Upon watching this the first few times, I never did quite make sense of that line during the judging scene that Harold says after his brother Hank bursts into tears, "Nice, John. That's real nice. You know the baby-sitter's dead!" How could he know that the babysitter was dead? Then it occurred to me; the developmentally disabled brother killed her or otherwise caused her death (the incident for which he was acquitted, as mentioned earlier in the film). And since it's such a small town, news like that would have gotten around quickly, so of course he would know.