The Columbus Dispatch

Boy Scouts bankruptcy settlement­s remain unclear

Deciding victims’ payouts fraught with complexiti­es

- Cara Kelly

Deep in hundreds of pages of legal arguments filed this summer in the Boy Scouts of America bankruptcy case are the first glimpses of some of the most vexing decisions ahead: Which sexual abuse victims will receive settlement money, and how much?

More than 90,000 claims were filed, making it the largest child sexual abuse case involving a single national organizati­on. The largest Catholic diocese bankruptcy cases involved a few hundred claims.

Removing duplicates was the first and easiest task, dropping the total to 82,500. The harder work lies ahead.

One person, the bankruptcy trustee, will make the decisions, guided by criteria within a plan from the Boy Scouts that must be approved by all parties and a bankruptcy judge. According to the latest plan proposed by the Boy Scouts, three main topics probably will drive the decisions: how severe the abuse was, where it occurred and how well the claimants can document it.

The court got a preview of what the trustee will see in letters from thousands of abuse survivors. In graphic detail, they describe being blindfolde­d and stripped naked at jamborees in the woods of Appalachia, pinned down in showers at camps in the Midwest or raped in tents in the desert.

Within their filings, the Boy Scouts disclosed that nearly a third of those who filed abuse claims say they were raped, nearly a quarter say they were forced into oral sex, and others cite masturbati­on or touching.

Countering factors include the advertisin­g blitz by law firms, which contribute­d to the flood of claims. Thousands of TV and radio ads paid for by law firms urged victims to come forward, offering confidentiality and “significant financial compensati­on.” One suggested the victims’ fund could hit $1.5 billion.

The Boy Scouts argued the campaign contained false and misleading statements, but the bankruptcy judge dismissed the Scouts’ attempt to stop them, citing First Amendment rights.

How much money will be available for victims once they’re evaluated is another one of many unknowns holding up the case 18 months after it was filed.

In July, the Scouts announced an $850 million settlement with the bulk of abuse claimants and put forth a plan for reorganiza­tion. In a footnote, the Scouts acknowledg­ed that would cover only 10% to 30% of the total estimated cost.

Last month, a bankruptcy judge struck down two provisions, sending the Scouts back to the negotiatin­g table and pushing back a hearing on the details of their plan to Sept. 21.

A USA TODAY analysis of court filings suggests that as many as half of those who filed claims could end up with a few thousand dollars – a fraction of what their counterpar­ts have been allotted in more than a dozen bankruptcy cases involving Catholic dioceses.

One point of contention involves statutes of limitation­s – laws that prohibit survivors from suing for abuse after a set period of time.

USA TODAY found Scouts’ identified 59,000 (71%) as potentiall­y too late under state statutes.

The Boy Scouts’ insurance companies balk at paying anything in states where a civil claim would be barred, but the Scouting organizati­on doesn’t exclude these claims in its plan. Instead, it proposes a discount reflecting the breadth of the statute in the state where the victim lives or was abused.

For a rape claim filed in Alabama, where child abuse survivors can file lawsuits only until their 25th birthdays or within two years of the abuse, the base range would drop to $6,000 to $60,000, down from $600,000. For less severe claims, such as touching, the base could fall as low as $750.

An unusual provision in the Scouts’ plan would allow claimants to wait for up to a year to see if the laws in their state change in their favor. Changing sentiments around statutes of limitation­s have prompted state legislatur­es to loosen restrictio­ns; 35 states introduced such bills in 2021, according to a tracker from the nonprofit Child USA.

Marie Reilly, a professor at Penn State Law who has studied the outcomes of Catholic diocese bankruptci­es, said claims are usually evaluated based on whether they would have been viable in civil court when an organizati­on filed for bankruptcy.

Placing a price tag on abuse is a tricky matter, fraught by the vagaries of a largely volunteer organizati­on and memories dulled by trauma and the passage of time. Many of the survivors in the case experience­d abuse in the ’70s and ’80s. For some, filing a claim was the first time they had told anyone what happened.

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