Chicago aldermen are lining up behind a proposed $1.96 million settlement that could give thousands of drivers a second shot at saving their cars from being towed, impounded or scrapped. The deal stems from a long‑running lawsuit filed by Andrea Santiago after the city labeled her wheelchair‑accessible van “abandoned,” towed it and ultimately disposed of it.
The City Council’s Finance Committee voted unanimously on Wednesday to advance the plan to the full council for a final vote next week, according to the Chicago Sun-Times. Committee approval puts the deal on the council’s agenda, a necessary step before any money is paid out or policies are rewritten.
What The Settlement Would Change
If the full City Council signs off, the city would create a roughly $1.43 million compensation fund for Chicagoans whose cars without valid state registration were towed after June 11, 2017. Under the proposal, eligible drivers could receive $1,250 if their car was scrapped, or a refund of fees they paid to retrieve a towed vehicle.
The agreement would also tighten the city’s notice rules. Officials would have to mail an extra warning to owners whose cars lack valid registration stickers and send two separate mailed notices to the owners of impounded vehicles before those cars can be sold or junked.
On top of the fund, the package would pay Santiago $25,000 and cover more than $400,000 in court costs and attorney fees, bringing the total hit to taxpayers to about $1.96 million, as reported by WTTW.
Santiago filed her lawsuit in 2018. Court records show a federal judge later certified classes that include vehicles towed as “abandoned” since June 11, 2017, and vehicles disposed of since June 11, 2014. In those filings, plaintiffs argue the city frequently failed to mail pre‑tow warnings to owners of unregistered cars, a procedural gap the settlement is meant to close, according to documents posted on Justia.
Why It Matters
For years, local reporting has flagged serious problems with how Chicago flags “abandoned” vehicles, hauls them away and decides their fate. Investigations have documented huge numbers of impounds and a towing pipeline that channels many unclaimed cars to a small group of contractors, with a significant share ending up sold for scrap. That body of work, which tracked tens of thousands of impounds in some years, helped fuel public outrage and set the stage for legal challenges, according to WBEZ.
The full City Council is expected to vote on the settlement next week. If aldermen approve it, the city would have to set up a formal claims process and change its notice practices so owners receive additional mailed warnings and more time to reclaim their vehicles. Driver advocates and some council members could still push to tweak the details during debate, and the final vote will decide whether taxpayers absorb the roughly $1.96 million price tag now or watch the litigation drag on, according to WTTW.
