City of Chicago $1.43M Vehicle Towing Class Action Settlement

Individuals who owned a vehicle that the City of Chicago towed on or after June 11, 2017, under its abandoned vehicle ordinance and did not have current state registration at the time of the tow may qualify to submit a claim for up to $1,250 from a class action settlement.

The City of Chicago agreed to pay $1.43 million to settle a class action lawsuit alleging the city towed certain vehicles it declared abandoned without first mailing notice to the owners if they lacked current registration. The plaintiffs claimed this practice violated due process rights under the U.S. and Illinois constitutions.

Who can file a claim for a settlement payout?

Class members must meet the following criteria:

• The City of Chicago declared their vehicle abandoned and towed it on or after June 11, 2017.
• The tow occurred under Municipal Code of Chicago § 9-80-110(a)(2) (previously § 9-80-110(a)(b) and later § 9-80-110(a)(ii)).
• The vehicle lacked current state registration at the time of the tow.
• They did not intend to abandon the towed vehicle.

How much are settlement payments?

Pro rata cash payment: Class members can submit a claim to receive reimbursement up to $1,250 for towing, storage or other fees they paid to obtain their vehicle. The settlement administrator will determine the final payment amount by the total number of claims filed.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or use the same link to print a PDF claim form to complete and mail to the settlement administrator.

Settlement administrator's mailing address: Santiago, et al. v. City of Chicago Settlement Administrator, P.O. Box 301132, Los Angeles, CA 90030-1132

The claim deadline is Aug. 12, 2026.

Required claim information

• All class members must provide the claim ID and PIN from official settlement notice the class member received.
• They must also provide the vehicle make and license plate number.
• Claimants receiving a settlement payment of $600 or more may be required to submit a Form W-9 at a later date.

Payout options

• Paper check mailed to the address provided

Settlement fund breakdown

The settlement fund will include:

• Settlement administration costs: Up to $80,000
• Attorneys' fees: $395,000
• Attorneys' expenses: Up to $32,000
• Service awards to class representatives: $25,000 to one plaintiff and $5,000 to a second ($30,000 total)
• Payments to approved claimants: Up to $1,425,000

Important dates

• Deadline to opt out: Aug. 5, 2026
• Deadline to file a claim: Aug. 12, 2026
• Final approval hearing: Sept. 30, 2026

When is the Santiago v. City of Chicago payout date?

The settlement administrator will issue payments to approved claimants approximately 52 days after the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged the City of Chicago towed vehicles it deemed abandoned without providing prior mailed notice to the owners if the vehicles lacked current registration. The plaintiffs argued this violated due process rights under the U.S. and Illinois constitutions.

The city denies the allegations but agreed to settle to avoid the expense and risk of continued litigation. As part of the settlement, the city also agreed to mail one notice to vehicle owners prior to towing vehicles it deems abandoned under the relevant ordinance.

Sources

1. Settlement website FAQ page
2. Class notice
3. Settlement agreement