Los Angeles Faces Scrutiny Over Legal Fees in Homelessness Case as Housing Subsidy Program Faces Cuts
Los Angeles is under fire for substantial legal bills incurred in a case concerning the city’s response to its homelessness crisis, coinciding with significant reductions to a Time Limited Subsidy program designed to provide housing assistance. A recent invoice from the law firm Gibson, Dunn & Crutcher details $320,000 in charges for just 13 days of work in June 2025, related to the ongoing litigation.
The case stems from a settlement agreement requiring the city to expand shelter options for unhoused individuals. A federal judge ruled in April 2025 that los Angeles had failed to meet its obligations under the agreement, prompting the city to appeal the decision and request a compliance monitor. the appeal is being actively pursued, with the firm continuing to file court documents – exceeding 250 pages – and representing the city in hearings held in downtown Los Angeles, including a transcript from a June 4, 2025 hearing available publicly.
Two associate attorneys at Gibson, Dunn & Crutcher, Graciella Maynetto and Joseph Edmonds, individually billed over $165,000 and $155,000 respectively during the 13-day billing period. A total of 15 lawyers from the firm, including associate attorneys, were billed at a rate of $1,295 per hour, in addition to the work of city attorneys involved in the case. The firm’s work is expected to continue throughout the appeals process.
The timing of these legal expenses is particularly sensitive given the announced cuts to the Time limited Subsidy program, a crucial component of Los Angeles County’s strategy to address homelessness. The program, which provides rental assistance, is facing major cuts, potentially impacting the availability of housing for vulnerable populations. The settlement agreement at the heart of the legal battle, known as Coleman v. City of Los Angeles, originally arose from a 2020 lawsuit filed by the L.A. Alliance for Human Rights. The judge overseeing the case is U.S. District judge david O. Carter.