L.A. City Council Balks at $5-Million Request for Law Firm in Homelessness Case

Introduction to the Case

The Los Angeles City Council stopped short on Wednesday of giving an additional $5 million to a law firm hired to defend the city in a long running homelessness case, sending the question to a committee for additional vetting.

Background on the Request

City Atty. Hydee Feldstein Soto had asked the council to provide a nearly sixfold increase in her office’s contract with Gibson Dunn & Crutcher LLP, taking the cost up to $5.9 million. The council voted in May to provide Gibson Dunn $900,000 for up to three years of work. Over the following three months, the law firm blew way past that amount, racking up $3.2 million in bills.

Council Members’ Reactions

“Obviously, we are not happy, and not ready to pay that bill that we didn’t bargain for,” Councilmember Bob Blumenfield said. “We were supposed to have been notified when they were exceeding that amount. It’s written in the contract that we were supposed to be notified at different levels. We were not notified.” On Wednesday, after meeting behind closed doors for more than 90 minutes, the council sent Feldstein Soto’s request to the powerful budget committee for more review.

The Homelessness Case

The L.A. Alliance sued in 2020, saying the city was doing too little to move people homeless people indoors and address the concentration of encampments in Skid Row and elsewhere. The group eventually reached a settlement with the city that required, among other things, the construction of homeless housing beds and the removal of encampments. As part of the settlement, the city must provide 12,915 homeless beds or other housing opportunities, such as rental vouchers, by June 2027. L.A. also must remove 9,800 homeless encampments, such as tents or recreational vehicles, by June 2026.

Defense and Settlement

Lawyers for the L.A. Alliance contend the city has repeatedly fallen short of the obligations spelled out in the settlement. In May, the group attempted to persuade U.S. District Judge David O. Carter to seize control over the city’s homeless initiatives and turn them over to a third-party receiver. Gibson Dunn waged an aggressive defense of the city’s actions, issuing hundreds of objections and working to undermine key witness testimony. Carter ultimately rejected the request to appoint a receiver, but also concluded that the city had breached the settlement agreement in several ways.

Future Actions and Appeal

Feldstein Soto did not immediately comment on the council’s action. She has previously praised the law firm, saying through a spokesperson that it “delivered exceptional results and seamless representation.” The city is now planning to appeal portions of the judge’s order. Feldstein Soto said some of the additional $5 million would go toward work on that appeal, with Gibson Dunn representing the city through June 2027, according to a confidential memo reviewed by The Times.

Cost Considerations

Blumenfield also offered praise for Gibson Dunn, saying he appreciates the firm’s “good work for the city.” Nevertheless, he also wants Feldstein Soto to look for ways of cutting costs. “Sending it to committee sends a message — which is, we don’t like what was put before us for lots of reasons,” he said. Councilmember Monica Rodriguez voiced disappointment with Wednesday’s action, saying her colleagues were “kicking the can down the road.” Rodriguez, who opposed the $5-million contract increase, said the council should have rejected Feldstein Soto’s request outright.

Conclusion

The decision by the L.A. City Council to send the request for an additional $5 million to a law firm to a committee for further review highlights the complexity and challenges of addressing homelessness in Los Angeles. The city’s efforts to defend itself against allegations of not doing enough to provide housing and services for homeless individuals have been costly, and the council’s move suggests a desire for greater oversight and fiscal responsibility. As the city moves forward with its appeal and continues to work towards meeting the terms of the settlement, it will be important to balance the need for effective legal representation with the need to use taxpayer funds efficiently and effectively.

FAQs

• Q: What is the current status of the contract between the city and Gibson Dunn & Crutcher LLP?
  A: The city council has sent the request for an additional $5 million to the budget committee for further review.
• Q: Why did the city council decide not to approve the additional funding immediately?
  A: The council members expressed dissatisfaction with the law firm’s billing practices and the lack of notification when the costs exceeded the initial amount.
• Q: What are the terms of the settlement agreement between the city and the L.A. Alliance?
  A: The city must provide 12,915 homeless beds or other housing opportunities by June 2027 and remove 9,800 homeless encampments by June 2026.
• Q: What is the next step in the legal process?
  A: The city is planning to appeal portions of the judge’s order, with Gibson Dunn representing the city through June 2027.