The Los Angeles County Board of Supervisors has agreed to a staggering $4 billion settlement to address allegations of child abuse within its juvenile and foster care facilities, following the enactment of Assembly Bill 218 (AB 218) in 2019. This legislation enabled individuals to seek compensation for alleged abuse dating back to the 1950s, leading to a flood of claims that the county administrators struggled to manage effectively.
As anticipated, the passage of AB 218 incentivized law firms to rally alleged victims to file complaints within the three-year period established by the law. The resulting surge in claims culminated in a historic financial settlement, with an additional separate agreement reached for $875 million. Collectively, these settlements amount to nearly $5 billion, a sum that could have funded essential services such as the Fire, Sheriff, and Probation departments for an entire budget cycle, representing approximately 10% of the county’s budget dedicated to serving nearly 10 million residents.
The limitations imposed by statutes of limitations complicate the defense against claims, as time diminishes the ability to gather evidence, locate witnesses, and validate claims. In response to the influx of lawsuits, the Board of Supervisors expressed concern about the implications of AB 218 but failed to develop a robust oversight strategy to manage the anticipated claims. Consequently, the board found itself agreeing to an unprecedented payout without adequate measures in place to ensure the legitimacy of the claims.
It was not until investigative reporting revealed instances of unlawful solicitations by law firms and fraudulent claims that the supervisors took steps to safeguard the county’s resources. The lack of initial oversight raises questions about the board’s decision-making process. Critics argue that the supervisors should have engaged private legal counsel with experience in handling complex claims to better protect the county’s interests.
In the 2023-2024 fiscal year, the board allocated over $75 million for private legal services aimed at managing these claims. Despite this investment, the initial approach relied heavily on recommendations from the county’s CEO and legal counsel, who urged the board to accept the largest settlement in Los Angeles history to avoid potentially catastrophic verdicts that could financially cripple the county.
Initially, the board opted for settlements with minimal scrutiny, resulting in substantial payouts, including over $1 billion to legal representatives. In response to criticism, recent measures include requiring judicial review for each case, establishing a fraud hotline, and enhancing legal oversight to protect taxpayers from fraudulent claims. District Attorney Nathan Hochman has directed his office to rigorously investigate and prosecute fraudulent claims, a step that should have been taken much earlier in the process.
Alarmingly, not a single supervisor challenged the multi-billion-dollar settlement, which could have saved the county hundreds of millions of dollars. These funds might have been better allocated to improve the welfare of juveniles in custody or support the numerous homeless individuals grappling with addiction and mental health issues on county streets.
As living costs continue to rise, taxpayers are rightfully demanding increased fiscal oversight from their government. The situation underscores the necessity for comprehensive measures to protect public funds and ensure that essential services are adequately funded. Residents of Los Angeles County deserve transparency and accountability as the board navigates this challenging landscape.
Joseph Charney, a former Los Angeles County deputy district attorney, highlights the critical need for more vigilant oversight in managing taxpayer resources, especially in the wake of such significant financial commitments.
