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Plaintiffs Settle for No Prejudgment Interest

01 May 2003

The Appellate Court affirmed the dismissal of Plaintiff™s complaint seeking prejudgment interest for late payments under a settlement agreement. The Plaintiff alleged prejudgment interest should be awarded based on: (1) Section 2 of the Interest Act (815 ILCS 205/2) and (2) a theory of unjust enrichment. Prejudgment interest was not proper under 815 ILCS 205/2 because the release entered into between the parties pursuant to the settlement agreement, was not a written instrument that established a debtor/creditor relationship or one that contained a specific due date. The award of prejudgment interest under an unjust enrichment theory that seeks imposition of an implied contract cannot be maintained because an express contract, the settlement agreement, governs the parties. Adams v. American International Group, Inc., No. 1-01-2198, 2003 Ill.App. LEXIS 458 (1st Dist. April 11, 2003).

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