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Superintendent: 17 uninsured Child Victims Act settlements totaled $55.25 million; district using bonds
Summary
Superintendent Dr. Maloney updated the board on Child Victims Act litigation: six insured cases remain with carriers, 17 uninsured cases were settled for $55.25 million and the district has issued bond anticipation notes, to be renewed until cases conclude and converted to a judgment bond.
Superintendent Dr. Maloney updated the Board on the district'level status of litigation under the Child Victims Act and explained the district's financing approach for settled claims.
Dr. Maloney said six cases had insurance coverage and remained with carriers, 17 cases had been settled but lacked insurance because prior liability carriers became insolvent, and those settlements totaled $55,250,000. He said 22 additional cases remained pending and that the district was pursuing insurance coverage where carriers still exist. The district has used bond anticipation notes to cover settlement costs and will renew those notes annually until all cases are resolved; at that point the district will combine the obligations into a single judgment bond for amortization.
Dr. Maloney framed the approach as balancing fairness to victims and fiscal responsibility to the Bayshore Bright Waters community. He said the decisions on settlement financing were guided by counsel and the board had previously authorized the issuance of judgment or BANS at earlier meetings (October 1 and February 5 were cited). The superintendent said the district will continue to pursue carriers for coverage where applicable and that updates would be provided as cases progress.
No new settlement vote was taken at the work session; the remarks were an informational update.
