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Division 5 — FINANCE›Chapter 10 — CLAIMS›Article 2 — SETTLEMENT OR COMPROMISE OF CLAIMS BY OR AGAINST THE CITY OR ITS

Los Angeles Municipal Code § 5.177 Authority to Make Settlements of Certain Workers’ Compensation Claims…

Los Angeles Municipal Code · 2026-09 edition · updated 2026-10-04 · Los Angeles

Cite as: Los Angeles Municipal Code § 5.177 · Text as of 2026-10-04

(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of such litigation, the General Manager of the Personnel Department, or any employee who is the General Manager’s designee for such purpose, is authorized to pay, settle or compromise, either by stipulation with request for award or by compromise and release, any workers’ compensation claim except those claims for which an application for adjudication of claim has been filed with the Workers’ Compensation Appeals Board and as to which the Office of the City Attorney provides legal representation through its employees (“Litigated Claims”). As to such Litigated Claims, the City Attorney shall have sole authority, subject to such approvals as are required in this article, to pay, settle or compromise such claims. Each payment, settlement or compromise under the provisions of this section entered into by the General Manager of the Personnel Department or the General Manager’s designee shall comply with all of the following conditions:

(1) the amount to be paid shall not exceed a total of Fifty Thousand Dollars ($50,000), excluding the value of lifetime medical
benefits;

(2) a proper claim and application shall have been filed within the appropriate time limitations; and,

(3) the General Manager of the Personnel Department, or the designee, must find conditions indicating a probable liability,

conditional or absolute, on the part of the City.

(b) This section shall not affect the authority of the City Attorney, subject to the approvals required in this article, to pay, settle or compromise any claims, including workers’ compensation claims, brought by or against the City, and the City Attorney shall retain sole authority to represent the City in, and, subject to the approvals required in this article, to pay, settle or compromise, any workers’ compensation claim or claims, including those referred to in the foregoing paragraph, whenever the City Attorney determines that the significance of such claim or claims to the City so warrants and notifies the Personnel Department of that fact.

(c) Without limiting the authority granted by, or the effect of the provisions in, Subsections (a) and (b) of this Section, and 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 or the City Attorney’s designee for such purpose is authorized to pay, settle or compromise, either by stipulation with request for award or by compromise and release, any workers’ compensation claim for which an application for adjudication of claim has been filed with the Workers’ Compensation Appeals Board and as to which the Office of the City Attorney provides legal representation through its employees (“Litigated Claims”). Each payment, settlement or compromise under the provisions of this section entered into by the City Attorney or the City Attorney’s designee shall comply with all of the following conditions:

(1) The amount to be paid shall not exceed a total of Fifty Thousand Dollars ($50,000); provided, however, that Statutorily

Mandated Payments shall not be included in computing the amount to be paid as an authorized settlement under this Subsection when there is no reasonable legal basis to challenge the payment, and no other authorization shall be required to enter into settlements to the extent that they include such Statutorily Mandated Payments. For purposes of this Subsection, Statutorily Mandated Payments include any amounts required by law to be paid as: (i) lifetime medical benefits, (ii) temporary disability payments, (iii) payments for medical treatment made directly to qualified providers, (iv) statutory death benefits after dependency is legally established, and (v) Permanent Disability (including life pension) payments for disability ratings of up to 99%;

(2) A proper claim and application shall have been filed within the appropriate time limitations; and,

(3) The City Attorney, or the City Attorney’s designee, must find conditions indicating a probable liability, conditional or absolute,

on the part of the City and, with respect to Statutorily Mandated Payments, that there is no reasonable legal basis to challenge the payment.

SECTION HISTORY

Added by Ord. No. 170,977, Eff. 5-4-96. Amended by Ord. No. 173,284, Eff. 6-26-00, Oper. 7-1-00; Subsec. (c) added, Ord. No. 181,856, Eff. 9-26-11.

Sec. 5.177.1. Authority of the Director of Finance to Make Settlements of Certain…

(a) Subject only to the approval or disapproval of the Mayor, who shall make client decisions with respect to settlement of certain litigation and claims, the Director of Finance, or any employee who is the Director’s designee for that purpose, is authorized to settle or compromise any monetary claim for payment due to the City that is administered by, or referred to, the Office of Finance for collection purposes pursuant to other provisions of this Code, except those claims that are referred to the Office of the City Attorney and for which the Office of the City Attorney provides legal representation through its employees (Litigated Claims). As to those Litigated Claims, the City Attorney shall have sole authority, subject to the approvals required in this article, to pay, settle or compromise those claims. The Director of Finance is further authorized to enter into releases of these approved settlements or compromises subject to approval as to form by the City Attorney. Each settlement or compromise under the provisions of this section entered into by the Director of Finance, or the Director’s designee, shall comply with all of the following conditions:

(1) the amount by which the City’s claim is to be reduced does not exceed a total of $50,000; and

(2) the Director of Finance, or the Director’s designee, must find and make a record of the conditions indicating that the settlement or compromise is in the best interests of the City.

(b) This section shall not affect the authority of the City Attorney, subject to the approvals required in this article, to pay, settle or compromise any litigation or claims brought by or against the City, and the City Attorney shall retain sole authority to represent the City in, and, subject to the approvals required in this article, to pay, settle or compromise any litigation, claim or claims, including those Litigated Claims referred to above, whenever the City Attorney determines that the significance of the litigation, claim or claims to the City so warrants.

SECTION HISTORY

Added by Ord. No. 175,396, Eff. 9-21-03.

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