Chapter 11 announced

[CynicalScouter]

5 minutes ago, Eagle94-A1 said:

Let's remember the #1 goal of the lead lawyer as stated in the Diane Rheem interview linked in a previous post and in another interview I heard him in : the complete dissolution of the Boy Scouts of America and IF (emphasis in interview) an organization like the Boy Scouts is still needed, it start from scratch.

Except that, and this is important, Kosnoff is not the lead lawyer in the bankruptcy proceeding. On the contrary, the actual lead attorneys (the tort claimants' committee) want him OUT of the proceedings.

Quote

 

(Reuters) - A dispute among two groups representing Boy Scouts of America's sexual abuse victims intensified this week following attempts by one of them to get a seat at the table in the organization's bankruptcy proceedings.

In court papers filed Wednesday in bankruptcy court in Delaware, the group tasked with representing survivors in the Chapter 11 case, known as the tort claimants' committee and represented by Pachulski Stang Ziehl & Jones, questioned the validity of the other calling itself the Coalition of Abused Scouts for Justice. The coalition, represented by Brown Rudnick, has asked a judge to let it participate in mediation sessions aimed at producing a settlement between the Boy Scouts and the survivors.

The dispute began percolating in recent weeks after the Boy Scouts, which sought bankruptcy protection in February to address scores of lawsuits alleging child sex abuse, asked a judge to stop certain law firms from running what the organization says are misleading advertisements soliciting their services to survivors who may want to pursue claims against the organization. The ads, according to the Boy Scouts, include false and deceptive information about the process of filing a claim in the bankruptcy.

Survivors have until Nov. 16 to file claims.

The coalition responded with accusations that the organization is trying to limit the number of claims filed in the bankruptcy. It also filed papers asking to participate in the mediation process, prompting push back on Wednesday from the tort committee and the Boy Scouts' insurers, who say they need detailed documentation of how the coalition is structured.

The coalition includes six law firms that say they represent around 12,000 survivors. Three of those firms formed a group in 2019 called Abused in Scouting, which encourages survivors to pursue claims against the Boy Scouts.

In Wednesday's filing, the tort committee called the coalition "nothing more than a marketing term that was concocted by six law firms who were unhappy they could not control the tort claimants' committee to implement their agenda in the case." The tort committee questioned who, exactly, Brown Rudnick is working for, suggesting that it does not directly represent the survivors individually but rather the six firms. The committee argued that the coalition is not a proper entity that can be recognized in a bankruptcy proceeding "when its members have no governance or decision making role."

A lawyer for the coalition, Sunni Beville of Brown Rudnick, said the group disputes the allegations.

Tim Kosnoff of Kosnoff Law, one of the six firms involved with the coalition and one of the three that launched Abused in Scouting, denounced the tort committee's statements.

In an interview, Kosnoff addressed his comments toward the committee's lead attorney, Jim Stang of Pachulski.

"For Mr. Stang to say we're a marketing entity is a lie. He knows it's a lie," Kosnoff said.

Kosnoff also accused the tort committee of focusing its work on survivors from states with broader statutes of limitations laws with respect to abuse claims.

Stang, in an interview, refuted Kosnoff's accusations and said his committee has no issue with the 12,000 survivors being represented in mediation – it's the concept of the coalition that is concerning.

"We are not trying to disenfranchise these men," he said.

U.S. Bankruptcy Judge Laurie Selber Silverstein in Wilmington, Delaware will consider the dispute at a hearing on Sept. 9. She will also address the Boy Scouts' motion to block certain ads from law firms, a request that she expressed skepticism toward during a recent hearing.

The case is In re Boy Scouts of America, U.S. Bankruptcy Court, District of Delaware, No. 20-10343.

For the Boy Scouts: Jessica Boelter, Thomas Labuda, Michael Andolina, Matthew Linder and Blair Warner of Sidley Austin and Derek Abbott, Andrew Remming, Eric Moats and Paige Topper of Morris, Nichols, Arsht & Tunnell

For the tort claimants' committee: James Stang, John Morris, James O'Neill and John Lucas of Pachulski Stang Ziehl & Jones

For the Coalition of Abused Scouts: David Molton, Sunni Beville and Tristan Axelrod of Brown Rudnick and Stanley Tarr of Blank Rome

 

Edited October 16, 2020 by CynicalScouter

[CynicalScouter]

And speaking of Kosnoff

Quote

But the coalition filed documents last week pointing out that both Kosnoff and Van Arsdale had resigned from it on Sept. 29 and accusing Century of a consistent pattern of "delay for the sake of delay" out of concern for its potential "massive exposure" to victim claims.

https://www.law360.com/insurance/articles/1319582/victims-coalition-seeks-expanded-role-in-boy-scouts-ch-11

 

Quote

Law360 (October 14, 2020, 9:43 PM EDT) -- Proceedings got testy at times as a coalition representing thousands of individuals who have lodged sexual abuse allegations against the Boy Scouts argued Wednesday for an expanded role in the organization's Chapter 11 case and its determination of how victims will be compensated.

During an all-day virtual hearing, the ad hoc Coalition of Abused Scouts for Justice told U.S. Bankruptcy Judge Laurie Selber Silverstein that the group should have a seat at the negotiating table in the Boy Scouts of America's Chapter 11 proceedings as mediators work to steer the bankruptcy toward a plan to make distributions to creditors, including abuse victims.

Coalition attorney David J. Molton of Brown Rudnick LLP accused certain other stakeholders of employing a "don't come into my sandbox" mentality in opposing the coalition's efforts to participate in mediation proceedings in the Chapter 11 case.

"What we are asking for here, your honor, is really not that remarkable," Molton said, asserting that the coalition has and can continue to play a constructive role in the Chapter 11 proceedings on an even more substantial basis if given a seat at the mediation table as stakeholders try to hash out an agreement on a Chapter 11 plan.

To date, about 7,300 individuals alleging victimization by people associated with Scouting have consented to the coalition representing their interests in the bankruptcy proceedings as they pursue Chapter 11 claims, coalition attorney Sunni P. Beville of Brown Rudnick told the judge. That number is expected to grow in the coming weeks, she added.

It is critical that those the coalition represents "have their voices heard," Beville said. She took issue with opposition to the coalition's efforts to play a more substantial role in the Chapter 11 case, accusing certain other stakeholders of trying to prevent abuse victims from being heard.

Counsel for the official committee already set up in the Boy Scouts' Chapter 11 proceedings to represent abuse victims with tort claims against the bankruptcy estate took issue with the coalition's representations.

"How dare they say to you and to the world that this committee is trying to stop victims' voices from being heard," said attorney James I. Stang of Pachulski Stang Ziehl & Jones LLP, representing the committee of tort claimants.

"The notion that the committee is not doing its job is so unfortunate," Stang added.

The Boy Scouts filed for bankruptcy in February, saying it was facing escalating sexual abuse settlements and wanted to establish a long-term "mass tort" compensation structure, similar to the one used for asbestos claims. The organization has since launched a nationwide campaign to reach 110 million Americans with information about the claim process.

Complicating the case was the coalition's arrival in July and its assertions that it represented thousands of victims across the country. The group quickly became the focus of assertions — since resolved through court-ordered restrictions — that it was tied to questionable solicitations of clients, including a baseless public claim that a $1.5 billion fund could be available for victim settlements.

Century Indemnity Co., one of the Boy Scouts' insurers, noted that the thousands of advertisements by attorneys seeking to represent victims aired before the court's intervention were followed by a jump in claims from 1,700 at the opening of the case to roughly 10,000 in a matter of weeks.

Century and other insurers accused the coalition of flooding the Boy Scouts' bankruptcy estate with claims and its attorneys of trying to better position themselves to reap rewards through the payment of administrative fees.

"This is a preview for a motion for substantial contribution," Century attorney Tancred Schiavoni of O'Melveny & Myers LLP asserted, referring to a section of bankruptcy code by which a stakeholder can argue that its administrative expenses be given priority over other parties if they are deemed to have made a substantial contribution to a Chapter 11 case.

The Boy Scouts' Chapter 11 has been beset recently by court filings on a range of issues, including a battle over insurer demands to depose former attorneys for the coalition and challenges to the coalition's bid to participate in mediation.

Last week, Century asked Judge Silverstein to shorten the notice required for compelling depositions of the coalition's founders Tim Kosnoff and Andrew Van Arsdale, arguing that they were stalling on requests to answer questions. The two have "claimed a 40 percent interest in the bulk of the inventory of alleged claims" the coalition represents, Century said.

But the coalition filed documents last week pointing out that both Kosnoff and Van Arsdale had resigned from it on Sept. 29 and accusing Century of a consistent pattern of "delay for the sake of delay" out of concern for its potential "massive exposure" to victim claims.

After ruling on a limited issue of how those who have made sexual abuse allegations can file claims against the estate, Judge Silverstein held off deciding the coalition's motion to participate in mediation and filings related to the deposition demands. She also refrained from ruling on a dispute over whether the coalition has sufficiently disclosed information about its operations and the clients it represents, but the judge said her decision may come Friday.

The Boy Scouts of America is represented by Derek C. Abbott, Andrew R. Remming, Eric W. Moats and Paige N. Topper of Morris Nichols Arsht & Tunnell LLP, and Jessica C. K. Boelter, Michael C. Andolina and Matthew E. Linder of White & Case LLP.

The Coalition of Abused Scouts is represented by David J. Molton, Eric R. Goodman, Tristan G. Axelrod and Sunni P. Beville of Brown Rudnick LLP, and Rachel B. Mersky of Monzack Mersky Browder & Hochman PA.

The committee of tort claimants is represented by James I. Stang, John A. Morris, James E. O'Neill and John W. Lucas of Pachulski Stang Ziehl & Jones LLP.

Century is represented by Stamatios Stamoulis of Stamoulis & Weinblatt LLC, and Tancred Schiavoni and Janine Panchok-Berry of O'Melveny & Myers LLP.

The case is In re: Boy Scouts of America and Delaware BSA LLC, case number 1:20-bk-10343, in the U.S. Bankruptcy Court for the District of Delaware.

--Additional reporting by Jeff Montgomery. Editing by Steven Edelstone.

Read more at: https://www.law360.com/articles/1319582/victims-coalition-seeks-expanded-role-in-boy-scouts-ch-11?copied=1

 

Edited October 16, 2020 by CynicalScouter

[Sentinel947]

21 minutes ago, CynicalScouter said:

One person lied, therefore all the victims claiming abuse against the BSA are liars.

Got it.

That's not at all what Tahawk was saying. His example was only to illustrate the effect lapsing time can have on claims. 

Giving feedback, and I mean it with respect. This is the second thread in about a week where you are jumping down people's throats and assuming the worst about what other people say. You're clearly very smart, and specifically on this topic, very well informed.  I appreciate the knowledge you bring to these topics. Just relax a little bit. You are ending up arguing against positions that people don't actually hold. 

[ParkMan]

46 minutes ago, Eagle94-A1 said:

Folks,

Would it be possible to take a pause for a little bit? I know this is a very challenging issue that is extremely multifaceted.  I see all sides of the arguments. I know folks who were molested, I know someone falsely accused (criminal investigation conducted and evidence supported her story), and I had to keep Cubs occupied while police intervened (that was not a good night at camp).

Request respected and appreciated.   We're all passionate about Scouting and this most certainly is a very difficult issue for all of us.

Edited October 16, 2020 by ParkMan
grammer

[RememberSchiff]

Interesting ...BSA representation followed to our lawyers new firm?

For the Boy Scouts: Jessica Boelter, Thomas Labuda, Michael Andolina, Matthew Linder and Blair Warner of Sidley Austin and Derek Abbott, Andrew Remming, Eric Moats and Paige Topper of Morris, Nichols, Arsht & Tunnell  from Reuters

The Boy Scouts of America is represented by Derek C. Abbott, Andrew R. Remming, Eric W. Moats and Paige N. Topper of Morris Nichols Arsht & Tunnell LLP, and Jessica C. K. Boelter, Michael C. Andolina and Matthew E. Linder of White & Case LLP.   from Law360 (October 14, 2020, 9:43 PM EDT)

[DavidLeeLambert]

So we've seen reports that the "Coalition" has names of over 28,000 alleged victims that it purports to represent.  But a court filing [D.I.1505] on behalf of the TCC a week ago shows that the actual number of submitted abuse claims so far is still below 6,000:

Quote

10. I and others working at my direction have reviewed the Claims Report. As of October 9, 2020, the Claims Report reflects that 5,487 Sexual Abuse Survivor Proofs of Claim were filed and assigned a claim number, and that:

• approximately 1,580 (or approximately 28%) contain no information regarding the Local Council associated with the claim;
• approximately 2,271 (or approximately 41%) contain no information regarding the chartered organization associated with the claim;
• approximately 188 (or approximately 3.5%) reflect that the alleged sexual abuse occurred in the year 2000 or thereafter; [...]

The Local Council omissions I can believe.  I don't even remember my Unit Number from when I was a Boy Scout (thought I did, but then my dad handed a uniform down to me and it had a different number on it), and I remember hearing my leaders talk about how we were in a certain council because that's where the other nearby same-CO units were registered, but actually no one in the unit lived inside that council's boundaries.  Whichever one it was, both councils (along with several others) were subsequently merged into an almost-statewide council that doesn't retain either one's name.

The lack of information about chartered organizations is harder to square with the assumption that the claims are 100% sincere, complete and well-founded.

[DavidLeeLambert]

On 10/16/2020 at 6:12 PM, RememberSchiff said:

Interesting ...BSA representation followed to our lawyers new firm?

For the Boy Scouts: Jessica Boelter, Thomas Labuda, Michael Andolina, Matthew Linder and Blair Warner of Sidley Austin and Derek Abbott, Andrew Remming, Eric Moats and Paige Topper of Morris, Nichols, Arsht & Tunnell  from Reuters

The Boy Scouts of America is represented by Derek C. Abbott, Andrew R. Remming, Eric W. Moats and Paige N. Topper of Morris Nichols Arsht & Tunnell LLP, and Jessica C. K. Boelter, Michael C. Andolina and Matthew E. Linder of White & Case LLP.   from Law360 (October 14, 2020, 9:43 PM EDT)

Yes, Friday's docket report contains new motions to appear for Jessica Boelter [D.I.1533], Mike Andolina [D.I.1535], and Matt Linder [D.I.1535] with the new firm, and orders granting their admission [D.I.'s 1536–1538].

[robert12]

From the Baptist Press

Boy Scouts bankruptcy could leave churches liable in future sex abuse claims

"Churches who chartered or have ever hosted a Boy Scouts of America (BSA) troop should seek legal counsel now in case they are named in future sex abuse claims against the BSA, a Southern Baptist legal representative told Baptist Press."



https://www.baptistpress.com/resource-library/news/boy-scouts-bankruptcy-could-leave-churches-liable-in-future-sex-abuse-claims/

[RememberSchiff]

Unless I missed it, there is no committee representing Charter Organizations or a subset of CO's at the mediation table?

[CynicalScouter]

2 hours ago, RememberSchiff said:

Unless I missed it, there is no committee representing Charter Organizations or a subset of CO's at the mediation table?

Not yet. I can't help but think that once it becomes clear that the assets of National + Councils + the various insurance companies fail to get up into the $1 billion+ range that the CO's will be forced into the bankruptcy OR a separate, parallel global settlement.

[Eagle94-A1]

Not a lawyer, so  bear with me if it's a stupid question. Wasn't part of the charter agreement, and part of the CO's charter fees, insurance to cover stuff like this? Wouldn't teh BSA still be liable?

 

[CynicalScouter]

8 minutes ago, Eagle94-A1 said:

Not a lawyer, so  bear with me if it's a stupid question. Wasn't part of the charter agreement, and part of the CO's charter fees, insurance to cover stuff like this? Wouldn't teh BSA still be liable?

Two ways this could go down:

1) National AND Council Insurance doesn't cover ALL claim amounts. So there is $1 billion in liability and National assets + Council assets + National AND Council Insurance is less than $1 billion, the COs will be dragged in to cover the rest.

2) National AND Council Insurance Policies are void due to improper practices by National. This was the claim from at least some of the insurance companies. This happened in 2013 with the Oregon lawsuits and in 2018 with the mass of claims.

Quote

 

The Hartford Accident and Indemnity Co. and First State Insurance Co. in Texas have both turned their back on the BSA, arguing that the “ineligible volunteer files” show the organization hasn’t done enough to protect children against sexual abuse and misconduct, and hasn’t done enough to warn parents of the risks.

Both insurers are arguing in court that they shouldn’t have to pay claims related to abuse that the BSA could have reasonably prevented. The BSA and several councils sued both insurers for $13.5 million in June. In a separate legal battle, insurers are refusing to cover sex-abuse settlements and legal defense fees for the BSA, arguing that the events were not accidents and could have been prevented.

 

So there is $1 billion in liability and National + Councils + National AND Council Insurance is less than $1 billion, the COs will be dragged in.

[David CO]

51 minutes ago, Eagle94-A1 said:

Not a lawyer, so  bear with me if it's a stupid question. Wasn't part of the charter agreement, and part of the CO's charter fees, insurance to cover stuff like this? Wouldn't the BSA still be liable?

I'm not a lawyer either.  Yes, part of the charter fees was for insurance.  I don't think this relieves the CO's from liability.  Regardless of who purchased the insurance policy, if the CO's are under-insured, I believe they are still liable for any judgement in excess of the insurance.

My CO never relied on the BSA insurance.  Only a fool would believe you could insure a unit for the amount we were charged on the chartering fee.  I think it was $100 back in the 80's.  

It wouldn't surprise me if they try to collect from the CO's insurance policies as well as the BSA policy.  I don't think the CO's insurance company would be willing to contribute to the bankruptcy fund.  Each CO would have to be sued individually.

Edited October 20, 2020 by David CO

[T2Eagle]

3 hours ago, robert12 said:

From the Baptist Press

Boy Scouts bankruptcy could leave churches liable in future sex abuse claims

"Churches who chartered or have ever hosted a Boy Scouts of America (BSA) troop should seek legal counsel now in case they are named in future sex abuse claims against the BSA, a Southern Baptist legal representative told Baptist Press."



https://www.baptistpress.com/resource-library/news/boy-scouts-bankruptcy-could-leave-churches-liable-in-future-sex-abuse-claims/

From the same article “If a church five years from now gets sued by a former Boy Scout who was molested or claims to have been molested in that church’s troop, normally the church would turn to the Boy Scouts and say, ‘You guys said you would hold us harmless and insure us, so do that,'” Jordan said. “And the Boy Scouts will say, ‘Sorry, we went through a bankruptcy reorganization and we no longer have any responsibility to do that.'” Churches can maintain their indemnification and gain access to the trust by filing a “placeholder” claim with the court by the Nov. 16 deadline, said Jordan, whose firm Guenther, Jordan & Price is outside general counsel to the Southern Baptist Convention Executive Committee and the SBC."

[fred8033]

How could anyone protect themselves from what is happening today?  How could anyone decide the proper insurance amount?  How could anyone protect themselves against a drastic societal change?   Most blatantly ... Laws changed to re-open lapsed liabilities.

I now I've said it before, but this whole situation is ugly on top of ugly and injustice on top of injustice.  Sadly, the only ones profiting are muck rackers.