$68 Million Settlement Proposed for 10 Children Fraudulently Adopted and Abused

By BENJAMIN WEISER

Lawyers for 10 disabled children who were fraudulently adopted by a Queens woman more than 15 years ago and subjected to years of abuse have proposed a $68 million settlement in a civil rights lawsuit filed on their clients’ behalf, according to a confidential court filing.

The proposal comes as a federal magistrate judge in Brooklyn appears to be trying to mediate a settlement to the suit, filed in 2009, which seeks damages from New York City and three contract adoption agencies that placed the children with the woman, Judith Leekin.

The case has been seen as one of the most disturbing child welfare fraud cases in the city in recent years. Ms. Leekin used four aliases to adopt the children, who had physical or developmental disabilities, including autism and retardation, and later moved them to Florida. The children were caged, restrained with plastic ties and handcuffs, beaten with sticks and hangers, and kept out of school, according to court papers. An 11th child disappeared while in Ms. Leekin’s care and is presumed dead.

The suit asks that the 10 plaintiffs, now mostly in their 20s, be compensated for their years of suffering as well as for the services and treatment they will need for the rest of their lives.

The settlement proposal was cited in a letter from a defense lawyer in the case to the magistrate judge, Marilyn D. Go of Federal District Court in Brooklyn, where the lawsuit was brought.

The letter was filed publicly in October, but was quickly sealed after the lawyer wrote that it “referred to confidential discussions between the parties.” The New York Times obtained the letter while it was publicly available.

Ms. Leekin, 66, was imprisoned after she was convicted of fraud in federal court in Manhattan and of abuse in a state court in Florida. Federal prosecutors have said that as part of her scheme, she collected $1.68 million in subsidies from the city that went to support a lavish lifestyle.

When the 10 children were removed from her care in 2007, none had completed elementary school; only three could read and only at a third-grade level; and about half were declared either “totally incapacitated” or “vulnerable adults,” according to a report by a former Columbia University social work professor retained by the plaintiffs to examine the cases.

The 10 have since lived in Florida in state programs or on their own, and at least one is homeless, according to court filings.

New York City and the three private agencies have denied liability in the case, claiming that Ms. Leekin was a sophisticated serial criminal whose scheme fooled various professionals and, given the capabilities and practices of the time, would not have been foreseen or detected.

The agencies are HeartShare Human Services of New York, SCO Family of Services and the now-closed St. Joseph Services for Children and Families.

The agencies’ lawyer, Robert S. Delmond, did not respond to messages seeking a comment on Thursday. Lawyers for the city and the plaintiffs declined to comment, citing the pending litigation.

In the now-sealed letter to Judge Go, Mr. Delmond described the $68 million demand as “a significant sum, which requires much consideration, thought, planning and involvement of corporate officers before they can reach a decision.” The agencies’ insurance carrier was reviewing the matter, he noted, and was “not prepared to make a settlement offer at this time.”

He requested more time to allow for further consultations with the insurer and meetings to discuss “possible settlement offers.”

It is unclear how the city and the private agencies might apportion any payout if a settlement is reached.

Jonathan S. Abady, a lawyer whose firm, Emery Celli Brinckerhoff & Abady, has handled suits against the city and private agencies in cases involving abused and neglected children, said “there does appear to be a uniform indemnification provision” in the contracts the city has with such agencies.

“But the city has the ultimate legal responsibility for the child,” said Mr. Abady, whose firm is not involved in the Leekin suit.

In August, Theodore Babbitt, a lawyer for the plaintiffs, asked Judge Go to move the case forward because of the “fragile, unstable and precarious” condition of the plaintiffs. “They are desperate for care that cannot be provided through the Florida state system,” he wrote.

He cited three of the male plaintiffs, who ranged in age from 19 to 24: one had been on a round-the-clock suicide watch after multiple attempts to take his own life. Another had fathered children out of wedlock and was homeless. A third had been arrested for domestic violence against his older brother. “He is angry and depressed and bottles it up inside until he violently explodes,” Mr. Babbitt wrote.

The court’s docket sheet shows that Judge Go has regularly held confidential phone and court conferences related to settlement issues, sometimes talking with just one side or the other.

Her efforts appear to date from July, when she said in open court that she was usually “programmed to be hopelessly optimistic about settlement.”

“For some reason,” she added, “I have not pushed the parties much in this case to discuss settlement, but let’s do so now.”

Source http://www.nytimes.com/2011/12/30/nyregion/settlement-proposed-in-adoption-abuse-case.html?_r=1