In Annapolis, Maryland, legislators approved a bill on Saturday to mitigate potential liabilities arising from claims of sexual abuse at both state and private institutions. This decision was spurred by a surge in allegations, particularly in youth detention centers, where thousands of individuals came forward with reports of abuse. The financial implications for the state could reach billions of dollars due to these claims.
The influx of cases primarily targeting Maryland’s juvenile justice system stemmed from the state’s move to eliminate the statute of limitations for child sexual abuse claims two years ago, a response to the Catholic Church abuse scandal.
The approved measure, which will now be reviewed by Gov. Wes Moore, entails reducing the settlement caps. For cases filed after May 31, the limit is lowered from $890,000 to $400,000 for state institutions and from $1.5 million to $700,000 for private institutions. Additionally, a modification to the 2023 law stipulates that claimants are only eligible for a single payment, as opposed to receiving compensation for each instance of abuse.
In California on Friday, Los Angeles County officials announced they had reached a $4 billion agreement to settle nearly 7,000 claims of sexual abuse in juvenile facilities since 1959.
Other private and public entities have been rocked by allegations of wide-ranging abuse and subsequent settlements.
The agreement in California, which still needs a county board’s approval, far surpasses a $2.6 billion settlement reached in 2022 with Boy Scouts of America, which recently renamed itself Scouting America. That settlement involved more than 80,000 men who said they were molested as children by scouting leaders and others.
Maryland state Sen. Will Smith, who chairs the Senate Judicial Proceedings Committee, said it has been estimated that Maryland is facing a potential liability between $3 billion and $4 billion.
Smith, a Democrat, noted that lawmakers approved the 2023 Child Victims Act in response “to a long fight to have justice for victims of child sex abuse, where our prior framework barred some of those claims if you were above the age of 38.”
“But what we could never have anticipated was just the sheer volume of cases that ensued,” Smith said.
During debate Saturday, lawmakers said about 1,500 cases already have been filed. In addition, another 4,500 cases are known about, lawmakers said, and attorneys for plaintiffs have been in settlement discussions with Maryland Attorney General Anthony Brown’s office.
Sen. Justin Ready, a Republican who is the Senate minority whip, said the state liability could potentially be even higher than the estimate cited by Smith.
“We just spent all session wrestling with a $3 billion deficit, which is a huge deficit, and we’ve been fighting about that and debating it discussing it … Just one settlement from this very well could end up being that entire amount, and that is not the end of this,” Ready said.
Sen. Chris West said he doubted the provision in the bill that would limit someone to only sue for one individual case, rather than for each incident of abuse, would survive a court challenge, based on prior rulings by the Maryland Supreme Court.
“If the Supreme Court follows the guidance of prior Supreme Court decisions, they will hold that our attempt to deny people the right to file cases to recover for multiple occurrences is unconstitutional, because those rights for the past two years have been vested,” West, a Republican, said. “The people have had the right to file those cases.”
Smith told reporters on Friday that he believed a settlement “is the optimal solution here.”
“We’re hoping that the attorney general and the plaintiffs can get together and work out a settlement,” Smith said.
Maryland lawmakers passed the Child Victims Act in the immediate aftermath of a scathing investigative report by the attorney general’s office that revealed widespread abuse within the Archdiocese of Baltimore. Before its passage, victims couldn’t sue after they turned 38. The law change prompted the archdiocese to file for bankruptcy to protect its assets.
The Maryland Supreme Court upheld the constitutionality of the law in a 4-3 ruling in February.
The measure approved Saturday also would cap attorneys’ fees at 20% for cases that settle out of court and 25% for cases resolved in court.
The Senate voted 36-7 for the bill on Saturday, and the House voted 92-40 for the bill a short time later, sending the bill to the governor.
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