Maryland Moves to Cap Payouts in Abuse Claims

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Maryland Moves to Cap Payouts in Abuse Claims \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Maryland lawmakers passed a bill to limit future financial liability tied to child sexual abuse claims after the state faced thousands of unexpected lawsuits. The new measure reduces settlement caps and limits plaintiffs to a single payment. The bill now heads to Governor Wes Moore for final approval.

Quick Looks

Lawmakers pass bill capping payouts in sexual abuse cases
Caps lowered from $890K to $400K for state institutions
Private institution claims capped at $700K, down from $1.5M
Only one payout per claimant allowed under new rule
1,500 claims filed; 4,500 more pending against the state
State faces estimated $3B–$4B in potential liability
Attorneys negotiating settlements with AG Anthony Brown’s office
Child Victims Act of 2023 removed statute of limitations
Maryland Supreme Court upheld the law in February
New caps apply to claims filed after May 31, 2025

Deep Look

Maryland lawmakers passed a high-stakes measure on Saturday aimed at limiting the state’s liability from a flood of child sexual abuse lawsuits — many stemming from the state’s juvenile justice system and religious institutions. The bill comes as thousands of claims continue to be filed, potentially placing billions of dollars at risk for the state treasury.

The legislation — which now awaits Governor Wes Moore’s signature — introduces sweeping limits to how much state and private institutions can be required to pay in settlements or damages, and curtails how many times individual victims can collect compensation.

New Caps Target Soaring Legal Exposure

Under the measure:

State institutions will see their settlement caps reduced from $890,000 to $400,000 for claims filed after May 31.
Private institutions face a reduction from $1.5 million to $700,000.
Claimants may receive only one payout, regardless of how many incidents of abuse occurred.

Lawmakers say the changes were prompted by the staggering number of lawsuits filed in the wake of Maryland’s 2023 Child Victims Act, which eliminated the statute of limitations for child sexual abuse civil claims.

“We could never have anticipated the sheer volume of cases that ensued,” said Sen. Will Smith, chair of the Senate Judicial Proceedings Committee.

Thousands of Cases Already Filed or Pending

During Saturday’s debate, lawmakers confirmed that 1,500 lawsuits have already been filed, with an estimated 4,500 more expected. Many of the claims target Maryland’s juvenile justice system, which has been cited in several high-profile abuse allegations.

The state attorney general’s office, led by Anthony Brown, is currently in settlement negotiations with plaintiffs’ attorneys to resolve the mounting cases. While a settlement could help prevent years of litigation, the financial exposure is daunting.

“It’s been estimated that the state is facing $3 to $4 billion in potential liability,” Smith said.

Fiscal and Legal Concerns Dominate Debate

Some lawmakers expressed alarm at the budgetary implications. Sen. Justin Ready, the Senate Minority Whip and a Republican, warned that a single settlement could wipe out Maryland’s $3 billion budget deficit.

“That is not the end of this,” Ready cautioned. “We’re talking about the entire deficit in one deal.”

Sen. Chris West, also a Republican, raised constitutional concerns, predicting that courts could strike down the bill’s one-payment-per-victim clause. He cited prior Maryland Supreme Court rulings that support claimants’ rights to sue per incident.

“Those rights for the past two years have been vested,” West said. “This limitation likely won’t survive a legal challenge.”

Background: Child Victims Act Opened the Legal Floodgates

The bill is effectively a legislative reaction to the 2023 Child Victims Act, passed after a scathing report by the Maryland Attorney General’s office exposed decades of abuse within the Archdiocese of Baltimore. That law lifted the previous ban on lawsuits by survivors over the age of 38, enabling thousands to come forward.

In February, the Maryland Supreme Court upheld the constitutionality of the Child Victims Act in a close 4-3 ruling, affirming that victims could sue regardless of when the abuse occurred.

The Archdiocese of Baltimore filed for bankruptcy shortly after the law passed, citing a need to protect its assets amid a likely deluge of legal claims.

Push for Settlements and Fee Caps

Sen. Smith told reporters Friday that he believes negotiated settlements are the best path forward for all parties.

“A settlement is the optimal solution here,” he said. “We’re hoping that the attorney general and the plaintiffs can get together and work out a deal.”

In addition to reducing liability caps, the measure passed Saturday also:

Caps attorney fees at 20% for out-of-court settlements
Caps court case fees at 25%
Ensures legal representation remains available without encouraging excessive litigation

The fee limitations are intended to strike a balance between victim compensation and budget control.

Final Votes and What’s Next

The Senate passed the bill in a 36-7 vote, while the House approved it shortly after with a 92-40 vote. The bill now heads to Governor Wes Moore, a Democrat who has yet to say whether he will sign it.

If signed, the changes will apply to claims filed on or after May 31, 2025, providing a short window for victims to file under the current, higher limits.

Broader Implications for Justice and Reform

While lawmakers on both sides of the aisle agreed on the importance of supporting abuse survivors, the debate raised critical questions about justice versus fiscal responsibility.

Some see the liability cap as a betrayal to victims who have waited decades to be heard. Others believe the move is necessary to preserve the state’s financial health while still allowing for meaningful accountability.