News Summary
The Los Angeles City Council has postponed a decision on funding an additional $5 million for Gibson Dunn & Crutcher LLP, which is representing the city in an ongoing homelessness lawsuit. City Attorney Hydee Feldstein Soto aims to increase the existing contract from $900,000 to $5.9 million due to growing legal fees related to the L.A. Alliance for Human Rights lawsuit. Concerns about financial oversight and the use of taxpayer funds have prompted further examination of this request by the budget committee.
Los Angeles – The Los Angeles City Council has delayed a decision on a request to fund an additional $5 million for the law firm Gibson Dunn & Crutcher LLP, which is representing the city in an ongoing homelessness case. This request was made by City Attorney Hydee Feldstein Soto, who aims to nearly double her office’s existing contract with the law firm from $900,000 to $5.9 million. The significant increase in funding is attributed to the substantial workload stemming from the L.A. Alliance for Human Rights lawsuit against the city.
The City Council had previously authorized $900,000 for Gibson Dunn over a two-year timeframe in May. However, within just three months, the law firm has racked up $3.2 million in legal bills, raising concerns among council members regarding financial oversight. Councilmember Bob Blumenfield expressed dissatisfaction, highlighting that the council was not informed when expenditures surpassed the contract limit, which is required protocol.
In May alone, Gibson Dunn billed the city $1.8 million for only two weeks of legal work, underscoring the escalating costs involved in the case. During a recent 90-minute closed session, the City Council decided to refer the funding request to the budget committee for further examination. A clear timeline for addressing this matter has yet to be established.
Background of the L.A. Alliance Lawsuit
The L.A. Alliance lawsuit, initiated in 2020, alleges the city has not adequately addressed the persistent homelessness crisis in Los Angeles. Following the filing of the lawsuit, a settlement was reached, requiring Los Angeles to create 12,915 new housing opportunities for homeless individuals by June 2027 and to remove 9,800 encampments by June 2026. The attorneys representing the L.A. Alliance claim that the city has failed to fulfill its obligations under this settlement.
In June, U.S. District Judge David O. Carter ruled that the city breached the terms of the settlement agreement. While he did not approve the request for a third-party receiver to monitor the city’s efforts toward addressing homelessness, the judge’s conclusion reignited discussions regarding the city’s compliance with the court-mandated requirements.
Implications for City Funding
The City Attorney’s office intends to appeal certain aspects of the judge’s order. This appeal necessitates the continued funding of Gibson Dunn, as the law firm is expected to represent the city in this matter until the commitments outlined in the settlement are fulfilled, which extends to June 2027, according to a confidential memo.
Despite the growing costs associated with legal fees, Feldstein Soto has previously commended Gibson Dunn for delivering exceptional results and representation throughout the ongoing case. However, some council members have voiced criticism of the request for more funding. Councilmember Monica Rodriguez has stated that the financial proposal should have been rejected outright, emphasizing the need for fiscal responsibility in handling city funds.
Concerns About Use of Taxpayer Funds
Public commentators during recent council meetings have raised alarm regarding the apparent misallocation of taxpayer funds towards litigation rather than investing in direct solutions to homelessness. The city has faced significant scrutiny over its handling of homelessness-related funding, a situation exacerbated by a recent audit report that revealed unverified expenses and unsatisfactory outcomes for those receiving assistance.
In response to these concerns, Blumenfield has called for the City Attorney to engage in negotiations with Gibson Dunn to explore potential cost-saving measures. He emphasized the importance of curbing unnecessary legal expenditures, prompting a reconsideration of how the city allocates funds in its efforts to address homelessness.
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Additional Resources
- Los Angeles Times: City Council Declines to Fund Law Firm
- MSN: L.A. City Council Balks at Law Firm Funding
- LAist: Is L.A. Breaking from Homelessness Agency?
- Encyclopedia Britannica: Homelessness
- Westside Current: L.A. Council Delays Legal Bill Vote
- Google Search: Homelessness Legal Issues Los Angeles
Author: STAFF HERE HOLLYWOOD
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