Chicago Hires Law Firm to Recover City Debts
Chicago Retains Tristan & Cervantes to Pursue Municipal Debts
The City of Chicago has retained Tristan & Cervantes, LLC, a Minority Business Enterprise (MBE)-certified law firm, to recover various municipal debts—ranging from unpaid water bills to property damage claims—under a contingency fee agreement detailed in a 2018 appointment letter obtained through a public records request.
Founded in 2002 and based in Chicago, Tristan & Cervantes provides transactional, litigation, and consulting services to business, nonprofit, and government clients. The firm’s practice areas include municipal representation, commercial litigation, real estate services, and governmental relations, alongside active community involvement.
Terms of the Agreement
The Freedom of Information Act (FOIA)-released contract outlines specific fee arrangements:
25% of recovered water debt (with certain exceptions)
30% for property damage claims
22% for other debts
No contingency fee applies if specified water debts are settled within 20 days after a service shutoff notice or following an actual shutoff. Fees are calculated on the gross recovery before litigation costs are deducted from the City’s portion.
Under the agreement, Tristan & Cervantes may initiate judgment enforcement and other collection actions without prior City approval. The firm must submit monthly progress reports in an approved format, comply with Payment Card Industry Data Security Standards (PCI DSS), and provide annual compliance certifications to protect payment cardholder data.
Oversight Concerns
A July 2025 white paper by former Nebraska Attorney General Doug Peterson for the Washington Legal Foundation raised broader concerns about municipalities hiring private law firms on contingency for public-impact litigation. Peterson argued such cases should be led by state attorneys general to ensure accountability, warning against “politicized lawyering” that could prioritize private profit over public interest.
Accountability Measures
The contract requires all proceeds collected during the referral period to be remitted daily to the City or placed in the firm’s client trust account for weekly transfer. Each payment must include detailed debtor information to ensure accurate account application and maintain precise municipal records.
City officials have not publicly commented on the recent FOIA disclosure, but the agreement reflects Chicago’s continued efforts to address outstanding debts while balancing efficiency, accountability, and fiscal oversight.
