State pays settlement in sexual-abuse case

Wednesday, May 9, 2001 | 10:01 a.m.

CARSON CITY -- The state will pay $325,000 as part of an out-of-court settlement to a sexually abused child, despite the fact the state was found not to be at blame in the case.

The state Board of Examiners agreed Tuesday to pay the boy, who was 9 when he was abused in his Reno home. The abuse occurred after a foster child, under the supervision of the state, was placed in the residence.

"This is a pretty heavy hit in a case where we didn't do anything wrong," said Gov. Kenny Guinn, chairman of the Examiners Board.

The state Division of Child and Family Services has a contract with Volunteers of America to help place foster children. In this case a 12-year-old boy who had an extensive history of sexual abuse was placed in the foster home. The foster child molested the natural son of the foster parents in 1997, according to an attorney general's investigation.

The foster parents were never informed of the sexual abuse history of the boy. The state agency maintains it told Volunteers of America about the problems, but Volunteers apparently failed to notify the foster parents.

Volunteers of America paid $660,000 in the settlement. The foster parents sued for $3.5 million.

Guinn wondered why the state was paying part of the settlement, and he questioned why the state could not lodge a claim against Volunteers of America.

"They created our pain," he said. "The people in the state did the right thing."

Deputy Attorney General Chuck Hilsabeck said the state cannot bring an action against Volunteers of America because of the court-approved settlement. Volunteers of America is no longer liable, Hilsabeck said.

He said this was an old contract between the state and the Volunteers agency. Since then the contracts have been modified to correct the problem.

The governor said he would take a harder at any state contract with Volunteers. "I'm not sure I will vote for one if they don't take responsibility," Guinn said.