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Chicago City Wire

Wednesday, August 6, 2025

City of Chicago hires Heller, Frisone & Pellizzari on contingency to collect municipal debts, FOIA records show

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Stephen R. Patton, former Corporation Counsel for the City of Chicago | Kirkland & Ellis LLP

Stephen R. Patton, former Corporation Counsel for the City of Chicago | Kirkland & Ellis LLP

The City of Chicago has engaged the law firm Heller, Frisone & Pellizzari, Ltd., formerly known as Heller & Frisone, to manage the collection of water debts, property damage claims, and other receivables under a contingency fee contract. This information was obtained through a Freedom of Information Act (FOIA) request.

Heller, Frisone & Pellizzari, Ltd., established in 1973 and located at 33 N. LaSalle St. in Chicago, specializes in consumer collection litigation and commercial litigation matters. The firm is recognized for providing collection services to the City of Chicago among other clients, underscoring its expertise in municipal collections.

According to the City of Chicago’s engagement letter dated January 2, 2013, the firm was appointed as Special Assistant Corporation Counsel to collect various debts including water debt, ordinance fines, property damage claims, and other receivables. The contract outlines contingency fee rates and continued after the firm's name change in 2024, as confirmed by a 2025 addendum.

A white paper published by the Washington Legal Foundation on July 16, 2025, discusses legal and policy issues associated with cities and counties hiring private law firms for public litigation. It examines statutory authority for such arrangements and questions whether municipal use of outside counsel should be subject to greater state oversight and controls.

The retention agreement between the City of Chicago and Heller, Frisone & Pellizzari specifies that the firm must comply with Payment Card Industry Data Security Standards (PCI DSS) during its municipal debt collection activities. The agreement mandates annual certification of PCI compliance and secure handling of all payment cardholder data throughout the engagement period.

FOIA records indicate that similar contingency fee collection contracts have been made by the City of Chicago with several law firms including Arnold Scott Harris, P.C.; Markoff Law LLC; Goldman & Grant; Heavner, Beyers & Mihlar, LLC; and Tristan & Cervantes, LLC. These agreements from 2012 to 2024 outline comparable fee arrangements and compliance obligations.