In an uninsured motorist case, Holly Shakelford sued Allstate Fire & Casualty Insurance Co. for 9 percent interest on a $16,000 arbitration award. She was seeking the 9% statutory interest provided by Section 2-1303 of the Illinois Code of Civil Procedure.
A more accurate term for Section 2-1303 is the “Judgment Interest Statute,” the Supreme Court explained in Illinois State Toll Highway Authority v. Heritage Standard Bank, 157 Ill.2d 282 (1993). The law provides for 9% interest on arbitration awards, jury verdicts and reports from special masters – as part of the judgment entered on the award, verdict or report – running back to the date of the initial decision. In addition to providing 9% interest on judgments, Section 2-1303 also provides for prejudgment interest on awards, verdicts and reports.
This case was complicated because Shakelford’s claim was that the arbitrator ruled $16,000 was the “gross award,” subject to setoffs and liens “to be resolved by the parties and their attorneys.” The second issue or twist to the case was that Shakelford sued without first applying for confirmation of the award under the Uniform Arbitration Act.