Faced with a massive lawsuit over the Palisade fire, the Los Angeles Hydropower Bureau approved a three-year, $10 million contract with a top law firm to defend the utility.
The Water and Electricity Commission, which is a mayor’s appointment, voted Tuesday to retain Los Angeles companies Munger, Tolles & Olson, to investigate expected claims related to the fire and to deal with lawsuits from residents whose homes were destroyed or damaged.
Although the company will be paid by DWP, it is chosen by La City Atty. Hydee Feldstein Soto.
Under the agreement, the company’s partners will charge up to $1,975 per hour for legal work for utilities. Employee fees range from $745 to $1,180 per hour. A spokesman for Feldstein Soto said this “discount rate structure” is one of the factors that lead to company choice.
Although the agreement was officially approved this week, Munger, Tolles & Olson began representing the city on January 12, five days after the Palisades fire broke out, destroying nearly 7,000 houses and other buildings and killing at least 12.
The rapid employment of law firms contrasts with the speed of DWP in search of contractors to repair the San Ines Reservoir, which was a fire in Palisades in Palisades The 117 million gallon water storage complex was empty during the period. Utility workers discovered tears from the floating cover of the reservoir in January 2024 and emptied it a few months later in preparation for repair.
Why the reservoir is offline and why it has been out of service for so long is likely a major part of Munger Tolles’ work. DWP pointed out that the competitive bidding process for repairs is the reason for the delay. The law firm is also expected to defend against claims about drying of fire hydrants.
Karen Richardson, another spokesman for Feldstein Soto, said in an email that the law firm retains for a variety of reasons, including its expertise and DWP “Emergency Demand” Represented in Emergency Situation. Richardson said the city attorney’s office interviewed three law firms before choosing Munger Tolles.
DWP CEO Janisse Quiñones and General Counsel Benjamin Chapman pointed out in a memorandum discussing the scope of the company’s work that attorneys Munger, Tolles and Olson handled it Litigation related to several large wildfires.
According to the law firm’s website, about 75 Munger tollers and attorneys helped represent Hawaii Electric Industry and Hawaii Electric Company as part of a massive lawsuit for the 2023 fire in Maui. The lawsuits were eventually settled for more than $4 billion despite the expenses being paid after the insurance company objected to the deal.
Munger Tolles also represented Pacific Gas & Electric Co. in connection with the 2018 camp fire that destroyed the town of Paradise and killed 84 people. PG&E eventually pleaded guilty to 84 counts of involuntary homicide. Munger Tolles also represents regulatory matters and litigation programs arising from the fire.
The wildfires involving utilities “required active, thorough investigation and defense in multiple ways” and filed many claims by individuals and insurance companies. They write that seeking important prior experience is “appropriate and prudent”.
Munger Tolles was also selected as the Los Angeles presence, Feldstein Soto spokesman Ivor Pine said.
A spokesman for the law firm, also on behalf of Edison, Southern California, declined to comment, referring the New York Times to the City Attorney’s Office.
Munger Tolles partner Daniel Levin will serve as a focus on the daily work of DWP cases. He is part of a team defending the city of Los Angeles, which the lawsuit accused the city of creating affordable housing that people with disabilities cannot reach.
The long-term lawsuit settled in August and the city agreed to pay $40 million. According to the 2024 interest rate table reviewed by the Times, Munger Fells partners charge $1,045 to $1,245 per hour for this situation.
The city is expected to face claims from thousands of homes, businesses and insurers in Palisades Fire. So far, at least five lawsuits with more than thirty plaintiffs, including reality TV stars Heidi Montag and Spencer Pratt, have targeted Los Angeles County The city of the High Court filed a lawsuit.
The lawsuits alleged “reverse condemnation”, which allowed landowners to pursue damages when their property damage was caused by public use. In these cases, homeowners are tracking DWP fire damage.
Those who lost their homes or businesses in the Eaton Fire are suing Southern California Edison with the same concept. Plaintiffs accused Southern California Edison of using its equipment to spark the Eaton fire, and DWP’s electrical equipment was not associated with Palisades Fire.
Litigation against DWP generally claims “improper design, installation, construction, ownership, operation” or damage to the Palisades water system or to cause or worsen the fire. They also focus on the fact that dozens of fire hydrants dry out as firefighters battled the Palisades fire.
DWP insists that its water supply system is built according to city standards, with only one in five of the Palisades hydrants, mainly at high altitudes, losing water pressure. DWP officials said they had to emptiate the reservoir to comply with water quality regulations and the maintenance process extended the city’s competitive bidding process and the availability of contractors that were ultimately retained for work.
