Washington’s $80M child welfare settlement exposes costly gaps in state oversight

The state of Washington has agreed to an $80 million settlement involving two siblings who suffered severe injuries while under the supervision of the state’s child welfare system. The agreement resolves lawsuits that alleged failures by the Department of Children, Youth and Families to adequately protect the children.

While the state does not admit wrongdoing, the settlement draws renewed attention to oversight practices, communication breakdowns, and financial exposure within Washington’s child protection framework.

Background

The settlement involves Leo “Bubby” Strode and his younger sister, Matilda Strode, who were returned to the care of their biological parents despite documented safety concerns. Both children were born with illegal drugs in their systems, which prompted early involvement by child welfare authorities.

In May 2020, Bubby, then eight months old, was left alone in a shed that later caught fire. Fire investigators determined the blaze was likely caused by unsafe electrical wiring and improvised heating equipment. Bubby survived but sustained burns over approximately 75% of his body, injuries that require extensive long-term medical treatment.

Matilda was born with heroin in her system. In January 2022, when she was six weeks old, she suffocated after being left alone with her biological parents, who allegedly fell asleep after using drugs. She survived but was left quadriplegic with cerebral palsy and is deaf, blind, and unable to speak.

Oversight

Court records show that a judge issued an order prohibiting Matilda from being left unsupervised with her biological parents. According to statements from her biological grandmother, DCYF did not inform family members of that order.

The children were later adopted by Sarah and David Strode, who filed lawsuits against DCYF in 2025. The suits alleged the agency failed to act on known risks and did not follow court directives. The cases were dismissed following the approval of the settlements.

Settlement

The settlement, approved in late May, outlines how the $80 million will be distributed.

Recipient	Settlement amount
Leo “Bubby” Strode	$45 million
Matilda Strode	$34 million
Sarah Strode	$500,000
David Strode	$500,000
Attorneys’ fees	40% of total

The funds are intended to support long-term medical care, rehabilitation, and daily assistance for the children. Legal observers note that the amounts reflect projected lifetime care costs and the risks associated with continued litigation.

Insurance

The settlement has also highlighted issues related to the state’s liability insurance coverage. Washington pays approximately $16 million annually for liability insurance, which can provide up to $50 million in coverage per case if notification requirements are met.

DCYF was required to notify its insurance carriers within 81 days of learning of the claims. Documents obtained by KING 5 indicate the agency provided notice after 125 days. The notification reportedly consisted of a single sentence.

At least one insurance provider has responded in writing, stating that the late notice voided coverage for the claims related to Matilda and the Strodes. If additional insurers take the same position, the state may be responsible for paying the full settlement amount without insurance reimbursement.

Implications

The case has financial and administrative implications for Washington state. If insurance coverage is denied, the settlement could place added pressure on public funds. More broadly, the outcome raises questions about internal compliance, communication practices, and oversight within DCYF.

For the Strode family, the settlement provides financial resources to manage extensive care needs but does not alter the lasting impact of the injuries. For the state, the case serves as a reminder of the legal and fiscal consequences tied to child welfare decisions.

FAQs