On Eve of Trial, Montecito Union Settles Sex Abuse Lawsuit for $7.5 Million

The Montecito Union School District has agreed to pay $7.5 million to settle a lawsuit filed in 2022 by a pair of brothers who say they were sexually abused by their principal in the 1970s. The agreement, in which the district did not admit liability, represents the largest pre-trial settlement of a sex abuse case in Santa Barbara County history.

The principal, Stanford Kerr, never faced any criminal charges and died in 2013. The lawsuit targeted the school district for negligence and intentional infliction of emotional distress, with the brothers claiming that at least two secretaries and two teachers from that time knew of the abuse but did not act to stop it. The district’s Board of Trustees approved the agreement in a special meeting Friday night, shortly before the trial was scheduled to begin Monday morning.

“The board’s decision to settle was made to protect our students and our instructional program,” said Superintendent Anthony Ranii in a statement. “While we were prepared to mount a vigorous defense, the possibility of significantly larger verdicts is well documented in sexual abuse cases throughout California.

“We are deeply mindful of the enduring pain caused by sexual abuse and feel for any person who has experienced such abuse,” the statement continues. “Together, as a community, we share the responsibility to protect and care for our children. We hold deep respect for any individual impacted and hope for their healing and peace.”

The brothers, identified in court documents as John Doe 1 and John Doe 2, were represented by Tim Hale with Nye Stirling Hale Miller & Sweet LLP and John Richards with the Law Offices of John B. Richards. 

Hale said the finalized agreement produced “a tremendous sense of relief” for the brothers, who can begin shifting the “shame, guilt, and embarrassment” they have felt for decades onto “the perpetrator and the institution that failed to protect them.” “They turned their back on them,” Hale said of the district, “but it wasn’t forever, and now they have some measure of justice.”

Richards said while the funds will help the brothers establish some stability in their lives ― both have struggled psychologically and financially as adults ― the “social accountability” that the settlement represents is just as significant. “Money is one thing,” Richards said. “The other is an institution saying, ‘What happened to you is wrong.’ It lets these men tell themselves, ‘I’m not a bad guy. It wasn’t me. This wasn’t my fault.’”

Doe 1, who was 8 years old when the reported abuse began and is now in his fifties, will receive $6 million. He claimed Kerr routinely forced him to strip down to his underwear and spanked him, before escalating to touching him all over his body, masturbating in front of him, and eventually choking and raping him. The alleged incidents took place between 1972 and 1978. After he left Montecito Union, Doe 1 struggled with mental health and substance abuse issues and spent time in and out of jail. “It was a dark, dark, dark tunnel for many years that he never saw a way out of,” said Richards. “Now he sees light at the end of the tunnel.”

Doe 2, the older of the two brothers who allegedly witnessed Doe 1 standing in his underwear in Kerr’s office, will receive $1.5 million. He said after that incident, Kerr assaulted him by grabbing his genitals so forcefully it made him scream. He harbored deep guilt for what happened to his younger brother and has been diagnosed with post-traumatic stress disorder. Hale said he is helping both men connect with financial advisors and therapists who specialize in childhood sexual abuse. 

A third alleged victim of Kerr received approximately $500,000 from the district in an earlier settlement. Kerr had previously taught at Gaviota and Carpinteria elementary schools before his 25-year tenure with Montecito Union.

According to court documents, defense attorneys for Montecito Union had intended to call a psychologist named Elizabeth Loftus, a well-known and divisive expert on human memory, to testify on the district’s behalf during trial. Loftus has made a career convincing juries that victims of crimes can be wrong about the things they remember, claiming allegations of abuse are often coerced, implanted, or made for financial gain. She has testified or consulted on behalf of Harvey Weinstein, Bill Cosby, Ghislaine Maxwell, and other high-profile offenders.

In his statement announcing the settlement, Superintendent Ranii said that, because the district was unable to locate any record of liability insurance from the 1970s, Montecito Union will pay the $7.5 million out of the $13 million it holds in reserves. 

“Operationally, we plan to manage the financial impact by implementing a hiring freeze, seeking to reduce staffing when natural attrition occurs, using funds previously designated for capital repair projects for operational costs, and working collaboratively to make other changes,” Ranii said. “While we face some financial challenges ahead, agreeing to this settlement now means that we do not have to consider layoffs.”

“Student safety, well-being, and academic success continue to be our top priorities,” Ranii continued. “We continuously refine our policies, conduct rigorous background checks, and train staff on mandatory reporting obligations. All staff members receive comprehensive and regular training to prevent sexual abuse and to report any concern immediately to the appropriate authorities. No current employees were employed by the District during the 1970s.”