Can Interest Be Recovered Absent a Statute or Agreement In Illinois
In Illinois, interest is not recoverable absent a statute or agreement providing for it. City of Springfield v. Allphin, 82 Ill. 2d 571, 576, 413 N.E.2d 394, 45 Ill. Dec. 916 (1980); see Shields v. State Employees Retirement System of Illinois, 363 Ill. App. 3d 999, 1005-06, 844 N.E.2d 438, 300 Ill. Dec. 440 (2006) (the plaintiff was not entitled to interest on a judgment involving a state pension contribution where the enabling statute specifically provided that interest not be paid).
Moreover, the State is not obligated to pay interest on funds in its possession. See Allphin, 82 Ill. 2d at 578 (when the legislature intends to impose liability on the State for interest, it affirmatively declares that the burden will fall on the sovereign).