Washington state lawsuit payouts skyrocket to more than 500M in past year

Washington state taxpayers faced over $500 million in lawsuit payouts within the last year, with the majority stemming from claims against the Department of Children, Youth and Families. A pivotal court ruling in 2018 expanded the state's liability regarding foster care abuse, enabling victims to hold the state accountable even after leaving custody. Consequently, tort liability payouts skyrocketed from $72 million in fiscal year 2018 to over $281 million last year, reflecting a dramatic increase in legal claims. Legal defense costs surged as well, nearing $50 million in fiscal year 2024, with a significant portion allocated to outside law firms. The state Supreme Court's recent ruling may open further avenues for liability by extending the statute of limitations on certain claims.

Additionally, lawmakers eliminated the statute of limitations for civil claims of childhood sexual abuse occurring after June 2024, potentially leading to a rise in litigation. Complaints against the state’s juvenile facilities have also escalated, with one law firm filing about 800 claims related to sexual abuse in detention centers. Republican senators have proposed requiring hearings for payouts exceeding $1 million to enhance accountability, although the proposal has yet to advance.