Insurance Co. settles $ 800 million in Boy Scouts bankruptcy case, opponents say ‘grossly unfair’

Lawyers for parties involved in the Boy Scouts of America (BSA) bankruptcy case have reached a tentative settlement in which one of the organization’s largest insurers would contribute $ 800 million to a fund for victims of child sexual abuse.

For agreeing to pay the money into the proposed trust fund, Century Indemnity Co. would be released from any further liability.

The final deal would be worth more than $ 2.6 billion, which would be the largest sexual abuse settlement in U.S. history.

The news of the deal comes as 82,000 sexual abuse claimants must decide before December 28 whether or not to approve a previously announced BSA reorganization plan.

As part of the plan, the BSA and its 272 local councils would also contribute up to $ 820 million in cash, property and certain insurance fees to a fund for victims. In return, the local councils and the national organization would be released from any further responsibility.

The Associated Press reported that the plan also includes settlement deals with The Hartford, one of the Scouts’ major insurers, and the former largest sponsor of BSA troops, The Church of Jesus Christ of Saints. of the Last Days, more commonly known as the Mormon Church. The Hartford agreed to contribute $ 787 million to the victims’ fund and the Mormons agreed to contribute $ 250 million. In return, the insurance company and the church would have no further liability regarding child sexual abuse claims.

The Century Indemnity agreement would also provide for additional contributions from the BSA and its local councils on behalf of approved sponsoring organizations.

“This is an extremely important step forward in BSA’s efforts to fairly compensate survivors, and we hope it will lead to further settlement agreements with other parties,” the Boy Scouts said. in a press release. In addition to our ongoing negotiations with other insurers, BSA has worked diligently to create a structure that will enable churches affiliated with the Roman Catholic Church and churches affiliated with The United Methodist Church that have sponsored Scout units to contribute to the proposed settlement trust to compensate survivors. “

Lawyers for the Coalition of Abused Scouts for Justice, which represents approximately 18,000 asylum seekers, said in a statement that Century’s settlement was another reason for victims to vote for the BSA’s reorganization plan.

“Not only is the coalition creating the largest possible compensation fund for survivors – it’s the only fund on the table, and it is gone with a ‘no’ vote,” said the lawyer and co-founder of the Anne Andrews coalition. “The coalition also continues to work with the Boy Scouts of America on accountability and safety measures to ensure that no child suffers the horrendous damage and abuse our customers have suffered.”

Opponents of the plan, including the official committee of abuse claimants appointed by the US bankruptcy trustee, have said the plan is “grossly unfair” and represents only a fraction of the potential liabilities of the settlers and therefore. that they should and can pay.

According to the Associated Press, the committee said settlements with local Boy Scout councils would leave them more than $ 1 billion in cash and property above what they need to complete the tracing mission.

As CBN News reported in September, a number of churches and other religious groups were concerned about the liability they could face in lawsuits after sponsoring local Scout troops.

Three years ago, more parents started dropping out of the Boy Scout program, opting for a Christian alternative

The Irving, Texas-based BSA filed for Chapter 11 bankruptcy in February 2020 after hundreds of sexual abuse lawsuits were filed against it.

But just over a year earlier before the lawsuits were announced, Christian parents said they were concerned about the program’s downward moral spiral and opted for a denominational alternative like Trail Life United States.

Launched in 2014, Trail Life USA now has more than 30,000 boys participating in its faith-based program across the United States.

The BSA, which once stood for traditional family values, has now aligned itself with the LGBT movement. About 20 years after winning a Supreme Court ruling openly banning practicing gay men, the organization has opened its doors to transgender boys as well as biological girls.

Since the lifting of its ban on young homosexuals, the BSA has lost two million members, according to Christian Post.

“The Boy Scouts kind of lost sight of themselves; they were an organization that gave us presidents, senators, astronauts, and community and civic leaders,” Trail Life USA CEO Mark Hancock told CBN News last September. “They had a magic sauce; they had the magic to make good, strong men boys.”

“But they started to abandon those traditions because of the changes they made over the past two years, and I think the families said, ‘No, we want an organization that understands that boys and girls are different, ‘”he continued.

“We want our sons to be raised in a man-centered organization, which helps them understand and be encouraged to become successful and godly men,” Hancock added.

“That’s who we are, and that’s really what makes us different,” he explained. “If we stop doing this, there is no reason for us to exist. And we too in our hearts want to see the Kingdom grow. We want to see boys touched for Christ.”

“We want to see boys and families making decisions for Christ,” said the CEO of Trail Life. “And we see it almost every day.”

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