settlement agreement

As a Los Angeles City Council aide, Jose Ugarte failed to disclose years worth of outside income he made from lobbying and consulting — and, as a result, was prepared to pay a fine.

But the city’s Ethics Commission has now rejected a $17,500 settlement agreement with the council candidate. Two commissioners said the fine was not quite large enough.

“We need to signal that this is a serious violation,” said Manjusha Kulkarni, the president of the commission, who voted against the settlement.

Ugarte is deputy chief of staff to Curren Price and is running to replace his longtime boss on the City Council. Price has endorsed him. But the council aide failed to report outside income from his consulting firm, Ugarte & Associates, for the years 2021, 2022 and 2023, according to Ethics Commission documents.

He said the failure to report the outside income was a “clerical reporting error.”

Although two of the commissioners want a steeper fine against Ugarte, the suggested bump isn’t that large.

Two commissioners voted in favor of the $17,500 settlement, but Kulkarni and another commissioner, Terry Kaufmann, agreed the settlement amount should be around $20,000.

It’s an amount that they believe could send a clearer message.

“There is great concern about what is happening in Los Angeles. … Individuals routinely violate the laws we put in place to ensure trust,” Kulkarni said.

Kaufmann added that she was concerned by the fact that Ugarte still worked for a council member and was running for office.

The proposed settlement with Ugarte included seven counts against him, and each comes with a potential $5,000 penalty. But since Ugarte was cooperative, the commission’s director of enforcement reduced the overall penalty by 50%, bringing it down from $35,000 to the $17,500 figure.

Ugarte told The Times that his work with Ugarte & Associates never overlapped with his time in Price’s office.

He started working for Price in 2013 but left the office in 2019. He returned in 2021. Ugarte & Associates was formed in 2018 and still conducts business. He co-owns the company with his sister.

The high-powered law firm that racked up big bills working to keep the city of Los Angeles from losing control over its homeless programs is now looking to increase its contract by $5 million.

City Atty. Hydee Feldstein Soto has asked the City Council to increase the city’s contract with Gibson Dunn & Crutcher LLP to $5.9 million, up from the $900,000 approved three months ago, according to a confidential memo she sent to council members.

Gibson Dunn has been defending the city since mid-May in a lawsuit filed by the nonprofit Alliance for L.A. Human Rights, which resulted in a settlement agreement requiring the construction of new homeless housing and the removal of street encampments. The L.A. Alliance alleges that the city has repeatedly violated the agreement.

The Times reported last month that Gibson Dunn billed the city $1.8 million for about two weeks of work, with 15 attorneys charging $1,295 per hour and others charging lower amounts.

By Aug. 8, Gibson Dunn had racked up $3.2 million in billings in the case, according to the city attorney’s memo, a copy of which was reviewed by The Times. Those invoices arrived during a difficult financial period for the city, caused in part by a surge in expensive legal payouts.

Much of the firm’s work was focused on its preparation for, and participation in, a lengthy hearing before a federal judge who was weighing the Alliance’s request to hand control over the city’s homeless initiatives to a third party.

Gibson Dunn was retained by the city one week before the hearing, which lasted seven court days, at eight or more hours per day.

“The evidentiary hearing was more extensive than anticipated, with the plaintiffs calling more than a dozen witnesses and seeking to compel City officials to testify,” Feldstein Soto wrote in her memo.

Feldstein Soto’s office did not immediately respond to inquiries from The Times. But the city attorney has been outspoken in defending Gibson Dunn’s work, saying the firm kept the city’s homeless initiatives from being turned over to a receiver — a move that would have stripped authority from Bass and the City Council.

Gibson Dunn also prevented several elected officials — a group that includes Bass — from having to take the stand, Feldstein Soto said in her memo.

City Councilmember Monica Rodriguez said she would vote against a request to spend another $5 million on Gibson Dunn. That money would be better spent on ensuring the city complies with its legal obligations in the case, which include the construction of 12,915 homeless beds and the removal of 9,800 encampments, she said.

Rodriguez, who also voted against the initial round of funding for Gibson Dunn, said $5 million would be enough to cover “time limited” housing subsidies for at least 500 households in her northeast San Fernando Valley district for an entire year.

“At the end of the day, we’re here to house people,” she said. “So let’s spend the resources housing them, rather than being in a protracted legal battle.”

Matthew Umhofer, an attorney who represents the L.A. Alliance, called the request for nearly $6 million “ludicrous,” saying the city should focus on compliance with the settlement agreement.

“Gibson is a very good firm. Lawyers cost money. I get it,” he said. “But the city has hundreds of capable lawyers, and the notion that they need to spend this kind of money to prevent a court from holding them to their obligations and their promises, it raises real questions about the decision-making in the city on this issue.”

“For a city that claims to be in fiscal crisis, this is nonsense,” Umhofer added.

In her memo, Feldstein Soto said the additional $5 million would cover Gibson Dunn’s work in the case through June 2027, when the city’s legal settlement with the L.A. Alliance is set to expire.

During that period, Gibson Dunn would appeal an order by U.S. District Judge David O. Carter, arguing that the judge “reinterpreted” some of the city’s obligations under the settlement agreement, Feldstein Soto said in her memo. The law firm would also seek to “reform” the settlement agreement, Feldstein Soto said.

Theane Evangelis, an attorney with Gibson Dunn who led the team assigned to the L.A. Alliance case, did not immediately respond to a request for comment. Her firm has played a huge role in redefining the way cities are permitted to address homelessness.

Representing Grants Pass, Ore., the firm secured a landmark ruling from the U.S. Supreme Court upholding laws that prohibit homeless people from camping in public spaces.

The firm brought a new, more pugnacious approach to the L.A. Alliance case, issuing hundreds of objections throughout the seven-day hearing and working to undermine the credibility of key witnesses.

A month later, Carter issued a 62-page order declining to turn L.A.’s homeless programs over to a third party. However, he also found that the city had failed to comply with the settlement agreement.

Feldstein Soto said the additional $5 million would allow the firm to carry out its work through June 2027, when the Alliance settlement is scheduled to expire.

Gibson Dunn’s legal team would continue to pursue the city’s appeal while also helping to produce the quarterly reports that are required by the settlement agreement.

Former Dodgers pitcher Trevor Bauer prevailed in court Monday, when a Los Angeles Superior Court judge ordered the woman who accused him of sexual assault to pay more than $300,000 for violating the terms of a settlement agreement.

Bauer and Lindsey Hill, the woman whose 2021 allegations triggered a Major League Baseball investigation that resulted in Bauer’s suspension, settled dueling lawsuits two years ago. He had sued her for defamation, she had sued him for assault and sexual battery, and the parties agreed that neither had paid any money to the other.

In an email to Bauer’s attorneys, Hill’s attorneys said she would receive $300,000 from her insurance policy. On Monday, Los Angeles Superior Court Judge Daniel Crowley ordered Hill to pay $309,832.02.

After the settlement, Hill claimed on social media that Bauer “handed back an insurance sum to me that was meant for him in order for me to drop my countersuit.”

Bauer sued her in October, citing 21 similar claims on a podcast or on social media — all of them alleged violations of a settlement provision forbidding her from saying Bauer or any representative “paid her any money as consideration for the settlement.” Each alleged violation cost $10,000, according to the terms of the settlement agreement.

Hill did not contest or respond to the suit. After telling Bauer’s attorneys in February they had not made a strong enough case and then telling them in April they had not justified their fees, Crowley granted Bauer a victory by default and ruled his attorneys had produced “sufficient evidence to justify the award.”

The award included $220,000 for the 22 violations of the agreement. The remaining money requested by Bauer’s attorneys and approved by Crowley covered attorney fees and costs, plus interest on the award.

On Tuesday, after her X account had been deactivated, Hill resumed posting there and acknowledged she had “refused to participate in this suit in any way shape or form.” She nonetheless said she would appeal and “further delay any shot he ever had at getting his career back.”

Wrote Hill: “He will never see a cent from me.”

Los Angeles Mayor Karen Bass won’t be called as a witness in a multiday federal court hearing that could determine whether the city’s homelessness programs are placed in receivership.

Matthew Umhofer, an attorney for the L.A. Alliance for Human Rights, told U.S. District Judge David O. Carter on Tuesday that he and his legal team were withdrawing subpoenas issued in recent weeks to Bass and City Councilmembers Monica Rodriguez and Traci Park. Battling over the appearances, which were opposed by the city, would have delayed the proceedings for several months, he said.

The alliance, which sued the city in 2020 over its response to the homelessness crisis, originally sought testimony from the three politicians as part of an evidentiary hearing focused on whether the city failed to comply with the terms of a settlement agreement on homelessness programs.

The agreement, reached in 2022 between the city and the alliance, requires the city to provide 12,915 beds for its unhoused population by June 2027. The alliance contends that the city already is failing to meet the milestones of the agreement and has no clear path to that goal. City officials say they fully intend to comply by the deadline.

The possibility that Bass could testify in Carter’s courtroom provided a rare source of drama for the past week of hearings, which have focused on such granular issues as the definition of a homeless encampment.

Umhofer, in an interview, said he dropped Bass and the others because the city’s lawyers had threatened to pursue an appeal to block the three politicians from testifying, which would have triggered a delay of at least two to three months.

“I think it’s cowardly for the mayor to not testify,” he said. “She’s come in to court on multiple occasions and and shared talking points, but has never undergone cross-examination. For her to resist a subpoena is the definition of avoiding accountability and transparency.”

Umhofer argued that the testimony provided over the last week is already enough to show that the city’s homelessness programs should be overseen by a third-party receivership appointed by the court.

A Bass spokesperson did not immediately respond to Umhofer’s remarks. Theane Evangelis, an attorney for the city, said Umhofer’s description of Bass as cowardly — made in front of the judge during Tuesday’s hearing — was “uncalled for.”

“The Alliance lawyers apparently recognized that there was no legal basis for their subpoenas,” Evangelis said later in a statement. “They should never have issued them in the first place. The City is complying with the agreement settling a 2020 lawsuit, and it is indisputable that thousands of new housing units have been built and homelessness is down in LA for the first time in years.”

Bass declared a state of emergency on homelessness in 2022, on her first day in office, securing additional power to award contracts and sign off on lease agreements for interim housing and other facilities. That same year, she launched Inside Safe, which has been moving thousands of unhoused Angelenos into hotels, motels and other interim housing. She also created a program to accelerate the approval of certain types of affordable housing.

The alliance has portrayed the city’s homelessness response programs as irrevocably broken, arguing that the only recourse is for the judge to turn them over to a third-party receiver. During six days of testimony, lawyers for the alliance repeatedly highlighted the findings of a consulting firm that the programs lack adequate data systems and financial controls, leaving them vulnerable to fraud.

Lawyers for the alliance also pointed out that the city has repeatedly missed the quarterly milestones established in its settlement agreement.

Over the last week, lawyers for the city argued that their client has made “best efforts” to comply with the settlement agreement. They also contended that the milestones are not mandatory. And they said the alliance is the party that’s “flat-out ignoring” the terms of the agreement.

Evangelis said the agreement allows for the city’s obligations to be paused, and the terms to be renegotiated, if an emergency takes place. The Palisades fire broke out in January, destroying thousands of homes.

“Instead of recognizing the enormous stress that our city is under and honoring its promise to meet and confer … the alliance ran to court the month after those fires and sought sanctions against the city’s supposed breaches,” Evangelis told the court last week.

The alliance placed Bass on its witness list last month, saying she has “unique knowledge” of the facts — and had put herself at the center of the debate by promising to lead on homelessness.

Lawyers for the city argued that putting Bass and the two council members on the stand would place “an undue burden” on them as elected officials. They instead presented as witnesses City Administrative Officer Matthew Szabo, who is the city’s top budget official, and Deputy Mayor Etsemaye Agonafer, calling them the most knowledgeable about the settlement agreement.

Last week, Carter delayed ruling on whether Bass and the council members should testify, saying he first wanted to hear from Szabo and Agonafer, who handles homelessness issues for Bass.

Agonafer testified for about four hours Thursday. Szabo, who has overseen the city’s compliance with the settlement agreement, was questioned off and on during four hearing days. In multiple exchanges, he said he was confident the city would comply with the terms of the settlement by June 2027.

The two council members sought as witnesses by the alliance have been highly critical of the city’s homelessness programs.

Rodriguez, who represents the northeast San Fernando Valley, frequently uses the phrase “merry-go-round from hell” to describe the city’s struggle to get accurate data from the Los Angeles Homeless Services Authority, a city-county agency.

Park, who represents part of the Westside, said during the council’s budget deliberations last month that the city had wasted billions of dollars on homeless programs. Before casting her vote, she also said the city is “unable to manage” its own homeless affairs.