Boy Scouts insurers given respiratory room to arrange in opposition to settlement

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The Boy Scouts of America (BSA) may have proposed a settlement that is accessible to groups of victims of sexual abuse, but the ball now rests in the court of insurers and they must now bring proceedings against the deal.

The new deal proposed by the BSA last week calls for the youth organization to provide up to $ 850 million in cash and other assets to about 60,000 abuse complainants while transferring their insurance rights to a trust. This trust also manages claims and distributes payments. However, this deal makes no mention of what happens to the BSA’s insurers, who may still be hooked up to make payments to victims’ claims.

Continue reading: Boy Scouts of America Reaches Agreement with Victims of Sexual Abuse

Lawyers representing BSA’s insurers said the settlement is valid and requires coverage for thousands of claims without proper verification. They also accused BSA lawyers of banning them from the mediation sessions that led to the settlement agreement in question – an accusation that BSA lawyers have denied.

But during a recent virtual hearing, US bankruptcy judge Laurie Selber Silverstein announced that she will postpone a preliminary trial on the settlement deal from July 20 to July 29, Reuters reported. The move gives BSA insurers more time to prepare their lawsuit against the settlement.

Silverstein also didn’t comment on whether she would agree to the settlement, but said she was happy with some of the non-monetary provisions of the deal, including the establishment of a child protection committee.

Matt Linder, a White & Case attorney representing the BSA, said mediation with insurers and other opponents of the deal was ongoing.