Bill limiting school liability in abuse cases collapses

A bill that would have limited damages against schools facing civil sexual abuse lawsuits died Wednesday. Another measure, designed to combat future instances of exploitation, could still move forward.

The late-session legislative action came during a widening fiscal crisis as local governments reckon with abuse claims, some of them decades old. The City of Santa Monica and Los Angeles County are among those facing immense liability under AB 218, a 2019 law that created a three-year window for civil claims that would otherwise have been barred by the statute of limitations.

On Wednesday, SB 577 collapsed amid attempts to add late amendments. The bill, by Sen. John Laird, D-Santa Cruz, would have eliminated treble damages against public entities in cases where plaintiffs could show staff engaged in a cover-up.

"I am disappointed that SB 577 will not be advancing this year," Laird said in an email. "I had hoped to protect survivors' access to justice while finding some fiscal relief for local governments. That will not happen in this legislative session."

Laird said he had spent the last seven months trying to "thread the needle" between protecting survivors and ameliorating local budget problems. He pledged to try again "in the next legislative session."

According to multiple sources speaking on condition of anonymity, support for the bill fell apart after a late dispute over amendments between some of the public entities involved in negotiations and groups representing sexual assault survivors.

Marci Hamilton, a political science professor at the University of Pennsylvania and the founder and CEO of CHILD USA, an advocacy group, said public entities were trying to insert several problematic provisions. These included proposals to block the future elimination of statutes of limitations, restrict compensation and slow down cases.

"There's nothing worse than passing laws to open the door, only to make it impossible to win," Hamilton said. "There were provisions about how compensation would be handled, and victims would have been left waiting a very long time."

In a joint statement with the California School Boards Association, Ben Adler, director of public affairs for the California State Association of Counties said, "SB 577's demise proves the trial lawyers care more about their exorbitant payouts than protecting core local services. Counties strongly believe survivors deserve justice. Sen. Laird's amendments would have ensured that justice while providing a lifeline to local governments and schools."

"We appreciate the provisions in SB 577 that aim to address our concerns, particularly the proposed amendments," wrote Eric Lawyer, senior legislative advocate with the association, in a Sept. 9 letter to Laird. "These include amendments to law that would establish a reasonable standard for when public agencies are liable for older claims, requiring that they knew and failed to take reasonable action to prevent abuse."

The letter also mentioned proposed provisions allowing "a court to structure ... damages that local agencies may not be able to afford." Another change would have allowed public entities to seek reimbursement for cases brought "in bad faith." Multiple "bad faith" provisions were amended in and out of SB 577 over its history.

"Instead of trying to sweep survivors' stories under the rug by attacking the trial attorneys who stand up for them, public entities like CSAC should own their mistakes and focus on taking steps to prevent such horrific violence against children in the future," Jonathan Underland, spokesman for Consumer Attorneys of California, said in an email. "Trial attorneys worked in good faith for months to produce balanced legislation and will continue fighting to protect the rights of survivors to pursue justice against wrongdoers."

In a May member newsletter, Consumer Attorneys of California's Geoffrey Wells described SB 577 as a bill that "addressed the rights of these victims while balancing the financial realities of the various government entities in school districts." He also said the organization convinced lawmakers to withdraw a different measure "which would have severely restricted the rights of victims of sexual abuse."

Another measure, designed to help prevent future abuse scandals, remained alive as of Wednesday afternoon. SB 848 would strengthen provisions relating to online communications between students and school staff, increase training requirements aimed at preventing sexual abuse of students, and broaden definitions of mandated reporters.

It would also create a statewide database intended to make it harder for child-abusing teachers to move from school to school. SB 848 was eligible for a vote of the full Assembly on Wednesday but had not come up by press deadline.

At a news conference Monday, abuse survivor Cindy Lam shared how she was groomed by a man who had "resigned twice from two different schools." She said the tracking proposed in the bill might have sent her abuser to jail before he reached her school--or at least ensured he would "never be able to work around children."

"If SB 848 had existed, maybe my abuser would never even have tried in the first place," Lam said.