## Facts

- The Director of Insurance, acting as liquidator of a group self-insurance workers’ compensation trust, sued numerous entities (including Working Solutions, Inc. (WSI)) for underpayment of assessments owed to the trust.
- WSI and the Director executed a settlement requiring WSI to pay $210,264 in 42 monthly installments.
- The circuit court entered an order dismissing WSI with prejudice “pursuant to the terms of its settlement agreement” and stating that the court “retains jurisdiction to enforce said agreement.”
- WSI allegedly stopped making required payments.
- More than 30 days after the dismissal order, the Director moved to reduce the settlement to judgment.
- WSI objected that the court lacked jurisdiction because the dismissal with prejudice was final and the 30-day postjudgment period had expired.
- The circuit court rejected the jurisdictional objection and entered judgment against WSI for the amount due under the settlement.

## Issues

1. Whether a circuit court lacks jurisdiction to enforce a settlement more than 30 days after entering a dismissal with prejudice.
2. Whether an express retention-of-jurisdiction clause in the dismissal order preserves limited continuing jurisdiction to enforce the settlement and reduce it to judgment.

## Decision

- The appellate court affirmed.
- The circuit court’s dismissal order expressly retained jurisdiction to enforce the settlement agreement.
- That express reservation authorized the later enforcement order reducing the settlement obligation to judgment, even though more than 30 days had passed since dismissal.
- Enforcing the settlement under the reserved authority was not treated as an impermissible modification of the final dismissal.

## Legal Principles

- A dismissal with prejudice is generally a final judgment, and absent a timely postjudgment motion, the trial court ordinarily loses jurisdiction after 30 days.
- A trial court may preserve limited, continuing jurisdiction to enforce a settlement when the dismissal order clearly states that the court retains jurisdiction for that purpose.
- Language dismissing a party “pursuant to” the settlement and stating that the court “retains jurisdiction to enforce” the agreement is sufficient to reserve enforcement authority.
- Enforcement pursuant to an express reservation implements the settlement that supported dismissal, rather than reopening or altering the merits judgment.

## Conclusion

An Illinois circuit court may enforce a settlement and reduce it to judgment after a dismissal with prejudice and the lapse of 30 days when the dismissal order expressly retains jurisdiction to enforce the settlement agreement.


Dir. of Ins. for the State of Ill. v. A & A Midwest Rebuilders, Inc., 891 N.E.2d 500 (Ill. App. Ct. 2008)