City lawyers involved in a substantial payout for a homelessness case in Los Angeles are set to receive an additional $4 million.
Los Angeles City Council Approves Fivefold Increase in Contract with Law Firm Gibson Dunn & Crutcher
In a controversial move, the Los Angeles City Council has approved a fivefold increase in its contract with law firm Gibson Dunn & Crutcher. The decision, which was made on Wednesday, will see the firm's remuneration rise to nearly $5 million for the current fiscal year, which ends in June 2026.
The contract was initially capped at $900,000 for a three-year period. However, the city tapped $4 million from the city’s “unappropriated balance” to cover the increased costs. City Attorney Feldstein Soto, who heads the council’s budget committee, supported the move, stating that Gibson Dunn’s work has been "essential to protecting the city's interests."
The law firm was hired by the city in May to represent it in the L.A. Alliance for Human Rights case. In a landmark Supreme Court ruling, Gibson Dunn secured a decision that upheld laws prohibiting homeless people from camping in public spaces. However, the L.A. Alliance has repeatedly accused the city of failing to comply with the terms of a settlement agreement regarding the city’s handling of the homelessness crisis.
Councilmembers Tim McOsker, Adrin Nazarian, and Nithya Raman voted against the contract increase. McOsker was not satisfied with Gibson Dunn’s effort to scale back the amount it is charging the city, especially after the firm billed the city $1.8 million for two weeks of legal work, with 15 attorneys billing nearly $1,300 per hour.
Feldstein Soto, who initially hoped to increase the size of the Gibson Dunn contract to nearly $6 million through 2027, was rebuffed by council members. In a bid to appease the opposition, the firm shaved $210,000 off of the bill. A portion of the money will likely go toward the filing of an appeal of a federal judge's order in the LA Alliance case.
Councilmember Katy Yaroslavsky, who supports the move, noted that Gibson Dunn's work has been crucial in upholding the city's interests, particularly in the L.A. Alliance for Human Rights case. In a surprising turn of events, Feldstein Soto agreed to help with the cost of the Gibson Dunn contract, committing $1 million from her office's budget.
The councilmembers who voted against the increase in the contract with the law firm were primarily those known for opposing increased legal spending on this matter. Specific names were not publicly detailed. By transferring the money to the Gibson Dunn contract, the council depleted much of the funding that would have gone to outside law firms over the current budget year.
The decision has sparked debate among city residents and council members, with some expressing concerns about the cost and others emphasising the importance of strong legal representation in the ongoing homelessness crisis. The city council's decision will undoubtedly have significant implications for the future of the L.A. Alliance for Human Rights case and the city's approach to addressing homelessness.
