After revelations of sexual abuse claims at treatment center, lawmakers drop immunity plan

Indiana lawmakers are withdrawing a plan that would have given certain state contractors immunity from most lawsuits filed by abuse victims and their families.

The sudden reversal comes after revelations about sexual abuse allegations at a residential treatment center that was leading the push for the liability protections.

Republicans had planned to tack the immunity provision onto an unrelated bill earlier this week after the proposal failed to advance in the Senate earlier this month. But on Wednesday morning, the lawmaker who was carrying the bill, Rep. Ann Vermilion, R-Marion, decided instead to consent to a Senate version of the bill, which does not include the immunity language.

Vermilion did not immediately respond to inquiries from IndyStar about the decision.

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The immunity proposal stoked outrage among child advocates, trial attorneys and some lawmakers after an IndyStar investigation on Tuesday revealed that the faith-based contractor pushing for the legislation had been accused of allowing staff to sexually abuse boys in its care.

Some lawmakers involved with the legislation said they were previously unaware of the abuse allegations.

"I think the emphasis needs to be focused on protecting our most vulnerable in our state, and not ensuring that corporations — for profit or not — that are doing harm to our most vulnerable are not held accountable for their actions," said Rep. Victoria Garcia Wilburn, D-Fishers.

A leading proponent of the immunity measure was Lifeline Youth & Family Services/Lasting Change, a politically connected state contractor based in Fort Wayne. The faith-based nonprofit is the Indiana Department of Child Services' largest contractor, raking in nearly $200 million from the state since 2017.

Lifeline, which provides homebased services and runs residential treatment centers for teenage boys who have been abused or committed sex crimes, told lawmakers the immunity provision was critical to keep insurance costs in check.

"We love helping these boys heal and get better," Lifeline CEO Tim Smith told lawmakers during a legislative hearing in March. "It's the only reason we do what we do."

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But court documents and Department of Child Services records detail a troubling history at one of Lifeline's two residential treatment centers about 30 miles west of Fort Wayne. Among the most damning is a psychologist's report listing at least a dozen staffers who were known or suspected to have sexually abused boys at Pierceton Woods Academy. Only two staffers were investigated by DCS, and only one was charged.

In 2020, a Pierceton Woods resident and his father sued Lifeline, alleging a female staffer, who was married to another employee, groomed the then-16-year-old boy and other teenagers and coerced them into participating in sex acts over several months. The complaint, filed in Kosciusko County, alleged that Lifeline failed to protect young boys from abuse and, instead, covered up sexual assault allegations.

Indianapolis psychologist Kristine Chapleau, who was hired by the boy's attorney as part of the lawsuit, said in her report that Pierceton Woods had a "highly sexualized" environment where female staffers talked openly about abusing the residents.

A 2019 DCS investigation into the same employee found that allegations of child seduction were substantiated, meaning there was enough evidence for a "reasonable person" to believe the boy had been abused. Police and DCS investigated the same employee two years earlier, but neither the staffer nor the alleged victim cooperated.

Both Lifeline and the employee denied the allegations.

Curtis Smith, a spokesman for Lifeline, said Tuesday the employee no longer works for the nonprofit. He said he couldn't comment on DCS investigations, but said the nonprofit cooperated with the inquiry. Smith also said Lifeline's attorneys "put little stock" in the psychologist's report, saying it was based on "hand-picked" information and documents. Chapleau told IndyStar her report was based on sworn depositions of eight employees, Lifeline's policies and the substantiated DCS investigation.

The parties in the lawsuit reached a $72,000 settlement last year.

The boy's attorney, Travis McConnell, has accused Tim Smith, Lifeline's CEO, of lying to lawmakers about his client's case to keep the immunity legislation alive.

Smith told lawmakers in March that the case, which he said is the only lawsuit Lifeline has faced in 55 years, was settled for "nuisance value." Lifeline's spokesman told IndyStar that Smith "stands firmly" behind that opinion.

McConnell lauded the decision to remove the immunity provision Wednesday. He said he hoped lawmakers would be more cognizant of future efforts to tack on the immunity language in other bills.

“Actions have consequences," he said, "and the people who caused them to happen are the ones who should bear the consequences."

Curtis Smith did not immediately respond to requests for comment Wednesday about the recent legislative developments.

McConnell said he believes this does not end Lifeline’s efforts to seek immunity, citing the nonprofit’s multiple attempts to do so.

Lifeline initially pushed for House Bill 1282, which would’ve limited the civil liability of DCS contractors, but a Senate committee failed to advance it earlier this month. Since then, there have been efforts to add similar language to other bills, including, most recently, House Bill 1091, Vermilion's bill.

The nonprofit's insurance costs skyrocketed following the lawsuit, and Tim Smith told lawmakers he'd been forced to cut in half the number of boys Lifeline's facilities take.

"Premiums are going to go up when they have a claim, yes ... It's the cost of doing business," McConnell said. "To expect taxpayers to bear the burden of that, I don't believe that's fair."

Contact IndyStar reporter Tony Cook at 317-444-6081 or tony.cook@indystar.com. Follow him on Twitter: @IndyStarTony.

Contact IndyStar reporter Kristine Phillips at (317) 444-3026 or at kphillips@indystar.com. Follow her on Twitter: @bykristinep.

This article originally appeared on Indianapolis Star: After revelations of sexual abuse claims, lawmakers drop immunity plan