A proposed settlement plan for more than 80,000 abuse cases filed against the Boy Scouts of America came one step closer to reality March 28 when a federal judge affirmed a $2.46 billion settlement plan, overriding objections by some insurers and claimants.
This has direct implication for churches that served as chartered organizations for Scout troops where abuse allegedly occurred. A significant percentage of BSA troops in the past were sponsored by congregations — led by the Church of Jesus Christ of Latter-day Saints and The United Methodist Church.
In most cases, those congregations had insurance to cover potential abuse claims, insurance provided through a church’s own carrier and/or through a BSA-sponsored policy.
One of the chief impediments to reaching a settlement deal over the past two years has been complaints by some insurers that the settlement shifts too much responsibility to them instead of the BSA and the organizations related to the troops in question.
The Associated Press explained: “Under the BSA plan, insurance companies, local Boy Scouts councils and troop-sponsoring organizations would receive broad liability releases protecting them from future sex abuse lawsuits in exchange for contributing to the victims’ compensation fund — or even for just not objecting to the plan.”
The deal would create the largest sexual abuse settlement fund in U.S. history.
The current settlement proposal, approved in bankruptcy court in September, is supported by 86% of abuse claimants and the BSA’s two largest insurers. But other downline insurers contend the number of claims has been exaggerated due to an advertising campaign by trial lawyers. Even the latest ruling could be appealed on these grounds, and some expect the bankruptucy case could end up at the U.S. Supreme Court before final resolution.
As it stands now, the deal would create the largest sexual abuse settlement fund in U.S. history.
The latest ruling came from U.S. District Judge Richard Andrews in Wilmington, Del., who said the plan is a good-faith effort to resolve the tens of thousands of claims.
BSA officials praised the ruling: “We look forward to the organization’s exit from bankruptcy in the near future and firmly believe that the mission of Scouting will be preserved for future generations.”
The Coalition of Abused Scouts for Justice also praised the ruling, saying it would bring “some justice to tens of thousands of survivors, men and women, many of whom have been waiting decades for this day to arrive.”
The Official Tort Claimants’ Committee of the Boy Scouts of America also commended the outcome, which it said would establish “the overall framework for a survivor trust that will evaluate and pay claims.”
“Survivors voted overwhelmingly in favor of the plan and now two courts have approved the plan” said John Humphrey, co-chair of the Tort Claimants’ Committee. “The TCC has been fighting for survivors for more than three years, and we are ready for the plan to become effective so that the settlement trust can be set up so that it may begin to process claims.”
The Tort Claimants’ Committee plans a town hall meeting April 4 for all survivors with claims against BSA. A recording of the town hall will be posted on the site afterward. The site also includes access to resources for survivors and other parties.
BSA filed for bankruptcy in February 2020, facing overwhelming legal action as several U.S. states allowed accusers to sue over decades-old abuse allegations. Under the current settlement plan, individual survivors could see payments of $3,500 to $2.7 million, depending on individual factors of their claims.
