U.S. Chamber Institute for Legal Reform warns SB 328 could expose out-of-state companies to Illinois lawsuits

The U.S. Chamber Institute for Legal Reform has announced that Illinois GOP leaders, business groups, and coalitions are urging Governor J.B. Pritzker to veto Senate Bill 328 (SB 328). They warn that the bill would expose out-of-state companies to lawsuits unrelated to Illinois.

According to the U.S. Chamber Institute for Legal Reform, SB 328 would transform Illinois from a "specific jurisdiction" state—where courts only hear cases tied directly to the state—into a "general jurisdiction" state. This change would allow lawsuits against out-of-state businesses solely because they are registered to operate in Illinois. The Institute warns that this could lead to litigation over matters with no substantive connection to Illinois, based purely on corporate registration. It further highlights that similar legislation in New York was vetoed in 2024 due to concerns about creating a haven for opportunistic lawsuits.

The press release details how top Illinois business groups, including the Illinois Chamber of Commerce, Illinois Manufacturers’ Association, and the Illinois Retail Merchants Association, have all publicly opposed SB 328. They describe it as detrimental to the state's economic development. These organizations warn that the bill would deter new investment, discourage businesses from registering in Illinois, and ultimately harm job creation. Mark Denzler, president of the Illinois Manufacturers’ Association, says the bill would "create a black eye for Illinois when it comes to economic development," echoing concerns published by the U.S. Chamber Institute for Legal Reform.

The U.S. Chamber Institute for Legal Reform reports that business coalitions and individual companies have been sending letters to Governor Pritzker urging him to veto SB 328 and protect Illinois' business climate. The Illinois Chamber wrote that the bill is "fundamentally at odds" with the governor’s vision for economic growth and fairness and called for direct action to prevent Illinois from becoming a magnet for out-of-state litigation. According to the Institute, the governor's office is meeting with stakeholders to discuss concerns, reflecting broad-based opposition from Illinois' business community.

According to its website, ILR is a national organization dedicated to improving the fairness, efficiency, and competitiveness of the U.S. legal system through research and advocacy. ILR regularly publishes analysis and recommendations on litigation trends, legal reforms, and their economic impact and collaborates with policymakers, legal experts, and business groups across the country. The Institute's mission is to advance sensible legal reform and support a fair business environment in all states, including Illinois.