Lawsuit seeks to block $1.4M inmate wage settlement over unpaid restitution to victims

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The Maryland Crime Victims Resource Center (MCVRC) and former Maryland Deputy Attorney General Thiru Vignarajah have filed a lawsuit seeking to halt approval of a proposed $1.4 million class-action settlement that would compensate current and former inmates for unpaid wages while providing no direct compensation to crime victims owed court-ordered restitution.

The lawsuit, announced Friday outside the Federal Courthouse in Baltimore, challenges a proposed settlement in Scott et al. v. Baltimore County, a class-action case brought under the Fair Labor Standards Act on behalf of inmates who worked at a recycling facility in Cockeysville.

Watch the announcement below:

MCVRC, a nonprofit advocacy organization, argues that Maryland law requires restitution owed to crime victims to be paid before inmates receive settlement proceeds.

According to the organization, the proposed settlement contains no mechanism to identify victims or ensure restitution payments are made before funds are distributed.

“The crime victims to whom those inmates owe restitution have gone unpaid and unrepresented — until now,” advocates said in announcing the suit.

Under the proposed agreement, inmates would share approximately $1.4 million in back wages, while attorneys representing the class would receive roughly $2.3 million, according to court filings cited by the plaintiffs.

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The lawsuit relies in part on a recent Maryland court ruling in which a county judge ordered officials to withhold settlement funds and satisfy outstanding restitution obligations before distributing money to inmates.

The plaintiffs contend that Maryland law requires custodial agencies to ensure restitution judgments are paid first.

According to data cited in the complaint, only about 6% of court-ordered restitution in Maryland is collected promptly, leaving many victims waiting years—or even decades—for compensation.

The motion to intervene was filed on behalf of four named victims — Kathryn Hinton, Linda Kennedy, Wayne Schoff and Ciera Tune — as well as others who may be owed restitution by members of the inmate class.

MCVRC Executive Director Kurt Wolfgang called on victims owed restitution to come forward and join the legal effort.

The filing asks the federal court to require Baltimore County and related agencies to identify victims with outstanding restitution judgments, withhold the appropriate funds from settlement payments and distribute those funds to victims before any remaining proceeds are paid to inmates.

Court documents accompanying the lawsuit allege that restitution orders have frequently gone unpaid, victims have often been unaware of their rights, and public agencies have failed to enforce legal obligations designed to compensate victims before offenders receive financial awards.

Baltimore County has not yet publicly responded to the new lawsuit. A hearing on the proposed settlement remains scheduled for June 11.

Copies of the Motion to Intervene and corresponding Complaint are attached below.