As Los Angeles faces a nearly $1 billion budget deficit and widespread cuts to city services, officials have quietly authorized a $900,000 contract with the corporate law firm Gibson, Dunn & Crutcher to represent the city in the ongoing LA Alliance for Human Rights v. City of Los Angeles case. The move has drawn sharp criticism from community groups, budget watchdogs, and legal observers concerned about the cost, timing, and political implications of the decision.
The federal case, filed in 2020 by a coalition of downtown business interests, alleges that the city and county have failed to meet constitutional obligations to provide shelter and services for unhoused residents. A 2022 settlement agreement set benchmarks for the city’s homelessness response, but an evidentiary hearing now underway will determine whether Los Angeles has violated those terms. U.S. District Judge David O. Carter is weighing whether to appoint a federal receiver to take over the city’s homelessness programs.
Gibson Dunn formally entered the case just two weeks before the May 27 hearing began, replacing the City Attorney’s office, which had represented Los Angeles throughout the litigation. The firm has assigned nine attorneys to the case, working alongside two city lawyers. Public records indicate the city approved a two-year, $900,000 contract for the firm’s services, though the actual agreement has not yet been made public.
The timing and cost of the decision have raised questions. “For the city to be in a budget crisis and be cutting back on services across the board—including homelessness services—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,” said Matthew Umhofer, one of the attorneys representing the plaintiffs, who are working pro bono.
The Westside Regional Alliance of Councils (WRAC), which represents multiple neighborhood councils including the Mar Vista Community Council, has filed a California Public Records Act request seeking details about the Gibson Dunn contract, including hourly billing rates, total expenditures to date, and funding sources. City officials have said the contract will not be released until it is signed by the City Clerk.
During the evidentiary hearing, City Administrative Officer Matt Szabo confirmed under questioning that layoffs are part of the upcoming city budget. When asked about the Gibson Dunn contract and hourly rates, city attorneys objected and Szabo was not required to answer.
Gibson Dunn’s role in the case has also drawn attention because of its previous involvement in major and often controversial litigation. The firm has represented corporate clients such as Chevron and Walmart, and played key roles in landmark conservative legal victories, including Bush v. Gore and Citizens United v. FEC. Most recently, Gibson Dunn represented the City of Grants Pass, Oregon, in a Supreme Court case that upheld the constitutionality of anti-camping ordinances targeting unhoused individuals.
The firm’s attorneys have taken an aggressive approach in the current hearing, objecting frequently during cross-examinations and filing a motion to quash subpoenas for Mayor Karen Bass and several City Councilmembers who had been expected to testify about the city’s performance under the settlement agreement. As of June 1, Judge Carter had not ruled on the motion.
In the background is a broader debate about the city’s spending on outside legal counsel. In its current budget, Los Angeles allocated more than $3.2 million for outside counsel and approved an additional $4.4 million transfer to the City Attorney’s office for related costs. A May 14 report shows the City Attorney has requested further funding for contracted legal services.
Critics argue that, given the scope and expertise of the City Attorney’s office, the decision to hire Gibson Dunn was unnecessary and fiscally questionable. Others note that the firm’s political affiliations and legal history raise concerns about whether its involvement aligns with the city’s publicly stated commitments to equity and housing as a human right.
A representative from the City Clerk’s office said the Gibson Dunn contract will become public once it has been received and certified—a process that typically takes one to two business days. As of this writing, the contract had not yet been made available.