Chicago’s $1.1 billion metered parking deal upheld by appeals court

By Mike Scarcella

(Reuters) – A U.S. appeals court on Friday declined to reinstate a lawsuit from Chicago drivers who claimed the city’s costly parking meter rates were derived from a 75-year, $1.1 billion contract with a private company in violation of U.S. antitrust law.

The unanimous decision by a three-judge panel of the Chicago-based 7th U.S. Circuit of Appeals upheld the dismissal of the motorists’ legal challenge in Illinois federal court. The lawsuit sought to compel Chicago to end its long-term contract with Chicago Parking Meters LLC, the defendant in the case.

The cost of metered parking in Chicago increased following the city’s deal in 2008 with Chicago Parking Meters (CPM), which does business as ParkChicago, the appeals court said.

More than 80% of the city’s metered spaces average $2.50 per hour, and the downtown area has the highest rate at $7 hourly, according to ParkChicago’s website. CPM is responsible for the city’s 36,000 metered spaces, which the company said is the third-largest system in the United States.

Chicago had “authority to enter into this arrangement,” Circuit Judge Diane Wood wrote.

“The deal itself might have been foolish, short-sighted, or worse, and if one is to believe news reports, it may have saddled Chicago with the most expensive street parking in the country,” Wood wrote, “But that is not enough to state a claim for a violation of the antitrust laws.”

Lawyers for the Chicago driver plaintiffs and attorneys for Chicago Parking Meters did not immediately return messages on Friday seeking comment.

A representative from Chicago was not immediately reached for comment.

Chicago Parking Meters had the winning bid among 10 when the city moved to privatize parking spots in business and commercial areas, according to the appeals court.

The appeals court concluded in its ruling that Chicago has retained regulatory authority over Chicago Parking Meters, and that the relationship was shielded from antitrust liability.

The court also said “there is nothing unique or suspicious about a long-term contract.”

The case is Uetricht et al v. Chicago Parking Meters LLC, 7th U.S. Circuit Court of Appeals, No. 22-1166.