The Los Angeles Department of Water and Power (DWP) has taken a significant step in response to the legal fallout from the devastating Palisades fire, approving a three-year, $10 million contract with the prominent law firm Munger, Tolles & Olson. This decision, made by the Board of Water and Power, comes as the utility braces for numerous lawsuits from residents whose homes were either destroyed or damaged in the fire, which occurred in January 2024 and resulted in the loss of nearly 7,000 structures and at least 12 lives.
The board’s vote to retain Munger, Tolles & Olson took place on a Tuesday, with the firm already beginning its work for the city just days after the fire broke out. The law firm will investigate claims related to the fire and defend against lawsuits alleging negligence in the design and maintenance of the DWP’s water system, which is under scrutiny for its role in the firefighting efforts.
Under the terms of the contract, the firm’s partners will charge the city up to $1,975 per hour, while associates will bill between $745 and $1,180 per hour. A spokesperson for Los Angeles City Attorney Hydee Feldstein Soto noted that the firm’s “discounted rate structure” was a key factor in its selection among three firms interviewed for the job.
DWP officials emphasized the urgency of retaining legal representation due to the pressing nature of the claims expected from the fire. Munger, Tolles & Olson has extensive experience in handling wildfire-related lawsuits, having previously represented Hawaiian Electric Industries in litigation stemming from the 2023 fires in Maui, which resulted in settlements exceeding $4 billion. The firm also represented Pacific Gas & Electric in connection with the catastrophic 2018 Camp fire.
The DWP’s decision to hire the law firm contrasts sharply with its slower pace in securing a contractor for repairs to the Santa Ynez Reservoir, a critical water storage facility that was empty during the Palisades fire. Utility workers discovered a tear in the reservoir’s cover in January 2024, leading to delays attributed to the competitive bidding process for repairs. The law firm will likely play a crucial role in addressing why the reservoir was offline during the fire and the implications of that decision.
As the city prepares for what could be hundreds or even thousands of claims related to the fire, at least five lawsuits have already been filed against the DWP in Los Angeles County Superior Court. These lawsuits allege “inverse condemnation,” a legal concept that allows property owners to seek compensation for damages caused by public entities. Plaintiffs are linking the fire damage to the DWP, claiming that the water system’s design and maintenance contributed to the extent of the destruction.
DWP officials assert that their water system met city standards and that only a small fraction of hydrants lost pressure during the fire. They also maintain that the reservoir was emptied to comply with water quality regulations, and the repair process has been delayed due to contractor availability.
With the legal landscape rapidly evolving, the DWP’s engagement of Munger, Tolles & Olson reflects the utility’s proactive approach to managing the aftermath of the Palisades fire and the anticipated legal challenges ahead.