Punitive Damages in Illinois: No General Cap, Rules (2026)

Illinois allows punitive damages as a common-law remedy for torts committed with fraud, actual malice, deliberate violence or oppression, or willful conduct or gross negligence that shows a wanton disregard of the rights of others, the standard the Illinois Supreme Court set out in Kelsay v. Motorola, Inc. (1978). No general statute in force caps the award: the cap still printed at 735 ILCS 5/2-1115.05 fell when the court struck down all of Public Act 89-7 in Best v. Taylor Machine Works (1997).

The legislature regulates the remedy in other ways. It bars punitive damages in medical and legal malpractice cases (735 ILCS 5/2-1115) and against local public entities (745 ILCS 10/2-102), requires leave of court before they are pleaded in negligence and product cases (735 ILCS 5/2-604.1), lets the trial court apportion part of an award to the Illinois Department of Human Services (735 ILCS 5/2-1207), and since August 11, 2023 allows them, when applicable, in wrongful death and survival actions (for wrongful death, in actions filed on or after that date). For how other states compare, see punitive damages laws by state.

Information last verified on 2026-10-18. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Illinois state law on punitive damages in civil cases: the Illinois Supreme Court's common-law standard, the Code of Civil Procedure sections named below (735 ILCS 5/2-604.1, 2-1115, 2-1115.05, 2-1207, 2-1303, 2-109, 2-2107), the Wrongful Death Act and survival statute as amended in 2023, the Local Governmental and Governmental Employees Tort Immunity Act, and the other statutes named below. It does not cover compensatory damages (for malpractice claims see Illinois medical malpractice law), wrongful-death procedure, deadlines and beneficiaries (see Illinois wrongful death law), federal claims, or every Illinois statute that authorizes punitive or multiplied damages for a particular claim.

Does Illinois allow punitive damages?

Yes. Punitive damages in Illinois come from the common law, not from a general statute. The Illinois Supreme Court stated the rule in Kelsay v. Motorola, Inc., 74 Ill. 2d 172 (1978):

"It has long been established in this State that punitive or exemplary damages may be awarded when torts are committed with fraud, actual malice, deliberate violence or oppression, or when the defendant acts willfully, or with such gross negligence as to indicate a wanton disregard of the rights of others"

The court repeated that sentence in Loitz v. Remington Arms Co., 138 Ill. 2d 404 (1990). Illinois uses "punitive" and "exemplary" for the same remedy, and its statutes often list both words together.

Statutes then narrow the remedy. They bar it entirely in some kinds of cases and against some defendants, control when it can be pleaded, and govern what happens to an award after the verdict. Each of those rules is covered below.

What must be proven

The conduct standard is the Kelsay list: fraud, actual malice, deliberate violence or oppression, willful conduct, or gross negligence "as to indicate a wanton disregard of the rights of others."

Kelsay also divides the work between judge and jury:

"And, while the measurement of punitive damages is a jury question, the preliminary question of whether the facts of a particular case justify the imposition of punitive damages is properly one of law."

So the court first decides, as a matter of law, whether the facts can support punitive damages at all. Only then does the jury decide how much to award.

Burden of proof. No Illinois statute in force sets the burden of proof for punitive damages. Section 2-1115.05(b) is printed with a clear and convincing evidence requirement, but it came from Public Act 89-7 and is not law (see the next section).

Is there a cap on punitive damages in Illinois?

No general statute in force caps punitive damages in Illinois. This is the point most likely to confuse a reader who looks up the Illinois Compiled Statutes, because section 2-1115.05 is still printed there. Its subsection (a) reads in part:

"The amount of punitive damages that may be awarded for a claim in any civil action subject to this Section shall not exceed 3 times the amount awarded to the claimant for the economic damages on which such claim is based."

That section was enacted by Public Act 89-7, effective March 9, 1995. In Best v. Taylor Machine Works, 179 Ill. 2d 367 (1997), the Illinois Supreme Court declared core provisions of Public Act 89-7 unconstitutional and held that, without them, the legislation "must fail in toto." It deemed all of the act's remaining provisions invalid on severability grounds, and added that "the General Assembly is free to reenact whatever provisions it deems desirable or appropriate." The printed cap, and the clear and convincing standard in the same section, therefore are not Illinois law.

Some statutes for particular claims set their own limits. Exemplary damages for willful and malicious trade-secret misappropriation may not exceed "twice any award" of damages for the misappropriation, which can include actual loss and unjust enrichment, or a reasonable royalty (765 ILCS 1065/4(b)). A principal who fails to pay a sales representative's commissions on time is liable for exemplary damages "in an amount which does not exceed 3 times the amount of the commissions owed" (820 ILCS 120/3). And a trustee who intentionally uses charitable trust funds for personal benefit, in amounts over $1,000 within the period each act sets, is subject to punitive damages "up to or equal to the amount" used or misused (225 ILCS 460/19; 760 ILCS 55/17).

Other statutes set a ceiling, a floor or both for their own claims:

• Service member employment (330 ILCS 61): punitive damages "are not authorized except in cases involving violations under Section 5-15 and may not exceed $50,000 per violation" (330 ILCS 61/15-20(a)).
• Intentional dissemination of an expunged juvenile record: "punitive damages up to an amount of $1,000 may be sought in addition to any actual damages" (705 ILCS 405/5-923(e)).
• Animal cruelty civil action: the owner is entitled to "punitive or exemplary damages of not less than $500 but not more than $25,000 for each act of abuse or neglect" (510 ILCS 70/16.3), both a floor and a ceiling.
• State environmental cost recovery under the Environmental Protection Act: a person who failed without sufficient cause to take the required preventive, corrective, removal or response action may be liable to the State for punitive damages of at least the State's costs and not more than 2 times those costs for used tires (415 ILCS 5/55.3(h)), or not more than 3 times for open dumping (22.15a(f)), hazardous substance releases (22.2(k)) and underground storage tank releases (57.12(f)(1)).

The same goes for section 2-2107, a product liability defense that is also printed with Public Act 89-7 as its source. As printed, it would bar punitive damages against a manufacturer or product seller whose conduct complied with an applicable federal or state statute or regulation, unless the plaintiff proved by clear and convincing evidence that material information was intentionally withheld or misrepresented. It falls within the act whose remaining provisions Best deemed invalid on severability grounds.

Without a general statutory cap, the size of an award is controlled by judicial review. Section 2-1207 provides that "the trial court may, in its discretion, with respect to punitive damages, determine whether a jury award for punitive damages is excessive, and if so, enter a remittitur and a conditional new trial." A remittitur needs the plaintiff's consent: in Wilson v. Napleton's Goldcoast Imports, Inc., 2025 IL App (3d) 240079, the Appellate Court held that a trial court "does not have the authority to remit a jury award if the plaintiff does not consent," that a plaintiff who refuses gets a new trial on damages, and that the plaintiff there could accept or decline the remitted compensatory and punitive awards separately. The U.S. Supreme Court's due-process limits on the size of punitive awards also apply to Illinois verdicts; the punitive damages hub explains them.

Pleading punitive damages: leave of court first

In the most common injury cases, a plaintiff cannot ask for punitive damages at the start. Section 2-604.1 of the Code of Civil Procedure provides:

"In all actions on account of bodily injury or physical damage to property, based on negligence, or product liability based on strict tort liability, where punitive damages are permitted no complaint shall be filed containing a prayer for relief seeking punitive damages. However, a plaintiff may, pursuant to a pretrial motion and after a hearing before the court, amend the complaint to include a prayer for relief seeking punitive damages. The court shall allow the motion to amend the complaint if the plaintiff establishes at such hearing a reasonable likelihood of proving facts at trial sufficient to support an award of punitive damages. Any motion to amend the complaint to include a prayer for relief seeking punitive damages shall be made not later than 30 days after the close of discovery."

The statute sets three requirements: a pretrial motion and hearing, a showing of a "reasonable likelihood of proving facts at trial sufficient to support an award," and a deadline of 30 days after discovery closes. The Illinois Compiled Statutes print two versions of section 2-604.1. The one quoted here, limited to product liability "based on strict tort liability," is the version without the Public Act 89-7 changes, which were held unconstitutional. A crash case for bodily injury based on negligence is one of the actions this rule covers; for the rest of a vehicle claim, see Illinois car accident laws.

Cases where Illinois bars punitive damages

Medical and legal malpractice. Section 2-1115 provides: "In all cases, whether in tort, contract or otherwise, in which the plaintiff seeks damages by reason of legal, medical, hospital, or other healing art malpractice, no punitive, exemplary, vindictive or aggravated damages shall be allowed." The bar reaches every theory of recovery, not only negligence. More on malpractice claims is on the Illinois medical malpractice page.

Malicious prosecution after a malpractice suit. Under section 2-109, in malicious prosecution cases "arising out of proceedings which sought damages for injuries or death by reason of medical, hospital, or other healing art malpractice," the plaintiff need not plead or prove special injury, but "no exemplary or punitive damages shall be allowed."

Local public entities. Section 2-102 of the Local Governmental and Governmental Employees Tort Immunity Act provides that "a local public entity is not liable to pay punitive or exemplary damages in any action brought directly or indirectly against it by the injured party or a third party." The same section protects a public official from punitive damages "in any action arising out of an act or omission made by the public official while serving in an official executive, legislative, quasi-legislative or quasi-judicial capacity."

Public employees making policy. Section 2-213 of the same act provides that a public employee "serving in a position involving the determination of policy or the exercise of discretion" is not liable for punitive or exemplary damages "when the injury is the result of an act or omission occurring in the performance of any legislative, quasi-legislative or quasi-judicial function, even though abused."

No indemnity for punitive awards. Under section 2-302, a local public entity may defend or indemnify its employees, but "it is hereby declared to be the public policy of this State, however, that no local public entity may elect to indemnify an employee for any portion of a judgment representing an award of punitive or exemplary damages." A separate statute gives sanitary districts organized under the North Shore Water Reclamation District Act a different power: section 7.01(a) of that act lets the board of trustees, by majority vote, use general funds to defend and indemnify trustees, officials and employees for losses including "actual and punitive damages," but only for acts within the scope of their duties that "do not constitute wilful and wanton misconduct" (70 ILCS 2305/7.01). The Sanitary District Acts of 1917 and 1936 contain similar indemnity powers (70 ILCS 2405/9.2; 70 ILCS 2805/12.1).

Punitive damages in Illinois wrongful death and survival actions

Illinois changed this rule in 2023. Public Act 103-514, effective August 11, 2023, amended the Wrongful Death Act so that damages include "punitive damages when applicable." Section 1 now makes the wrongdoer liable "to an action for damages, including punitive damages when applicable," and section 2(a) lets the jury award damages for pecuniary injuries, grief, sorrow and mental suffering, "and punitive damages when applicable, to the surviving spouse and next of kin of such deceased person."

Section 2(a) also sets the limits:

"Nothing in this Section affects the applicability of Section 2-1115 of the Code of Civil Procedure or Section 2-102 or 2-213 of the Local Governmental and Governmental Employees Tort Immunity Act. Punitive damages are not available in an action for healing art malpractice or legal malpractice or in an action against the State or unit of local government or an employee of the State or an employee of a unit of local government in his or her official capacity. The changes made to this Section by this amendatory Act of the 103rd General Assembly apply to actions filed on and after the effective date of this amendatory Act of the 103rd General Assembly."

The same public act amended the survival statute, 755 ILCS 5/27-6, so that actions which survive include "actions to recover damages, including punitive damages when applicable, for an injury to the person (except slander and libel)," with the same exclusion for healing art and legal malpractice and for actions against the State, a unit of local government, or their employees in an official capacity.

Before the change, the Illinois Supreme Court had read the survival statute the other way. In Mattyasovszky v. West Towns Bus Co., 61 Ill. 2d 31 (1975), the Illinois Supreme Court said of the survival statute: "This statute has never been thought to authorize the award of punitive damages." Public Act 103-514 replaced that rule by statute. Who may bring a death claim, and the deadlines, are covered on the Illinois wrongful death page.

Does Illinois take a share of the award?

Only if the trial court orders it. No Illinois statute other than section 2-1207 sends part of a private plaintiff's punitive award to the state, and that section sets no fixed percentage. (The Environmental Protection Act provisions above make the State itself the party that recovers punitive damages; they do not divide a private award.) Section 2-1207 gives the trial court discretion:

"The trial court may also in its discretion, apportion the punitive damage award among the plaintiff, the plaintiff's attorney and the State of Illinois Department of Human Services. The amount of the award paid from the punitive damages to the plaintiff's attorney shall be reasonable and without regard to any contingent fee contract, except that such amount shall not exceed the amount authorized by the contingent fee contract."

Two points follow from the text. Whether to apportion at all is up to the court. And when the court pays part of the award to the plaintiff's attorney, the amount is set by reasonableness, capped at what the fee contract authorizes. In apportioning, the court must consider, among other factors it deems relevant, "whether any special duty was owed by the defendant to the plaintiff."

Interest on punitive damages

Prejudgment interest does not run on the punitive part of an injury or death judgment. Section 2-1303(c) provides that in actions for personal injury or wrongful death, "the plaintiff shall recover prejudgment interest on all damages, except punitive damages, sanctions, statutory attorney's fees, and statutory costs, set forth in the judgment."

Employer liability for an employee's conduct

In Mattyasovszky (1975), a case against a bus company, the Illinois Supreme Court quoted the Restatement (Second) of Agency rule on when a principal may be liable for punitive damages because of an agent's act:

"Punitive damages can properly be awarded against a master or other principal because of an act by an agent if, but only if: (a) the principal authorized the doing and the manner of the act, or (b) the agent was unfit and the principal was reckless in employing him, or (c) the agent was employed in a managerial capacity and was acting in the scope of employment, or (d) the principal or a managerial agent of the principal ratified or approved the act."

Does insurance cover punitive damages in Illinois?

The decision quoted here comes from the Illinois Appellate Court, Fifth District, not the Illinois Supreme Court. In Beaver v. Country Mutual Insurance Co., 95 Ill. App. 3d 1122 (1981), the court wrote:

"Our holding here that public policy prohibits insurance against liability for punitive damages that arise out of one's own misconduct does not affect the rule established in Illinois in Scott v. Instant Parking, Inc. (1969), 105 Ill. App. 2d 133, 245 N.E.2d 124, that an employer may insure himself against vicarious liability for punitive damages assessed against him in consequence of the wrongful conduct of his employee."

A separate statute limits what is paid when an insurer fails. Under the Illinois Insurance Guaranty Fund article, a "covered claim" does not include "any claim for punitive or exemplary damages or fines and penalties paid to government authorities" (215 ILCS 5/534.3(b)(ii)).

Statutes that authorize punitive damages for specific claims

Several Illinois statutes write punitive damages into a particular cause of action. Among them:

• Human Rights Act. In a civil action under section 10-102(A), "if the court finds that a civil rights violation has occurred or is about to occur, the court may award to the plaintiff actual and punitive damages" (775 ILCS 5/10-102(C)(1)).
• Eavesdropping. A party to a conversation or electronic communication on which eavesdropping is practiced in violation of the eavesdropping article is entitled to actual damages and "any punitive damages which may be awarded by the court or by a jury" (720 ILCS 5/14-6(1)(c)).
• Misuse of charitable assets. "Any person who, intentionally and in breach of fiduciary duty with malice, misuses charitable assets is subject to punitive damages in an appropriate amount upon a trial on the issue" (760 ILCS 55/16(a)). The Solicitation for Charity Act has a parallel rule without the malice element: "Any person who intentionally in breach of fiduciary duty misuses charitable assets is subject to punitive damages in an appropriate amount upon a trial on the issue" (225 ILCS 460/16(a)).

Those three sections set no dollar limit, although other sections of the two charity acts limit punitive damages to the amount used or misused when a trustee takes charitable trust funds for personal benefit (225 ILCS 460/19; 760 ILCS 55/17). One statute narrows punitive damages instead. In a private action under the Consumer Fraud and Deceptive Business Practices Act, "no award of punitive damages may be assessed under this Section against a party defendant who is a new vehicle dealer or used vehicle dealer within the meaning of Chapter 5 of the Illinois Vehicle Code or who is the holder of a retail installment contract within the meaning of Section 2.12 of the Motor Vehicle Retail Installment Sales Act, unless the conduct engaged in was willful or intentional and done with evil motive or reckless indifference to the rights of others" (815 ILCS 505/10a(a)).

A punitive award can also carry consequences for a state official. Under 5 ILCS 285/3, a policy-making officer of a State agency who is adjudicated to have violated a State agency employee's First and Fourteenth Amendment rights, "where an award of punitive damages has been made against such policy making officer or where there is a finding of willful or wanton conduct," must be "immediately discharged from State employment upon entry of the judgment of the court."

Illinois punitive damages at a glance

Recent changes and pending bills

2023: wrongful death and survival. Public Act 103-514, effective August 11, 2023, added punitive damages "when applicable" to the Wrongful Death Act and the survival statute, with exclusions for malpractice and government defendants. The Wrongful Death Act changes apply to actions filed on and after that date.

Pending: SB2627. Senate Bill 2627 in the 104th General Assembly would amend section 2-1115's legal malpractice bar. Its last action, on March 13, 2026, re-referred it to the Senate Assignments Committee. It has not been enacted and is not law.

Under federal law, punitive damages are generally taxable income even when they arise from a physical injury (26 U.S.C. 104(a)(2)); the personal injury settlement amounts guide covers taxes.

Related pages

• Punitive damages laws by state
• Illinois wrongful death law
• Illinois medical malpractice law
• Illinois car accident laws

This article provides general legal information about Illinois punitive damages law as of 2026-10-18. It is not legal advice. For advice about a specific situation, contact a lawyer licensed in Illinois.

Last updated: 2026-10-18.

Frequently Asked Questions

Does Illinois allow punitive damages?

Yes, as a common-law remedy. Under Kelsay v. Motorola (1978), they may be awarded for torts committed with fraud, actual malice, deliberate violence or oppression, or willful conduct or gross negligence showing a wanton disregard of the rights of others. Statutes bar them in malpractice cases and against local public entities.

Is there a cap on punitive damages in Illinois?

No general statute in force caps them, though some statutes for particular claims set their own limits, such as exemplary damages for willful and malicious trade-secret misappropriation of not more than twice any award made under 765 ILCS 1065/4(a) (4(b)). The 3-times-economic-damages cap printed in 735 ILCS 5/2-1115.05 came from Public Act 89-7, which the Illinois Supreme Court held invalid in its entirety in Best v. Taylor Machine Works (1997). Trial courts may still remit an excessive award under 735 ILCS 5/2-1207, and federal due-process limits apply.

What is the burden of proof for punitive damages in Illinois?

No statute in force sets it. The clear and convincing standard printed in 735 ILCS 5/2-1115.05(b) fell with Public Act 89-7 in Best v. Taylor Machine Works (1997), so it is not Illinois law.

Are punitive damages available in an Illinois wrongful death case?

For Wrongful Death Act actions filed on or after Aug. 11, 2023, yes when applicable: Public Act 103-514 amended 740 ILCS 180/1 and 180/2 to include punitive damages. They remain unavailable in healing art and legal malpractice cases and against the State, a unit of local government, or their employees in an official capacity.

Are punitive damages allowed in Illinois medical malpractice cases?

No. 735 ILCS 5/2-1115 provides that no punitive, exemplary, vindictive or aggravated damages shall be allowed in cases seeking damages for legal, medical, hospital or other healing art malpractice, whether in tort, contract or otherwise.

Are punitive damages available in an Illinois car accident case?

A crash claim for bodily injury based on negligence falls under 735 ILCS 5/2-604.1: the original complaint cannot ask for punitive damages, and the plaintiff must win leave to amend at a hearing. The conduct must meet the Kelsay standard, and a local public entity defendant is not liable for punitive damages (745 ILCS 10/2-102).

Does the State of Illinois take part of a punitive damages award?

Only if the trial court orders it. Under 735 ILCS 5/2-1207 the trial court may, in its discretion, apportion a punitive award among the plaintiff, the plaintiff's attorney and the Illinois Department of Human Services.

Does insurance cover punitive damages in Illinois?

In Beaver v. Country Mutual (1981), an Illinois Appellate Court held that public policy prohibits insurance against punitive damages arising from one's own misconduct, while noting the rule that an employer may insure against vicarious punitive liability for an employee's conduct. An insolvent insurer's guaranty fund does not cover punitive claims (215 ILCS 5/534.3).

Are punitive damages available against a city or county in Illinois?

No. 745 ILCS 10/2-102 provides that a local public entity is not liable to pay punitive or exemplary damages in any action brought directly or indirectly against it, and section 2-302 bars a local public entity from indemnifying an employee for the punitive part of a judgment.

Is prejudgment interest added to punitive damages in Illinois?

No. In personal injury and wrongful death actions, 735 ILCS 5/2-1303(c) gives prejudgment interest on all damages except punitive damages, sanctions, statutory attorney's fees and statutory costs.