Bill Text: IL SB1440 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Code of Civil Procedure in relation to class actions. Adds additional requirements concerning: prerequisites to the maintenance of a class action (including provisions that a class action may be certified only if: the plurality of the class members are residents of Illinois or if the plurality of the class members were physically in Illinois when the cause of action arose; and a class action is superior to other available methods for the fair and efficient adjudication of the controversy); where a class action may be brought; preliminary determinations to be made by the court; notice to the class; coupon and other noncash settlements; loss by class members under a proposed settlement; and attorney's fees.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB1440 Detail]

Download: Illinois-2019-SB1440-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1440 Introduced 2/13/2019, by Sen. Jil Tracy SYNOPSIS AS INTRODUCED:
735 ILCS 5/2-801 from Ch. 110, par. 2-801
735 ILCS 5/2-802 from Ch. 110, par. 2-802
735 ILCS 5/2-803 from Ch. 110, par. 2-803
735 ILCS 5/2-808 new
735 ILCS 5/2-809 new
735 ILCS 5/2-810 new
Amends the Code of Civil Procedure in relation to class actions. Adds additional requirements concerning: prerequisites to the maintenance of a class action (including provisions that a class action may be certified only if: the plurality of the class members are residents of Illinois or if the plurality of the class members were physically in Illinois when the cause of action arose; and a class action is superior to other available methods for the fair and efficient adjudication of the controversy); where a class action may be brought; preliminary determinations to be made by the court; notice to the class; coupon and other noncash settlements; loss by class members under a proposed settlement; and attorney's fees.
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A BILL FOR
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AN ACT concerning civil procedure.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Code of Civil Procedure is amended by
changing Sections 2-801, 2-802, and 2-803 and adding Sections
2-808, 2-809, and 2-810 as follows:
(735 ILCS 5/2-801) (from Ch. 110, par. 2-801)
Sec. 2-801. Prerequisites for the maintenance of a class
action.
(a) An action may be maintained as a class action only in
the any court sitting in the county of this State in which: (i)
the defendant's principal office is located; (ii) the plurality
of class members who are Illinois residents reside; or (iii)
the cause of action arose for the plurality of class members.
and A party may sue or be sued as a representative party of the
class only if the court finds:
(1) The class is so numerous that joinder of all
members is impracticable.
(2) There are questions of fact or law common to the
class, which common questions predominate over any
questions affecting only individual members, and a class
action is superior to other available methods for the fair
and efficient adjudication of the controversy. The matters

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pertinent to the findings include: (A) the interest of
members of the class in individually controlling the
prosecution or defense of separate actions; (B) the extent
and nature of any litigation concerning the controversy
already commenced by or against members of the class; (C)
the desirability or undesirability of concentrating the
litigation of the claims in the particular forum; and (D)
the difficulties likely to be encountered in the management
of a class action.
(3) The representative parties will fairly and
adequately protect the interest of the class.
(4) The class action is an appropriate method for the
fair and efficient adjudication of the controversy.
(b) Notwithstanding the provisions of subsection (a), a
class action may be certified only if the plurality of the
class members are residents of this State or if the plurality
of the class members were physically in this State when the
cause of action arose.
(Source: P.A. 82-280.)
(735 ILCS 5/2-802) (from Ch. 110, par. 2-802)
Sec. 2-802. Order and findings relative to the class.
(a) Preliminary determinations. Before making any of the
determinations set forth in subsections (b) and (c) of this
Section, the court shall determine whether the action that has
been brought as a class action has been commenced in the court

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sitting in the county of this State in which: (i) the
defendant's principal office is located; (ii) the plurality of
class members who are Illinois residents reside; or (iii) the
cause of action arose for the plurality of class members. If
the court determines that the action has not been commenced in
such a county, the court may not permit the action to be
maintained as a class action pursuant to subsections (b) and
(c).
(b) Determination of Class. As soon as practicable after
the commencement of an action brought as a class action, the
court shall determine by order whether it may be so maintained
and describe those whom the court finds to be members of the
class. This order may be conditional and may be amended before
a decision on the merits.
(c) (b) Class Action on Limited Issues and Sub-classes.
When appropriate, an action may be brought or maintained as a
class action with respect to particular issues, or divided into
sub-classes and each sub-class treated as a class. The
provisions of this rule shall then be construed and applied
accordingly.
(Source: P.A. 82-280.)
(735 ILCS 5/2-803) (from Ch. 110, par. 2-803)
Sec. 2-803. Notice to class members.
(a) For any class certified under this Part 8, the court
may direct appropriate notice to the class.

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(b) For any class certified under this Part 8, the court
must direct to class members the best notice practicable under
the circumstances, including individual notice to all members
who can be identified through reasonable effort. The notice
must concisely and clearly state in plain, easily understood
language:
(1) the nature of the action;
(2) the definition of the class certified;
(3) the class claims, issues, or defenses;
(4) that a class member may enter an appearance through
counsel if the member so desires;
(5) that the court will exclude from the class any
member who requests exclusion, with instructions stating
when and how members may elect to be excluded; and
(6) the binding effect of a class judgment on class
members under this Part 8. in class cases. Upon a
determination that an action may be maintained as a class
action, or at any time during the conduct of the action,
the court in its discretion may order such notice that it
deems necessary to protect the interests of the class and
the parties.
An order entered under subsection (a) of Section 2-802 of
this Act, determining that an action may be maintained as a
class action, may be conditioned upon the giving of such notice
as the court deems appropriate.
(Source: P.A. 83-707.)

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(735 ILCS 5/2-808 new)
Sec. 2-808. Judicial scrutiny of coupon and other noncash
settlements. The court may approve a proposed settlement under
which the class members receive coupons or other similar
noncash benefits or would otherwise be required to expend funds
to obtain part or all of the proposed benefits only after a
hearing to determine whether, and making a written finding
that, the settlement is fair, reasonable, and adequate for
class members.
(735 ILCS 5/2-809 new)
Sec. 2-809. Protection against loss by class members. The
court may approve a proposed settlement under which any class
member is obligated to pay sums to class counsel that would
result in a net loss to the class member only if the court
makes a written finding that the nonmonetary benefits to the
class member outweigh the monetary loss.
(735 ILCS 5/2-810 new)
Sec. 2-810. Attorney's fees. Any attorney representing any
member or members of the plaintiff class in a class action may
seek payment of attorney's fees and costs pursuant to a
petition filed with the court. The court shall make a
determination based on findings of fact that the amount awarded
for attorney's fees and costs is reasonable and commensurate

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with the benefits conferred upon the members of the class
represented by the petitioners for fees and costs.