By Jesse Jones, The Paper. — Albuquerque’s legal bill for defending its treatment of unhoused residents is getting bigger. The city has already paid nearly $1.4 million in legal fees and litigation expenses and has added another $1.6 million to its outside counsel contract, pushing the contract’s maximum value to $2.66 million.
The City Council unanimously approved Mayor Tim Keller’s administration’s request for a fifth supplemental agreement with Holland & Hart LLP at its Sept. 21 meeting for LaDella Williams, et al. v. City of Albuquerque. A city spokesperson told The Paper.’s City Desk the additional money is being driven by increased discovery, document production, depositions and trial preparation. The city has produced hundreds of thousands of documents and made more than 20 witnesses available for depositions, the spokesperson said.
The city has paid $1.368 million in legal fees and litigation expenses so far, according to the spokesperson. The additional $1.6 million will cover recent legal fees and trial preparation. The spokesperson said the city cannot estimate the lawsuit’s final cost because it depends on further discovery, pretrial proceedings, whether the case goes to trial and whether the parties resolve. The original agreement and four previous supplements brought the contract to $1.06 million before this latest increase. The city cited the law firm’s specialized expertise and the Legal Department’s workload as reasons for using outside counsel. The $1.6 million will come from existing money in the city’s Risk Management Fund.
The lawsuit was filed in December 2022 by unhoused Albuquerque residents who allege the city violated the New Mexico Constitution by citing, arresting or threatening to arrest people who had nowhere else to legally stay. They also allege the city imposed fines and seized or destroyed belongings during encampment clearings without giving people adequate notice or a chance to reclaim them. District Judge Joshua Allison certified the case as a class action on Oct. 2, 2025. The city later asked the New Mexico Supreme Court to step in, but the court denied the request. On Oct. 17, the city appealed Allison’s class-certification decision to the New Mexico Court of Appeals.
The spokesperson said previous settlement discussions were unsuccessful, but the city remains open to a reasonable resolution. “Cost is one factor the City considers in evaluating litigation, along with legal risk, potential liability and broader policy implications,” the spokesperson said. The city would rather spend that money on shelter, treatment, housing and services that help people off the street. But it also has a responsibility to keep public spaces safe and accessible, and any resolution would need to allow the city to do both.