Irving-based Boy Scout One of America’s leading insurance companies signed a tentative settlement agreement with the organization on Tuesday with lawyers representing tens of thousands of men who were allegedly molested by Scout Masters and others decades ago. Announced that it has been reached.
Under the deal, insurance company Hartford will pay $ 787 million in a fund set up for men, the company said in a news release.
The agreement was negotiated after the Boy Scout failed to seek court approval to withdraw from the $ 650 million settlement previously signed with the company. In exchange for payment, BSA and its local council release Hartford from further liability for claims of sexual abuse.
The settlement is part of an ongoing effort by a boy scout who declared bankruptcy in February 2020 to develop a restructuring plan that must be approved by the majority of victims of abuse and court.
The lawyer is still trying to negotiate a settlement with Century Indemnity, another major insurance company for Boy Scouts. Before ending the partnership with BSA early last year, another reconciliation with The Church of Jesus Christ of Latter-day Saints (commonly known as the Mormon Church), the largest single sponsor of the Boy Scout squad, is expected.
A new agreement with Hartford was negotiated last month after a bankruptcy judge rejected two important provisions of a $ 850 million deal reached by a lawyer representing the majority of abusers and the BSA.
Judge Laura Selber Silverstein has denied BSA’s request for permission to withdraw from the previous $ 650 million settlement with Hartford. The Scout Association of Japan sought to withdraw from the April agreement after the abuse claimant’s lawyer repeatedly insisted that clients would never vote for a restructuring plan that included it.
Jessica Lauria, chief bankruptcy lawyer for the Boy Scout Federation, said at a hearing last month that Hartford’s lawyer could make significant claims for bankruptcy if the BSA withdraws from the April transaction. He said he suggested. Under the bankruptcy rules, the allegations would have taken precedence over allegations of sexual abuse, Loria said.
“We have to take that claim seriously,” she told Silverstein.
Silverstein also rejected Boy Scout’s proposal to pay millions of dollars in attorney fees and expenses for lawyers hired by a coalition of law firms representing tens of thousands of abusers. The judge said such payments would come out of the abuse claimant’s own pocket.
A new settlement with Hartford was negotiated by a lawyer representing an extraordinary group called the Coalition of Abused Scouts for Justice. Law firms belonging to this group represent more than 60,000 petitioners of sexual abuse. The coalition dominated the flow of the case, despite having an official Victims Commission appointed by the U.S. bankruptcy trustees and responsible for acting in the best interests of all abuse claimants. ..
It is unclear whether the official Victims Commission, which estimates the total liability exposure for boy scout insurance companies’ abuse claims to be over $ 100 billion, will support the new agreement. The Commission abandoned its previous settlement with Hartford and called on the local BSA Council, which conducts the day-to-day operations of Boy Scouts and Boy Scout Forces, to donate $ 850 million and insurance rights. Supported. Policy to fund for abuse claimants.
The insurer strongly opposed the plan, and the proposed transfer of insurance rights illegally deprived the insurer of the ability to question the claim, and the trustee overseeing the victim fund was undisputed by the insurer. He claimed to have improperly allowed him to decide what to pay. Insurers have also questioned the provisions that allow prompt payment of $ 3,500 from the fund to resolve abuse claims. There were no questions.
Irving-based Boy Scouts sought bankruptcy protection in February 2020, blocked hundreds of individual proceedings, and huge amounts to thousands of men who allegedly were molested as young men by Scout Masters and other leaders. Established a compensation fund for. The organization faced 275 proceedings at the time of filing, but now faces 82,500 allegations of sexual abuse in bankruptcy cases.