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2 INCL Brief 1 (1972-1973)

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Volume 2, Number 1

Published by the Section of Insurance, Negligence & Compensation Law (W

Full Text of Illinois Supreme Court
No- Fault Opinions

Reprinted below in its entirety is the Illinois Supreme Court
decision upholding an earlier Cook County Circuit Court
ruling which declared the Illinois no-fault automobile
insurance law unconstitutional. The decision should be of
great interest to members of the Section who have been
following previous articles in this publication dealing with the
no-fault insurance laws of the several states.
Docket No. 4-4902-Agenda 60-January, 1972. MICHAEL
J. GRACE, Appellee, v. MICHAEL J. HOWLETT, Auditor of
Public Accounts, et al., Appellants.
MR. JUSTICE SCHAEFER delivered the opinion of the
By Public Act 77-1430, which became effective January 1,
1972, the General Assembly added article XXXV to the
Illinois Insurance Code. (111. Rev. Stat. 1971, ch. 73, pars.
1065.150 through 1065.163.) This action was Instituted in the
circuit court of Cook County by the plaintiff, Michael J.
Grace, against Michael J. Howlett, Auditor of Public Accounts,
and other State officers, to enjoin them from expending funds
appropriated for the enforcement of the new article. Evidence
was heard, and the court found that certain provisions of the
new article violated the constitution of the United States and
the constitution of the State of Illinois. An injunction was
issued and the defendants appealed directly to this court under
Rule 302(a)(1). IIl.Rev.Stat. 1971, ch. 110A, par. 302(a)(1).
Article XXXV is entitled Compensation of Automobile
Accident Victims. Section 608 is a key provision of the
article. In the severability clause (section 613), the General
Assembly has provided that Section 608, or any part thereof,
of this Article is expressly made Inseverable. Section 608
relates to the amount of damages which may be recovered in
actions for accidental injuries arising out of the use of motor
vehicles. In essence it provides that (except in cases of death,
dismemberment, permanent disability or serious disfigure-
ment) the amount recoverable for pain, suffering, mental

anguish and inconvenience may not exceed the total of a sun
equal to 50 percent of the reasonable medical treatment
expenses of the claimant if and to the extent that the total of
such reasonable expenses is $500 or less, and a sum equal to
the amount of such reasonable expenses if any, in excess of
Section 609 deals with the procedures to be followed in
certain cases arising out of the use of automobiles. It directs
that in counties with a population of 200,000 or more
inhabitants, the Supreme Court of this State shall, by Rules
of Court, provide for the arbitration of all cases where the
cause of action arose out of the operation, ownership,
maintenance or use of a motor vehicle and where the amount
in controversy may not exceed $3,000, exclusive of Interest
and costs. Section 609 also provides that In all other counties
the Supreme Court of this State may, by Rules of Court,
provide for the arbitration of all such cases. It requires
[t] he Court to maintain a list of attorneys who have agreed
to serve as arbitrators and requires that [t] he Court Rules
shall provide that cases must be assigned to a single arbitrator
in reasonable rotation. Any party to arbitration may, upon
payment of the additional costs involved therein, request that
the arbitration hearing be before a panel of three arbitra-
tors.. .. The award must be entered by the Court In its
record of judgments, and has the effect of a judgment upon
the parties unless reversed upon appeal. Either party may
appeal fro~m an award of arbitration to the Court in which the
case wai pending... The party who appeals must pay all
costs that may have accrued in such suit or action... All
appeals must be de novo both as to the law and the facts.
Section 600 of the article relates to insurance. It provides
that every policy insuring against liability for accidental
bodily injury or death suffered by any person arising out of
the ownership, maintenance or use of any private passenger
automobile registered or principally garaged in this State and
insuring five or less private passenger automobiles, must
provide coverage affording payment of the following minimum
benefits to the named insured and members of his family
(Continued on page 3)

Copyright @ 1972 American Bar Association

June 1972

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