Boy Scouts tort claimants committee says insurer objection meritless

By Sarah Lizee

Olympia, Wash., Aug. 29 – The tort claimants committee in Boy Scouts of America’s Chapter 11 case called a plan objection from some insurers meritless in court documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the BSA filed the amended plan following a court opinion approving most of the prior plan’s terms and denying others. Judge Laurie Selber Silverstein said in the opinion that she found the plan was proposed in good faith but that it would require some modifications.

The BSA has proposed “new and inappropriate findings” and submitted a revised proposed confirmation order, all without consulting the insurers, the group said Wednesday.

The insurers said the new plan and confirmation documents are inconsistent with the court’s opinion in certain critical respects, and otherwise include several errors and omissions.

“Regarding some issues, they break entirely new ground, addressing matters not even mentioned by the court’s ruling,” the insurer group said.

The tort claimants disagreed, saying the revisions to the plan documents are both necessary and consistent with the court’s ruling.

“Indeed, the [insurers’] own objections – many of which themselves mischaracterize the court’s opinion, propose new concepts or re-litigate arguments already rejected by the court, and seek to gain advantage in future coverage litigation – demonstrate the importance of ensuring that the confirmation order sets forth a clear and unambiguous description of what the court did and did not find in its opinion,” the tort committee said.

Boy Scouts of America is based in Irving, Tex. It filed bankruptcy on Feb. 17, 2020 under Chapter 11 case number 20-10343.

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