In a federal district court matter, the district judge ruled that the obligation of a defendant who settled a negligence lawsuit wasn’t “uncollectible” and would not be reallocated between the remaining tortfeasors.
The Illinois Supreme Court, answering a question presented by the 7th Circuit Court of Appeals, concluded that “the obligation of a tortfeasor who settles is ‘not uncollectible’ within the meaning of Section 3.” Section 3 is part of the Illinois Joint Tortfeasor Contribution Act, which states that “no person shall be required to contribute to one seeking contribution an amount greater than his pro rata share,” except when “the obligation of one or more of the joint tortfeasors is uncollectible.”
Two of the seven Illinois Supreme Court justices dissented with a view that this ruling undermined the legislative goal of promoting settlements. The dissent stated that the Illinois Supreme Court’s decision “would likely require the General Assembly to revisit the Contribution Act.”