Maryland limits sexual abuse claim liabilities amid rising cases

In Maryland, legislation was passed to curb potential liabilities associated with thousands of sexual abuse claims at both state and private institutions. This measure was approved following a significant increase in allegations, particularly surrounding the juvenile justice system, after the state eliminated the statute of limitations for such claims. It stems from a broader response to the revelations of widespread abuse within prestigious institutions, notably the Catholic Church. The legislative move, advanced by the Senate and House after intense debate, comes as the state anticipates liabilities potentially totaling between $3 billion and $4 billion. As a result of the passing of the 2023 Child Victims Act, thousands of individuals have come forward, claiming abuse, many instances occurring in youth detention centers. The lack of a statute of limitations allowed numerous victims, who might have otherwise been barred from pursuing justice due to age restrictions, to seek legal recourse. Moreover, the frequency of filed cases, amounting to approximately 1,500, along with an additional 4,500 known cases, sparked fears of overwhelming financial ramifications for the state. The newly enacted measure now places caps on settlements for claims filed after a specific date, significantly reducing potential payouts for victims. Specifically, the cap for state institutions is reduced from $890,000 to $400,000, while for private institutions, it goes from $1.5 million to $700,000. Importantly, the law restricts each claimant to receiving one settlement payment, irrespective of the number of abuse incidents involved. Despite these changes, some lawmakers expressed concerns regarding the bill's constitutional viability, arguing it may face legal challenges if claimants attempt to regain their rights to compensation for multiple incidents of abuse. Meanwhile, discussions continue between the attorney general's office and plaintiff attorneys regarding possible settlements for victims, as the urgency for resolution grows amidst mounting public scrutiny and the necessity to provide justice for survivors.