NLSLA Sues LADWP Over Unlawful Policy That Forces Tenants to Pay Landlords’ Utility Debts
Los Angeles, CA — Neighborhood Legal Services of Los Angeles County (NLSLA) filed suit today against the Los Angeles Department of Water and Power (LADWP), challenging its unlawful practice of requiring tenants to pay their landlords’ overdue utility bills to open accounts in their names. The lawsuit alleges that this unwritten “benefit of service” policy violates California law and
LADWP’s written policies.
The case centers on a tenant without water or power since October 2024. The utilities were disconnected after the landlord, the official account holder, failed to pay the bills. Despite providing LADWP with a lease proving he was a tenant, the utility refused to restore service unless he paid the landlord’s outstanding balance.
“The landlord is clearly the customer of record and responsible for the bills,” said
David Pallack, NLSLA Senior Counsel. “But when DWP shut off service, my client tried to put the utilities in his name and was told he had to pay the landlord’s massive debt. I spoke with six DWP employees, including supervisors, and none could resolve this, even after we showed them documentation proving the landlord was responsible.”
LADWP staff cited a so-called “benefit of service” policy, claiming the tenant had benefited from the utilities and was therefore liable. But such a policy is directly at odds with California Public Utilities Code §10009(b), which requires that:
If a utility provides individually metered residential service and the landlord is the account holder, tenants must be notified before shutoff and given the right to open an account without paying the landlord’s debt.
LADWP’s written policy on water shutoffs also affirms this right, promising tenants the opportunity to become customers without inheriting delinquent balances if they assume responsibility for future bills.
NLSLA formally demanded an end to the illegal policy in a letter dated April 25, 2025, giving the department until April 30 to respond. After receiving no reply, NLSLA proceeded with legal action.
This is not the first time LADWP has faced legal action for this issue. In 1993, NLSLA—represented then as now by David Pallack—filed a similar case that resulted in a settlement agreement requiring LADWP to cease such unlawful practices.
“It’s deeply troubling that, more than 30 years later, LADWP is once again violating the law and denying vulnerable tenants access to basic utilities,” Pallack said. NLSLA is asking the court to immediately halt enforcement of the “benefit of service” policy and compel LADWP to comply with state law. Additionally, NLSLA is asking the court to order LADWP to allow every residential tenant in the same situation to turn on their utilities without paying their landlord’s delinquent bill, and to identify each tenant who they have subjected to this unlawful policy since June 28, 1993, and refund those tenants for anything they were forced to pay.
If you were subject to the “benefit of service” policy and need assistance, please get in touch with NLSLA at 1-866-559-1012.
