Soaring Settlements: LA Faces Massive Legal Payouts as Costs Keep Climbing

LAPD Lawsuits Dominate LA’s Huge Legal Bill for 2025 So Far

Los Angeles Controller Kenneth Mejia has released a report on social media detailing the city’s highest liability payouts so far in the 2025 fiscal year, raising concerns as the city grapples with mounting legal costs and ongoing litigation. 

One important point is that when certain departments take the lion’s share of the general fund’s budget, there is less money for other departments crucial to LA’s safety, such as the Los Angeles Fire Department, and they are more likely to be subject to cuts when the budget faces a shortfall. 

On Facebook, the post is titled, “How the City of LA Stays Broke 101. One of the biggest drivers of the City’s Budget Deficit is our Liability Payouts.” In addition to there being less money to go to other important departments, city residents may be charged more for city services like trash pick up, more in penalties for parking tickets and potentially, only with city approval, higher taxes.  

The report highlights that Los Angeles has already paid millions in settlements and judgments in the first quarter of the fiscal year, with a significant portion stemming from lawsuits against the Los Angeles Police Department (LAPD), Street Services, and Transportation.

Top Liability Payouts So Far in FY2025:

• LAPD – $107 Million
  
  • $52M for excessive/unlawful use of force and civil rights violations
    
  • $25M for traffic collisions
    
  • $23M for professional negligence
    
  • $8M for employment-related claims
    
• Street Services – $26 Million
  
  • Claims related to dangerous conditions
    
• Department of Transportation – $16 Million
  
  • Dangerous roadway conditions
    
• Street Lighting – $11 Million
  
  • Liability linked to hazardous street lighting conditions
    
• Animal Services – $7.5 Million
  
  • Professional negligence cases
    

The city is projected to spend a staggering $320 million this fiscal year on liability payouts, significantly impacting the General Fund. Since the General Fund covers these settlements, these escalating legal costs mean fewer resources are available for essential city services and departments, including public safety, infrastructure, and community programs.

Mejia’s report comes as Los Angeles is already facing another lawsuit, further straining city finances. The high liability costs, particularly those associated with LAPD misconduct and excessive force cases, have raised questions about the city’s ability to manage risk and prevent costly legal disputes.