County’s judgments and settlements see a sharp rise in FY21-22

The County of Los Angeles has released its annual litigation cost report for the fiscal year 2021-2022, revealing that the total amount spent on litigation expenses was $148.3 million. This figure represents a seven percent increase from the previous year’s expenses of $138.1 million.

The report highlights that the majority of the increase in expenses was due to a $7.5 million rise in contract law firm fees and costs, as well as a $3.5 million increase in judgments and settlements compared to the previous year. The $148.3 million paid in FY 21-22 consists of $82.5 million in judgments and settlements and $65.8 million in attorneys’ fees and costs.

The breakdown of expenses shows that contract law firm fees and costs totaled $49.1 million, an 18 percent increase from the previous year. County Counsel fees and costs, on the other hand, amounted to $16.7 million, a five percent decrease from the previous year. Meanwhile, judgments paid were $26.5 million, a 157 percent increase from the previous year, and settlements paid were $56 million, a 19 percent decrease from the previous year.

Of the $148.3 million spent on litigation in FY 21-22, $82.5 million was paid to satisfy 14 judgments and settle 267 lawsuits. This represents a four percent increase from the $79 million spent on judgments and settlements in the previous year.

The report also lists the top two judgments paid, which were both related to Law Enforcement in the Los Angeles Sheriff’s Department, with a combined total of $22.2 million. The largest judgment was for $17.7 million.

It is worth noting that the Contract Cities Liability Trust Fund and special districts reimbursed the County $9.4 million of its FY 21-22 litigation expenses. However, the report covers the total amount paid by the County in litigation, which is $148.3 million.

The County Counsel’s Office is responsible for providing legal services to the County, its officials, and various departments, as well as representing the County in litigation. The annual litigation cost report provides transparency and accountability for the County’s spending on legal matters.

The County of Los Angeles has paid a total of $26.5 million in judgments in the fiscal year 2021-2022, according to official reports. This amount represents an increase of 157 percent compared to the $10.3 million paid out in the previous fiscal year.

The $26.5 million paid by the County was made up of 14 judgments, with seven of them against the Los Angeles County Sheriff’s Department (“LASD”) amounting to $25 million. The other judgments were against the Department of Children and Family Services (“DCFS”), the Department of Child Support Services, the Department of Public Health (“DPH”), the Department of Regional Planning, the Department of Public Social Services (“DPSS”), and the Department of Health Services (“DHS”).

The two most expensive judgments accounted for 84 percent of the $26.5 million spent on judgments in FY 21-22. The costliest judgment paid in FY 21-22 arose from the settlement of a class-action civil rights lawsuit against LASD. This lawsuit, filed by female inmates of the Century Regional Detention Facility, claimed they were strip-searched without privacy and in unsanitary conditions between 2008 and 2015. The court approved a settlement between the parties that required the County to pay $53 million into a claims fund in three annual installments, with LASD paying the first installment of $17,666,666 in FY 21-22.

The second most expensive judgment paid in FY 21-22 arose from the settlement of another class-action civil rights lawsuit against LASD. This lawsuit, filed by jail inmates who alleged that they were unlawfully detained between 2010 and 2014 due to federal immigration holds (“detainers”) issued by the Department of Homeland Security Immigration and Customs Enforcement (“ICE”). In February 2022, the court approved a settlement under which the County will pay $14 million into a claims fund, with LASD paying out $4,565,426 in FY 21-22.

In addition to these judgments, the County also paid out a total of $56 million for 267 settlements in FY 21-22. This amount represents a decrease of 19 percent compared to the $68.7 million spent in FY 20-21. Of the settlements, 12 cost the County more than $1 million each. The cost of these 12 settlements totaled $37.9 million and accounted for 68 percent of the total settlement expenses in FY 21-22.

The 12 settlements involved four departments (LASD, Fire, DCFS, and the Public Defender’s Office (“PDO”)) and five case types (auto liability, law enforcement, employment, general liability, and medical malpractice). The six most expensive settlements accounted for 53 percent of the total settlement expenses in FY 21-22.

The costliest settlement (Leilani Ortiz et al.; Case No. 20STCV07358 – $16 million), arose from a collision between the plaintiffs’ car and an F-350 truck belonging to the Los Angeles County Fire Department. The accident occurred on November 9, 2019, in Lancaster, California. According to court documents, the plaintiffs suffered severe injuries, including broken bones, internal injuries, and traumatic brain injuries.

Overall, the increase in judgments and decrease in settlements in FY 21-22 is a reminder of the need for the County to continue to prioritize safety and accountability in all of its departments. The County must remain committed to ensuring that its employees and representatives are held responsible for any harm caused to members of the public.