LA hires big law firm — at $900,000 — in long-running court battle over homelessness spending

The city of Los Angeles has hired a new firm to represent it in a high-profile federal court case that focuses on whether the city failed to meet its obligations to provide shelter for its unhoused population.

The firm — Gibson, Dunn and Crutcher — has handled major cases around the country and beyond, including last year when the firm represented the city of Grants Pass, Oregon, in a landmark Supreme Court case about how cities can enforce rules about people who camp in public spaces.

L.A. is paying $900,000 for a two-year contract for outside counsel on this case, according to publicly-available online records. LAist has made formal and informal requests for the city’s contract with the firm, but authorities have said they can’t provide the document until after it’s been signed by the city clerk.

Gibson, Dunn and Crutcher attorneys have been representing the city since at least last week, according to court filings. Previously, the city attorney’s office had represented the city in the case, which has been moving through the court for several years.

It’s a high-cost move at a high-stakes moment. In the hearing that began this week, U.S. District Court Judge David O. Carter is weighing whether to transfer control of homelessness spending from the city to a court-appointed receiver.

And it comes at a time when the city is facing a nearly $1 billion budget deficit.

Matthew Umhofer, one of the lawyers who represents the L.A. Alliance for Human Rights, the plaintiffs in the case in front of Carter, questioned both the cost of the city contract and the timing.

“For the city to be in a budget crisis and be cutting back on services across the board, including services on the homelessness side of things, but then be willing to spend potentially over a million dollars on a big firm is at the very least inconsistent with a lot of what the city has said.” Umhofer told LAist, noting that the cost for the firm could grow over time.

LAist reached out to city authorities, including the mayor's office, for comment on the contract but didn't immediately receive a response.

What we know

On Thursday, a lawyer for the L.A. Alliance for Human Rights questioned the city’s administrative officer about the contract with the law firm.

After a recess, attorney Elizabeth Mitchell asked City Administrative Officer Matt Szabo if the city is in a budget crisis. Szabo said he wouldn’t call it that, referring to it as “severe financial challenges."

After confirming with Szabo that layoffs are part of the proposed city budget for the upcoming fiscal year, Mitchell then asked about the firm’s hourly billing rates. The city objected to the questions, and Szabo did not have to answer.

It’s fairly common for cities to hire outside counsel to handle big cases. In L.A.'s current city budget, more than $3.2 million was approved for outside counsel, along with an additional $4.4 million transferred to the city attorney’s budget to cover additional costs.

Earlier this month, the city attorney’s office asked the City Council for more funding for outside counsel, according to a May 14 report.

Some of the city’s most recent contracts with law firms are listed in a database titled Regional Alliance Marketplace for Procurement, or RAMP. It is not an exhaustive list, as it only has information on contracts entered into or modified since January.

Among those contracts were:

• Three contracts ranging from $2.2 million to $4.7 million for nearly five-year terms for legal matters related to the Hyperion Water Reclamation Plant sewer spill that started in July 2021.

• A $525,000 contract with Keesal, Young and Logan to represent the city in a lawsuit stemming from a 2021 fireworks explosion in South L.A. that injured 17 people and displaced a dozen families from their homes is listed as having a three-year term. The contract, which appears to be posted on the city clerk’s website, has the cost listed as $125,000 for the same start date.

• Two contracts for $126,000 and $200,000 with Sanders Roberts and Willkie Farr and Gallagher in an employee retaliation case involving the city attorney's office, both for nearly three-year terms. 

The city attorney’s office didn’t immediately respond to LAist’s questions about the Gibson, Dunn and Crutcher contract, including when it was sent to the city clerk for a signature.

A representative from the city clerk’s office said in an email that the clerk can only formally certify a contract when it’s been received, adding that the process takes about a day or two and the contract becomes public immediately afterward.

Other high-profile Gibson, Dunn and Crutcher cases

In 2023, the firm represented protester Deon Jones, who sued the city and a police officer, accusing both of violating his constitutional rights. Jones was at a local protest after the murder of George Floyd in 2020, when Jones was hit in the face with a rubber bullet. A federal jury found that the officer violated Jones' rights under the Fourth Amendment and awarded him $375,000 in damages. Later, the city settled with Jones for $860,000.

In the Grants Pass case, the court sided with the Oregon city in a 6-3 decision, ruling that an ordinance that essentially made it illegal for people experiencing homelessness to camp on public property did not violate the Constitution. The ruling gave cities more power to arrest, cite and fine people who sleep outside in public places.

NPR has hired the firm to represent the news organization in its lawsuit against President Donald Trump’s administration. NPR and three Colorado public radio stations have accused the president of punishing them for the content of news and programming, violating its First Amendment rights. (LAist is an NPR member station.) NPR is arguing that an executive order aimed at cutting federal funding is illegal.