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Chapter 11 announced

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On 10/7/2020 at 6:13 PM, CynicalScouter said:

But that's not as shocking as

90%? Seriously? I can easily see how the folks at Abused in Scouting will jam any settlement with that kind of a threshold. That means of in a 89-11% vote, the plan fails.

That's not good.

it's doubtful it will really be in anyone's interest to object to a settlement.  The alternative to a global settlement is that it becomes every man for himself.  That means everything comes out of bankruptcy court and each plaintiff alleging abuse will have to file an individual lawsuit against BSA, and if applicable against a local council.  Among other things that would mean BSA could spend down its all its own remaining assets fighting each claim individually.  For the plaintiffs that means having to prove each individual claim in court and absorb all the attendant attorney and other costs.

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On 10/2/2020 at 7:06 AM, scoutldr said:

As I watch the barrage of TV commercials soliciting claims, it has occurred to me that some of the conditions described were de rigeur back in my day (1960s)...being herded into gang showers totally naked with 20 other boys and men...multi-hole latrines with no privacy...I didn't like it at the time, but it's what we did.  The custom continued all through high school as we were all required to strip and shower communally after PE.  (the last time I visited my kids' high school, the showers were being used for storage).  I was just thankful we didn't have to swim totally naked at the swimming hole or YMCA pool like my Dad did in the 20s.  Even as late as a few years ago, there were no partitions in the adult male showers like the female side has.  Wonder how much that's worth ?

I did all of that.  It never bothered me.  

 

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Posted (edited)
14 hours ago, Eagle94-A1 said:

Chapter 7 is what the lead lawyer wants.

The leader lawyer for TCC? Or Abused in Scouting? Or both?

I get the impression that TCC wants money, while Abused in Scouting wants annihilation.

Edited by CynicalScouter

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https://www.law360.com/articles/1318308

Quote

 

The Boy Scouts' Chapter 11 case in Delaware was further snarled when a pair of attorneys for abuse victims moved to quash a Boy Scouts insurer's demands for their depositions, topping a string of complications that cropped up late Wednesday.


The deposition objection arrived the same day that several local Boy Scouts of America councils objected to granting subpoena power to the official tort claimants committee — which also represents the victims — for a probe into the councils' assets that could be pursued for settlements.

Meanwhile, in a separate filing Wednesday, the ad hoc Coalition of Abused Scouts for Justice asked U.S. Bankruptcy Judge Laurie Selber Silverstein to authorize its participation in mediation in the case, while also disputing challenges to its participation by the tort claimant panel and insurers, which have questioned the coalition's aims and practices in the past.

"The TCC, through its counsel, now stands in a quite remarkable unholy alliance with the insurers by joining with the insurers in seeking to bar representatives of over 28,000 sexual abuse survivors from participating in the mediation," the coalition's motion said. "Such tactics do little to engender the coalition members' confidence in a plan process that includes the BSA, the insurers, and the TCC, but purposefully excludes their chosen representatives."

The Boy Scouts of America filed for bankruptcy in February, saying it was facing escalating sexual abuse settlements and wanted to establish a long-term "mass tort" compensation structure, similar to the one used for asbestos claims. The organization has since launched a nationwide campaign to reach 110 million Americans with information about the claim process.

Complicating the case was the coalition's arrival in July and its assertions that it represented tens of thousands of victims across the country. The group quickly became the focus of claims — since resolved through court-ordered restrictions — that it was tied to questionable solicitations of clients, including a baseless public claim that a $1.5 billion fund could be available for victim settlements.

Century Indemnity Co., one of the Boy Scouts' insurers, noted that the thousands of advertisements by attorneys seeking to represent victims aired before the court's intervention were followed by a jump in claims from 1,700 at the opening of the case to 10,000 in a matter of weeks.

On Wednesday, Century asked Judge Silverstein to shorten the notice required for compelling depositions of the coalition's founders Tim Kosnoff and Andrew Van Arsdale, arguing that they were stalling requests to answer questions. The two have "claimed a 40 percent interest in the bulk of the inventory of alleged claims" the coalition represents, Century said.

"The Puerto Rico address for Mr. Kosnoff turned out to be a marina, despite Mr. Kosnoff's representation on his letterhead that he practices law in San Juan. Mr. Van Arsdale likewise could not be located at the address provided by Brown Rudnick, which is a storefront in a closed building," Century said. "The deponents' lawyer, for his part, refused to provide addresses when the parties met and conferred."

But the coalition filed documents Wednesday pointing out that both Kosnoff and Van Arsdale had resigned from it on Sept. 29 and accusing Century of a consistent pattern of "delay for the sake of delay" out of concern for its potential "massive" exposure" to victim claims.

"Century has long known about the debtors' history of sexual abuse and is one of the few insurance companies that was willing to insure the debtors notwithstanding the debtors' history and risk profile," the coalition said. "Century should not be remotely surprised by the number of sexual abuse claims filed in these cases. Century's goal is to impede any progress."

Kosnoff — who along with Van Arsdale still represent plaintiffs in the case — said in a separate filing that the insurer was attempting to "delay and obfuscate" the coalition's efforts with its deposition push.

Finally, another battle has started between the tort claimant group and local Boy Scout councils that are not parties to the case.

On Wednesday, the Boy Scouts' Dallas-based Circle Ten Council objected to the tort committee's motion for subpoena power to examine the assets of local Boy Scout councils, arguing in part that the motion violates a related consent order issued in March by Judge Silverstein temporarily barring new suits against Boy Scout organizations based on sexual abuse claims.

"The scope of the preliminary injunction is not limited to the prosecution of pending abuse actions in non bankruptcy courts," the council said, noting that the judge's order also prohibits plaintiffs from actions, including discovery efforts.

Representatives of the parties did not immediately respond to a request for comment.

The Boy Scouts of America is represented by Derek C. Abbott, Andrew R. Remming, Eric W. Moats and Paige N. Topper of Morris Nichols Arsht & Tunnell LLP, and Jessica C. K. Boelter, Thomas A. Labuda, Michael C. Andolina, Matthew E. Linder and Blair M. Warner of Sidley Austin LLP.

The committee of tort claimants is represented by James I. Stang, Robert B. Orgel, James E. O'Neill, John W. Lucas and Ilan D. Scharf of Pachulski Stang Ziehl & Jones LLP.

Century is represented by Stamatios Stamoulis of Stamoulis & Weinblatt LLC, and Tancred Schiavoni and Janine Panchok-Berry of O'Melveny & Myers LLP.

The Coalition of Abused Scouts is represented by David J. Molton and Sunni P. Beville of Brown Rudnick LLP.

The Circle Ten Council is represented by William P. Bowden of Ashby & Geddes, and Heather Lennox, Carl E. Black, Oliver S. Zeltner, Matthew C. Corcoran, Mark W. Rasmussen and Amanda Rush of Jones Day.

The case is In re: Boy Scouts of America and Delaware BSA LLC, case number 1:20-bk-10343, in the U.S. Bankruptcy Court for the District of Delaware.

 

 

 

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Just as a frame of reference:

https://www.nytimes.com/2020/10/01/nyregion/rockville-centre-diocese-bankruptcy.html
 

Quote

 

Facing 200 Abuse Claims, Diocese Becomes U.S.’s Largest to Seek Bankruptcy

Facing more than 200 lawsuits over sexual abuse allegations, the Diocese of Rockville Centre on Long Island said on Thursday that it filed for bankruptcy, the largest Roman Catholic diocese in the United States to do so.

Hours later on Thursday, the Diocese of Camden in New Jersey also filed for Chapter 11 protections, becoming the first diocese in the state to do so.

More than 20 Catholic dioceses have filed for bankruptcy over the past 16 years, according to BishopAccountability.org, which tracks sexual abuse cases in the church. The Rockville Centre diocese, the eighth largest in the country by population, is believed to be the biggest to do so.

Three more of New York’s eight Roman Catholic dioceses have also filed for bankruptcy. The Diocese of Rochester became the first in New York to do so last year. The Diocese of Syracuse and the Diocese of Buffalo, the largest in upstate New York, both followed suit earlier this year. All three dioceses also cited the Child Victims Act.

The law, which was passed by state lawmakers last year amid strenuous opposition from the Catholic Church, created a temporary “look-back window” that suspended the statute of limitations on childhood sexual abuse accusations.

 

 

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On 10/9/2020 at 11:51 AM, CynicalScouter said:

[quoting a news article]

On Wednesday, Century asked Judge Silverstein to shorten the notice required for compelling depositions of the coalition's founders Tim Kosnoff and Andrew Van Arsdale, arguing that they were stalling requests to answer questions. The two have "claimed a 40 percent interest in the bulk of the inventory of alleged claims" the coalition represents, Century said.

"The Puerto Rico address for Mr. Kosnoff turned out to be a marina, despite Mr. Kosnoff's representation on his letterhead that he practices law in San Juan. Mr. Van Arsdale likewise could not be located at the address provided by Brown Rudnick, which is a storefront in a closed building," Century said. "The deponents' lawyer, for his part, refused to provide addresses when the parties met and conferred."

I looked up the address where they had tried to serve Mr Van Arsdale on Bing Maps, and noticed a sign on the building that seems an apt comment on the case, or at least his involvement with it...

image.png.5b1e4bb355b54fda0970527bc1a6f192.pngm

In filings today, it seems that the LCC/BSA and the TCC are mostly in agreement on providing full information about Local Council assets... some complaints from councils that they weren't properly given notice, and that they might need more time, but no objection to any other party finding that information out if they can obtain it somehow.  The big sticking-point going into this week's hearing is rosters. BSA's latest filing says they probably don't have any rosters older than about 20 years, because that's when the National Council computer system was set up. 

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The BSA (Debtor) presents Motion to Court requesting more time to develop a reorganization plan. 

The exclusive period for the Debtors to file a chapter 11 plan (the “Exclusive Filing Period”) is hereby extended by approximately 180 days, to and including April 13, 2021. The period during which the Debtors have the exclusive right to solicit acceptances thereof (the “Exclusive Solicitation Period” and, together with the Exclusive Filing Period, the “Exclusive Periods”) is hereby extended by approximately 180 days, to and including June 14, 2021.

Of note page 6 of 22 

13.The Debtors have made substantial progress in these chapter 11 cases since the filing of the First Extension Motion. ...11 items a) through k) are given. IMHO, whether this is substantial progress or significant progress  ( as used below) will be determined by Judge Silberstein.

page 8 of 22 

14. As the Court is aware, these chapter 11 cases are the first of a congressionally chartered non-profit organization. In addition to the unprecedented nature of these proceedings, the Debtors’ restructuring is extraordinary in its complexity. The BSA carries out its mission through 253 local councils, each with an independent board of directors and professional and volunteer leadership. The local councils, which vary in size, financial wherewithal and exposure to abuse claims liabilities, will continue to have an important role in shaping the outcome of this proceeding. Moreover, as demonstrated by the long-running dispute regarding the Coalition’s ( Coalition of Abused Scouts for Justice) ability to participate in these cases as an ad hoc group, representatives of abuse claimants have divergent views on how to advance their interests in these cases. Certain of the BSA’s insurers, faced with an avalanche of historic abuse claims that implicate policies with no aggregate limits, have sought to derail and substantially delay the Debtors’ reorganization. Despite these challenging dynamics, the Debtors have made significant progress thus far. Although substantial work remains to be done, the Debtors are confident that the results of the claims bar date will catalyze mediated plan negotiations.

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/855387_1519.pdf

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This is what I'd love to see

Quote

researched and drafted a 118-page mediation statement at the request of the mediators addressing several complex legal issues relating to a potential global resolution of abuse claims

I believe such a mediation statement is private/privileged, but it would be interesting to see to what extent National is in discussing the "complex legal issues" prepared (or NOT prepared) to throw local Councils and their assets under the bus.

Quote

made substantial progress on specialized valuations of each high-adventure facility, located in Florida, Minnesota, New Mexico, West Virginia and the Canadian provinces of Manitoba and Ontario, which the Debtors expect to receive in the next several weeks; and

This will be interesting to see.

Quote

As the Court is aware, these chapter 11 cases are the first of a congressionally chartered non-profit organization.

Which as I've already noted makes things even more complicated since the charter says Boy Scouts of America is supposed to be "perpetual" can you really Chapter 7 liquidate? The only other times a congressional chartered non-profit dissolved was where the membership ceased to exist (e.g. the Grand Army of the Republic when the last Union soldier died).

 

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On 10/7/2020 at 5:52 PM, RememberSchiff said:

Capitol Area Council (“CAC”) submitted a Joinder to Circle Ten Council’s Objection

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/853724_1422.pdf

Baltimore Area Council issued an Objection to TCC Motion for an Order Authorizing the Issuance of Subpoenas for Discovery from Debtors and Certain Local Councils.

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/853735_1423.pdf

as did Bay Lakes Council

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/853737_1425.pdf

and Daniel Webster Council 

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/854422_1459.pdf

The Tort Claimants' Committee (TCC) has responded to National (Debtor) and local councils objections over supplying Rosters.

TCC Objections "The Reply" follow pages  4-12.

Preliminary Statement (page 3 of 12)

1. The TCC’s Rule 2004 Motion seeks entry of an order authorizing the issuance of narrowly tailored subpoenas against (1) the BSA, (2) eight Local Council Committee Members, and (3) thirty-nine Additional Local Councils. The Rule 2004 Motion has been conditionally resolved, except with respect to the issue of Rosters.5

2. Objections were filed by the Debtors, Ad Hoc Committee and seven (7) of the thirty-nine (39) Additional Local Councils, none of whom responded to the TCC’s informal document requests. In addition to certain objections concerning the production of Rosters, the Objections raise a variety of unfounded procedural strawmen and complain that the Document Requests are premature, constitute harassment or bullying, or that the burdens of production exceed their value because certain of the Additional Local Councils have yet to decide whether to participate in the mediation. As set forth in the Rule 2004 Motion, the TCC’s request for Rosters is a legitimate use of Rule 2004 discovery in order to, inter alia (Latin for "among other things" ~RS), support a global mediation, assist in claims administration, and identify potential claims on behalf of the estates, and for such reasons, the Motion should be granted

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/855056_1504.pdf

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7 hours ago, CynicalScouter said:

Quote: 

"made substantial progress on specialized valuations of each high-adventure facility, located in Florida, Minnesota, New Mexico, West Virginia and the Canadian provinces of Manitoba and Ontario, which the Debtors expect to receive in the next several weeks; and"

This will be interesting to see.

I guess we will first see the bill for Northern Tier evaluation from F.I.Salter  Real Estate .

Appendix B (of doc below)

10/12/2020   For Market Value Appraisal on the following property: Northern Tier High Adventure Base : $7500

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/855532_1523.pdf

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17 minutes ago, RememberSchiff said:

2. Objections were filed by the Debtors, Ad Hoc Committee and seven (7) of the thirty-nine (39) Additional Local Councils, none of whom responded to the TCC’s informal document requests. In addition to certain objections concerning the production of Rosters, the Objections raise a variety of unfounded procedural strawmen and complain that the Document Requests are premature, constitute harassment or bullying, or that the burdens of production exceed their value because certain of the Additional Local Councils have yet to decide whether to participate in the mediation. As set forth in the Rule 2004 Motion, the TCC’s request for Rosters is a legitimate use of Rule 2004 discovery in order to, inter alia (Latin for "among other things" ~RS), support a global mediation, assist in claims administration, and identify potential claims on behalf of the estates, and for such reasons, the Motion should be granted

https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/855056_1504.pdf

As I read it, even if there is no valid, enforceable claims against certain councils, TCC want to know what money and assets they have to possibly force them into giving them up as part of a global settlement.

If I were a council in a state in which the statute of limitations has lapsed AND I was betting that a statue of limitations extension would NEVER happen (as it did in NY), I would tell them to pound sand.

That said, the TCC is once again making it really, really clear they are going to go after the chartered orgs.

Quote

 

4. The sponsoring organization is responsible for staffing its scouting unit
with adult volunteers, including any scoutmaster, assistant scoutmasters, and other scout leaders,
and for recruiting children to become scouts of the particular scouting unit. The Debtors require
the sponsoring organizations to renew their charters on an annual basis and each year to submit
Rosters that include the names of each adult volunteer and each child member. Most Rosters
provide the following information for the scouting unit: the address, the local council
responsible for the scouting unit, the name and address of the sponsoring organization, the
executive officers and volunteers, the location where meeting are held, and the children/scouts
(including name, age, address, and contact information). Thus, the Rosters identify the local
council and sponsoring organization which may be liable for abuse.

5. These sponsoring organizations may have insurance that provides
coverage for claims made in the bankruptcy. The Rosters will help the TCC, as well as the
Debtors and other interested parties, corroborate certain claims, particularly if a claimant does
not recall certain information about their scouting unit, such as the scouting unit number, the
name of the local council who was responsible for their scouting unit, or the name of the
organization that sponsored their Scouting unit. Other claimants, particularly those where the
abuse happened when they were very young, may not recall the specific year(s) of the sexual
abuse, some do not recall the name of the Scout leader who abused them, and some do not recall
the names of adults who received complaints and ignored them or saw "red flag" behavior and
ignored it. These are just some of the reasons for the Debtors, the Ad Hoc Committee and the
Additional Local Councils should be ordered to produce the Rosters.

 

If your chartered organization hasn't been notified, they darn well should be alerted ASAP. I know my council hasn't told my CO a thing (then again our unit it 13 years old, so the theory is I guess no way we'd get hit?)

 

Edited by CynicalScouter

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In this layman's opinion, the Court needs to reel this in.

As outlined and limited by court, TCC requests information from respective councils only on claims filed by Nov deadline. Councils and Charter Organizations then have a set time to reply. No fishing expeditions, no subpoenas, no slow walks ..

My $0.02, 

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2 hours ago, CynicalScouter said:

As I read it, even if there is no valid, enforceable claims against certain councils, TCC want to know what money and assets they have to possibly force them into giving them up as part of a global settlement.

If I were a council in a state in which the statute of limitations has lapsed AND I was betting that a statue of limitations extension would NEVER happen (as it did in NY), I would tell them to pound sand.

That said, the TCC is once again making it really, really clear they are going to go after the chartered orgs.

If your chartered organization hasn't been notified, they darn well should be alerted ASAP. I know my council hasn't told my CO a thing (then again our unit it 13 years old, so the theory is I guess no way we'd get hit?)

 

I wonder what happens if the TCC tries to pull various COs affiliated with major relgions into this.  Does the national leadership of these various organizations then get engaged and try to push back?

I really wish that congress would put a stop to all this.

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White & Case continues to hire experienced bankruptcy and restructuring lawyers away from Sidley Austin.  Among the 5 or more attorneys? are Jessica Boelter and Andrew O'Neill who represented the BSA in Chapter 11.

White & Case is currently representing Hertz Global Holdings in their Chapter 11 restructuring.

https://news.bloomberglaw.com/business-and-practice/white-case-continues-sidley-raid-with-restructuring-duo-hire

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34 minutes ago, ParkMan said:

I really wish that congress would put a stop to all this.

There is 0% change Congress will step in to stop abuse claims. That's absolutely radioactive.

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