Brothers Secure $7.5M Settlement in Montecito Union School Sex Abuse Case

Tracy Lehr

MONTECITO, Calif. (KEYT) – Lawyers representing two brothers who accused a former Montecito Union School principal of sexually abusing them in the 1970s expected jury selection to begin this week. Instead, the school announced a multi-million dollar settlement over the weekend.

The Montecito Union School District Board of Trustees issued a statement confirming the $7.5 million settlement, noting it does not include an admission of guilt.

The board said it approved the agreement to protect its instructional program and to keep the focus on students.

The accused principal, the late Stanford Kerr, served as Superintendent-Principal of Montecito Union School for 25 years and also worked at other schools across Santa Barbara County. The brothers said Kerr abused them at different times during their 4th, 5th, and 6th grade years at MUS.

Attorneys Timothy C. Hale of Nye, Stirling, Hale, Miller & Sweet, along with John B. Richards and Mishelle Sotelo of the Law Office of John B. Richards, said Assembly Bill 218 opened a three-year revival window for victims to come forward and file claims.

“The courage these men showed coming forward — after being told at a very young age that they were bad kids, one even told he was the worst student in the school — stayed with them for the rest of their lives,” said Hale. “It devastated their relationships with each other and their families. Then, to face litigation where school district attorneys suggested they were making it up, it really re-victimized them. The fact that they hung in there and achieved this settlement deserves a ton of credit.”

Hale said the younger brother suffered abuse for a longer period of time. The settlement awarded $1.5 million to the older brother and $6 million to the younger brother.

“We’re hoping this changes their lives,” Hale said. “Their lives have been chaotic since the abuse took place. We hope it restores some sense of justice and brings peace.”

Sotelo added: “I think it is great for the clients because we were really focused on empowering them through healing during this entire experience.” She noted that evidence in cases like this is often scarce.

“Sexual abuse is a crime that happens in isolation. There is rarely a paper trail that proves it occurred. That’s why this settlement is so important for the clients,” said Sotelo.

Attorney John Richards called the outcome a form of “social accountability.”

“Our clients have lived with this for 47 years,” Richards said. “If it weren’t for AB 218 — which critics opposed for opening a three-year look-back window — these men would never have come forward. Back in the 1970s, there was no training about what was inappropriate. Nothing prevented a principal from closing or locking a door. This case is a story about why AB 218 was so important.”

The AB 218 window closed in 2022, but claims can still be reviewed on a case-by-case basis.

Montecito Union School District officials declined further comment but sent the following statement to parents:

MUS Reaches $7.5 Million Settlement to Protect Instructional Program and Keep Focus on Students

The Board of Trustees has approved a settlement of $7.5 million to resolve litigation arising from alleged sexual abuse by a former staff member between 1972 and 1978. The agreement includes no admission of liability.

We are deeply mindful of the enduring pain caused by sexual abuse and feel for any person who has experienced such abuse. 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 Board’s decision to settle was made to protect our students and our instructional program. While we were prepared to mount a vigorous defense, the possibility of significantly larger verdicts is well documented in sexual abuse cases throughout California. Such a verdict could have substantially diminished our ability to serve students now and in the future. Because the District does not have insurance coverage for these historic claims, continued litigation created exceptional financial vulnerability. Settling now allows us to stabilize operations and remain focused on today’s students.

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

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

Our mission is to launch inspired thinkers who positively impact the world. Resolving this lawsuit enables us to move forward and stay focused on that mission — delivering excellent teaching, robust student support, and a safe, welcoming school for every child.

The strength of our community lies in how we move through challenges together. In doing so, we reflect the values we aspire to each day at MUS — kindness, respect, and integrity.

Sincerely,Susannah Osley, MUSD Board PresidentAnthony Ranii, Superintendent

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