Dolton officials presented a plan Tuesday for how the village will pay for a $33.5 million judgment from a police chase lawsuit, fearing judicial action this week that would force property tax increases.
An Illinois Appellate Court in June 2024 affirmed the verdict on behalf of John Kyles, who died following a 2016 police chase in Dolton and Duane Dunlap, who was left severely injured. The Illinois Supreme Court denied Dolton’s appeal of the appellate court decision in March 2025.
The village has yet to make payments on the $33.5 million, which has accrued 6% per year through interest, or $2.1 million per year per the a lawsuit petition. As of Feb. 20, the total amount owed is $40.6 million.
Attorneys for the administrator for Kyles and a guardian for Dunlap are looking to secure payment from the village through a municipal bond, which would place the burden on the taxpayers, Dolton attorney Michael McGrath said Tuesday.
McGrath and Dolton Mayor Jason House urged residents to attend a remote court hearing in the case at 10:30 a.m. on Friday, as the bond decision is up to Cook County Judge William Sullivan.
“I’m asking everyone to join the Zoom that we will provide, so that way when attorney McGrath makes the statements and arguments, there are a lot of faces that demonstrate how interested we are and the impact that can have on us,” House said.
To incentivize the village to take out a bond by March 1, attorneys for the plaintiffs offered a potential 5% discount on a 10-year bond. The first payment on the bond would be due Jan. 1, 2027.
McGrath said issuing a $40 million bond would cost property owners a minimum $655 per year, which would likely increase as collection rates decreased.
Another option McGrath presented is asking Gov. JB Pritzker to establish a financial planning and supervision commission to help the village develop a plan to alleviate its financial crisis, freezing all debts for up to two years.
Village attorneys blame its insurers for Dolton’s inability to pay the judgment and wrote in court filings that forcing the village to acquiesce would have devastating financial effects on residents.
McGrath said Tuesday the village and the plaintiffs of the police chase lawsuit joined together to hire an outside law firm to sue Dolton’s insurers for acting in bad faith. McGrath said the company refused to settle before and during the trial, leading to the $33.5 million judgment.
McGrath said attorneys hope to recover as much as $100 million from the insurance company.
Dolton resident Leah Grinnage said after Tuesday’s meeting she hopes the village is able to receive help from the state to alleviate the debt from the police chase lawsuit.
“We need a lifeline,” Grinnage said.
She said if a bond is imposed on the taxpayers, “people are going to leave in droves.”
The 2016 Dolton police chase stemmed from a traffic violation after the men’s car skidded through a stop sign. Police chased the vehicle for about a mile until the vehicle crashed into a building.
Kyles died while Dunlap was left with “severe, catastrophic and permanent injuries,” according to the wrongful death lawsuit filed in November 2019. The ruling from the Appellate Court in Illinois’ 1st Judicial District said attorneys claimed the police vehicle had a dashboard camera with footage that, despite a court order, the village never produced.
When the jury award was announced in August 2022, attorneys from Loevy & Loevy said they believed it to be one of the largest police misconduct cases in Illinois history.
“This is a case (the village) should have settled,” said Jon Loevy, an attorney representing the administrator for Kyles and a guardian for Dunlap. “They could have settled for a fraction of this.”
Despite Dolton’s appeal, the village never sought a stay on the payment and it was considered “present and due” when attorneys filed a petition on behalf of a guardian and administrator of the two men in January 2024, according to the petition.
The petition expressed concerns about the village’s ability to pay the judgment due to “a breakdown of governance” and insufficient insurance coverage. They detailed allegations of former Mayor Tiffany Henyard’s spending woes, such as repeatedly misappropriating funds and refusing to disclose details of the village’s spending.
“Plaintiffs have reason to fear that Dolton, if not ordered to take affirmative steps to marshal assets to satisfy the judgment, will continue to fail to pay and that Dolton will dissipate and divert assets that might be otherwise be available to satisfy the judgment,” the petition said.
“Without granting the mandamus and other relief requested in this complaint, plaintiffs have a dim chance of being paid the judgment because there has been a complete breakdown of the village of Dolton’s accounting internal controls, and checks and balances, endangering plaintiffs’ judgment,” it said.
ostevens@chicagotribune.com
