State guide · Midwest
Illinois subrogation law guide
A claimant whose fault is more than 50% of the proximate cause of the damage recovers nothing. At 50% or less, damages are reduced in proportion to the claimant's fault.
Illinois at a glanceIL
- Property damage
- 5 years
- Bodily injury
- 2 years
- Fault rule
- Modified, 51% bar
- Gov. notice
- 365 days
Overview
Illinois combines a generous 5-year property damage period under 735 ILCS 5/13-205 with traps that end claims far earlier. Suits against cities, counties, park districts, transit agencies and other local public bodies must be filed within 1 year under the Tort Immunity Act (745 ILCS 10/8-101), and the State's Court of Claims requires a 1-year notice for injury claims. Fault follows a modified comparative rule with a 51% bar under 2-1116, and joint and several liability turns on a 25% threshold under 2-1117, so a minor contributor's share may be collectible only from that contributor. Medical expenses stay joint and several regardless. The Moorman economic loss doctrine bars tort claims for purely economic loss but allows recovery where a sudden or dangerous occurrence damages other property, which covers most fire and burst-pipe subrogation. Landlord fire claims against tenants run into Dix Mutual Ins. Co. v. LaFramboise, which can treat the tenant as a co-insured depending on the lease. For small auto physical damage claims, the Insurance Code makes inter-company arbitration mandatory, though nonbinding, below $2,500. Bodily injury claims run 2 years under 13-202, and written indemnity contracts run 10 years under 13-206.
Quick reference with citations
- Property damage SOL
- 5 years
- 735 ILCS 5/13-205 (actions to recover damages for an injury done to property, real or personal)
- Bodily injury SOL
- 2 years
- 735 ILCS 5/13-202
- Product liability
- 2 years for personal injury (735 ILCS 5/13-202) and 5 years for property damage (735 ILCS 5/13-205); strict liability claims also face repose at the earlier of 12 years from first sale by a seller or 10 years from first sale to the initial user (735 ILCS 5/13-213).
- Written contract
- 10 years
- Contract and indemnity recoveries
- Comparative fault rule
- Modified, 51% bar
- 735 ILCS 5/2-1116; Alvis v. Ribar, 85 Ill. 2d 1, 421 N.E.2d 886 (1981)
- Government notice of claim
- 365 days
- Local public entities and their employees: no pre-suit notice, but suit must be commenced within 1 year from the date the injury was received or the cause of action accrued (745 ILCS 10/8-101(a)). State of Illinois: claims go to the Court of Claims, and personal injury claimants must file written notice with the Attorney General and the Clerk of the Court of Claims within 1 year (705 ILCS 505/22-1).
Fault rule in practice
How Illinois's rule changes a $50,000 recovery.
A claimant whose fault is more than 50% of the proximate cause of the damage recovers nothing. At 50% or less, damages are reduced in proportion to the claimant's fault.
Authority: 735 ILCS 5/2-1116; Alvis v. Ribar, 85 Ill. 2d 1, 421 N.E.2d 886 (1981)
| Insured's share of fault | Recoverable in IL | Under pure comparative |
|---|---|---|
| 0% | $50,000 | $50,000 |
| 20% | $40,000 | $40,000 |
| 50% | $25,000 | $25,000 |
| 60% | Barred | $20,000 |
Doctrines that move the number
Illinois doctrine checklist.
Made-whole doctrine
Illinois does not apply the made-whole doctrine as a blanket rule. A policy clause transferring the insured's rights to the extent of payment is enforced even when the insured is not fully compensated (Capitol Indem. Corp. v. Strikezone, 646 N.E.2d 310 (Ill. App. Ct. 1995)); equity fills the gap only where no clause exists. In personal injury recoveries, 770 ILCS 23/50 reduces health care reimbursement claims for the injured party's comparative fault and for limited liability coverage.
Economic loss doctrine
Moorman Mfg. Co. v. National Tank Co., 91 Ill. 2d 69, 435 N.E.2d 443 (1982) bars tort recovery of purely economic loss, with exceptions for damage from a sudden or dangerous occurrence, intentional misrepresentation, and negligent misrepresentation by one in the business of supplying information. A sudden fire or burst pipe that damages other property generally fits the first exception.
Joint and several liability
Under 735 ILCS 5/2-1117, all liable defendants stay jointly and severally liable for medical expenses. For other damages, a defendant less than 25% at fault (measured against the plaintiff, the defendants sued and third-party defendants other than the plaintiff's employer) is only severally liable, while one at 25% or more is jointly and severally liable. Environmental and medical malpractice cases keep full joint liability (735 ILCS 5/2-1118).
Anti-subrogation and waiver
Under Dix Mutual, a tenant whose rent helps pay for the landlord's fire coverage is treated as a co-insured unless the lease expressly makes the tenant liable for fire damage it causes, and the rule reaches commercial leases. A yield-up clause is not enough (Towne Realty, Inc. v. Shaffer, 773 N.E.2d 47 (Ill. App. Ct. 2002)).
Practice notes
Working Illinois subrogation files.
- 1
The 5-year property period makes Illinois forgiving against private defendants and unforgiving against public ones. Any file involving a city, county, park district, transit agency or school district runs on the 1-year Tort Immunity Act period, and the Act also grants substantive immunities, including for discretionary policy decisions (745 ILCS 10/2-201), that must be screened before suit. Set the 1-year date at intake rather than after the private claim stalls.
- 2
Fault math with the 25% threshold: a fictional Peoria bakery's $160,000 water loss traces to a plumbing contractor (70%), a fitting supplier (20%) and the insured's slow shutoff (10%). Recoverable damages fall to $144,000. The contractor owes $112,000 and, at 70%, is jointly liable for the rest. The supplier, under 25%, owes only its $32,000 share, so if the contractor is insolvent the supplier pays no more than $32,000.
- 3
Before pursuing a tenant for a fire, pull the full lease. Under Dix Mutual the tenant is a co-insured unless the lease expressly makes it liable for fire damage it negligently causes. A clause promising to surrender the premises in good condition is not enough, and one appellate panel refused subrogation even where the tenant agreed to pay for negligent damage because the landlord had promised to insure. Other tenants' contents carriers are not bound by that rule.
- 4
Illinois Supreme Court Rule 103(b) allows dismissal, with prejudice once the limitation period has run, when a plaintiff fails to use reasonable diligence in serving the defendant. Filing in the last month of a 5-year period protects nothing if service lags. Confirm the adverse party's registered agent or current address before filing, and track service on every subrogation complaint as closely as the filing date itself.
- 5
Ishqkala sets Illinois property alerts at 5 years and bodily injury alerts at 2 years, then overrides both with a 365-day alert when entity extraction finds a local public body in the loss narrative, such as a municipal water main, a transit bus or a park district tree. Inter-carrier auto physical damage files under $2,500 are tagged for statutory arbitration rather than suit.
Key cases
Alvis v. Ribar
85 Ill. 2d 1, 421 N.E.2d 886 (1981)
Replaced contributory negligence with comparative fault in Illinois; the legislature later imposed the more-than-50% bar now codified at 735 ILCS 5/2-1116.
Dix Mutual Ins. Co. v. LaFramboise
149 Ill. 2d 314, 597 N.E.2d 622 (1992)
Held a landlord's fire insurer could not subrogate against the tenant because the lease, read as a whole, treated the tenant as a co-insured; the leading Illinois authority on landlord-tenant subrogation.
Moorman Mfg. Co. v. National Tank Co.
91 Ill. 2d 69, 435 N.E.2d 443 (1982)
Established the Illinois economic loss doctrine while preserving tort recovery for physical harm to other property caused by a sudden or dangerous occurrence, the basis for most product and fire subrogation claims.
Inter-company arbitration
Illinois legislates inter-company arbitration. 215 ILCS 5/143.24d requires insurers to arbitrate auto physical damage subrogation claims between them under $2,500 through the Nationwide Inter-Company Arbitration Agreement. After Interstate Bankers Casualty Co. v. Hernandez, 2013 IL App (1st) 123035, held binding statutory arbitration unconstitutional, Public Act 98-864 made it mandatory but nonbinding, so a party may still seek court resolution after the decision. Above $2,500, ordinary Arbitration Forums, Inc. signatory obligations apply up to $100,000 in company-paid damages.
How Ishqkala applies this guide
IL rules, built into every score.
- Opportunities with a Illinois loss state are calendared against the 5 years property damage period or the 2 years bodily injury period, whichever controls the claim type.
- The insured's estimated fault share is applied under modified, 51% bar before recoverable dollars are scored.
- Files involving a public entity get a 365-day notice deadline that outranks the general SOL in the priority queue.
- Alerts fire at 180, 90, 45 and 15 days before the controlling deadline.
Other modified, 51% bar jurisdictions
FAQ
Illinois subrogation FAQ
5 years (735 ILCS 5/13-205 (actions to recover damages for an injury done to property, real or personal)). A subrogating carrier generally takes the insured's claim subject to the same limitation period, usually measured from the date of loss.
Modified, 51% bar (735 ILCS 5/2-1116; Alvis v. Ribar, 85 Ill. 2d 1, 421 N.E.2d 886 (1981)). A claimant whose fault is more than 50% of the proximate cause of the damage recovers nothing. At 50% or less, damages are reduced in proportion to the claimant's fault.
Local public entities and their employees: no pre-suit notice, but suit must be commenced within 1 year from the date the injury was received or the cause of action accrued (745 ILCS 10/8-101(a)). State of Illinois: claims go to the Court of Claims, and personal injury claimants must file written notice with the Attorney General and the Clerk of the Court of Claims within 1 year (705 ILCS 505/22-1).
Illinois does not apply the made-whole doctrine as a blanket rule. A policy clause transferring the insured's rights to the extent of payment is enforced even when the insured is not fully compensated (Capitol Indem. Corp. v. Strikezone, 646 N.E.2d 310 (Ill. App. Ct. 1995)); equity fills the gap only where no clause exists. In personal injury recoveries, 770 ILCS 23/50 reduces health care reimbursement claims for the injured party's comparative fault and for limited liability coverage.
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