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Reducing the Risks of Being Sued

It had to hurt. Washington State paid $85 million in court judgments and settlements this past fiscal year, a 240 percent jump over the year before and a quantum leap over the highest payout--$26 million-- in the past 10 years. "We tend to be the deep pocket," says Marty Brown, director of the Governor's Office of Financial Management.

It had to hurt. Washington State paid $85 million in court judgments and settlements this past fiscal year, a 240 percent jump over the year before and a quantum leap over the highest payout--$26 million-- in the past 10 years. "We tend to be the deep pocket," says Marty Brown, director of the Governor's Office of Financial Management.

In an effort to reduce these mounting costs, the state put together a Risk Management Task Force, which released its recommendations this fall.

One issue the report addressed was concern about after-the-fact actions: Agencies often are worried about examining their mistakes or reluctant to express regret to those harmed for fear any investigations or statements will be used in lawsuits against them. The task force suggested that such information be made public but have limited use in lawsuits against the state.

Another recommendation is to move statewide risk-management efforts to the Office of Financial Management from a general administration office. Such a move would make the risk-management endeavors more visible and closer to the budget process.

The task force also suggested that the state provide risk-management analysis of all proposed legislation, create a fast-response team to assist agency directors with critical incident management and provide training to staff members in agencies with a history of liability claims or high potential for claims. "We are trying to be more proactive on risk management throughout the government," says Brown.

The report is not without its critics. Some agencies don't think the recommendations go far enough. Some trial lawyers think they go too far. The legislature will wrestle with the details in the next session.

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