Mixed reaction to Boy Scouts’ bankruptcy plans

NEW YORK >> An $850 million agreement by the Boy Scouts of America to compensate sex-abuse victims prompted outrage Friday from some survivors and their advocates, while others were encouraged and saw it as the best outcome that could be achieved under the circumstances.

The agreement, filed in court late Thursday as a step toward resolving a complex bankruptcy case, includes the BSA national leadership, abuse victims, local Boy Scout councils and lawyers appointed to represent victims who might file future claims.

Lawyer Tim Kosnoff, whose Abused in Scouting legal team says it’s representing thousands of clients, called it “a lousy deal — a sellout of tens of thousands of brave men” because it did not press local councils to contribute the bulk of their unrestricted assets.

Chris Anderson, an accountant from Southern California who said he was abused by a Boy Scout troop leader for more than three years in the 1970s, complained about a lack of detail regarding council finances.

“It’s a farce,” he told The Associated Press. “There’s no certainty for the victims at all.”

However, some lawyers representing survivors welcomed the agreement as the best that could be gotten. They noted that negotiations remain to be resolved with the Boy Scouts’ insurers, who potentially could be required to contribute billions of dollars to the compensation fund.

“This is the tip of the iceberg,” said lawyer Ken Rothweiler, whose firm said it’s representing more than 16,000 survivors. “Now we go after the next step and see what happens with the insurers.”

The BSA sought bankruptcy protection in February 2020, moving to halt thousands of lawsuits by men who were molested as youngsters decades ago by scoutmasters or other leaders. The filing was intended to try to reach a global resolution of abuse claims and create a compensation fund.

Richard Mason, an attorney and chairman of an ad hoc committee representing local councils in the case, said this week’s restructuring agreement is the result of hard-fought negotiations and plaintiffs’ attorneys “pushed very hard.”

Mason, who is also president of the Greater New York Councils of the BSA, said the councils are contributing “the most that is achievable.”

Irwin Zalkin, whose law firm represents about 150 survivors, warned against reading too much into the agreement, given that many questions remain unanswered.

Those include what percentage of their worth local councils will contribute; what, if anything, local sponsoring organizations such as churches and civic groups might contribute; and how much will be set aside to cover future claims.

“I think it’s a disservice to the victims to put out a media release saying they’ve reached an agreement for $850 million, especially the way they’re taking a victory dance about it,” he said.