Dolton officials presented potential plans Tuesday for how the village could pay a $33.5 million judgment from a police chase lawsuit, fearing judicial action this week that would force property tax increases.
An Illinois Appellate Court in June 2024 affirmed the verdict on behalf of John Kyles, who died following a 2016 police chase in Dolton, and Duane Dunlap, who was left severely injured. The Illinois Supreme Court denied Dolton’s appeal of the appellate court decision in March 2025.
The village has yet to make payments on the $33.5 million, which has accrued 6% per year through interest, or about $2 million per year per the lawsuit petition. As of Feb. 20, the total amount owed is $40.6 million.
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“When it comes to Dolton’s duty to pay the judgment, Dolton appears to have had no strategy other than foot dragging and kicking the can down the road,” attorneys for the administrator for Kyles and a guardian for Dunlap said in a Feb. 6 court filing. “Dolton has been acting like the proverbial ostrich with its head in the sand.”
Dolton attorney Michael McGrath on Tuesday placed much of the blame for the village’s financial crisis on former Mayor Tiffany Henyard.
Dolton recently brought a lawsuit against Fifth Third Bank, which it said aided in Henyard’s misappropriations by allowing her to sign payments to vendors with checks from the village that were missing the clerk’s signature.
But attorneys for the plaintiffs in the police chase lawsuit say the current administration’s inaction has cost the village more in interest than they say Henyard stole or misappropriated.
The attorneys are looking to secure payment from the village through a municipal bond, which would place the burden on taxpayers, McGrath said.
McGrath and Dolton Mayor Jason House urged residents to attend a remote court hearing in the case at 10:30 a.m. on Friday, as the bond decision is up to Cook County Judge William Sullivan.
“I’m asking everyone to join the Zoom that we will provide, so that way when attorney McGrath makes the statements and arguments, there are a lot of faces that demonstrate how interested we are and the impact that can have on us,” House said.
Attorneys for the plaintiffs offered a potential 5% discount on a 10-year bond as an incentive for the village to take out a bond by March 1. The first payment on the bond would be due Jan. 1, 2027.
McGrath said issuing a $40 million bond would cost property owners, with the village’s average $150,000 home value, a minimum $655 per year, which would likely increase as collection rates decreased.
Another option McGrath presented is petitioning Gov. JB Pritzker to establish a financial planning and supervision commission to help the village develop a plan to alleviate its financial crisis, freezing all debts for up to two years.
“It might help you breathe a little bit and get through these tough times,” McGrath said.
Village attorneys blame its former insurers for Dolton’s inability to pay the judgment, and wrote in court filings that forcing the village to acquiesce would have devastating financial effects on residents.
McGrath said Tuesday the village and the plaintiffs of the police chase lawsuit joined together to hire an outside law firm to sue the insurers for acting in bad faith. McGrath said the American Alternative Insurance Corporation refused to settle before and during the trial, leading to the $33.5 million judgment.
McGrath said attorneys hope to recover as much as $100 million from the insurance company, though “the outcome on that case, like any litigation, is certainly not certain.” He said he expects the federal case will continue for at least five years.
Resident concerns
Dolton resident Leah Grinnage said after Tuesday’s meeting she hopes the village is able to receive help from the state to alleviate the debt from the police chase lawsuit.
“We need a lifeline,” Grinnage said. She said it would be a blessing if Pritzker granted the village assistance through the financial planning and supervision commission.
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Grinnage said if a bond is imposed on the taxpayers, “people are going to leave in droves.”
Resident and community organizer Dan Lee said he wondered if people would even be able to sell their houses.
“Word is going to be out,” Lee said. “(Residents) are going to be stuck with these houses, and they’re going to be worthless.”
Lee and Grinnage both blamed Henyard for the financial crisis and were optimistic about House’s administration’s intentions in solving it.
“I’m confident they’re going to do the best they can,” Lee said. “I’m not confident that they’re going to get all the outcomes they want. I’m looking at what they’ve accomplished so far, and we’re light years ahead of where we were. But the hole is light years deeper.”
Dolton police case
The 2016 Dolton police chase stemmed from a traffic violation after the Kyles’ and Dunlap’s car skidded through a stop sign. Police chased the vehicle for about a mile until the vehicle crashed into a building.
Kyles died while Dunlap was left with “severe, catastrophic and permanent injuries,” according to the wrongful death lawsuit filed in November 2019. The ruling from the Appellate Court in Illinois’ 1st Judicial District said attorneys claimed the police vehicle had a dashboard camera with footage that, despite a court order, the village never produced.
When the jury award was announced in August 2022, attorneys from Loevy & Loevy said they believed it to be one of the largest police misconduct cases in Illinois history.
“This is a case (the village) should have settled,” said Jon Loevy, an attorney representing the administrator for Kyles and a guardian for Dunlap. “They could have settled for a fraction of this.”
Despite Dolton’s appeal, the village never sought a stay on the payment and it was considered “present and due” when attorneys filed a petition on behalf of a guardian and administrator of the two men in January 2024, according to the petition.
The petition expressed concerns about the village’s ability to pay the judgment due to “a breakdown of governance” and insufficient insurance coverage. They detailed allegations of former Mayor Henyard’s spending woes, such as repeatedly misappropriating funds and refusing to disclose details of the village’s spending.
“Plaintiffs have reason to fear that Dolton, if not ordered to take affirmative steps to marshal assets to satisfy the judgment, will continue to fail to pay and that Dolton will dissipate and divert assets that might be otherwise be available to satisfy the judgment,” the petition said.
“Without granting the mandamus and other relief requested in this complaint, plaintiffs have a dim chance of being paid the judgment because there has been a complete breakdown of the village of Dolton’s accounting internal controls, and checks and balances, endangering plaintiffs’ judgment,” it said.