Los Angeles Municipal Code Art. 2 Settlement or Compromise of Claims by or Against the City or Its

EMPLOYEES

Section 5.176 Deposit of Funds. 5.177 Authority to Make Settlements of Certain Workers’ Compensation Claims Against the City.

(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 the City Attorney’s 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.

(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such litigation, the City Attorney is authorized to settle or compromise any monetary claim or legal action initiated by the City of Los Angeles against any person, firm or corporation where the amount by which the claim or action is to be reduced does 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, which shall make client decisions with respect to settlement of such litigation, the City Attorney is authorized to settle or compromise any legal action initiated by the City of Los Angeles against any person,

firm or corporation where the underlying claim or action is to be reduced by an amount exceeding Fifty Thousand Dollars ($50,000) but not exceeding One Hundred Thousand Dollars ($100,000).

(c) The Council shall have the authority to approve or reject settlements or compromises of any monetary claims by the City against any person, firm or corporation where the claim is to be reduced by an amount exceeding Fifty Thousand Dollars ($50,000) and legal actions initiated by the City against any person, firm or corporation where the underlying claim or action is to be reduced by an amount 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 or legal actions initiated by the City. In addition, the Council shall have the authority to approve or reject settlements of claims or legal actions initiated by the City against any person, firm or corporation which do not involve only the 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 litigation.

(d) Where the claim or action involves damage to City property arising out of the ownership or operation of any vehicle, the amount to be accepted in compromise shall not be less than fifty percent (50%) of the total amount claimed by the City for such damage, exclusive of any amount for loss of use of any City vehicle, provided, however, that in such cases the City Attorney may waive any claim for loss of use. The amount so waived shall not be included in the computation of the amount by which the claim is to be reduced.

(e) The authority to settle or compromise claims or legal actions granted in this article shall include authority for the City Attorney to execute and deliver, or cause to be executed and delivered, any and all releases, covenants not to sue, dismissals, satisfactions of judgments and any other instruments in writing necessary or advisable to be executed and delivered in connection with the settlement or compromise of claims or legal actions by or against the City.

(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; Ord. No. 173,284, Eff. 6-26-00, Oper. 7-1-00.

(a) All funds received by the City Attorney or Director of Finance in settlement of claim or legal action which has been referred to the City Attorney or Director of Finance by another department, bureau or office of the City which maintains the matter referred on its records as an account receivable, shall be transmitted to such department, bureau or office for deposit.

(b) All funds received by the City Attorney or Director of Finance in settlement of a claim or legal action for which no account receivable has been established by another department, bureau or office of the City shall be deposited with the City Treasurer to the credit of Department Receipts.

SECTION HISTORY

Based on Ord. No. 136,357. Amended by: Ord. No. 152,159, Eff. 5-10-79; Ord. No. 152,764, Eff. 9-16-79; Ord. No. 175,396, Eff. 9-21-03.

(a) Any City employee, if so authorized by law, may accept a credit card, as that term is defined in California Government Code Section 6159, as a method of payment for any vehicle towage or storage fee imposed as a result of parking violations, for the payment of services

provided by the City or any other fee, charge or tax due the City.

(b) Notwithstanding Title 1.3 (commencing with Section 1747) of Part 4 of Division 3 of the Civil Code, a surcharge may be imposed to cover the cost of providing the service of accepting credit card payment, including reimbursement for any fee or discount rate that the credit card issuer debits the local agency on acceptance of the sales draft.

SECTION HISTORY

Added by Ord. No. 175,337, Eff. 8-12-03.