In a split decision Thursday, Chicago Board of Education members voted to increase to $75,000 the amount the board can spend on legal fees as it continues to face a legal challenge by outgoing CEO Pedro Martinez.
The CEO has been at odds with the School Board and the mayor’s office for months. He was terminated by the previous board without cause in late December, though he will stay on until June.
Initially, the board approved a $40,000 contract for firm Cozen O’Connor in mid-November, just two and a half months ago. While the amount is not much in the scope of a $9.8 billion budget, it shows that costs are adding up in a leadership drama that has gripped Chicago Public Schools since the summer. At its root is a bitter disagreement between the CEO and the mayor’s office over how to deal with a budget deficit and how to settle the Chicago Teachers Union contract.
Thursday’s vote took place after a two and half hour closed session. Twelve members voted in favor of the measure and six voted no. The votes aligned with the board members’ affiliations. Among those that voted in favor of increasing the law firm’s contract, eight were appointed by the mayor, three were supported by the Chicago Teachers Union during the fall election, and one ran as an independent. All the no votes were elected members who were not endorsed by the CTU, except one. One board member didn’t vote and the board president only votes to break a tie.
At the time the board first hired the Cozen O’Connor firm in November, it had only seven mayoral-appointed members.
Soon after, the Chicago Tribune reported that the board had offered Martinez a buyout. The board wanted to pay Martinez to exit quickly, despite a clause in his contract that allowed him to stay on for six months after being terminated without cause.
Martinez then hired his own lawyer, who declared in December that the CEO would reject the buyout, as he wanted to stay in his “dream job” until his contract expired in June 2026.
Ultimately, the board voted in a dramatic Friday meeting right before Christmas to fire Martinez without cause, leaving him on the job until June. His contract says he maintains his position as CEO during his last six months. Martinez warned that if his role changed, he would challenge it in court.
Just a few days later, board members showed up at a CTU contract negotiation session. Martinez had already sued the board to try to prevent his termination, and immediately, his lawyer asked for a temporary restraining order to prevent board members from entering into negotiations without the CEO’s permission. A judge granted Martinez that temporary order and the larger case is still pending.
The school district spends millions on outside law firms. At Thursday’s board meeting, board members approved a slight increase, to almost $4.7 million, that CPS is authorized to spend on outside law firms. They work on a variety of areas, from talent to real estate. The law firm that stands to make the most, Franczek, P.C., is handling negotiations for CPS with the CTU. The maximum Franczek can earn under the current contract is $850,000.
Sarah Karp covers education for WBEZ. Follow her on X @WBEZeducation and @sskedreporter.