NEWS & INFORMATION

FOR IMMEDIATE RELEASE

July 28, 2008

ASW, et al. v. State of Oregon

U.S. District Court, District of Oregon Case No. CV 6-03-6038-AA

Families of Oregon's Adopted Foster Children to Receive Compensation for Adoption Assistance Payment Cuts in 2003

(Oregon) -- United States District Court Judge Ann Aiken gave preliminary approval to a landmark settlement that will provide compensation to the families of 6,688 of Oregon's adopted foster children for monthly support payments withheld by the Oregon Department of Human Services (DHS) in 2003. The settlement ends a controversy that arose when the State sought to balance its budget in part by reducing Adoption Assistance Program (AAP) payments for adopted foster children without due process or regard to individualized determinations and written agreements.

The Adoption Assistance Program is a federal and state program that encourages adoption of the State's foster children, providing federal and state funds to meet the ongoing special needs of each child. The amount of monthly assistance is based upon the individual child's needs and circumstances, and is set forth in a written contract between the State and the adoptive family. These adoptions benefit the welfare of the child by providing a permanent family and saves the State money because it typically pays less than if the child remained in foster care. The adoption program prohibits any payments that would exceed foster care.

The case, ASW, et al. v. State of Oregon, is a class action filed by four families who objected to the State's unilateral 7.5% reduction in all AAP payments as violating program mandates and the contracts they had negotiated with DHS. In 2005, the Ninth Circuit Court of Appeals ruled that the families had a federal right to individualized payment determinations and a fair hearing to consider the unique needs of each adopted child. When the Supreme Court refused in 2006 to consider Oregon's appeal from that decision, the parties entered into settlement discussions overseen by U.S. Magistrate Judge Thomas Coffin.

Members of the class certified for settlement are adoptive parents who were subjected to a 7.5% reduction of their child's adoption assistance payments during a 10 month period in 2003. All class members will soon receive a notice explaining the settlement and stating their reimbursement amount. Not all members will receive full reimbursement, however, because foster care rates were also reduced in 2003, and the AAP payments cannot exceed the reduced foster rates. Class members will have an opportunity to be heard by the court on the settlement's fairness at a hearing on September 24, 2008. If the court then gives final approval, the State will pay a total of $1,733,224.81 to the class of adoptive parents who will receive settlement checks without having to file any application.

The lead plaintiffs are Andy Stahl and his two adopted children. Mr. Stahl explained, "Before the adoption assistance program was established in 1980, many families who wanted to adopt foster children couldn't afford to because these children, through no fault of their own, had many special needs. When Oregon reneged on its legally-binding adoption contracts with each family, it was a real slap in the face."

In the lawsuit, the class of adoptive families are represented by Art Johnson and Michele Smith of the Eugene law firm Johnson, Clifton, Larson & Schaller, and by Maria Ramiu of the San Francisco-based Youth Law Center. The attorneys for the class will receive none of the settlement funds. Being a civil rights action under U.S.C. §1983, the trial court may determine a reasonable attorney fee for the State to pay upon conclusion of the case.

Further Information: Eugene Attorneys, Art Johnson and Michele Smith, 541-484-2434

Andy Stahl, Lead Class Plaintiff of Eugene, 541-484-1440