Protecting local Boy Scouts of America councils and troop sponsoring organizations from future liability for child sex abuse claims is critical to the national group’s reorganization plan, BSA attorneys told a Delaware bankruptcy judge.
DOVER, Del. — Protecting local Boy Scouts of America councils and troop sponsoring organizations from future liability for child sex abuse claims is critical to the national group’s reorganization plan, BSA attorneys told a Delaware bankruptcy judge Tuesday.
The reorganization plan calls for the Boys Scouts and its 250 local councils, along with settling insurance companies and troop sponsoring organizations, to contribute some $2.6 billion in cash and property and assign their insurance rights to a settlement trust fund for abuse victims. More than half that money would come from the BSA’s two largest insurers, Century Indemnity Co. and The Hartford. Those companies would contribute $800 million and $787 million, respectively.
“There can be no doubt that there is an identity of interests, and frankly an extreme interconnectedness, between the local councils and the national organization,” Lauria said. Sponsoring organizations similarly are closely tied to BSA and local councils and critical to their operations, she added. But opponents questioned why the liability releases for local councils and sponsoring organization are needed in order for the BSA to emerge from bankruptcy. They noted that the Boy Scouts proposed a plan last year under which the settlement trust would be funded only by the national organization, and only for claims made against it. Under that plan, the councils and local sponsoring organizations would make no contribution and would have no protection from liability for abuse claims.
Edwin Caldie, an attorney representing scores of alleged abuse victims in Guam, argued that the BSA’s current plan unfairly strips them of their rights to pursue abuse claims against Catholic church officials. Caldie accused the settling insurers of using “extortionist” tactics in negotiations with the Boy Scouts to obtain liability releases to which they would not be entitled under the policies they issued.
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