Background
Coleton Nathaniel Foley died in a September 2023 motor vehicle collision involving Colin Charles Dodd. Foley’s estate brought a federal wrongful-death action, and the parties reached a confidential settlement. Because four of Foley’s beneficiaries were minors, the Hamilton County circuit court appointed guardians ad litem and approved the settlement on February 10, 2025. The Estate’s attorney executed the settlement agreement and release that day.
Dodd’s insurer encountered an error while issuing the first settlement check. A replacement check was issued by certified mail on March 7, but the U.S. Postal Service lost it. After stopping payment on that check, the insurer wired the settlement funds to the Estate’s attorney on March 17. The Estate sought statutory interest under section 2-2301 of the Illinois Code of Civil Procedure, arguing that payment had not been made within 30 days after tender of the executed release. The circuit court denied relief, finding a good-faith effort and substantial compliance with the statute.
The Court’s Holding
The appellate court affirmed. It first held that the circuit court had personal jurisdiction over Dodd because his attorneys entered an appearance in the probate proceeding and participated in the settlement-approval and guardian-ad-litem-fee proceedings. Those actions constituted voluntary submission to the court’s jurisdiction.
The court then held that the circuit court properly denied statutory interest. It agreed that section 2-2301(d)’s use of “shall pay,” rather than language requiring receipt by the plaintiff within 30 days, focuses on the settling defendant’s actions in making payment. Given the insurer’s efforts to issue and mail the check, its response when the Postal Service lost it, and its prompt wire transfer of the funds, Dodd substantially complied with the statute through a good-faith effort to pay within the required period. The court also noted that the integrated settlement agreement referenced section 2-2301(c) but did not incorporate the provisions governing the 30-day payment period and interest.
Key Takeaways
- A defendant may submit to personal jurisdiction when counsel enters an appearance and participates in settlement proceedings.
- Section 2-2301(d) focuses on the settling defendant’s actions to make payment, rather than requiring the plaintiff’s actual receipt of funds within 30 days.
- A good-faith, diligent payment effort may constitute substantial compliance when delivery is delayed because a settlement check is lost in the mail.
Why It Matters
The decision indicates that Illinois courts may examine the payor’s diligence and the particular cause of delay before imposing statutory interest for a late settlement payment. An unavoidable delivery failure did not trigger interest where the insurer timely pursued payment and wired the funds after learning that the mailed check was lost.
The order was issued under Illinois Supreme Court Rule 23 and is nonprecedential except in the limited circumstances permitted by Rule 23(e)(1).