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Suits Remain Halted, Mediation Sought in Boy Scouts Bankruptcy

Submitted by jhartgen@abi.org on

The judge presiding over the Boy Scouts of America bankruptcy has approved an agreement among attorneys to extend an injunction halting child sex abuse lawsuits against the organization’s 261 local councils until Nov. 16, the Associated Press reported. Under the agreement approved on Monday, local councils wanting continued protection from litigation must sign agreements by July 6 requiring them to provide information to the Boy Scouts about their finances, including real estate holdings, for sharing with creditor committees. The local councils, which run day-to-day operations for local troops, are not listed as debtors in the bankruptcy and are considered by the Boy Scouts to be legally separate entities, even though they are “related parties.” Judge Laurie Selber Silverstein will hear any objections to the extension of the injunction at a July 9 hearing. Also on Monday, Judge Silverstein appointed a three-person mediation panel that will try to resolve certain issues in the bankruptcy case through voluntary mediation instead of costly litigation.