U.S. Chamber Institute for Legal Reform warns SB 328 will increase lawsuits against Illinois businesses

The U.S. Chamber Institute for Legal Reform announced in a press release that Illinois Senate Bill 328 would broaden business liability and encourage litigation tourism, raising concerns for state businesses.

According to the Institute for Legal Reform, Senate Bill 328 would transform Illinois into one of only two states adopting a consent-by-registration jurisdiction model—alongside Pennsylvania—exposing companies registered in the state to general jurisdiction for toxic tort claims regardless of where the alleged harm occurred. This expansion would apply only to civil actions alleging injury from exposure to substances defined as "toxic" under Illinois law, which includes everyday goods like food, medicine, or household products per the Uniform Hazardous Substances Act. Business advocates contend the bill undermines due process protections and may deter investment in Illinois by increasing overall litigation risk.

Industry groups warned that SB 328 threatens to turn Illinois into a magnet for out-of-state plaintiffs, a practice labeled "litigation tourism," because individuals could sue companies here even if they reside elsewhere and the incident never occurred in Illinois, as long as the defendant is registered to do business in Illinois. For small businesses, this risk translates into increased legal exposure over matters with no Illinois nexus, driving up operational costs and insurance premiums. The Illinois Coalition for Legal Reform emphasized that such lawsuits pose a direct threat to razor-thin margins and could impose unsustainable financial burdens on local businesses.

GOP state leaders and business coalitions joined forces in urging Gov. Pritzker to veto SB 328, filing a lawsuit challenging legislative procedures including the bypass of the constitutionally required three readings rule via a "gut-and-replace" maneuver. According to Capitol News Illinois, 47 Republican legislators filed suit to block the bill’s passage process and to uphold transparency and constitutional procedure in the General Assembly. The lawsuit underscores broader concerns that SB 328 enriches trial lawyers at the expense of job creators and economic growth in the state.

The U.S. Chamber Institute for Legal Reform (ILR) is a national legal advocacy organization that champions a fair legal system promoting economic growth and opportunity. ILR is known for leading influential reform initiatives across federal, state, and international arenas, and its mission includes repairing the civil justice system, curbing lawsuit abuse, and improving legal climates in challenging jurisdictions. The organization supports reforms to class action litigation, jurisdiction rules, and third-party litigation funding, seeking to enhance transparency and fairness in the legal system.