CAI's litigation includes California Foster Parents' Association v. Lightbourne, a Ninth Circuit case that found the Department of Social Services compensation to family foster care providers to be over 30% below their actual out-of-pocket costs, in violation of federal law. CAI argued that these rates were also irrational because children in homes with functioning parents have much better outcomes than do group homes with employees serving the parental role, but the latter receive more than 8 times the compensation as do families. The litigation was assisted by the pro bono efforts of Morrison and Foerster joining with the CAI legal team. The supply of family foster care providers had fallen as the compensation levels retracted due to uncompensated inflation in the years following 1998. The case required a 30% immediate increase and CPI adjustment hereafter.The case was originally filed as California State Foster Parent Association et al. v. Wagner in United States District Court for the Northern District of California, No.: 07-05086 WHA. CAI served as counsel, along with Morrison and Foerster, for the state's three associations representing family foster care providers. The complaint contended that state compensation rates violated federal law, are set below the actual cost of care, and have impeded the supply of family foster care placements, limiting adoption opportunity. The alleged result was a decline of family placements from 16,000 to 5,000, fewer adoptions. See the related case applicable to group home rates at
