Chicago City Wire

The City of Chicago has engaged Arnold Scott Harris, P.C. as Special Assistant Corporation Counsel to collect unpaid parking tickets, water debts, and other city receivables on a contingency basis. This information was obtained through a public records request.

Arnold Scott Harris, P.C., a law firm based in Chicago, specializes in accounts receivable management and debt collection. Established in 1978, the firm serves a diverse clientele that includes government agencies, utilities, healthcare providers, retail businesses, and financial services companies. It operates from its office at 111 W. Jackson Blvd., Chicago and functions under various corporate names across different jurisdictions. The firm has a long-standing history of acting as outside counsel for public entities aiming to recover outstanding receivables.

According to the 2020 engagement letter acquired via the Freedom of Information Act (FOIA), Arnold Scott Harris, P.C. is tasked with collecting several types of debts for the City of Chicago. These include parking tickets, water debts, property damage claims, and subrogation claims. The contract specifies contingency fees: 18% for parking debt (or 30% if in bankruptcy), 25% for water debt (with exceptions), 30% for property damage claims, 25% for subrogation claims, and 22% on all other debts. The firm is required to remit proceeds to the city and provide monthly progress reports.

A July 2025 white paper by the Washington Legal Foundation critiques the practice of cities hiring private law firms for public-impact litigation and debt collection on contingency terms. Authored by former Nebraska Attorney General Doug Peterson, the report suggests these arrangements could raise legal questions about municipal authority and the alignment between public and private interests while highlighting state-level primacy in parens patriae actions.

The contract mandates Arnold Scott Harris, P.C. to adhere to federal, state, and local laws along with Payment Card Industry (PCI) Data Security Standards. This includes annual certificates of compliance. The firm is responsible for securing any payment cardholder data and must remit collections to the City daily or weekly while submitting monthly written reports on collection activities.