would radically expand Illinois courts’ reach over out-of-state businesses and threatens to permanently cement the state’s reputation as one of the nation’s worst Judicial Hellholes®.
“If S.B. 26 becomes law, Illinois will not only saddle its families with astronomically higher costs, but the state will be sending a clear message to businesses nationwide: you are not safe here,” Joyce said.
More than 208,000 jobs are lost annually in Illinois due to excessive tort costs, while each resident pays $1,919 annually in a hidden “tort tax” — the seventh-highest in the nation. In Chicago, that figure jumps to nearly $2,500 per person. ATRA notes that these figures are likely to rise if this bill is signed into law.
S.B. 26 would allow out-of-state plaintiffs to sue out-of-state companies in Illinois courts over incidents with no connection to the state. The bill mirrors a similar measure vetoed by New York Gov. Kathy Hochul last year due to its sweeping overreach and potential to drive businesses away. The last-minute maneuvering mirrors a similar move seen from the Illinois trial bar in past years.
“This 11th-hour effort is straight out of the Illinois trial lawyers’ playbook and this bill is a trial lawyers’ dream – especially given the state’s storied ‘Judicial Hellhole® reputation,” Joyce said.
House Speaker Emanuel “Chris” Welch signed onto the bill as a last-minute sponsor. A recent report from the Illinois Citizens Against Lawsuit Abuse also noted that Speaker Welch was the top beneficiary of campaign donations from the Illinois Trial Lawyers Association’s PAC during a recent reporting period.
Illinois ranks as one of the nation’s worst Judicial Hellholes®, with Cook County holding the No. 6 spot in the latest Judicial Hellholes® report. Cook County alone hosts 91% of the state’s high-value civil cases despite accounting for just 40% of the population. However, Madison and St. Clair Counties also are included as “Dishonorable Mentions” due to the high rate of asbestos claims filed in the two counties.
Business leaders and legal reform advocates across Illinois have united in opposition, warning that S.B. 26 would make the state a national magnet for toxic tort litigation and forum shopping.
