Chicago Considers Landmark $261 Million Settlement for Police Misconduct

On Monday, Chicago’s aldermen moved forward with a significant $261 million settlement related to police misconduct. Mayor Brandon Johnson’s administration proposed this settlement to resolve 16 lawsuits involving Detective Reynaldo Guevara. These allegations claim that Guevara falsely accused individuals of murder.

The settlement received strong support from the City Council’s Finance Committee, although aldermen expressed concern about the financial implications. Alderman Raymond Lopez, a frequent critic of such settlements, described it as both necessary and unpleasant, comparing it to ‘bad medicine.’ A final vote by the full council is expected later this month. If approved, this would mark the largest police misconduct settlement in Chicago’s history.

The lawsuits, filed by 17 individuals, cover 384 years spent in prison due to wrongful convictions. Law Department attorney Jessica Felker explained that this amounts to $680,000 per year of wrongful imprisonment. Felker stressed that the settlement benefits taxpayers by preventing potentially higher costs from individual lawsuits. The cases were resolved through 10 months of negotiations mediated by U.S. District Judge Mary M. Rowland.

Felker mentioned that the settlement is structured to provide certainty and spread payments over time. However, Chicago still faces 23 additional cases related to Guevara, as well as pending settlements involving the same officer. More lawsuits could arise as nine other individuals are contesting their convictions.

All 17 plaintiffs in this settlement group are represented by Loevy & Loevy, with the firm expected to receive approximately 40% of the settlement. Aldermen expressed relief at addressing these ongoing legal issues, despite the $261 million cost. Finance Committee Vice Chair Alderman Bill Conway described the settlement as both significant and necessary. Alderman Pat Dowell, chairing the Finance Committee, noted the importance of accountability.

Chicago plans to fund this four-installment settlement during 2027 and 2028, which could significantly impact the city’s strained budget. Last year, the city used debt to fund a $90 million settlement involving another officer, a move criticized for affecting credit ratings. To prevent further financial strain, the administration intends to budget $401 million for lawsuits next year, allowing payment of the Guevara settlement without additional debt.

Alderman Lopez emphasized the need for better budget management regarding police settlements. He noted that the city often exceeds budget allocations without consistent oversight. Alderman Nick Sposato encouraged resolving remaining Guevara cases promptly to avoid burdening future councils.

Despite the misconduct allegations, Felker informed the council that Guevara retains his city pension due to state law. Police interrogation practices have since changed, with mandatory recordings and new oversight measures implemented.

The Guevara scandal is poised to become the costliest in Chicago’s history, surpassing the $210 million spent on cases involving former Commander Jon Burge. Guevara, who retired a decade ago, denies the allegations. Still, many of the affected individuals, mostly Latino men, had their convictions overturned and received certificates of innocence. Guevara consistently invoked the Fifth Amendment, thus increasing the city’s liability for their lengthy imprisonments.

Before the proposed settlement, cases against Guevara had already cost Chicago around $160 million, including $43 million for recent settlements approved by aldermen.