The city of Los Angeles has recently engaged the law firm Gibson, Dunn and Crutcher to represent it in a significant federal court case concerning the city’s obligations to provide shelter for its unhoused population.
This decision comes with a hefty price tag, as the city has allocated $900,000 for a two-year contract with the firm, according to public records.
Gibson, Dunn and Crutcher has a well-established record of handling major cases across the country and beyond, including their involvement last year in a landmark Supreme Court case regarding enforcement of camping rules in public spaces, representing the city of Grants Pass, Oregon.
Reports indicate the firm had already been representing Los Angeles in court filings as of last week, indicating a swift transition from the previous representation by the city attorney’s office after years of the case moving through the court systems.
The backdrop of this costly decision is a critical moment for the city, as U.S. District Court Judge David O. Carter is currently deliberating whether to transfer control of homelessness spending away from the city to a court-appointed receiver.
This contract arrives coincidentally amid a glaring nearly $1 billion budget deficit, raising eyebrows about the allocation of funds amid a budget crisis.
Matthew Umhofer, a lawyer representing the plaintiffs in the case, the L.A. Alliance for Human Rights, has publicly criticized the decision, highlighting the inconsistency of spending such significant amounts on legal representation when the city is simultaneously implementing cuts to services across the board, particularly in relation to homelessness.
Umhofer mentioned that the overall cost could escalate over time, questioning the prudence of choosing to hire a large firm in light of the city’s financial struggles.
LAist has reached out to city authorities, including the mayor’s office, for comments regarding the contract but has yet to receive a timely response.
During a recent court hearing, the L.A. Alliance’s attorney engaged with City Administrative Officer Matt Szabo regarding the legal contract with Gibson, Dunn and Crutcher.
After a break in the proceedings, attorney Elizabeth Mitchell questioned Szabo about whether the city is facing a budget crisis, to which Szabo noted that he would not label it as such, describing it instead as experiencing ‘severe financial challenges.’
When pressed for details regarding the firm’s hourly billing rates, the city objected, leading Szabo to avoid answering.
Hiring outside counsel for substantial cases is a common approach for municipalities.
In its current budget, Los Angeles allocated over $3.2 million for outside legal counsel, in addition to $4.4 million transferred to the city attorney’s budget for unexpected legal costs.
Earlier this month, the city attorney’s office sought further funding from the City Council for outside legal representation, as highlighted in a report dated May 14.
A database called the Regional Alliance Marketplace for Procurement (RAMP) lists some of the most recent contracts with law firms, although it does not encompass all agreements.
Included in the database are contracts ranging from $2.2 million to $4.7 million for nearly five-year terms related to legal matters involving the Hyperion Water Reclamation Plant sewer spill that began in July 2021.
Another contract for $525,000 with Keesal, Young and Logan pertains to a lawsuit regarding a 2021 fireworks explosion in South L.A., which left 17 people injured and displaced numerous families.
This contract has a listed term of three years, with the amount starting at $125,000.
Furthermore, two other contracts for $126,000 and $200,000 with Sanders Roberts and Willkie Farr and Gallagher relate to an employee retaliation case involving the city attorney’s office, both spanning almost three years.
The city attorney’s office did not respond promptly to LAist’s inquiries about the Gibson, Dunn and Crutcher contract, specifically regarding when it would be delivered to the city clerk for signature approval.
According to a representative from the city clerk’s office, such contracts can only be certified once received, a process that generally takes about one or two days, with the contract becoming public immediately upon certification.
Gibson, Dunn and Crutcher has also been involved in other high-profile cases recently.
For instance, in 2023, they represented protester Deon Jones against the city and a police officer for alleged violations of his constitutional rights during a protest following the murder of George Floyd in 2020.
A jury ruled in Jones’ favor, awarding him $375,000 in damages. Subsequently, the city settled the case for a total of $860,000.
In the Grants Pass case, the Supreme Court ruled 6-3 in favor of the Oregon city, affirming the legality of an ordinance prohibiting camping by the unhoused in public spaces, thereby increasing the authority cities have to penalize such actions.
As the situation continues to unfold in Los Angeles, the city’s decisions regarding legal representation will likely remain a focal point amid pressing financial challenges and the ongoing homelessness crisis.
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