The Los Angeles City Council on Wednesday authorized an additional $1.8 million to cover outside legal fees related to ongoing litigation stemming from a settlement concerning the city’s response to homelessness.
Legal Costs Continue to Rise
The council voted 9-4 to approve City Attorney Hydee Feldstein Soto’s request for increased funding for the law firm Gibson Dunn & Crutcher LLP. The decision followed a two-hour closed-door discussion. The $1.8 million will be drawn from a previously approved $5 million allocation for the contract.
Council members John Lee, Tim McOsker, Imelda Padilla, and Monica Rodriguez opposed the funding increase. Council members Nithya Raman and Curren Price were absent during the vote. Ivor Pine, a spokesman for Feldstein Soto, stated that “the best interests of the city are served by continuing to work with Gibson, a firm that has exceeded expectations and delivered exceptional results for the city.”
Background of the Litigation
The lawsuit originated in 2020 when the LA Alliance for Human Rights, comprised of business owners and residents, sued the city and county of Los Angeles. The plaintiffs sought to compel greater efforts to shelter the city’s homeless population. A settlement was reached in 2022, overseen by U.S. District Judge David Carter.
However, last summer, Judge Carter determined the city had not met its obligations under the settlement agreement. The agreement mandates the creation of 12,915 shelter beds and the removal of 9,800 encampments by June 2027. As of recent court filings, over 3,800 beds still need to be established.
Judge Carter, in his order, noted the city’s “consistent lack of cooperation and responsiveness — an unwillingness to provide documentation unless compelled by court order or media scrutiny.” While stopping short of declaring a full breach of the agreement or appointing a receiver, the judge did install a federal monitor to oversee the city’s compliance. In January, the city was ordered to pay over $1.8 million in attorneys’ fees and costs to the Alliance and related groups, a decision the city is currently appealing.
To date, the contract with Gibson Dunn & Crutcher LLP has grown to nearly $7.5 million with Wednesday’s approval. The firm billed the city $1.8 million for approximately two weeks of work, with attorneys charging up to $1,295 per hour. By August 2025, the firm had billed an additional $3.2 million.
Frequently Asked Questions
What is the LA Alliance for Human Rights?
The LA Alliance for Human Rights is a group of business owners and residents who sued the city and county of Los Angeles in 2020 to ensure more homeless people were sheltered.
What did Judge Carter determine last summer?
Last summer, Judge Carter determined the city failed to meet its obligations under the 2022 settlement agreement regarding the creation of shelter beds and removal of encampments.
What is the current status of the city’s appeal?
Attorneys representing the city appealed Judge Carter’s January decision ordering Los Angeles to pay over $1.8 million in attorneys’ fees and costs to the Alliance and other groups.
As the city continues to navigate this complex legal battle, it remains to be seen whether the increased legal representation will be sufficient to achieve compliance with the settlement agreement and address the ongoing homelessness crisis.
