The Boy Scouts of America’s $2.46 Billion Settlement Halted by the Supreme Court: A Look into the Ongoing Legal Battle

The Boy Scouts of America (BSA) have been embroiled in a legal battle regarding a $2.46 billion settlement for decades of sexual abuse claims. The organization, which has been a staple of American culture for over a century, filed for bankruptcy in 2020 following the passing of several laws allowing accusers the opportunity to sue over abuse allegations that were decades old. In February 2024, the Supreme Court issued a temporary stay on the settlement, halting all work on the plan, including the evaluation of claims and the mailing of checks to abuse survivors.

The stay was issued by Supreme Court Justice Samuel Alito in response to a request by a group of 144 abuse claimants who sought to block the settlement from moving forward. The claimants argued that the settlement unlawfully prevents them from pursuing lawsuits against other organizations that are not bankrupt, including churches that ran scouting programs and local Boy Scout councils. These organizations, they claimed, were responsible for the abuse and should be held accountable.

The Boy Scouts of America responded to the stay by stating that the plan had already been effective for ten months and had fully compensated all Scouting-abuse survivors. They argued that staying the plan now would inflict severe harm on both the Scouting movement and Scouting-abuse survivors, many of whom had waited decades for compensation and emotional closure.

However, the claimants’ lawyers, Gillion Dumas and John Reeves, argued that temporary stays such as the one issued by Alito only occur in the most extraordinary of circumstances. They believed that the Court was taking their argument seriously and were cautiously optimistic that it would 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 in March 2023. The plan would allow the Texas-based organization to continue operating while it compensated the sexual abuse claimants. 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 of America 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 lawyers for the claimants, Gillion Dumas and John Reeves, argued that the settlement was a violation of the claimants’ due process rights. They believed that only the national Boy Scouts of America organization had declared bankruptcy, but the bankruptcy plan also discharged non-bankrupt Local Councils and Chartered Organizations from civil liability. This, they claimed, was a blatant violation of the claimants’ due process rights.

The temporary stay issued by the Supreme Court gives the Court additional time to decide on the claimants’ request for a full, permanent stay of the bankruptcy plan. The Boy Scouts of America, in their statement to Fox News Digital, expressed their hope that the Court would swiftly deny the application and permit the settlement trustee to resume her work compensating survivors.

The lawyers for the claimants, however, were optimistic about the Court’s consideration of their argument. They believed that the temporary stay demonstrated how seriously the justices were taking the claimants’ argument. The lawyers looked forward to further litigating the issue before the Court and were cautiously optimistic that it would ultimately grant them a full, permanent stay of the bankruptcy plan.

The Boy Scouts of America have been a significant part of American culture for over a century. The organization has produced countless leaders, innovators, and community members. However, the sexual abuse claims have cast a dark shadow over the organization’s legacy. The ongoing legal battle will determine whether the Boy Scouts of America can continue operating while compensating the sexual abuse claimants or if the organization will be forced to face the consequences of its past actions.

In conclusion, the temporary stay issued by the Supreme Court on the Boy Scouts of America’s $2.46 billion settlement is a significant development in the ongoing legal battle regarding decades of sexual abuse claims. The Court’s consideration of the claimants’ argument for a full, permanent stay of the bankruptcy plan will determine the future of the Boy Scouts of America and the compensation of the sexual abuse survivors. The outcome of this case will have far-reaching implications for organizations, insurers, and survivors of sexual abuse.