(a) In a personal injury, property damage, wrongful death, or tort action involving a claim for money damages, a release must be tendered to the plaintiff by the settling defendant within 14 days of written confirmation of the settlement. Written confirmation includes all communication by written means.
2-2301.Settlement of claims; payment.
Article II. Civil Practice · Part 23. Settlement · Last amended 2014 · Last verified July 20, 2026
In one sentenceSection 2-2301 sets deadlines for exchanging a signed release and paying a settlement in personal injury, property damage, wrongful death, and tort cases, and lets a plaintiff protect known liens or subrogation interests, backed by a judgment against a defendant who doesn't pay on time.
Full Text of 735 ILCS 5/2-2301
(b) In a personal injury, property damage, wrongful death, or tort action involving a claim for money damages in which the law requires court approval of a settlement, the plaintiff shall tender to the defendant a copy of the court order approving the settlement.
(c) In a personal injury, property damage, wrongful death, or tort action involving a claim for money damages in which there is a known third-party right of recovery or subrogation interest (including attorney's liens, healthcare provider liens, or rights of recovery claimed by Medicare, the Centers for Medicare and Medicaid Services, the Illinois Department of Healthcare and Family Services, or private health insurance companies), the plaintiff may protect the third-party's right of recovery or subrogation interest, where applicable, by tendering to the defendant:
(1) A signed release of the attorney's lien. (2) Either:
(i) a signed release of a healthcare provider lien; or
(ii) a letter from the plaintiff's attorney agreeing to hold the full amount of the claimed lien in the plaintiff's attorney's client fund account pending final resolution of the lien amount; or
(iii) an offer that the defendant hold the full amount of the claimed right to recovery pending final resolution of the amount of the right of recovery; or
(iv) documentation of any other method of resolution of the liens as agreed by the parties. (3) Either:
(i) documentation of the agreement between the plaintiff and Medicare, the Centers for Medicare and Medicaid Services, the Illinois Department of Healthcare and Family Services, or the private health insurance company as to the amount of the settlement that will be accepted in satisfaction of right of recovery; or
(ii) a letter from the plaintiff's attorney agreeing to hold the full amount of the claimed right to recovery in the plaintiff's attorney's client fund account pending final resolution of the amount of the right to recovery; or
(iii) an offer that the defendant hold the full amount of the claimed right to recovery pending final resolution of the amount of the right of recovery; or
(iv) documentation of any other method of resolution of the liens as agreed by the parties. (d) A settling defendant shall pay all sums due to the plaintiff within 30 days of tender by the plaintiff of the executed release and all applicable documents in compliance with subsections (a), (b), and (c) of this Section. (e) If, after a hearing, the court having jurisdiction over the parties finds that timely payment has not been made by a defendant pursuant to subsection (d) of this Section, judgment shall be entered against that defendant for the amount set forth in the executed release, plus costs incurred in obtaining the judgment and interest at the rate specified under Section 2-1303 of this Code, calculated from the date of the tender by the plaintiff under subsection (d) of this Section. (f) As used in this Section, "tender" means personal delivery or delivery by a means providing a return receipt. (g) This Section applies to all personal injury, property damage, wrongful death, and tort actions involving a claim for money damages, except as otherwise agreed by the parties. This Section does not apply to: (1) the State of Illinois; (2) any State agency, board, or Commission, as defined in Section 1-7 of the Illinois State Auditing Act; (3) any State officer or employee sued in his or her official capacity; (4) any person or entity that is being represented by the Attorney General and provided indemnification by the State pursuant to the State Employee Indemnification Act; (5) any municipality or unit of local government as defined under Article VII of the Illinois Constitution; and (6) class action lawsuits.
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.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: illinois settlement release deadline30 day settlement payment illinoismedicare lien settlement illinoishealthcare lien release illinois settlementattorney lien settlement illinois