IL HB5198

Adds Section 5-126.3 to the Code of Civil Procedure allowing defendants to recover reasonable attorney's fees and costs in contract enforcement actions if the contract permits fee recovery.

Defendant must request attorney's fees in their initial responsive pleading and either prevail on a motion/affirmative defense/counterclaim, prevail in the underlying action, or the plaintiff must dismiss within 72 hours before trial.

Section does not apply if plaintiff does not request attorney's fees in the complaint or if both parties were represented by counsel when negotiating and executing the contract.

Attorney's fees are limited to the greater of $1,250 or 25% of the amount in controversy, but cannot exceed 25% of the maximum small claims judgment amount under Illinois Supreme Court Rules.

Applies only to actions filed on or after January 1, 2013.