LA City Council Allocates Additional Funds for Legal Representation in Homelessness Case

On Wednesday, the Los Angeles City Council decided to allocate another $5 million to a law firm tasked with defending the city in a prolonged homeless-related legal situation. This decision has sparked some questions that will be sent to a committee for further analysis.

City attorney Hydee Feldstein Soto requested the council to approve this increase, raising the law firm’s contract with Gibson Dunn & Crutcher LLP to nearly $5.9 million.

In a prior vote in May, the council had agreed to compensate Gibson Dunn $900,000 for up to three years of service. However, within just three months, the law firm exceeded that initial figure, billing the city $3.2 million.

“Clearly, we’re not happy, and I’m not in a position to approve that bill we didn’t discuss,” Councillor Bob Blumenfield remarked. “We should have been informed when they exceeded that amount. The contract stipulates notifications at various levels, yet there were none.”

After over 90 minutes of closed-door discussions on Wednesday, the council decided to refer Feldstein Soto’s request to the budget committee for additional oversight.

Blumenfield, who sits on this committee, didn’t offer a timeline for when they would address Feldstein Soto’s request but emphasized the importance of ensuring that the city’s attorneys provide improved services for taxpayers.

The LA Alliance had raised concerns back in 2020, arguing that the city wasn’t doing enough to relocate individuals from outdoor settings and manage the density of encampments, especially in areas like Skid Row. Eventually, this group reached a settlement with the city, which mandated the construction of permanent homeless housing and the clearing of camps.

As part of that agreement, the city is required to provide 12,915 beds or alternative housing solutions by June 2027, including rental vouchers. Furthermore, the city must clear out 9,800 encampments—including tents and RVs—by June 2026.

Lawyers representing the LA Alliance contend that the city has repeatedly misinterpreted its commitments under the settlement. In May, they attempted to convince U.S. Judge David O. Carter to take control of the city’s homeless initiative and assign it to an independent receiver.

While Judge Carter ultimately declined to appoint a receiver, he determined that the city had violated the settlement in several respects.

Feldstein Soto did not provide immediate comments following the council’s actions. Previously, she had praised Gibson Dunn, stating through a spokesperson that they had achieved “exceptional outcomes and seamless expressions.”

The city is planning to appeal some of the judge’s orders. According to a confidential memo shared with The Times, Feldstein Soto indicated that a portion of the additional $5 million would cover costs up to June 2027 for the appeal process.

In her memo, she also commended Gibson Dunn for maintaining the city’s control over the homelessness program and for preventing several elected officials from being compelled to testify.

Blumenfield expressed appreciation for Gibson Dunn’s work but reiterated the need for Feldstein Soto to explore ways to reduce costs. “When you send it to the committee, it’s a signal that for various reasons, you’re not satisfied with what’s presented,” he noted.

Matthew Umhofer, an attorney for the LA Alliance, shared his disappointment after the meeting, saying, “It’s disheartening that the city isn’t blindly funding this unfortunate situation.”

“We hope the City Council committee is closely examining this matter,” he added.