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

Washington state has faced over $500 million in lawsuit payouts in the past year, primarily due to claims against its Department of Children, Youth and Families. A pivotal 2018 court ruling expanded the state's liability, enabling victims of abuse in foster care to seek redress for their suffering. This ruling has led to a significant increase in legal claims, causing the state’s tort liability payouts to rise dramatically, from $72 million in fiscal year 2018 to more than $281 million last year. Legal defense costs have also surged, nearing $50 million in fiscal year 2024, with a significant portion going to external law firms. Lawmakers have pushed for increased accountability regarding large payouts, but proposals for hearings on claims exceeding $1 million did not progress.

Additionally, a recent state Supreme Court ruling may open the door for further claims, compounding the fiscal challenges. The lack of a cap on damages in Washington contrasts with many other states, exacerbating the situation. The surge in claims reflects a broader trend of accountability in the foster care system and other state responsibilities.