The Los Angeles City Attorney’s Office’s handling of a massive settlement with L.A. DWP customers has been thrust into the spotlight following FBI raids on the City Attorney’s Office last week.
At the center of the controversy is the infamous overbilling scandal that hit the L.A. DWP in 2013 and cost ratepayers millions of dollars.
PricewaterhouseCoopers is the consulting firm that helped implement the new, faulty system for the DWP. City Attorney Mike Feuer vowed to make them pay. But the settlement that was worked out several years later is in legal limbo amid allegations that attorneys for the city engaged in double dealing and worked to get a more favorable deal for the DWP.
From the Los Angeles Times:
PricewaterhouseCoopers alleges that attorneys worked both sides of a class-action lawsuit over the billing errors filed by Van Nuys resident Antwon Jones that resulted in a $67-million settlement for ratepayers.
Several class-action lawsuits were filed against the city, but PricewaterhouseCoopers alleges in court documents that the city chose to settle with Jones so it could control the outcome of the settlement and avoid scrutiny of the DWP billing system. Jones hasn’t been accused of wrongdoing.
FBI agents descended on City Hall, the DWP, and a Beverly Hills law firm on July 22 in search of contracts with the city’s lead attorneys on the case, Paul Paradis and Paul Kiesel. Feuer’s office says the lawyers are responsible for any wrongdoing that may have occurred. But Kiesel contends everything they did was with Feuer’s knowledge and approval.
The attorneys no longer work with the city. Last week, Mayor Eric Garcetti also ousted L.A. DWP General Manager David Wright.
The scandal comes as L.A. city officials face separate allegations of corruption involving deals with real estate developers.
This latest controversy could end up derailing Feuer’s larger political ambitions. But it could also mean more money for ratepayers. Find out why here.