The Los Angeles Department of Water and Power has approved a three-year, $10 million contract with the best law firm to defend its utility in the face of a major lawsuit from the Pallisard Fire.
The Water and Power Commission, made up of mayoral appointees, voted Tuesday to maintain LA company Munger, Tolles & Olson, to investigate expected claims related to the fire, and residents whose homes have been destroyed or damaged. I responded to a lawsuit from.
Under the agreement, the company’s partners will charge the city up to $1,975 per hour for legal work. Associates charge between $745 and $1,180 per hour. A spokesman for LA City Atty. Hydee Feldstein Soto said this “discount rate structure” was one of the factors that led to the company’s choice.
The agreement was officially approved this week, but Munger, Tolles & Olson began representing the city on January 12th. Five days after the Pallisard fire broke out, it destroyed 7,000 homes and other structures, killing at least 12.
The rapid employment of the law firm clearly states that DWP’s pace when finding contractors to repair Santay Nez Reservoir, a 117 million gallon water reservoir in Pallisade, which was empty during the Palisade fire. It’s a contrast. The utility worker shed tears on the floating cover of the reservoir in January 2024, and emptied it a few months later in preparation for repairs.
Why the reservoir went offline and why it has been shutting down for so long is likely a major part of Munger Tolls’ work. DWP points to the competitive bidding process for repairs as the reason for the delay. The law firm is also expected to protect DWP’s fire hydrants from claims that they are dry.
Another spokesman for Feldstein Soto, Karen Richardson, said in an email that the law firm holds for several reasons, including its professional expertise and the “immediate need” of DWP for emergency expression. He said that it was being done. Richardson said the city interviewed three law firms before opting for a paid Munger.
In a memo discussing the scope of the company’s work, DWP’s CEO Janisse Quiñones and general counsel Benjamin Chapman have reported that attorneys for Munger, Tolles and Olson have litigated in connection with several large wildfires. I pointed out that it is dealing with.
Approximately 75 Munger Tolles staff and lawyers supported representatives of the Hawaiian Electric Industry and Hawaiian Electric Company, according to the law firm’s website, as part of a massive litigation in the 2023 fire in Maui. . These lawsuits were ultimately resolved for over $4 billion, but payments were postponed after the insurance company opposed the transaction.
Munger Tolles also represented Pacific Gas & Electric Co. in connection with the 2018 camp fire, destroying the town of paradise, killing 84 people. PG&E eventually pleaded guilty to an involuntary manslaughter charge of 84 counts. Munger Tolles also represents the usefulness of regulatory issues and litigation arising from fires.
In their memo, DWP officials wrote that wildfires, including utility, “need to require proactive and thorough investigation and defense in multiple ways,” and many others raised by individuals and insurance companies. It makes the claim. They were “appropriate and wise,” they wrote, seeking considerable previous experience.
Munger Tolles was also chosen for their presence in LA, said Ivor Pine, a spokesman for Feldstein Soto.
A spokesman for a law firm representing Edison in Southern California introduced the city’s attorney’s office and declined to comment.
Daniel Levin, partner at Munger Tolles, will serve as the point person in DWP Case’s daily work. He was part of a team defending the city of LA in a lawsuit accusing the city of creating affordable housing that people with disabilities cannot access.
The long-term lawsuit settled in August, and the city agreed to pay $40 million. According to a 2024 rate sheet reviewed by The Times, in that case, Munger Tolles Partners charged between $1,045 and $1,245 per hour.
The city is expected to face hundreds and potentially thousands of claims from homeowners, businesses and insurance companies regarding the Pallisard fire. So far, at least five cases have been filed against the city of LA County Superior Court with more than 30 plaintiffs, including reality television stars Heidi Montag and Spencer Pratt.
The lawsuit alleges “reverse condemnation,” allowing the landowner to pursue compensation when damages to the property are caused by public use. In these cases, the homeowner is tracking fire damage to the DWP.
People who lost their homes and businesses in Etonfire are suing Edison of Southern California under the same concept. Plaintiffs accused Edison of Southern California of causing the Eton fire with the equipment, but DWP’s electrical equipment is not related to the Palisade fire.
The lawsuit against DWP generally alleges that “improper design, installation, construction, ownership, operation” or maintenance of Palisade’s water system caused or aggravated the damage caused by the fire. They also focus on the fact that many fire hydrants were dry as firefighters fought the Palisade fires.
The DWP claims that its water system was built according to city standards, with only one-fifth of the Pallisard fire hydrant, mainly in the high release area, losing water pressure. DWP officials say the reservoirs need to be empty to comply with water quality regulations, and the repair process is the city’s competitive bidding process and the use of contractors held to ultimately carry out the work. He said it was extended by the possibility.
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