The 901 Report
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Critical: Zero Reserve

Nichols Civil Trial, $550M Exposure

The civil trial in the Tyre Nichols case begins July 13, 2026, 34 days after the June 9 budget vote. The plaintiffs' demand is $550 million. The City's own court filings concede a verdict at the demand level 'would essentially bankrupt Memphis.' The FY27 Proposed Budget contains zero contingency reserve for any outcome.

Demand
$550,000,000
Trial Date
July 13, 2026
Days After Vote
34
Reserve in FY27
$0

Sources

  • Trial date set
    U.S. District Court Order, Judge Mark Norris · Jan. 3, 2025 ↗
  • $550M demand & bankruptcy warning
    City of Memphis court filing; FOX13, Local Memphis, WMC · 2025–2026 ↗
  • No reserve line
    FY27 Proposed Budget (204 pages) · Entire document

Questions Council Should Ask

  1. Why is there no contingency reserve for a known July 13 trial?
  2. What is the City's settlement authority and current posture?
  3. If the verdict exceeds reserves, which services get cut first?