Abstract
Without acknowledging their departure from precedent, Illinois Appellate Court decisions have recently shifted from treating prejudgment interest as a matter of right for money owed under insurance policies to something within trial court discretion. This shift is unwelcome for several reasons. First, it contravenes the terms of Illinois’ Interest Act, which says creditors “shall be allowed to receive” prejudgment interest for “all” moneys due on any “instrument of writing.” It also frustrates that statute’s purpose of compensating for the time value of money owed under written contracts. Further, it is in conflict with Illinois Supreme Court decisions that have applied the traditional matter of right approach. Finally, it promotes inconsistent outcomes because the decisions espousing it have stated no rules to guide a trial judge in exercising discretion. Illinois courts should return to the traditional rule of viewing prejudgment interest as a matter of right in insurance cases.
Recommended Citation
Stanley C. Nardoni,
A Matter of Interest: Illinois Courts Should Return to the Traditional Rule for Awarding Prejudgment Interest in Insurance Coverage Cases,
37
S. Ill. U. L.J.
305
(2013).
Available at:
https://opensiuc.lib.siu.edu/siulj/vol37/iss2/2