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Council Moves to Alter Law on Settlements

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TIMES STAFF WRITER

The City Council moved Friday to close a legal loophole that allowed City Atty. James Hahn to resolve a $250,000 police shooting case without the council’s approval.

The council ordered Hahn to draft an ordinance that will limit his authority to settle lawsuits of more than $100,000 regardless of the number of plaintiffs.

The existing law, adopted in 1994, gave the city attorney authority, with the agreement of the Budget and Finance Committee chairperson, to settle claims against the city that did not exceed $100,000 per plaintiff.

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Hahn used that authority to settle a controversial case involving a 1997 killing by undercover LAPD Officer Frank Lyga of off-duty LAPD Officer Kevin Gaines following a Studio City traffic dispute.

The city attorney paid each plaintiff--Gaines’ widow and her two young daughters--less than $100,000 each.

The settlement was approved in court with a sign-off from Councilman Richard Alatorre, head of the budget committee.

Other council members were concerned the high-profile case was settled without their knowledge, circumventing their authority.

Police and the district attorney had concluded the slain officer was at fault.

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