MYCVAStory

So not having seen it you've formed an opinion huh? Sorry, but I fall into the camp of "Let's see what it has to say" before I form any sort of opinion. If it moves the needle at all to prevent what happened from re-occuring then good. As Santayana said "Those who cannot remember the past are condemned to repeat it." The fullest understanding of what happened and why will be the best way to step toward preventing its being repeated. I don't think you're black-hearted. I just hope ALL of us will do our best to watch with an open mind and consider its values and faults. Too much was secret for too long. This is a part of the reckoning.

Not as much as you think. While the BSA plan has gone effective it is still under appeal. So, it is reversible. One of the reasons the Trust is moving quickly is because sometimes a Court of Appeals will effectively say "The egg has been scrambled so any ruling we make shouldn't undo what has been done. In this case, the Court of Appeals is expected to NOT rule since it knows that the Supreme Court is addressing a key portion of the BSA plan, the third-party releases. I agree but remember that the settling insurers are NOT required to make a large portion of their payments until ALL appeals have been settled. So, the egg may not be as scrambled as it could be. The bottom line I believe is that this is still up in the air a bit more than most recognize. IF the appeals are denied tomorrow then ANY Supreme Court rulings later on won't matter. As well, should this be denied on appeals it CAN be paused if the objectors can get the Supreme Court to accept a writ doing so. Given its move to do so with Purdue, it very well might grant that as Purdue unfolds. Again....things are still in flux.

You point out well the problem with addressing mass torts through bankruptcy. It reduces every individual to one "class" and sacrifices individual rights for collective agreements. That's what the Supreme Court has to decide since to this point different circuits have ruled differently. It's a shame that the issue wasn't long resolved before now.

I appreciate the compliment. I'll take them when I can get them! Been on the phone today with legal people far smarter than I am. The consensus....if the Supreme Court thought Third-Party releases were such a good idea then it wouldn't have taken up the case. Not good for the BSA's plan. Also, this is not a "Sackler-Specific" issue. It's all about interpretation of the bankruptcy code regardless of whether a wealthy family is involved. Had it not been the Sacklers it could have been the BSA's case to push this to the Supreme Court. It's been brewing a long time. The only way this goes away for the BSA in the interim is if the objections are dropped completely. This would mean that the two attorneys (representing Guam Survivors and the other various survivors in several States) would need to have their clients compensated at a level so that their Survivors are much better off than other Survivors in this Bankruptcy AND the non-settling insurers who object also drop their objections. All of that isn't outside the realm of possibility but doesn't seem probable right now. Who knows. If I'm Century or The Hartford I'd be trying to rescue this. What I do know is that there is now a very real possibility that a lot of dominoes could fall next June. If the BSA's plan is DOA, it would need to re-enter Chapter 11 or throw in the towel and go Chapter 7, Local Councils are again exposed and in "open" states especially, Chapter 11 becomes their reality. It's all up in the air and shouldn't keep anyone from moving ahead when they can complete their questionnaire but a lot of BSA execs must be asking themselves "What did we just pay over $300 million for?" I pray this all works out but often in life timing is everything. The BSA declared bankruptcy too late and has been caught up in an aggressive, and frankly needed, push by the DOJ to get guidance on third-party releases. This bankruptcy plan is in real peril and Local Councils especially must be pretty damn worried right now.

Well, if anyone was looking for a sign that this would be moving along a little quicker, you didn't get it today. What this means is that the Supreme Court will hear the Purdue arguments in December. Then, they will probably rule by the end of June when they go on recess. Lately they've issued a lot of decisions at the very end of the term. Purdue is in the Second Circuit and the BSA Bankruptcy is in the Third Circuit. BUT, the third circuit will most likely wait for a Supreme Court ruling on this so that it has guidance. This guidance has been long overdue since different Circuits/Districts are more and less favorable to non-debtor third-party releases. That's also the reason the BSA went venue shopping and set up an entity in Delaware shortly before entering bankruptcy. So, the Trust can continue to operate, and even make "quick pay" payments, start issuing award decisions, and even making a portion of payments with the money it has on hand. BUT....there is NOT $2.7B in the bank because full payment from settling insurers isn't due until ALL appeals have been settled. As well, yes, should the Supreme Court strike down third-party releases before the Court of Appeals rules then the current bankruptcy plan blows up. IF, and no one expects it, the Court of Appeals rules and denies the objections then the plan does move forward. A supreme Court ruling can't undue that after the fact. That said, the objectors can file a writ to the Supreme Court to have this paused, as is the case with Purdue. The Supreme Court would decide whether it will accept the writ. Again, the Court of Appeals is expected to avoid that scenario by waiting to see how Purdue shakes out. Lots of "what-ifs." Survivors are awaiting the Trust making the claims questionnaire available. Then, there will be a six month window to complete it. Since that will expire before a Supreme Court ruling Survivors will have little choice but to complete the questionnaire and keep their fingers crossed. In the interim, at the most will be some tea-leaf reading at the end of this year when we hear the tenor of the questions being asked in Purdue. If you want the bankruptcy to blow up then today's pause gives you a bit more hope. If you want this to move forward then you have a little more reason to be concerned. Regardless, if you're a claimant then your task will still be to submit your questionnaire and get back to waiting. I can only shake my head in frustration over all of it. Again.

That's correct but..... The Trust is "effective" and operational but can only distribute the funds it has "in the bank" once awards are determined. Making that even more tricky is that without full payments from the settling insurers and others the Trust must also "hold back" funds in a safe manner to ensure that it doesn't run out of money. The TDP makes clear that awards will be determined on a "First in First Out" basis but that does NOT mean that Survivors who get their information submitted first will get some sort of full payment and deplete available funds for those who submit later. So, Survivors will receive an award notification, and determine if they will accept it without review, and then receive some portion of payment. As settlements are reached and funds distributed there will be additional payments. Now, whether Survivors are paid 100 cents on the dollar or some fraction of that will NOT be known until we know how many total Survivors submit their questionnaire when the Trust starts that process AND the final total of assets gained. The former will be known six months after the questionnaire goes live. The latter will be known after ALL litigation against non-settlers is over. I fear that some Survivors will get a letter stating their award and fall prey to unscrupulous "structured settlement" lenders or run up debt in anticipation of funds that might not appear. Hopefully the Trust will be transparent and communicate expectations.

Hartford and Century have made partial payment. Approximately 150 mil total if memory serves. It's in the confirmed plan. Optimistic assessment: Yes, the remainder must be paid after appeals but at least the Trust is funded to a level that allows it to start its work. Pessimistic assessment: Yes, let's hope that the plan isn't overturned on appeal at the same time the Trustee and Trust professionals burn through the initial contributions and become the only recipients of Trust money!.

I just wanted to say happy father's day to all the Survivors who tried and have tried their best, for so long, to be the best father they could be. The secrets you kept to protect the partners in your life you cared about, how hard you tried to protect your own children, and the hard work to not let anyone know what you were battling are all the stuff to be proud of even when you feel like you could have done more. Chin up.

To the best of my knowledge the scaling factors will be modified to the "current" State of the SOL landscape. That's also why there's a 12-month holding period for Survivors who anticipate changes for their State. Just my guess. But, a couple other points: 1. The Trust has a LOT of explaining to do regarding processes. The Judge has said she's going to answer questions. We'll see if she knows what that means. A claims processing company will be retained. It will get a lot of questions. For now we all have questions and the questionnaire is in development. THEN, there will be six months to get that in. So, there's a LOT of time for a LOT of issues to come up and hopefully be addressed. As well, there are 4,000 pro se claimants and the Trustee knows it so there will need to be assistance for unrepresented Survivors and those who aren't happy with their attorney communication. 2. And, a "Don't shoot the messenger" message. Remember that the Third Circuit still has this to be considered under appeal. All it did was refuse to continue the stay. That allowed the Trust to move forward since the plan allowed it after District Court affirmation. So, while the Trust is motivated to get things going ASAP since the Circuit will look at how much progress has been made and will consider that before overturning anything, that may take a year considering the Circuit's pace. Non-settling insurers are happy to wait. THEN, if they don't prevail they submit a writ to the Supreme Court to have it consider their position. Getting that accepted is anyone's guess and then the time to any hearing is also an unknown. What all of that means is that Survivors will get an award "letter" but any award "payments" are more than likely a multi-payment proposition that will take more than a year and the percentage of the award value is still a big unknown. Sorry, I know this didn't answer your question directly. It's just meant as some encouragement that a LOT of questions are to come AND there is a lot of time for this to still play out. What did I hear, 10,000 claimants over 70? I just want to be alive when this is done playing out. The fact that many Survivors haven't made it, and still more won't, is tragic and I hope some day that story becomes part of the narrative that changes how the bankruptcy laws are being used to address what happened to us.

Agreed. The reality is right now anyone covering this, and the BSA as well, have only the BSA's "expert" Dr. Bates and his report to point to. The reality will only be known when checks start hitting mailboxes. Even then, that will only be part of the story. There are still non-settling insurers and the LDS to factor in. So, that 100% comment we see will be replaced by reality. And if the Bates prediction isn't correct? Well, I'm looking forward to his explaining that because there will be eyes on this for a very long time and I suspect the story of this bankruptcy and its effect on Survivors is a long way from being over or filmmakers/documentarians/journalists losing interest.

The Trust may now engage in settlement discussions AND litigation against the non-settlers. There are years when Survivors have claims, and the covering insurers didn't settle, that the Trust will now allow to "go to court." There's a formula in the settlement agreement discussing how that works if there is a positive outcome. But, the Trust still acts as a gatekeeper so the best examples of "slam dunk" cases will move forward. The STAC has a hand in that determination. The strategy is that a handful of verdicts against an insurer will be good motivation for it to settle and stop the bleeding. The Trust will employ insurance litigation experts with all of this. Remember that there are not only primary insurers in a given year but also "excess" insurance. It's complicated and will see insurers do what they do best. Delay.

Sorry....yes, plan may now go effective. Fat fingers.

Circuit has denied stay. Plan may now go effective!

Hearing Info for Wednesday, Docket 1113. Hearing essentially addresses substantial claim request for the Coalition and the effort to provide "startup" funds for the Trust. The startup funds would help demonstrate to the Circuit that work is underway. Interestingly, the BSA now is not a "movant." Disappointing but perhaps an attempt by the debtor not to seem too presumptuous to the Circuit. Fingers crossed Silverstein allows it. After years of waiting ANY effort to get some work done in a more timely manner would be a nice change. NOTICE OF AGENDA OF MATTERS SCHEDULED FOR HEARING ON APRIL 19, 2023, AT 10:00 A.M. EASTERN TIME This hearing will be conducted in-person. Any exceptions must be approved by Chambers. Parties may observe the hearing remotely by registering with the Zoom link below no later than April 19, 2023, at 8:00 a.m. Eastern Time. COURTCALL WILL NOT BE USED FOR THIS HEARING. Please use the following link to register for this hearing: https://debuscourts.zoomgov.com/meeting/register/vJIsfuqprDspHXdbRPTd0fYN_1ebjiD6sJ0 After registering your appearance by Zoom, you will receive a confirmation email containing information about joining the hearing. Topic: Boy Scouts of America Time: April 19, 2023, at 10:00 a.m. Eastern Time (US and Canada)

That website assumed ALL claims were credible and would be pursued. That article is the opinion of one attorney who from my observations has little to nothing to do with this bankruptcy. It reads at best like someone who scanned the DC opinion and just rehashed it. Ultimately, payments will come down to two things, the numerator and denominator. We know part of the numerator now, 2.6B. Additional monies will come through insurance settlements and litigation against non-settling insurers. The denominator will be determined by how many Survivors complete the questionnaire and have credible claims. The Bates numbers made assumptions for each. We'll know the denominator better after the deadline for the questionnaire passes AND THEN as the Trust starts reviewing claims. Until then, any of these "articles" have to be taken with a very big grain of salt.

The District Court's stay denial included more than the usual statement. It provides a bit of a roadmap and reasoning for the Circuit to say "makes sense to us" and deny a permanent stay pending appeal. When I asked a legal type how long it could take before the Circuit says something next the guess was 2-4 weeks. Not bad in the grand scheme of how long this has taken. Fingers still crossed.

Well said. There was also an automatic 14-day period after DC approval in the order so that takes it to the 12th. Yes, the plan going "effective" is contingent on four things as written into the plan: 1. Bankruptcy Court approvel (done), 2. District Court Approval (Done)., 3. No stays in place and 4. No motions to appeal in place. So, we are waiting for a stay decision at the DC and if that fails then the Circuit can take up a stay while the motion to appeal is in place. The hope for Survivors needs to be that the DC in the next day or two denies the stay. Then, the Circuit Court grants a temporary stay of a few weeks. That would provide a window for the plan to go effective. Even better, the Circuit denies the Stay! If the Circuit puts into place a permanent stay until the appeal is heard it could take, given the pace of appeals already docketed....wait for it....a year. There are a lot of moving parts and "what-ifs" but the focus will next go to the Circuit Court if the Judge Andrews denies the Circuit stay as expected. Keep your fingers crossed.

During the Town Hall last night the Coalition's attorney David Molton all but said that the District Court would NOT issue the stay. This prediction came about because the District requested supporter briefs very quickly, and objector replies the next day. In other words, the District just ruled and there were few cracks in the plan to expand an objection so why belabor the issue. "Get me your paperwork and I'll keep the "Denied" stamp inked up." This will then continue the rush to get enough into place so the Trust can go effective. Lots and lots of discussion of the steps/stages of all of this during the town hall. Link:

No, and this is supposed to be discussed at the Town Hall tonight. The Effective Date is when Judge Silverstein rules that everything is in place and the Trust may do its work completely. It's a "legal ruling." and what the objectors are trying to stop right now. BSA is trying to get the Effective Date work done by 4/12 according to one attorney's email. Fun fact....if a Trust goes effective and THEN a higher court rules that some portion of bankruptcy law should be interpreted a different way it does NOT impact the existing Trust. You can't "unscramble" the egg. So....everything right now is about getting an "Effective" order, or stopping it.

Page 166: H. Claim Determination Deferral. For a period of up to twelve (12) months from the Effective Date, and by an election exercised at the time of the Trust Claim Submission, Direct Abuse Claimants whose Direct Abuse Claims may be substantially reduced by the Scaling Factor described below in Article VIII.E.(iii) (statute of limitations defense) may elect to defer the determination of their Proposed Allowed Claim Amounts to see if statute of limitations revival legislation occurs, provided, however, that this claim determination deferral window shall close for all Direct Abuse Claims twelve (12) months from the Effective Date at which time such Submitted Abuse Claims shall be determined based on then applicable Scaling Factors.

Interesting. www.bsarestructering.org goes to a "site not found" message for me. Regardless, neither are very accurate! 🙂

I think this is the specific link: https://www.bsarestructuring.org/estimated-potential-payment-calculator/ BUT.....BUT.....this does NOT take into account any scaling factors that would increase or decrease awards and assumes that all claims can be funded at 100%. It's merely a simplified way to look at the matrix and apply it to open and closed States. I fear that this calculator and others that law firms have posted are setting expectations that are best guesses or worse, at best. The only way to truly get an idea of a claim "value" is to do a deep dive into Article VII (I believe), the TDP portion, in the plan. There's also a 50-minute video on the TCC site discussing this.

Just saw this Town Hall notice on the TCC website. Interesting, the TCC and Coalition doing it together. Some day this is going to make for a really boring book or a drama-filled miniseries. TOWN HALL: The Official Committee of Tort Claimants’ and the Coalition of Abused Scouts for Justice will hold a Town Hall Meeting on April 4, 2023 at 8:00 p.m. (ET). Zoom: https://pszjlaw.zoom.us/j/85281284960 (no registration required) One-Tap Mobile: +16694449171,,85281284960# Dial-In by Telephone: 1-888-788-009 (toll-free), Webinar ID: 852 8128 4960. If asked for a “Participant ID,” just press #

The plan calls for a "first in, first out" FIFO process. BUT, that won't impact the amount of your award or how much you get. The Trust will start processing claims and making some portion of award with an eye to making sure enough is available over time. At the same time they'll be negotiating/suing non-settling insurers for additional monies. Survivors can expect multiple distributions of checks as monies are available. Take a look at the Madoff Bankruptcy. While extreme, that Trust is up to its 14th distribution to some creditors: https://www.madofftrustee.com/distributions-16.html Let's hope the Trust has the right transparency and communication so Survivors have the right expectations as time passes.

It's going to be fascinating to see how this shakes out. A lot of focus, and rightfully so, is on the numerator; how much money is needed NOW. Well, the other side of this is the denominator; the number of Survivors that complete the questionnaire to get an award and the number that are credible. Some number less than 82,500 will be the denominator. How many have given up or won't go to the hassle of completing the questionnaire? How many will provide a convincing argument to support their claim? What will appropriate support be in the eyes of the Trust? Surely this will be more than listing a Council. How many more States will reform their SOLs before the process is over? That too impacts distributions. All of that is why the Trust will hire an economist to work on the forecasting and financial advisors to make the money stretch the furthest.