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Boy Scouts Lawyers Eye New Bankruptcy Reorganization Plan

Submitted by jhartgen@abi.org on

Attorneys for the Boy Scouts of America told a Delaware bankruptcy judge yesterday that they plan to file a new reorganization plan after gaining little support for a previous proposal that has been roundly criticized by attorneys for child sex abuse victims, the Associated Press reported. Jessica Lauria, an attorney for the BSA, told Judge Laurie Selber Silverstein that an amended plan would be filed Tuesday "unless the stars align" and the Boy Scouts reach a meaningful resolution with one or more other parties Monday night. Lauria said that the new plan is designed to continue momentum from a three-day mediation session that ended April 1 in Miami. She acknowledged, however, that differences remain among attorneys representing abuse victims, insurers and other parties. "There are some issues that will have to be litigated in connection with the plan," Lauria said. The revised proposal will include a default plan, or "Plan A," similar to what the BSA proposed in March. It calls for a global resolution of abuse claims that includes a "substantial contribution" to a victims trust fund by the BSA's local councils in return for a release from further liability. Local sponsoring organizations of Boy Scout troops that contribute to the victims trust also would be released from further liability under the amended plan, which, like the previous plan, also would provide a framework for settlements with BSA insurers. Unlike the previous plan, however, the new plan will include an estimation of the Boy Scouts' abuse liabilities, something that attorneys for abuse victims have said is critical in determining whether any reorganization plan adequately compensates victims.