Blackrazor,
The washer you are looking at is actually called a wave washer, and the intent is to act as a continuous spring to maintain tension on the blade without having to tighten down the handles to the point where they inhibit the smoothness of the knife. While I don't own an LCC, I do own two Socom's and both have that in them. In the SOCOM's the wave washer is used to maintain the tension, because the back of the handle is closed (not an open frame) so there is a distinct limit to how far you can tighten the handles down at the pivot, so the washer maintains the tension on the blade.
I'm not sure if the back of the LCC is open or closed frame on the back, but I am quite sure that it should not have side to side play when locked open. (In the SOCOM the thumbstuds are used to help stabilize the blade) Therefore, I suggest you carefully put it back together exactly as it came apart and send it back to Microtech to see what can be done. Even if you voided the warranty, generally fixing something like this should be relatively easy to do (slightly thicker bronze washer, slightly shorter blade stop pin, etc ...) for them and the cost shouldn't be prohibitive. I also get pretty wanked over side to side play in folders so I understand your irritation.