It was the TCC that demanded it as part of the RSA/Plan 4.0 in order to get the TCC onboard.
BSA’s Plan 3.0 was to give time barred claims 1% of claim value per the abuse matrix. So the “Tier 1” abuse would be $6,000-$27,000
Excellent question. I was late to the game here and know little of the "grey scale" concept as discussed in this forum.
My understanding, and I could be entirely incorrect, is that the gray scale originated from National in an early Plan.
IF, and only IF that is the case, the question becomes, why would National include clearly time-barred claimants as a class of creditors to receive some payment? And the only answer I can come up with is that National wanted to appear that it was trying to "equitably compensate" abuse survivors.
My second best idea (at least to me), is that there is the possibility, however remote, extremely remote, that some states might reopen their statutes of limitation to create a pathway for time-time barred abuse survivors to receive compensation by litigation. And this just might happen if state legislatures, after watching National's bankruptcy leave its citizen abuse survivors high and dry, are disgusted by the bankruptcy result. So, my thought is that insurance companies just might be willing to pay something not to risk opening a much larger can of worms. So, the lowest percentage gray scale value might be applied to states with constitutional prohibitions as mentioned by CynicalScouter, and higher gray scale percentages for states with no constitutional prohibitions, and legislatures more likely to reopen the statute of limitations. But this is only food for thought.
And my third best and most cynical idea is that National knew the time-barred claimants would likely not recover anything in its bankruptcy but included them anyway in the hopes that they could be enticed to file a claim and by sleight-of-hand, allowed to vote on National's Plan, then National would be able to stack the deck toward Plan approval by adding a huge voting block of those with no hope who surely will vote in favor of the possibility of receiving something as opposed to the bleak certainty of nothing.
(Let everyone in Paraguay vote in favor of whether they ought to get $15,000, and I predict voter turn out will be nearly 100%.)
The gray scale to me is that area on ancient maps marked, "Unknown."
There is “difficult” to overcome the statue of limitations and there is impossible. That scale came in from the TCC lawyers professional opinion on what the real possibility was to find a way around the limitations. Places like Alabama were listed as “closed”: no chance. Etc.
Exactly. There is this magical:fantasy idea that all that needs to happen is to get the 50000+ time barred claims into state courts and suddenly a) all the statutes of limitations will go away and/or b) the insurance companies will pay millions per claim.
even in the scenario @Muttsydescribe we are talking 50-100k. Not the millions and millions.
and the idea that somehow you’re going to threaten insurance companies with court is a joke. First you have to find a lawyer willing to work on contingency in the face of a case where the statute of limitations ran out decades ago. Then you have to conjure up an insurance company incapable of filing a motion to dismiss.
I could see insurers paying of “nuisance value” of 10-30k to settle some. But at that point that is the same amount victims are getting through the BSA plan.