Maryland lawmakers have recently passed legislation amending the 2023 Child Victims Act, a move prompted by an unexpected surge in sexual abuse claims, primarily against state and private institutions, including youth detention centers. The original act, upheld as constitutional by the Maryland Supreme Court in February 2025, eliminated the statute of limitations for child sexual abuse claims and led to a flood of cases, potentially exposing the state to billions of dollars in liabilities. In response, the new measure introduces caps on settlement amounts and limits claimants to a single payment, regardless of the number of abuse incidents.
Specifically, the legislation reduces settlement caps from $890,000 to $400,000 for claims against state institutions filed after May 31, and from $1.5 million to $700,000 for private institutions. This change reflects the state's attempt to manage the overwhelming financial burden arising from the sheer volume of cases. Lawmakers have cited estimates of potential liabilities ranging from $3 billion to $4 billion, a figure that has raised significant concerns about the state's fiscal stability. The legislation also includes a provision capping attorneys’ fees at 20% for out-of-court settlements and 25% for cases resolved in court.
Legal experts, including state senators, have raised concerns about the constitutionality of limiting claimants to a single payment, arguing that it may infringe on vested rights. There are also concerns that this new change could be challenged, and the Maryland Supreme Court may rule that the right to sue for multiple incidents is already vested. Furthermore, the sheer volume of cases, numbering in the thousands, indicates that this issue will continue to be a significant legal and financial challenge for Maryland. The bill now awaits Governor Wes Moore's signature.
The situation in Maryland echoes similar cases nationwide, such as the $4 billion settlement agreement in Los Angeles County involving nearly 7,000 sexual abuse claims in juvenile facilities. These developments highlight the ongoing legal and financial repercussions of historical sexual abuse cases, particularly in institutional settings. The new legislation in Maryland represents an attempt to balance the rights of victims with the state's financial responsibilities, but its legal validity and long-term impact remain to be seen.
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