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Chapter 11 announced - Part 12 - District Court


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16 minutes ago, MikeS72 said:

Not sure if it is being pushed more for the propective revenues or due to the fact that I was told by one of the higher up in my council that the bankruptcy court told BSA it cannot show negative balance for the event.

Ouch.  The bankruptcy process itself is a business killer.  It's like hospital fears some of my extended relatives have -->  don't go into the hospital because the hospital might kill you.  Sadly, there is some basis in fact with that.  Bankruptcy legal process is similar.  ... Sometimes companies have to invest in loss leaders for strategic reasons.

 

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Omni created a new docket for the appeals here:  Consolidated Appeals of Confirmation Order Lengthy scheduling order is here:  https://casedocs.omniagentsolutions.com/cmsvol2/pub_47373/e4a87bc5-4

The direct answer is Yes-overrule the bankruptcy court's order (in whole or in part). To go to the Dept. of Justice's website on the issue a district court's scope of review of a bankruptcy

Now that the judge has confirmed the order, BSA plans to take the show to district court.  Feel free to discuss, but please keep this to the legal case only. 

Stupid question regarding

Quote

"settlement extends legal protections to local Boy Scouts councils and churches that were responsible for abuse and that did not file for bankruptcy.  Victims should be able to sue those organizations instead of being forced to seek payment from the Boy Scouts' bankruptcy settlement fund, which will not pay their claims in full, Dumas said."

 My understanding is that post-1976 insurance covers both councils and COs in addition to National. So why wouldn't the councils and COs be covered?

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A bunch of filings hit over the last few days.

BSA financial update ... unrestricted liquidity now at $73M (as of end of August).  Down $11M from July and down $161M since start of bankruptcy.

Notice of Appeal to District Court filed 9/22 & 9/23

5afa7f6b-ff0b-4f3b-be07-7ddd14903ae9_10466.pdf (omniagentsolutions.com)

c2df4ef0-e46e-4f47-9fde-73c0837abd91_10472.pdf (omniagentsolutions.com)

Then several detailed filings of those appealing the order...

So far, I don't see the DOJ; however, I'm not sure if they would send anything or just argue in court.  In general, it looks like the non-settling insurers are going after this case individually (I see 15 different insurance companies) along with a couple of groups of claimants.  

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Just saw on Tim Kosnoff's Twitter,

BSA "appeal" to federal district court is "de Novo. De Novo review occurs when a court decides an issue without deference to previous courts decision. Trial de Novo occurs when a court decides all issues as if case is being heard for the first time.

Evidence not docketed in BR court is being offered to district.

Not sure what or why but it's beginning to look like a do over. 

Edited by PaleRider
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8 hours ago, Eagle1993 said:

So far, I don't see the DOJ; however, I'm not sure if they would send anything or just argue in court.  In general, it looks like the non-settling insurers are going after this case individually (I see 15 different insurance companies) along with a couple of groups of claimants.  

The DOJ missed the deadline to appeal.  It's "certain insurers" (Non-Settling ones), Lujan and Dumas clients appealing.  They will make the arguments they made previously, and specifically argue that the Judge applied bankruptcy code incorrectly.

 

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3 hours ago, PaleRider said:

Just saw on Tim Kosnoff's Twitter,

BSA "appeal" to federal district court is "de Novo. De Novo review occurs when a court decides an issue without deference to previous courts decision. Trial de Novo occurs when a court decides all issues as if case is being heard for the first time. Evidence not docketed in BR court is being offered to district.  Not sure what or why but it's beginning to look like a do over.

I suppose the cynic in me would say this is why you hire a bankruptcy attorney to represent you in bankruptcy court.  He isn't one so his post isn't entirely correct.  All isssues aren't being addressed de novo.  The de novo portion of the procedure underway isn't unusual and the District Court will also review some things under an "abuse of discretion" standard which is harder to overrule.   So, strict bankruptcy code issues may be reviewed de novo while more complicated issues that aren't typical may get de novo treatment.  This is all wise because if this heads to further appeal, and that takes more time, then the "problems" need to be identified now and addressed. 

As a reminder, we're also headed into non-zoom territory.  First DC gathering to set out some ground rules is Friday and in-person only.  Beware of reports that start with "I heard from someone who spoke to someone there...."

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1 hour ago, MYCVAStory said:

I suppose the cynic in me would say this is why you hire a bankruptcy attorney to represent you in bankruptcy court.  He isn't one so his post isn't entirely correct.  All isssues aren't being addressed de novo.  The de novo portion of the procedure underway isn't unusual and the District Court will also review some things under an "abuse of discretion" standard which is harder to overrule.   So, strict bankruptcy code issues may be reviewed de novo while more complicated issues that aren't typical may get de novo treatment.  This is all wise because if this heads to further appeal, and that takes more time, then the "problems" need to be identified now and addressed. 

As a reminder, we're also headed into non-zoom territory.  First DC gathering to set out some ground rules is Friday and in-person only.  Beware of reports that start with "I heard from someone who spoke to someone there...."

Thanks for explaining that.The reason I posted this was to get feedback for a better understanding of this. I don't pay much attention to Kosnoff.Agagain many thanks for explaining this. 

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On 10/6/2022 at 12:37 AM, PaleRider said:

Thanks for explaining that.The reason I posted this was to get feedback for a better understanding of this. I don't pay much attention to Kosnoff.Agagain many thanks for explaining this. 

You said some things will be reviewed under abuse of  discretion is harder to overrule, does  that mean over rule the BR judges decision?? 

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The allocation of authority between a bankruptcy court and a district court, and the standard of review that applies, are very complicated legal questions in an already-complicated bankruptcy case.  Here's a somewhat relevant article co-authored by ... you guessed it.... Judge Laurie Selber Silverstein.  https://www.potteranderson.com/newsroom-publications-14.html

This article mostly addresses the situation where a bankruptcy court does not have authority to enter a final order on a particular matter.  In that event the bankruptcy judge issues proposed findings of fact and conclusions of law for the district court to consider and adopt after de novo review.  To the best of my knowledge, that's not what happened here, as Judge Silverstein ultimately found that she had authority to enter the confirmation order in its final form, which was then appealed to District Court.  Still it's a useful read.

 

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On 10/5/2022 at 12:33 PM, Eagle1993 said:

A bunch of filings hit over the last few days.

BSA financial update ... unrestricted liquidity now at $73M (as of end of August).  Down $11M from July and down $161M since start of bankruptcy.

So at this burn rate the BSA has 6 months (5 if you count September) not withstanding any liquidity added due to this recruiting season.

Seems to me this is a huge issue. 

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On 10/10/2022 at 7:09 AM, ALongWalk said:

not withstanding any liquidity added due to this recruiting season.

Does anyone have last year’s jump due to recruiting? Or is that too hard to sus out? 

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From what I can tell, the case is going to District Court for appeal.  District court accepted the case and layed out various ground rules.  I could not find any dates or schedules yet. 

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