Sec. 5.173. Authority to Make Settlements of Claims or Actions Against the City. (Charter section 273 .)

   (a)   Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such claims and litigation, the City Attorney is authorized to pay, settle or compromise any monetary claim, legal action or judgment against the City, or any board, department, officer or employee thereof, for which the City is or may be ultimately liable, whenever such payment, settlement or compromise involves only the payment of money in an amount not exceeding Fifty Thousand Dollars ($50,000) per individual party or claimant and provided further that the total of all such payments, settlements or compromises resulting from a particular claim or case shall not exceed Fifty Thousand Dollars ($50,000). The Mayor may delegate approval authority over any or all such matters to the City Attorney.

   (b)   Subject only to the approval or disapproval of the Claims Board as set forth below, which shall make client decisions with respect to settlement of such litigation, the City Attorney is authorized to pay, settle or compromise any legal action or judgment against the City, or any board, department, officer or employee thereof, for which the City is or may be ultimately liable, whenever such payment, settlement or compromise involves only the payment of money in an amount exceeding Fifty Thousand Dollars ($50,000) but not exceeding One Hundred Thousand Dollars ($100,000), provided that no such payment, settlement or compromise shall exceed One Hundred Thousand Dollars ($100,000) per individual party or claimant and provided further that the total of all such payments, settlements or compromises of a particular case shall not exceed One Hundred Thousand Dollars ($100,000). The Claims Board shall be comprised of the Mayor as chair, the President of the Council, and the City Attorney, or their respective designees.

   (c)   The Council shall have the authority to approve or reject settlement of claims that involve only the payment of money damages exceeding Fifty Thousand Dollars ($50,000) and litigation and judgments that involve only the payment of money damages exceeding One Hundred Thousand Dollars ($100,000), all subject to veto of the Mayor and Council override of the Mayor’s veto by a two-thirds vote of the Council. The Claims Board shall make recommendations to the Council concerning the settlement of such monetary claims, litigation and judgments. In addition, the Council shall have the authority to approve or reject settlement of claims, litigation and judgments that do not involve only the payment or receipt of money, subject to veto of the Mayor and Council override of the Mayor’s veto by a two-thirds vote of the Council. The Council shall make client decisions with respect to settlement of all such claims and litigation.

   (d)   No payment, settlement or compromise under the provisions of this section shall be made unless both of the following conditions exist:

   1.   A proper claim or legal action has been filed, and

   2.   The City Attorney, upon investigation, finds conditions indicating liability on the part of the City or a board, department, officer or employee thereof.

   (e)   For the purpose of settling any claim, legal action or judgment under this section, the City Attorney is authorized to draw demands directly upon funds under his or her control.

   (f)   The provisions of this section shall not affect the authority of the Proprietary Departments, the Ethics Commission, the Board of Fire and Police Pension Commissioners, the Board of Administration of the Los Angeles City Employees’ Retirement System, and the Board of Administration of the Water and Power Employees’ Retirement System, to approve or reject settlements of claims and litigation exclusively involving the policies and funds over which the Charter gives those boards control, as set forth in Section 273(a) of the Charter.

SECTION HISTORY

Based on Ord. No. 136,357.

Amended by: Title and text, Ord. No. 152,159, Eff. 5-10-79; Ord. No. 157,011, Eff. 9-24-82; Subsec. (a), Ord. No. 169,312, Eff. 2-3-94; Subsec. (a), Ord. No. 172,691, Eff. 8-8-99; Ord. No. 173,284, Eff. 6-26-00, Oper. 7-1-00.