Playbook Conflicts Allegations — Boy Scouts Abuse and Bankruptcy Proceedings

Tensions rise over local councils’ role in Boy Scouts bankruptcy proceedings” —

  • “The role of local Boy Scout councils in the national organization’s Chapter 11 bankruptcy, and the sexual abuse crisis that propelled it, is a flashpoint in a slew of new lawsuits on behalf of men who say they were abused as scouts.”
  • “Under the Scouts’ proposed reorganization plan, local councils would be ‘Protected Parties’ not liable for sexual abuse claims filed against the organization. Victims’ attorneys are fighting against that division, noting that the vast majority of the Scouts’ assets lie outside the national organization’s holdings.”
  • “On Monday, the case hit another potential snag. In federal court in Delaware, Judge Laurie Silverstein held a hearing to review Century Indemnity Company’s objection to work being done on the case by Sidley Austin, a corporate law firm retained by Boy Scouts. The insurance company argued that it is a conflict of interest since it previously worked with Sidley Austin in a dispute over insurance payouts involving Boy Scout sexual abuse claims.”
  • “Sidley represented Century in a dispute with Lloyd’s of London over reinsurance Century purchased from Lloyd’s to help cover major claims events. Lloyd’s refused to reimburse Century for settlements in Boy Scout sexual abuse cases, leading to a lengthy legal dispute.”
  • “In recent years, the Boy Scouts have battled with insurance carriers who refused to pay out claims, saying the Scouts failed to take effective measures to prevent continued abuse. In 2018, Boy Scouts sued six of its carriers including Century. Experts include insurers’ refusal to pay out claims as one of the driving factors leading Boy Scouts to file for bankruptcy.”
  • “Though Sidley didn’t represent Century in the Scouts’ suit against them, Century’s attorneys have argued that Sidley understands the playbook from the Lloyd’s of London case, and will successfully help the Boy Scouts demand that Century cover large payouts to victims in the bankruptcy proceedings.”
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