How financially-stressed LA County plans to pay historic $4 billion sexual abuse settlement

In an unprecedented move, Los Angeles County will pay $4 billion as part of a tentative agreement to settle more than 6,800 claims of child sexual abuse that allegedly occurred inside the county’s sprawling network of juvenile facilities and foster homes.

The tentative settlement between the county and lawyers representing victims is expected to be approved by the county claims board and Board of Supervisors later this month.

The county called the settlement “the costliest financial settlement in the history of L.A. County." The massive settlement is far bigger than others involving child sexual abuse.

• The archdiocese of Los Angeles paid out about $1.5 billion for abuse involving Catholic priests.
• The Boy Scouts of America agreed to pay out $2.46 billion for abuse involving scout leaders.

County officials say it would have a “significant impact” on the county’s budget for years to come.

These claims date back to 1959

If approved, the settlement would resolve most — but not all — of the claims filed against the county under Assembly Bill 218. The 2020 legislation waived the statute of limitations, providing a three-year window to allow victims of childhood sexual abuse to come forward.

It prompted a wave of claims from people who said they were molested or raped at the hands of probation officers and other staff at county facilities dating back to 1959.

The majority of the claims date from the 1980s, 1990s and 2000s — although some stretch back further in time. They are alleged to have occurred at Probation Department facilities and at the notorious MacLaren Children’s Center in El Monte, which was permanently closed in 2003.

MacLaren was a county-run foster home that plaintiff’s attorneys have called a “house of horrors.”

“On behalf of the County, I apologize wholeheartedly to everyone who was harmed by these reprehensible acts,” L.A. County Chief Executive Officer Fesia Davenport said in a statement. “The historic scope of this settlement makes clear that we are committed to helping the survivors recover and rebuild their lives — and to making and enforcing the systemic changes needed to keep young people safe."

Payout plans and budget impact

L.A. County already was in financial trouble as it faced federal funding cuts from the Trump administration, increased costs from the Eaton and Palisades fires and an uncertain economy.

The county plans to pay for the settlement using money from reserve funds, the issuance of bonds and cuts to county departments.

Davenport did not detail what those cuts might be.

The financing will require annual payments totaling hundreds of millions of dollars through 2030 and substantial continuing annual payments through fiscal year 2050-51, according to the news release.

Plaintiffs’ attorney Patrick McNicholas, who represents more than 1,200 victims, said the settlement achieves restorative justice.

“By restorative justice I mean not only is there full and fair compensation, but there’s also a societal recognition that a horrible wrong has been committed,” he said.

Sexual abuse became “part of the culture” at some county institutions, he added — not unlike what has been seen in other organizations.

“You’ve seen this time and time again not only across the United States but across the world where this culture can permeate an institution. It becomes insular, there’s no transparency,” McNicholas said.

Reforms

L.A. County has made numerous reforms over the years to address the problem of child sexual abuse at its facilities, like better vetting of probation officers and foster parents, according to the release.

It's also seeking new reforms including:

• Creating a countywide hotline for reporting child sexual abuse allegations against county employees
• Developing a system for expedited investigations and independent review by outside experts
• Enhancing the county’s zero tolerance policy to ensure that when allegations of child sexual abuse committed by an employee are substantiated, the county will take immediate action to the fullest extent allowed by law, including but not limited to termination and referral to law enforcement
• Requiring county departments to provide notice to new employees and applicants of the county's zero tolerance policy and intent to discipline to the fullest extent allowed by law

McNicholas acknowledged that the county had made substantial changes in recent years. But it’s not yet clear if they’ll have a lasting impact.

“Whether it's enough, I don't know,” he said.