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He's currently in the Stafford Creek prison near Aberdeen serving time for a theft conviction
This means he's already being punished for his misdeeds. Which involve theft of some kind. And do not involve perversion.
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he bought moldy cookies in the King County Jail
This would indicate that he used his own limited funds (prisoners don't get to have much money) to buy the cookies himself. I don't think cookies are much of a luxury, myself.
I believe that the point is that he got the cookies at the only place available to him, probably overpriced, and that he did not inspect his cookies for defects before eating them. Do you inspect your cookies? Most people don't. I think most people have had the experience of finding mold in a partially-consumed loaf of bread. Do you inspect all the slices in your loaf before eating?
I don't know if this merits a lawsuit if the mold was hard enough to spot that he didn't see it right away, but I do think he MAY be entitled to something because the prison controls everything to which prisoners have access, and he was harmed. The prison is supposed to supply only non-deleterious food to prisoners. This is the same as requiring functioning toilets, heat in winter, etc. and is not pampering.