A new lawsuit is challenging Los Angeles County’s $2 million settlement payment to its chief executive officer, alleging the payout was an illegal gift of public funds and demanding the money be returned.
According to LAist, the lawsuit was filed by attorney Alexander K. Robinson on behalf of county resident Ana Cristina Lee Escudero. It targets a payout made last August to county CEO Fesia Davenport — a payment that was approved and distributed in secret, months before the public learned of it.
The suit argues the payout is illegal for two key reasons. First, it claims Davenport had no valid legal dispute with the county that would justify a settlement. Second, it alleges county supervisors improperly used the litigation exemption to discuss and approve the deal behind closed doors — even though Davenport herself had written a letter saying she had “no intentions of litigating this matter.”
Records show Davenport sought the payment after claiming she was harmed by a 2024 voter-approved ballot measure — known as Measure G — that will create an elected county chief executive position once her employment contract expires. As reported by The LA Local, Davenport’s payment demands stated she suffered “reputational harm, embarrassment and physical, emotional and mental distress” caused by the ballot measure.
Under California’s constitutional provision banning illegal gifts of public funds, court rulings have established that local government settlements are illegal if they respond to claims that completely lack legal merit. A separate appeals court ruling has also found that a payout cannot exceed the agency’s maximum legal exposure from a claim.
A lawyer hired by the county, Mira Hashmall, called the lawsuit “baseless.” She has previously argued the settlement served a “legitimate public purpose” by avoiding potential litigation, writing that “the constitutional prohibition on gifts of public funds bars only gratuitous expenditures for purely private purposes; it does not prohibit payments made to advance a legitimate public purpose or for adequate consideration.”
Davenport, County Counsel Dawyn Harrison’s office, and all five county supervisors’ offices did not respond to requests for comment on the lawsuit.
The lawsuit adds fuel to an already-heated controversy. Union leaders representing the bulk of the county’s more than 100,000 workers say their members are furious. David Green, a county social worker and president of Service Employees International Union (SEIU) 721, told LAist that Davenport and her team repeatedly claimed during two years of contract negotiations that there was no money for worker raises — all while, he says, she was “secretly negotiating a deal that put her own needs first.”
“Our members are really furious about it,” Green said. “She felt the need to line her own pockets. I was disappointed and disgusted.”
Anthony Meraz, vice president of the sheriff’s deputies’ union, echoed that outrage. “That’s substantial money at a time where the county is claiming economic and financial distress,” he said.
The county and SEIU ultimately reached a contract agreement giving workers a one-time $5,000 bonus in the first year, a 2% cost-of-living raise and $2,000 bonus in the second year, and a 5% raise in the third year.
County Supervisor Lindsey Horvath said she shares workers’ frustrations and has pushed for more transparency, telling LAist: “I hear the upset of members of our County workforce, and I share their frustration with a bureaucracy that too often lacks transparency.” In response to the backlash, supervisors approved a proposal by Horvath requiring the county to proactively disclose future settlements with county executives.
Davenport has been on medical leave since October and has not yet returned. Her office has said she is expected to return “in 2026,” but no specific date has been given. In her absence, chief deputy CEO Joe Nicchitta is serving as acting CEO.
The lawsuit asks a judge to order the $2 million returned to the county. No court date has been set.
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