Dolton Faces $40M Judgment in Police Chase Case: Tax Hike Fears

Dolton Faces Mounting Debt, Tax Increase Looms Over $40.6 Million Judgment

Dolton, Illinois, is grappling with a deepening financial crisis as it faces a total debt of $40.6 million stemming from a 2016 police chase that resulted in a fatality and severe injuries. The figure includes $6.1 million in accrued interest on the original $33.5 million judgment, assessed at a rate of 6% annually, according to a lawsuit petition.

An Illinois Appellate Court affirmed the $33.5 million verdict in June 2024 on behalf of the estate of John Kyles, who died following the chase, and Duane Dunlap, who sustained “severe, catastrophic and permanent injuries.” The Illinois Supreme Court subsequently denied Dolton’s appeal in March 2025. The chase originated from a traffic violation – the men’s vehicle reportedly skidded through a stop sign – and continued for approximately a mile before the vehicle crashed.

Village officials presented a plan Tuesday to address the mounting debt, fearing judicial action that could force property tax increases. Attorneys representing Kyles’ estate and Dunlap are seeking a resolution through a municipal bond, which would place the financial burden on Dolton taxpayers, explained Dolton attorney Michael McGrath.

Dolton Mayor Jason House urged residents to participate in a remote court hearing scheduled for Friday at 10:30 a.m., emphasizing the importance of demonstrating community concern to Cook County Judge William Sullivan, who will decide on the bond proposal. “I’m asking everyone to join the Zoom…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.

Plaintiffs’ attorneys have offered a potential 5% discount on a 10-year bond if issued by March 1, with the first payment due on January 1, 2027. However, McGrath cautioned that issuing a $40 million bond could cost property owners a minimum of $655 annually, a figure potentially subject to increase based on collection rates.

Another option being considered is a request to Illinois Governor JB Pritzker to establish a financial planning and supervision commission. This commission would aim to develop a plan to alleviate the village’s financial crisis, potentially freezing debts for up to two years.

Village attorneys attribute Dolton’s financial predicament to its insurance providers, alleging bad faith conduct in court filings. They claim the insurers refused to settle the case before and during the trial, ultimately leading to the substantial $33.5 million judgment. McGrath stated that the village and the plaintiffs have jointly retained outside counsel to pursue a lawsuit against the insurers, hoping to recover as much as $100 million.

The case has sparked concern among Dolton residents. Leah Grinnage, a Dolton resident who attended Tuesday’s meeting, expressed hope for state assistance. “We need a lifeline,” she said, adding that imposing a bond on taxpayers could lead to an exodus of residents.

Court documents reveal that attorneys for the plaintiffs argued the village failed to produce dashboard camera footage from the police vehicle, despite a court order. When the jury announced the $33.5 million award in August 2022, attorneys from Loevy & Loevy described it as one of the largest police misconduct verdicts in Illinois history. Jon Loevy, an attorney representing the administrator for Kyles and a guardian for Dunlap, stated at the time, “This is a case (the village) should have settled. They could have settled for a fraction of this.”

A petition filed in January 2024 raised concerns about the village’s financial stability, citing a “breakdown of governance” and insufficient insurance coverage. The petition also detailed allegations of financial mismanagement under former Mayor Tiffany Henyard, including alleged misappropriation of funds and a lack of transparency in village spending. The petition warned that without intervention, the plaintiffs had “a dim chance of being paid the judgment” due to the village’s internal control failures.