It has been reported that a mediation statement issued by Justice Department lawyer Elisabeth Layton has called the decision of federal judge S. James Otero premature.  Otero had demanded that the Veterans Administration name an official with signing authority to participate in negotiations with lawyers representing homeless veterans.

At issue is the treatment of homeless veterans at the Los Angeles medical facility run by the VA. 

Government lawyers maintained that officials who participate in mediation sessions are not always required to have signing authority to approve a settlement deal and that traditionally, the government is free to appoint who is to participate in such talks.

Judge Also Issued Mediation Statement

Otero defended his demand on the grounds that precedent should not control this case because of its potential usefulness to veterans who are currently in great need.  "I'm not going to let the federal government hide behind bureaucracy," he remarked when challenged on his decision.

The lawsuit being sent into government mediation talks accuses the VA of violating its fiduciary duty by leasing out much of its Los Angeles facility in violation of the 1888 agreement that it would be used to provide housing space for the nation's injured or disabled veterans of war.  Four veterans are serving as plaintiffs, but their lawyers are seeking to establish them as representatives of a class.  They are also trying to get an injunction so that the VA will have to use the facility for the benefit of veterans.