Illinois Legislature Passes New Law Regarding Personal Jurisdiction

Madison County, Ill. (June 9, 2025)

What is the Bill and Why it Matters?

This past weekend, the Illinois legislature passed a bill that will permit the exercise of general jurisdiction over any defendant that is registered to do business in Illinois where the lawsuit alleges “injury or illness resulting from exposure to a substance defined as toxic under the Unform Hazardous Substance Act of Illinois.” The bill relies on the U.S. Supreme Court holding in Mallory v. Norfolk Southern Railway, which found a Pennsylvania statute mandating consent to jurisdiction via business registration in the state can satisfy Due Process and upheld its constitutionality. Note: The Pennsylvania statute was also challenged under the Commerce Clause but not addressed in the U.S. Supreme Court case. 

The Illinois bill ties a company’s registration to transaction business in Illinois to “consent” to the lawsuit. This means companies that have historically never done business in Illinois but maybe presently do so can be sued in tort involving “toxic” substances irrespective of where the injury or the tort occurred. It also means that foreign plaintiffs who have never stepped foot in Illinois or even the United States can bring a lawsuit in an Illinois court against a company who is presently transacting business in Illinois if they allege injury for a substance defined as “toxic.” Illinois has broadly defined as “toxic” “any substance other than radiation which has the capacity to produce bodily injury or illness.” 430 ILCS 35/2-5.  

When is the Law Effective?

The bill will be sent to Governor Pritzker to sign and if he does not veto it, it becomes law 60 days later by default. The law will apply to any company which registers to do business (or upon annual filing date) in the state after it is signed or not vetoed.

What Actions if Any Should my Business Undertake?

If you have a current lawsuit or have expectations you might be sued in cases involving an injury from “toxic” substances, such as asbestos, benzene, diacetyl, pfas, talc, etc., AND presently do not transact business in the state of Illinois but are still registered to do business in Illinois, you might consider filing a withdrawal from Illinois via the Secretary of State office as soon as possible or before annual renewal date to avoid “consent” to lawsuits in Illinois. 805 ILCS 5/13.75 lists several activities that do not constitute transacting business in Illinois including holding corporate meetings, maintaining bank accounts, selling through independent contractors, etc. You can file a withdrawal here. 

For any further questions, please contact the authors of this alert. Visit our Toxic Tort & Environmental Litigation Practice, Asbestos Litigation Practice, and Talc Litigation Practice pages to learn more about our capabilities in this area.

Authors:

Charles S. Anderson, Partner

Jeffrey Bash, Managing Partner - Washington, D.C.

Jacob Sawyer, Partner