While Orange County Supervisors spend a few hours every year publicly discussing their $10 billion budget with the public, there’s one part of that budget that gets a lot less sunlight – legal settlements.

With over a quarter of a billion dollars paid out over the past four years, it’s one of the few spending decisions made behind closed doors, where supervisors discuss the case with their lawyers and decide to take it to court or how much to settle for. 

While the thinking behind the legal decisions is secret, county officials do announce the total settlement amount near the end of their bi-weekly meetings.

A Voice of OC review found that since October 2021, county leaders have approved over $258 million of settlements on a variety of cases, with payouts ranging anywhere from $45,000 to over $22 million per case. 

Most Settlements Go to Fire Damage and Land Acquisition

Over $170 million of those settlements are from two events – the 2024 Airport Fire and the Prado Dam expansion project. 

County taxpayers ended up on the hook for all damages in the fire after a county public works crew moving boulders in the canyons accidentally sparked the 23,000 acre blaze.  

So far, the price tag for that mistake is sitting at nearly $75 million according to the supervisors’ disclosures. 

Just over one in 10 of the filed cases related to the airport fire have been formally settled according to county spokesperson Molly Nichelson, leaving over 2,000 claims still in litigation. 

Of the $75 million approved by supervisors, about $46 million has been paid out and finalized while victims of the fire still need to approve the settlements for the remaining money. 

Onlookers take photos of the flames spreading from the airport fire on Sept. 9, 2024. Credit: MAXIMO SANTANA, Voice of OC

Those payouts are also a growing concern for county staff, with county CEO Michelle Aguirre noting in a letter to staff in January they still don’t know what the final costs will be amid a tightening budget. 

Read: Orange County Reins in Public Spending Amidst Possible Budget Shortfall

Meanwhile, the county’s efforts to beef up flood protections alongside the Santa Ana River have cost taxpayers $96 million amid lawsuits looking to forcibly purchase land through the project in a process known as eminent domain. 

Since mid-2020, the county has been “aggressively pursuing” around 50 different properties’ flowage rights as part of a group project with the Army Corps of Engineers and San Bernardino and Riverside Counties according to Nichelson, who says the project is aimed at reducing flood damage. 

“The (project cooperation agreement) requires the local sponsors of the Project, including the (county), to acquire real property interests and perform relocation/protection of utilities, streets and highways as necessary for construction and related revised flood control operations,” Nichelson wrote in a statement last week. 

Sheriffs and Social Services See Biggest Payouts

The remaining $87 million of settlements largely came from the sheriff’s department and social services. 

County supervisors approved over $21 million in payouts to people who sued the sheriff’s department, alleging a host of complaints including traffic accidents with police cars and civil rights violations. 

The biggest payout went to the family of Kurt Reinhold, a homeless man in San Clemente who was killed by sheriffs’ deputies after they stopped him for jaywalking. 

[Read: OC to Pay $7.5 Million to Family of Homeless Man Killed During Jaywalking Stop]

An Orange County Sheriff at the OC Board of Supervisors meeting on Aug. 27, 2024. Credit: ERIKA TAYLOR, Voice of OC

Supervisors also approved over $15 million in settlements to former sheriff’s deputies asking for worker’s comp, claiming their decades of service on the job had long lasting consequences to their health. 

The Social Services Agency paid out $30 million according to disclosures, largely to former foster kids who sued, alleging the county placed them in homes where they were later abused. 

The remaining funds went to all kinds of different settlements, with the most common being over $5 million to settle lawsuits from car accidents with county employees. 

District Attorney Todd Spitzer has also cost the county over $3.2 million on his own in settlements to former employees who sued him, alleging he retaliated against them. 

So far, only one case made it to trial, where a jury ultimately ordered the county to pay out another $3 million to former prosecutor Tracy Miller after she said Spitzer retaliated against her for helping other employees report sexual harassment. 

Todd Spitzer, Orange County District Attorney, at the Orange County Registrar of Voters office on Feb. 26, 2024. Credit: ERIKA TAYLOR, Voice of OC

Another case alleging Spitzer retaliated against an employee for the same reason is headed to court next year after supervisors rejected a settlement offer last month behind closed doors. 

[Read: Orange County’s Top Prosecutor Could See Another Trial Over Alleged Employee Retaliation]

How Much Did the Lawyers Cost? 

It’s unclear how much the county spent on legal costs for all of the cases. 

The final costs for attorneys fees and preparation of settlement documents are not included in the public disclosures. 

When asked about the costs, Nichelson said that payouts to outside law firms were “generally matters of public record,” but didn’t answer questions on why those costs were not publicly noted on the agenda. 

“County Counsel reports the Board’s acceptance of the settlement proposal and identifies the substance of the agreement at the public meeting,” Nicholson wrote. “When a litigation case is concluded, payments made to outside law firms for defense costs are generally matters of public record (though attorney work-product referenced in the billings may be redacted).”

Noah Biesiada is a Voice of OC reporter. Contact him at nbiesiada@voiceofoc.org.

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