As the deadline for action looms, Illinois Senate and House Republican leaders have added their voices to the call for Illinois Gov. JB Pritzker to veto SB 328. “This [bill] would discourage, rather than encourage, businesses to register in the state of Illinois to do business here, and, more importantly, to invest in Illinois,” said Senate Republican Leader John Curran(R-Lemont). “It is literally no benefit to anyone in our state, other than those trying to make money off of frivolous lawsuits.”
As described in a prior blog, if signed by the governor, this bill would change Illinois from a “specific jurisdiction” state to a “general jurisdiction” state, thereby exposing all out-of-state corporations registered to do business in Illinois to lawsuits in Illinois, even when sued by out-of-state plaintiffs on claims wholly unrelated to Illinois.
Under this “consent-by-registration” theory of personal jurisdiction, any business registered in Illinois could face lawsuits in the state for any matter, regardless of the connection to Illinois or the residency of the parties involved. This sweeping change mirrors similar legislation passed in New York in 2024, which was ultimately vetoed by Gov. Kathy Hochul (D).
Companies and coalitions continue to send letters to the governor urging a veto. Most recently, the Illinois Chamber weighed in, addressing the governor directly. In the Illinois Chamber’s words, “[g]overnor, you have demonstrated a strong commitment to economic development and making Illinois a place where businesses can thrive. SB 328 is fundamentally at odds with that vision. We respectfully urge you to veto this bill to protect Illinois’ standing as a fair, competitive, and business-friendly state.”
The Illinois Chamber joined the Illinois Manufacturers’ Association (IMA), the Illinois Retail Merchants Association, the Illinois Restaurant Association, the Chicagoland and Illinois Chambers of Commerce, and individual companies calling on Gov. Pritzker to oppose the measure. The Illinois Coalition for Legal Reform (ICFLR) also cautioned the governor that “this legislation would invite plaintiff’s lawyers to sue out of state corporations … simply based on their registrations to do business in Illinois.
Mark Denzler, president and CEO of the IMA, expressed that “[t]his [bill] is going to create a black eye for Illinois when it comes to economic development.”
Per reporting in Crain’s Chicago Business, the governor’s office will be meeting with the IMA and others this week to hear their concerns.
As ILR has expressed in prior research, “[s]tates should be extremely reluctant to fling their courthouse doors wide open to out-of-state plaintiffs and unrelated cases” with legislation like the bill at issue here.
