Delaware Appellate Judge Upholds Bankruptcy Plan for Boy Scouts of America

March 30, 2023

Gilbert LLP, a Washington, D.C. law firm specializing in complex dispute resolution, lauded yesterday’s decision by the U.S. District Court for the District of Delaware in In re: Boy Scouts of America and Delaware BSA LLC to uphold the U.S Bankruptcy Court’s 2022 order confirming the BSA’s Chapter 11 plan of reorganization over the objection of more than a dozen insurers.

The confirmed plan—a result of multi-year negotiations among more than a dozen stakeholder groups, 59 hearings, and a 22-day confirmation trial—channels more than 82,000 claims of childhood sex abuse to a trust funded with $2.46 billion in cash and property (including $1.6 billion in insurance settlements), as well as the rights to pursue insurance recoveries potentially worth billions more.

As part of the Boy Scouts of America Chapter 11 bankruptcy proceedings, Gilbert LLP represents the court-appointed representative for certain abuse survivors, providing counsel and advice to that group on insurance issues, and working with key stakeholders to evaluate, preserve, and maximize insurance recoveries for the benefit of survivors.

Kami Quinn, firm Chair and lead Gilbert partner on the matter, said today that “the bankruptcy plan represents the culmination of years of hard-fought negotiations, breaks new ground in protecting and maximizing insurance assets for the benefit of claimants, and gets us one step closer to distributing billions of dollars to survivors of sexual abuse.  My Gilbert colleagues did an outstanding job, and we are proud to have played a role in achieving a tangible measure of justice for survivors.”