2-2301.Settlement of claims; payment.
Article II. Civil Practice · Part 23. Settlement · Last amended 2014 · Last verified July 20, 2026
Full Text of 735 ILCS 5/2-2301
Plain-English Summary
Subsections (a) and (b) start the clock once a case settles. In a personal injury, property damage, wrongful death, or tort action for money damages, the settling defendant must tender a release to the plaintiff within 14 days of written confirmation of the settlement — and "written confirmation" includes all communication by written means. Where the law requires court approval of the settlement, the plaintiff must instead tender the defendant a copy of the order approving it.
Subsection (c) addresses cases with a known third-party right of recovery or subrogation interest — attorney's liens, healthcare provider liens, or rights claimed by Medicare, the Centers for Medicare and Medicaid Services, the Illinois Department of Healthcare and Family Services, or private health insurers. The plaintiff can protect those interests by tendering, among other options, a signed release of the attorney's lien, a signed release or trust letter covering a healthcare lien, an offer letting the defendant hold the disputed funds pending resolution, documentation of an agreed resolution with the applicable payer, or any other method the parties agree on.
Subsections (d) through (f) set the payment mechanics: the settling defendant must pay all sums due within 30 days of the plaintiff's tender of the executed release and the required documents, and if the court finds a defendant didn't pay on time, it enters judgment for the release amount plus costs and interest at the rate set in Section 2-1303, running from the date of tender. "Tender" means personal delivery or delivery by a method providing a return receipt. Subsection (g) applies the section broadly to personal injury, property damage, wrongful death, and tort actions for money damages, except as the parties otherwise agree, and excludes the State of Illinois, state agencies, boards, and commissions, state officers and employees sued officially, persons represented and indemnified under the State Employee Indemnification Act, municipalities and other units of local government, and class actions.
Frequently Asked Questions
How quickly must a defendant provide a settlement release after a case settles?
Within 14 days of written confirmation of the settlement, which the section defines to include all communication by written means.
How long does a settling defendant have to pay after the release is tendered?
30 days from the plaintiff's tender of the executed release and all applicable documents required under subsections (a), (b), and (c).
What happens if a defendant doesn't pay within the 30-day deadline?
If, after a hearing, the court finds timely payment wasn't made, it enters judgment against the defendant for the amount in the executed release, plus costs incurred in obtaining the judgment and interest at the rate specified in Section 2-1303, running from the date of tender.
How can a plaintiff protect a healthcare lien or Medicare subrogation interest when settling?
By tendering, among the options in subsection (c), a signed release of the lien, a letter from the plaintiff's attorney agreeing to hold the disputed funds in the client fund account pending resolution, an offer letting the defendant hold the funds instead, or documentation of another resolution method the parties agree on.
Does this section apply to settlements involving the State of Illinois or a class action?
No. Subsection (g) excludes the State of Illinois, state agencies, boards, and commissions, state officers and employees sued in their official capacity, persons represented by the Attorney General and indemnified under the State Employee Indemnification Act, municipalities and other units of local government, and class action lawsuits.
Amendment History
(Source: P.A. 98-548, eff. 1-1-14.)