Residents urge council to review legal contracts after prolonged dealership litigation

2767478 · March 26, 2025

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Summary

Multiple residents criticized years of litigation over an auto dealership deal, questioned millions spent in legal fees and asked the council to review city attorney and outside counsel contracts, citing court documents and Government Code 40602.

Several residents used the public comment period to press the City Council for more transparency and review of legal agreements tied to long‑running litigation over an auto dealership project.

A resident identified in the record as Bridal Holtz criticized decisions that led to extended litigation and said taxpayers had paid "millions and millions of dollars" with little to show for it. John Shoemaker and others raised estimates that ranged to about $14 million in combined litigation costs and lost tax revenue; Shoemaker asked whether the city would ever recover those amounts.

Resident Lloyd Johnson said he had obtained public records and read portions of court rulings, including citations to the Los Angeles Superior Court and a reference to Government Code section 40602, which he described as requiring mayoral signature for certain city contracts. Johnson said the engagement letter the city manager signed with outside firm Squire Sanders lacked a mayoral signature and therefore might be invalid; he asked the council to investigate whether all required signatures exist on contracts with Squire Sanders beginning in February 2006.

Council members responded that staff would provide follow‑up materials. The mayor noted staff could provide records and asked staff to prepare a memo for the speakers; the city manager said staff would provide additional information. No formal action or vote on the substance of these public comments was taken during the meeting.

Speakers framed their comments as requests for transparency and review rather than specific policy proposals. Council members said staff would follow up and provide the requested documentation where available.