WA Lawmakers Aim to Curb Soaring Lawsuit Costs

Proposed bill would require arbitration for civil claims against state and local governments

Jan. 28, 2026 at 2:55am

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Washington state spent roughly $500 million last year in settlements and jury verdicts related to government misconduct, putting a major strain on state and local budgets. Lawmakers have proposed a bill that would require civil claims against governments to go through arbitration, rather than traditional jury trials, in an effort to reduce the skyrocketing legal costs.

Why it matters

The surging lawsuit payouts are hampering the budgets of Washington's state agencies, cities, counties, and school districts, forcing them to divert funds from critical public services. Lawmakers are seeking ways to rein in these costs, which have grown significantly in recent years due to expanded liability laws and high-dollar jury awards.

The details

The proposed legislation would make all civil claims against state and local governments subject to arbitration, rather than traditional jury trials. This is intended to resolve cases more quickly and reduce the legal fees that often accumulate. However, the bill would not limit the monetary damages or attorney fees that could be awarded. Lawyers who bring these claims oppose the bill, arguing that arbitration would be an obstacle to justice for those harmed by government misconduct.

  • In the first half of the current fiscal year, which began July 1, the state paid nearly $237 million in lawsuit payouts.
  • Last year, the state spent roughly $500 million in settlements and jury verdicts related to government misconduct.

The players

Manka Dhingra

A Democratic state senator from Redmond and the lead sponsor of the bill requiring arbitration for civil claims against governments.

Bob Ferguson

The governor of Washington, who has included $955 million in his budget plan to address the growing liability from lawsuit payouts.

Gabriel Galanda

An influential Indigenous rights attorney in Seattle who opposes the arbitration bill, arguing that it is an "assault on civil rights protection" and that "state juries do justice."

Ryan Mello

The Pierce County executive, who told lawmakers that the county has received $320 million in claims related to alleged abuse at a juvenile detention center, forcing the county to divert funding from core services.

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What they’re saying

“What has been happening to the budgets of our school districts, our cities, our counties and the state are untenable. We are simply at the point in time that we cannot continue to do fiscal management and responsibility without addressing tort liability.”

— Manka Dhingra, State Senator

“State juries do justice. State juries bring daylight to situations the government tries to hide from daylight. The fact is, facts are learned in front of juries that cannot be learned in any other process.”

— Gabriel Galanda, Indigenous rights attorney

What’s next

The Senate Bill 6239 is scheduled for a committee vote on Thursday. If passed by the legislature and signed by Governor Ferguson, the bill would take effect immediately.

The takeaway

Washington state and its local governments are grappling with a surge in lawsuit payouts related to government misconduct, which is straining public budgets and forcing tough choices about funding critical services. Lawmakers are seeking ways to rein in these costs, but face opposition from lawyers who argue that limiting access to jury trials would undermine accountability and justice.