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A small Santa Barbara County school district has agreed to pay $7.5 million to settle a sexual abuse lawsuit filed by two brothers, now 65 and 68 years old, who say they were abused in the 1970s by their principal, Ed Source reported yesterday.
The brothers originally sought $35 million in damages. Their case was set for trial this week before Montecito Union School District agreed to a settlement. The principal they accused, former superintendent and principal Stanford Kerr, died in 2013. He never faced criminal charges.
The $7.5 million payout equals about 40 percent of the district’s 2025–26 operating budget. District leaders acknowledged the settlement would impact finances but did not specify how or when the payment would be made.
Legal Background
The lawsuit was brought under Assembly Bill 218, a 2019 California law that removed the statute of limitations for filing claims of sexual abuse by employees of public agencies. The law has triggered a wave of litigation across the state. Some estimates suggest school districts in California could face as much as $3 billion in costs. Los Angeles County alone has already committed $4 billion in settlements related to abuse, with more cases pending.
Insurance premiums have also soared more than 200 percent in five years, according to a statewide survey of districts, further straining resources.
Case Details
Court records show the brothers filed suit in 2022, alleging Kerr molested them repeatedly in the early 1970s, including instances of rape. A third plaintiff had previously settled with the district for $1 million.
The brothers, identified in filings as John Doe 1 and John Doe 2, said Kerr’s abuse left lasting scars. One of the brothers has battled lifelong substance abuse, which his attorney linked directly to the trauma.
“The money is nice,” said a plaintiff’s attorney, “but the younger brother also seeks social acknowledgment that what happened to him was terrible. He has a long way to go.”
The district did not admit liability in the settlement. Montecito Union has no insurance coverage dating back to the period of alleged abuse, 1972 to 1978.
Superintendent Anthony Ranii said in a statement that while the district was prepared to defend itself, the risk of a jury awarding damages beyond what the district could afford made settlement the best option.
“We are deeply mindful of the enduring pain caused by sexual abuse and feel for any person who has experienced such abuse,” Ranii said. He noted the settlement would be managed through a hiring freeze, staff reductions through attrition, and reallocating funds.
Broader Implications
The California School Boards Association awarded the district a $50,000 grant to assist with legal fees. Association spokesperson Troy Flint said the Montecito case demonstrates the financial strain AB 218 is creating for districts statewide.
At a hearing, Santa Barbara County Superior Court Judge Thomas P. Anderle called the matter “a case of real consequence.” The case had been scheduled for 17 days of testimony.
The lawsuit highlighted alleged failures to protect the boys. Court filings describe a district employee once forcing the brothers’ parents to sign a document promising to keep their children away from Kerr after school hours. Attorneys for the brothers said the district did not produce that document in discovery, nor any records indicating Kerr faced prior allegations.
A final court hearing is scheduled for November 19 to confirm the district’s payment has been made.
An Important Note For Sexual Abuse Survivors
Even if the abuse happened decades ago, it’s never too late to find out if you may have a legal case. Survivors are filing lawsuits against schools, foster care systems, and other institutions across the country, even when the abuser has passed away or the institution has filed for bankruptcy.
Visit our Institutional Sexual Abuse Lawsuit Guide to learn how justice and compensation may still be possible.
