CITY WORKER CLAIMS SURGE DOG-FOOD CASE JUST ONE OF MANY.

Byline: BETH BARRETT Staff Writer

Claims of harassment and a hostile work environment have more than doubled against Los Angeles city government in the past three years, records show.

With attention focused on the dog-food case of former Firefighter Tennie Pierce and other Fire Department lawsuits, the rise in those claims is troubling, city officials said Monday.

``We absolutely want to look at it,'' said Personnel Department General Manager Margaret Whelan. ``It establishes that there is a pattern that may be emerging, and we want to take some proactive steps to make sure it does not continue further.''

Lawsuits and other employee-related claims have cost the city nearly $30 million since fiscal 2004 -- or about 20 percent of all liability payments.

City government has spent about $800 million over the past 14 years to settle liability lawsuits and claims, although since 2001 annual claims and payouts have been on the decline.

With the City Council upholding the mayor's veto of a $2.7 million payout to Pierce, whose colleagues put dog food in his spaghetti as a prank, questions are being raised as to whether city officials are doing enough to prevent claims -- or are too eager to settle.

``The whole issue of settlements is one that causes us a great deal of concern,'' said Jon Coupal, president of the Howard Jarvis Taxpayers Association. ``I'd eat dog food for $2.7 million.

``To the City Council members, it's always other people's money, and it's easier for them to settle even frivolous claims, as opposed to standing up firm for taxpayers against claims of marginal merit.''

But some officials say many cases are difficult to defend, and increases in the number of employee-related claims indicate such payouts are likely to increase.

Employee claims of harassment and a hostile work environment surged from 41 in 2004 to 88 last year.

``It's worrisome, because you'll see our track record isn't very good in defending ourselves in these cases,'' said Councilman Bernard Parks, a member of the city's Claims Board who backed the $2.7 million settlement proposed for Pierce.

``The employee lawsuits -- you're dealing with seven figures going in. They're very difficult to defend,'' said Parks, a former Los Angeles police chief.

``Often other employees take sides as to who was right and wrong. Even if it's an equal number, the general trend is to lean toward the complainant. You can't disprove the claim.''

In Pierce's case, some argued that the city treasury could end up paying even more than $2.7 million in a trial.

``Employment cases represent the largest risk factor -- as far as verdicts or payouts,'' said Gary Geuss, chief assistant city attorney in the Civil Liability Management Group.

``That's what juries are most sensitive about. ... They take their personal experience, and if they see any shenanigans or they feel funny about something, they're more likely to award dollar amounts that are high.''

Geuss said employment claims are the ``case du jour'' this decade in a shift from the 1980s and 1990s, when claims about the Los Angeles Police Department's use of force were more prevalent.

``There are a lot of things that were perfectly acceptable 50 or 100 years ago that no longer are,'' said Robert Kitson, co-counsel in the Pierce case. ``If the law is just now catching up to it, all for the better.''

Parks said employees also may use class-action lawsuits and claims under the federal Fair Labor Standards Act -- such as those brought by police over timely payment of overtime, which cost the city more than $46 million in payouts and back wages.

``People see it's easy money,'' Parks said. ``You don't have to do anything. You stand back and wait for the cash register to click.''

Whelan said managers got training in harassment issues last year, but some employees might be confused.

``A lot of times, an employee gets disciplined and rather than accept responsibility for it, they say they're being discriminated against.''

Victor Parker, city director of risk management, said educating managers can help cut potential liabilities.

``We can always do better. We need to do better, and there is a concerted effort to do that,'' Parker said.

While overall claims have declined from 4,786 in fiscal 2002 to 3,531 last year, the city made payouts in 1,700 cases, including several dating back years.

For settlements over $100,000, City Council approval is required. Lesser amounts are approved by the city's Claims Board, which includes Parks and representatives of the mayor and city attorney.

``These are all judgment calls,'' Parks said. ``You could throw down the gauntlet and say let's go to court on everything ... and then, after spending $1 million, lose.

``Often settlements are not about right and wrong, but about the best business decision.''

But Coupal said a city can develop a reputation that encourages claims.

``It becomes an easier mark for trial lawyers presenting frivolous or fraudulent claims,'' he said. ``The best thing the city attorney and City Council can do to protect the taxpayers' interests is to aggressively defend all but the clearest cases. ... You try to develop a reputation for not caving in.''

beth.barrett(at)dailynews.com

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