Chicago On The Hook For Paying Back Millions In Late Fees Collected For Parking, City Sticker Violations: Judge

The city of Chicago could be on the hook to pay drivers back millions of dollars following a class-action lawsuit that alleged it violated state law by tacking expensive late fees onto tickets for infractions like parking without a city sticker.

After years of litigation, Circuit Court Judge William B. Sullivan ordered the city to pay drivers back for the overcharges in an order Feb. 19.

The city said it’s considering an appeal. 

The lawsuit, originally filed in 2018, alleged Chicago had violated Illinois law by charging drivers more than $250 for certain violations, typically by adding on late penalties that sometimes doubled the price of the original ticket.  

Examples of the types of infractions in question include parking without a city sticker, parking within 15 feet of a fire hydrant and parking in a fire lane.

“The City’s excessive and oppressive municipal fine structure has had disastrous consequences on Chicagoans,” the 2018 complaint argued. “What starts out as a simple fine quickly doubles, followed by threats of losing their cars, driver’s licenses, jobs and ability to do business in Chicago.”

The city would be on the hook for $69.6 million in refunds, plaintiffs’ attorneys estimate in court filings. The city would also have to forgive $93.8 million in debt held by ticketed drivers.

The judgement would apply to more than 1 million citations issued by the city, according to court filings. 

“While we respect the judicial process, we are actively evaluating all available legal options, including an appeal,” Kristen Cabanban, a spokesperson for the city’s Law Department, said in an email. “This matter is not final, and the City intends to continue vigorously defending the interests of its residents.”

“They already appealed once and lost,” said plaintiffs’ attorney Jacie Zolna of the firm Zolna Swetland, LLC. “I’m not too worried about that.” 

Kyle Garchar, one of the named plaintiffs in the case, said he got hit with city sticker violations while parked outside his home in Bucktown when he was broke and in between jobs.

“(I) just couldn’t afford it, and kind of took the risk,” he said. These days, city stickers cost about $100 each for regular-sized passenger vehicles.

Garchar, who was working as a rideshare driver to make ends meet back then, was subsequently hit with late fees for his initial citations. Garchar said that at the time he felt “defeated.”

“It just becomes a kind of cycle of indebtedness,” he said.

Mike Blaha, the other named plaintiff, received eight citations for parking without a city sticker — each costing $200 — between 2013 and 2015, according to court records. 

Then he got three $150 citations between 2016 and 2018 for parking within 15 feet of a fire hydrant.

For each citation, he was then hammered with a late penalty worth the same amount as the initial fine, according to court records.

Finally, he was hit with collections costs worth 22% of the total fines and penalties for each citation.

The court put limits on how much drivers will be able to receive in restitution.

Sullivan ruled that drivers are only eligible for restitution for any amount they paid over $250 in fines and penalties for a single violation. Drivers are also eligible for restitution on collection fees, but only for any amount they paid over $55.

Zolna also said he wanted to put the city “on notice” that its debt collectors “better not be collecting” on ticket debt the judge voided in his ruling last week.

Cabanban said the city was “carefully evaluating the implications of the decision for its collection activity.”

“The City will comply with all applicable legal requirements as they are determined,” she said.

It’s not the first time Chicago will have had to pay millions to drivers over allegations of over-ticketing. 

In 2017, the city agreed to a $38.75 million settlement over a class-action lawsuit that alleged it had failed to give adequate notice to drivers ticketed after getting caught by red light cameras and speed cameras. 

Zolna is the same attorney behind the earlier lawsuit, which also alleged the city had over-ticketed drivers by doubling late payment fees sooner than allowed. 

tasoglin@chicagotribune.com