Reforms in City Response to Lawsuits Proposed

In the hope of deflecting recent criticism over costly settlements of lawsuits against the Los Angeles Police Department, City Atty. James K. Hahn proposed a number of reforms Monday, and said his office is working on ways to improve its handling of such cases.

Specifically, Hahn suggested creating a review panel consisting of top city officials to examine all legal settlements over $50,000. He is also seeking authority for all his deputy city attorneys to settle minor property damage cases or other small claims under $20,000 on the spot, thereby avoiding potentially costly and time-consuming litigation.

Hahn’s recommendations--contained in a lengthy report--are a response to a request from Councilwoman Laura Chick, chairwoman of the council’s public safety committee and one of the more vocal critics of the city attorney’s handling of lawsuits and other police matters.

City leaders, including top police officials and the mayor, have complained that Hahn’s office mishandles cases and seems too eager to settle claims, which have cost the city more than $285 million over the last six years--$100 million of that involving police cases.

In an interview Monday, Hahn defended the work of his attorneys, saying that they have large caseloads, take more cases to trial and are more successful in court than lawyers in most private law firms. He cited decreases in payouts of claims and lawsuits over the last six years. In 1997-98, ending in March, the city paid nearly $23 million in civil liability, including $8.5 million in police cases. In 1992-93, by comparison, the city paid out nearly $54 million, including $18 million in police liability.

“If you look at the complete picture, rather than something out of context, it’s a better way of judging what we are doing,” Hahn said. “We feel we do a superior job in representing the city in litigation.”

Hahn added that his attorneys consider many factors when recommending that a case be settled. Those factors include the costs of going to trial, the extent of a plaintiff’s injuries, the nature of the police action, credibility of witnesses and the prevailing public attitudes in the city’s jury pool.

For example, he said, jurors were very sympathetic to plaintiffs’ allegations of police misconduct after the 1991 beating of Rodney G. King. Recently, Hahn said, it appears that the LAPD’s reputation has improved within the community and among jurors.

In his report, Hahn noted that the LAPD and city attorney have been working together to improve risk management and legal operations. By the end of the month, the report says, the city attorney’s office will have a new comprehensive computer program that will help attorneys and police track the status of all claims and lawsuits, as well as monitor officers’ prior history as defendants in lawsuits. Periodic reports on pending litigation will be sent to the LAPD, Police Commission and the council, he said, so they can access any potential liability concerns.

Hahn said he expects to have a new police unit within his office by next fall that will work solely for the LAPD. As part of that group, a senior assistant city attorney will work out of Parker Center to coordinate the department’s legal needs.

“This has been an important issue for Chief [Bernard C.] Parks,” said Cmdr. Dave Kalish, a spokesman for the chief. “We look forward to working closely with the city attorney to improve our risk management. This is not only about the monetary consequences of litigation, this issue affects the morale of our officers.”

Chick said she hadn’t seen the report yet, but was “pleased we’re moving forward. . . . I’m always happy when suggestions come forward on how we can do things better. I wanted to make improvements yesterday.”

Hahn’s proposals, if adopted, would change the way the city reviews settlement offers. Currently, the council’s budget and finance committee reviews and acts on all proposed settlements over $50,000. The full council acts on settlements over $100,000.

Under Hahn’s plan, the claims board would approve settlements of $50,000 to $100,000 and make recommendations to the full council on settlements exceeding $100,000. Like Los Angeles County’s claims board, it would consist of the head of the budget and finance committee, a city attorney and the city’s administrative officer, combining legislative, legal and executive management. Department heads would be summoned to discuss their cases.

Hilary Norton, chief of staff to Councilman Richard Alatorre, who heads the Budget and Finance Committee, said the claims board proposal appears overly cumbersome and that it would take away the need for the full budget and finance committee to review settlements and lawsuits.

“That committee [budget and finance] has handled all these claims. . . . Now it would be just one representative from the council talking about litigation and legal policy,” Norton said. “It would be sad to take that prerogative away from them just because they’re not the chair of the committee.”

A claims panel, Hahn said, would allow sectors of city government to better understand the risks of litigation and to more quickly recognize recurring problems.

“Since the city administrative officer reports both to the mayor and the City Council, this gets them involved at a stage where they are able to hold these general managers accountable,” Hahn said.

Hahn is also proposing that general managers appoint a designated risk manager in every department. That recommendation addresses a complaint from Mayor Richard Riordan, who has criticized city officials for failing to hold departments accountable for their rising claims and lawsuits.