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Saturday, March 28, 2020  Spokane, Washington  Est. May 19, 1883
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Eye On Boise

What the CCA settlement actually said and didn’t say about civil, criminal liability…

After Gov. Butch Otter said in two recent debates against Democratic challenger A.J. Balukoff that the $1 million settlement the state signed with Corrections Corp. of America over fraudulent billing and understaffing at the state’s largest prison can be “set aside and then we can go after CCA” if the FBI’s investigation turns up anything, I filed a public records request for the provision in the settlement agreement that says that. Here’s what I received: The 9-page Settlement Agreement and Release, which talks about how all claims, past or future, discovered or undiscovered, are settled by the $1 million payment; and a series of emails here.

In the emails, Otter aide Mark Warbis inquires of state Corrections Department officials about this very question. “David (Hensley, Otter’s chief of staff) has a question about the ‘Release and Discharge’ section at the bottom of Page 1,” Warbis writes. “Does this release and discharge apply only to civil claims, or could this potentially block the pursuit of criminal claims should they emerge?”

Mark Kubinski, lead deputy attorney general for the Idaho Department of Correction, responds, “The release section only applies to civil claims. The signatories are Division of Purchasing, IDOC and the Board, none of whom have any authority to waive any potential criminal charges. I’m comfortable with the language as drafted.”

If I'm interpreting this correctly - and please, all you lawyers out there, chime in if I'm not - that suggests that the state could in fact “go after” CCA criminally if the FBI investigation uncovers evidence of criminal wrongdoing, but the settlement agreement would not be “set aside” and the state could not seek any additional civil penalties or damages.



Betsy Z. Russell
Betsy Z. Russell joined The Spokesman-Review in 1991. She currently is a reporter in the Boise Bureau covering Idaho state government and politics, and other news from Idaho's state capital.

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