LA Grand Hotel Lawsuit Sees City Claims Largely Dismissed

A Los Angeles Superior Court judge has dismissed most of the claims against the city of Los Angeles in a lawsuit brought by the Academy of Media Arts and ROME Nightclub, both lessees within the L.A. Grand Hotel Downtown. The lawsuit centered on the hotel’s temporary conversion into a homeless shelter during the pandemic through Project Roomkey [1].

Lawsuit Background

The Academy of Media Arts and ROME Nightclub alleged that the city paid the hotel’s owner, Sun & Sky I LLC, over $54 million as part of Project Roomkey, extending the shelter’s operation beyond its initially promised temporary duration [1]. The academy contended that students faced unsafe and unsanitary conditions due to the presence of individuals experiencing homelessness, while the nightclub argued that the program prevented its opening [1].

Judge’s Ruling

On Friday, Judge Nicholas Daum dismissed all but the inverse condemnation claim targeting the city [1]. Dismissed causes of action against Los Angeles included public and private nuisance, maintaining a drug-related nuisance, dangerous condition of public property, waste of public funds, failure to discharge a mandatory duty and civil rights violations [1].

The judge stated that pursuing a claim for waste of public funds against the city for past conduct was not viable, as no meaningful injunctive relief was possible, and any recovery of misspent funds would need to be sought from the recipient, not the city [1]. Some of the plaintiffs’ claims were also barred by government immunity, according to the judge.

Project Roomkey and Inside Safe

Project Roomkey was a coordinated effort to secure hotel and motel rooms in Los Angeles County as temporary shelters for people experiencing homelessness who were at high risk of hospitalization if they contracted the coronavirus [1]. The hotel has not been used as a homeless shelter since July 2024 [1].

Ongoing Disputes

In a separate lawsuit, Sun & Sky LLC, the hotel’s owner, argues that only the Academy of Media Arts’ breach of contract suit should proceed to trial [1]. The hotel’s lawyers contend that the negligence and intentional interference claims overlap with the breach-of-contract allegation.

Still, the academy’s attorneys argue that the harm to their clients after the hotel was opened to Project Roomkey was “immediate and concrete,” with students experiencing fear and discomfort, leading to withdrawals, reputational damage, and operational instability [1].

A hearing on the Sun & Sky motion is scheduled for April 2, 2026 [1].