Chicago City Wire

The City of Chicago has engaged the services of Tristan & Cervantes, LLC to recover various municipal debts, including water debt and property damage claims. This arrangement is under a contingency fee agreement, as detailed in a 2018 appointment letter obtained through a public records request.

According to its website, Tristan & Cervantes, LLC is a Minority Business Enterprise (MBE)-certified law firm based in Chicago. Established in 2002, the firm offers transactional, litigation, and consulting services to business, not-for-profit, and governmental clients. It also provides municipal representation, commercial litigation, real estate services, and governmental relations work while actively participating in community activities.

The contract obtained via the Freedom of Information Act (FOIA) reveals that Tristan & Cervantes will earn 25% on recovered water debt—with certain exceptions—30% for property damage claims, and 22% on other debts. No fee is charged if specific water debts are settled within 20 days following service shutoff notification or the actual shutoff. The agreement further specifies that contingency fees are calculated before deducting litigation costs from the City's share.

According to a July 2025 white paper by former Nebraska Attorney General Doug Peterson for the Washington Legal Foundation, hiring private law firms on contingency for public-impact litigation can raise concerns regarding oversight and conflicts of interest. Peterson emphasizes that state attorneys general should lead such cases to ensure accountability and warns against politicized lawyering that prioritizes private profit over public interest in municipal lawsuits.

The contract permits Tristan & Cervantes to initiate judgment enforcement and other collection actions without prior approval from the City. Monthly progress reports must be submitted in a format approved by the City. Additionally, the firm is required to comply with Payment Card Industry Data Security Standards and provide an annual compliance certification to protect payment cardholder data.

All proceeds collected by Tristan & Cervantes during the referral period must be remitted daily to the City or placed in the firm's client trust account for weekly transfer. Each payment must include debtor information to ensure accurate application to accounts. These stipulations are included in the FOIA-released agreement to maintain accountability and precise City records.