LANSING, Mich. (Michigan News Source) – Michigan’s fiscal year 2022-23 saw the state paying out a staggering $69.8 million in judgments and settlements across various lawsuits and legal challenges according to Legal News. While this figure is $4.5 million lower than the previous year (a 6% drop) it still represents a hefty bill for taxpayers.

Of the 168 cases resolved, 14 ended in court-ordered judgments totaling $7.5 million, while 154 settlements added up to $63.3 million. This annual report, compiled by the Senate Fiscal Agency (SFA), breaks down the payouts and provides insight into the state’s legal liabilities across its various departments.

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The Department of Corrections (DOC) accounted for the largest share of settlements, shelling out a whopping $30.9 million, with one case alone totaling $15 million. The class-action lawsuit involved youthful inmates housed with adults who endured horrific abuse, including sexual assault and trafficking.

The case, which settled in October 2022, marked the final payment in a long battle over events that occurred between 2010 and 2020. In addition to this, the DOC faced claims of harassment and racial discrimination, paying out $10.8 million, and a separate $3.9 million for a “failure-to-protect” lawsuit that resulted in a prisoner’s death.

Unemployment woes add to the bill.

While the DOC carried the bulk of the state’s payout burden, the Department of Labor and Economic Opportunity (LEO) saw a surprising $20 million spike in settlements, primarily tied to the state’s Unemployment Insurance Agency (UIA).

In 2015, unemployment claimants sued the UIA over wrongful collection actions after being falsely accused of fraud during the auto-adjudication process. The $20 million settlement is part of a resolution to the damaging mismanagement of claims that occurred between 2013 and 2015.

As Michigan continues to grapple with the financial fallout of legal missteps, these hefty payouts highlight the ongoing challenges within state departments. While some progress has been made in reducing overall costs, the significant settlements shows the importance of accountability and reform. With taxpayers footing the bill, it remains to be seen whether these costly lessons will lead to meaningful change or further legal turmoil in the future.