Chicago eliminates billion dollar liability through settlement with parking meter operator
Clients Chicago, City of
Jones Day defended the City of Chicago in a claim brought by Chicago Parking Meters, LLC ("CPM") for breach of the parties' agreement over the sale of a 75 year concession interest to operate Chicago's parking meters. CPM sought damages of over a billion dollars, making it the largest litigation exposure ever faced by the City. Jones Day worked with the City's finance and legal teams to negotiate a settlement under which the City only paid $8.9 million to eliminate the more than billion dollar exposure. The parties also amended the Agreement to significantly reduce the City’s exposure to losses and costs under the Agreement going forward and to provide new benefits to Chicagoans. These amended provisions require CPM to implement Pay-by-Cell technology, change the hours of operation to permit free Sunday parking in City neighborhoods, give the City the option to reverse the exercise of a police power change to the metered parking system and eliminate the effect of that exercise on future True-Up Adjustments and allow the parties to ask an expert economist to review a particular True-Up Adjustment.
Chicago Parking Meters, LLC v. The City of Chicago, No. 51 181 Y 01253 (AAA)