Maryland lawmakers have proposed new legislation aimed at reducing future financial liabilities from sexual abuse claims against both state and private institutions. This move follows an unexpected surge in allegations, predominantly from youth detention centers, which has put the state at risk of facing billions in settlements. The uptick in cases emerged after Maryland abolished the statute of limitations for child sexual abuse claims two years ago, as a response to abuse scandals, notably involving the Catholic Church.
The recently passed measure, sent to Governor Wes Moore for approval, aims to lower the caps on settlements. For cases filed after May 31st, settlements for state institutions are capped at $400,000, down from $890,000. Private institutions’ caps were reduced from $1.5 million to $700,000. The measure also stipulates that each claimant can only receive one payment, as opposed to multiple payments per incident of abuse.
The legislative action in Maryland coincides with news from California, where Los Angeles County officials announced a substantial $4 billion settlement to resolve nearly 7,000 claims of sexual abuse in juvenile facilities dating back to 1959. This settlement significantly exceeds the $2.6 billion agreement reached in 2022 with the Boy Scouts of America, now known as Scouting America, involving claims from over 80,000 men who reported abuse during their scouting years.
Senator Will Smith, chair of the Senate Judicial Proceedings Committee in Maryland, highlighted that the state might face liabilities ranging from $3 billion to $4 billion. The Child Victims Act of 2023, he stated, was a legislative effort to seek justice for child sex abuse victims, which was previously hindered by age restrictions. However, the volume of cases that followed was unexpected.
As of the latest discussions, approximately 1,500 cases have been filed, and another 4,500 are known to be under consideration. Settlement talks are reportedly ongoing, led by Maryland Attorney General Anthony Brown. Concerns about the financial impact of these claims are rising, especially in light of the state’s $3 billion budget deficit.
Republican Senator Justin Ready expressed concerns that the state’s liability could surpass current estimates. He emphasized the significant financial strain that even a single large settlement could impose. Meanwhile, Senator Chris West questioned whether the bill provision restricting claims to a single incident would withstand judicial scrutiny, given prior rulings by the Maryland Supreme Court. He argued that denying individuals the right to file claims for multiple abuses might be deemed unconstitutional.
The passing of the Child Victims Act was spurred by an investigative report revealing extensive abuse within the Archdiocese of Baltimore. Prior to this legislation, victims lost their right to sue after the age of 38. In response to the law change and potential liabilities, the Archdiocese declared bankruptcy to shield its assets. The Maryland Supreme Court recently upheld the law’s constitutionality.
The new measure also includes a cap on attorney fees, limiting them to 20% for cases settled out of court and 25% for cases that go to trial. The Senate approved the bill with a 36-7 vote, and the House followed with a 92-40 vote, advancing the bill to the governor for final approval.