The Boy Scouts of America’s $2.46 Billion Settlement Halted by the Supreme Court: A Legal Battle Over Sexual Abuse Claims and the Right to Sue

The Boy Scouts of America (BSA) has been embroiled in a legal battle over a $2.46 billion settlement following decades of sexual abuse claims. The settlement, which was upheld by a federal judge in March 2023, allows the organization to continue operating while it compensates the sexual abuse claimants. However, a group of 144 abuse claimants have appealed the settlement, arguing that it unlawfully prevents them from pursuing lawsuits against other organizations that are not bankrupt, including churches that ran scouting programs and local Boy Scout councils.

Justice Samuel Alito temporarily halted the settlement on February 17, 2024, following the group’s appeal. The stay gives the court additional time to decide on the request to block the settlement from moving forward. The claimants argue that the settlement violates their due process rights by discharging non-bankrupt Local Councils and Chartered Organizations from civil liability.

Retired bankruptcy judge Barbara Houser, the trustee in charge of administering the Boy Scouts settlement, said the order will suspend all work on the settlement, including evaluating claims and mailing checks to abuse survivors. More than 3,000 men have already been paid nearly $8 million by the settlement trust.

The Boy Scouts of America issued a statement, stating that the order is an administrative stay only and not a decision on the merits of the plaintiffs’ application for a stay of the plan. The organization argues that the plan has already been effective for ten months and will fully compensate all Scouting-abuse survivors. Staying the plan now, they claim, would inflict severe harm on both the Scouting movement and Scouting-abuse survivors, many of whom have already waited decades for compensation and emotional closure.

Gillion Dumas, one of the lawyers representing the claimants, told Fox News Digital that temporary stays such as the one issued by Alito only occur in the most extraordinary of circumstances, demonstrating how seriously he and the other justices are taking the claimants’ argument. The lawyers are optimistic that the Court will ultimately grant them a full, permanent stay of the bankruptcy plan.

The bankruptcy deal was upheld by a federal judge in the U.S. District Court of Delaware last March. The ruling rejected arguments claiming the bankruptcy plan was not proposed in good faith and that it improperly strips insurers and survivors of their rights. The Boy Scouts filed for bankruptcy in 2020 following the passing of several laws allowing accusers the opportunity to sue over abuse allegations that were decades old. The organization later reached a settlement that was approved in court in 2022. The settlement would pay between $3,500 and $2.7 million to abuse victims.

The issue at hand is the discharge of non-bankrupt Local Councils and Chartered Organizations from civil liability. The claimants argue that this is a violation of their due process rights. They are excited about the Court’s order, which shows that the Supreme Court takes their appeal seriously.

The lawyers representing the claimants, John Reeves, told Fox News Digital that temporary stays such as the one issued by Alito only occur in the most extraordinary of circumstances, demonstrating how seriously he and the other justices are taking the claimants’ argument. They look forward to further litigating this issue before the Court and are cautiously optimistic that it will ultimately grant them a full, permanent stay of the bankruptcy plan.

The Boy Scouts of America told Fox News Digital that they look forward to the Court’s ruling soon on the stay application and hope it will swiftly deny the application and permit the BSA plan’s settlement trustee to resume her work compensating survivors. They argue that the plan has already been effective for ten months and will fully compensate all Scouting-abuse survivors. Staying the plan now, they claim, would inflict severe harm on both the Scouting movement and Scouting-abuse survivors.

The lawyers for the claimants argue that the settlement violates their due process rights by discharging non-bankrupt Local Councils and Chartered Organizations from civil liability. They are optimistic that the Court will ultimately grant them a full, permanent stay of the bankruptcy plan. The Boy Scouts of America, on the other hand, argue that the plan has already been effective for ten months and will fully compensate all Scouting-abuse survivors. They are hopeful that the Court will swiftly deny the application and permit the BSA plan’s settlement trustee to resume her work compensating survivors.

The legal battle over the Boy Scouts of America’s $2.46 billion settlement is a complex issue with significant implications for the organization and the survivors of sexual abuse. The Supreme Court’s decision on the stay application will have a profound impact on the outcome of the case and the future of the Boy Scouts of America. The case highlights the importance of due process rights and the need for accountability for organizations that fail to protect their members from harm.

In conclusion, the Boy Scouts of America’s $2.46 billion settlement has been halted by the Supreme Court following a group of abuse claimants’ appeal. The stay gives the court additional time to decide on the request to block the settlement from moving forward. The claimants argue that the settlement violates their due process rights by discharging non-bankrupt Local Councils and Chartered Organizations from civil liability. The Boy Scouts of America, on the other hand, argue that the plan has already been effective for ten months and will fully compensate all Scouting-abuse survivors. The Supreme Court’s decision on the stay application will have a profound impact on the outcome of the case and the future of the Boy Scouts of America. The case highlights the importance of due process rights and the need for accountability for organizations that fail to protect their members from harm.