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John-in-KC

New Round of Abuse Lawsuits...

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Lawsuit filed against individual, council and national.  I’ve see others field that also  target CO in addition.  Hopefully insurance can cover our councils or we may see councils go bankrupt as well.

What I find interesting (upsetting) is that the lawyers are stating they need to get these in now before BSA declares bankruptcy.  However, if you look at the USA Gymnastics bankruptcy, they are still allowing individuals who were abused to file claims within the bankruptcy court (what appears as creditors).   So, is the real difference that lawyers that file pre bankruptcy can get their 33% commission check?

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I did a quick Google search, and there are hundreds of media accounts on this that will be present over the next several days.  Most seem to be written in a manner to lead the reader into thinking that there is a current problem (couched as an "epidemic") with sexual abuse in the BSA, when the suits are related to events from the 60's, 70's and apparently some from the 80's.  We have had our YPT act together for a long time and those who read this blog know it.   Individual reporters on the far right or far left can be motivated to allow such a misunderstanding for reasons previously and fully discussed.  These suits will continue to be fled in the hundreds over the coming months.  The point of importance to me is that this makes very clear why we need to support a financial reorganization bankruptcy to deal fairly with the situation and prevent the BSA from being forced into liquidation over the next couple of years. I have confidence that the national organization is appropriately considering the matter and will act in the best interests of children. 

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Posted (edited)
2 hours ago, Eagle1993 said:

What I find interesting (upsetting) is that the lawyers are stating they need to get these in now before BSA declares bankruptcy.  However, if you look at the USA Gymnastics bankruptcy, they are still allowing individuals who were abused to file claims within the bankruptcy court (what appears as creditors).   So, is the real difference that lawyers that file pre bankruptcy can get their 33% commission check?

You're talking about what the attorney says in the last two paragraphs of the article.  It does not make much sense to me.  Maybe he does not understand how bankruptcy works, and I have encountered some lawyers in other fields who really don't have a clue about bankruptcy.  (I do, but what I say here is not legal advice to the BSA or anybody else, consult your own attorney for legal advice, etc.)  A case would not be affected by the bankruptcy if it begins AND ENDS before the bankruptcy was filed.  (And there are some wrinkles in there as far as the timing, but I'm not going to get into them.)  If the case is still pending when the bankruptcy is filed, the case stops (which actually is what that lawyer says, which is why what else he says doesn't make sense) and the claim becomes a claim in the bankruptcy case.  (In some cases the case can continue in non-bankruptcy court IF it is FULLY covered by insurance.)   But that claim should be treated the same as someone who just files a claim in the bankruptcy case (for which there are deadlines) without having filed a lawsuit. 

As for the attorney fees, I am not seeing how those would affected by whether a case is filed before or after a bankruptcy is filed either.  The fee agreement is between the creditor (the victim of abuse) and his attorney, not between the debtor (BSA) and the creditor's attorney.  This is not the type of case where the loser has to pay the winner's attorneys fees, as in an employment discrimination case for example (if the winner is the employee.)  Or at least, that's the situation in NJ and I am not aware of any state where it is otherwise.  (Note, there are exceptions to, and technicalities about, just about everything I said; this is a general overview.)

Edited by NJCubScouter
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On 8/7/2019 at 1:55 PM, Cburkhardt said:

I did a quick Google search, and there are hundreds of media accounts on this that will be present over the next several days.  Most seem to be written in a manner to lead the reader into thinking that there is a current problem (couched as an "epidemic") with sexual abuse in the BSA, when the suits are related to events from the 60's, 70's and apparently some from the 80's.  We have had our YPT act together for a long time and those who read this blog know it.   Individual reporters on the far right or far left can be motivated to allow such a misunderstanding for reasons previously and fully discussed.  These suits will continue to be fled in the hundreds over the coming months.  The point of importance to me is that this makes very clear why we need to support a financial reorganization bankruptcy to deal fairly with the situation and prevent the BSA from being forced into liquidation over the next couple of years. I have confidence that the national organization is appropriately considering the matter and will act in the best interests of children. 

Yes. The sensationalism in all this is pretty apparent.  I think part of the strategy for the plaintiff lawyers is to score a lot of points in the court-of-public-opinion in order to influence the outcomes of their cases.  Financially, I'm fairly positive that BSA will get over the hurdle somehow, but there will be a taint on the reputation that will take a lot of time and work to overcome.

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