The City Council held a special meeting Friday to redo its June 15 approval of the agreement with the Clippers. Opponents claimed the original vote was done improperly.
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"We are here today because James Butts violated the Brown Act by not giving proper notice to the public," one resident said.
The new stadium would be developed across from the NFL stadium that is under construction for the Los Angeles Rams and Chargers, between Century Boulevard and 104th Street.
Attorneys for the Forum are filing a claim against Inglewood, saying this violates its agreement with the city not to create a venue with direct competition.
"There's no question that the Forum has been a huge catalyst for Inglewood's turnaround. The city clearly has obligations not to take actions that will hurt the venue's competitive position in the marketplace," said Benjamin Hanelin, with the Forum.
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Residents also voiced their concerns that the new development would raise rent prices and push people living near the proposed development out.
But Mayor James Butts said no one would be displaced from their homes.
In the end, the council again voted unanimously to move forward to negotiate with the Clippers.
The team and the city have three years to negotiate an agreement for the new arena, but opponents said they will not allow it to happen.