Boy Scouts of America sexual abuse settlement (2022)

Last updated
Boy Scouts of America sexual abuse settlement (2022)
Court United States Bankruptcy Court for the District of Delaware
DecidedSeptember 8, 2022 (approved by the bankruptcy court)
CitationCase No. 20-10343
Court membership
Judge sittingLaurie Selber Silverstein
Keywords
Boy Scouts of America, sexual abuse, bankruptcy, class action settlement

The Boy Scouts of America sexual abuse settlement refers to a $2.46 billion agreement reached by the Boy Scouts of America (BSA) to compensate survivors of childhood sexual abuse within its programs. Stemming from a Chapter 11 bankruptcy filing in February 2020, the settlement addresses over 82,000 claims of sexual abuse by former Scouts against troop leaders and other individuals associated with the organization. Approved by U.S. Bankruptcy Judge Laurie Selber Silverstein on September 8, 2022, it is considered one of the largest sexual abuse settlements in U.S. history. [1] The settlement has faced legal challenges, including appeals from a minority of survivors and insurers, but was upheld by various courts, allowing payments to begin in 2023.

Contents

As of January 23, 2025, over 25% of 58,000 matrix claims were determined, with $70 million paid to ~12,300 survivors, despite litigation delays. [2]

Background

The Boy Scouts of America, founded in 1910, has historically been one of the largest youth organizations in the United States, serving millions of young people through its scouting programs. [3] Reports of sexual abuse within the organization date back decades, with internal records known as the "Perversion Files" documenting cases from the mid-20th century. [4] These files, released by court order in 2012 following an Oregon lawsuit, revealed that the BSA had knowledge of abuse by troop leaders but often failed to report it to authorities. [4]

In the late 2010s, several U.S. states enacted "lookback window" laws, allowing survivors to file lawsuits over decades-old abuse allegations regardless of statutes of limitations. [5] This led to a surge of litigation, with the BSA facing over 275 lawsuits and 1,400 potential claims by early 2020. [6] Unable to manage the financial burden, the BSA filed for Chapter 11 bankruptcy protection on February 18, 2020, in the United States Bankruptcy Court for the District of Delaware. [7]

Settlement process

The bankruptcy filing aimed to create a Victims Compensation Trust to equitably distribute funds to survivors while allowing the BSA to reorganize and continue operations. [3] A deadline for filing claims was set for November 16, 2020, resulting in over 82,000 submissions. [4] Initial negotiations produced an $850 million settlement in July 2021 with attorneys representing approximately 60,000 claimants supported by local councils and insurers. [8]

The final settlement, approved in September 2022, increased to $2.46 billion, incorporating contributions from the BSA, its insurers, local councils, and chartered organizations such as churches. [9] Over 86% of claimants voted in favor of the plan. [5] The trust, administered by retired bankruptcy Judge Barbara J. Houser, began distributing payments in April 2023, with awards ranging from $3,500 to $2.7 million based on the abuse's severity, location, and documentation. [10]

Claims matrix and scaling factors

The settlement employs a claims matrix and scaling factors, as outlined in the Trust Distribution Procedures (TDP), to evaluate and assign monetary values to over 82,000 unliquidated abuse claims within the trust. [11] The claims matrix categorizes abuse into six tiers based on severity—ranging from "Anal or Vaginal Penetration by Adult Perpetrator" ($600,000 base, $2.7 million max) to "Sexual Abuse-No Touching" ($3,500 base, $8,500 max)—with base and maximum values adjusted by scaling factors. [11] These factors, applied by the Settlement Trustee, account for aggravating circumstances (e.g., multiple perpetrators, up to 2.0 increase) and mitigating factors (e.g., statute of limitations, down to 0), aiming to reflect fair compensation comparable to tort system outcomes. [11] As of January 23, 2025, over 25% of the 58,000 matrix claims had been determined, with $70 million disbursed to approximately 12,300 survivors, though delays persist due to ongoing litigation. [2]

Claims Matrix for BSA Sexual Abuse Settlement [11]
TierType of AbuseBase Matrix ValueMaximum Matrix Value
1Anal or Vaginal Penetration by Adult Perpetrator—includes anal or vaginal sexual intercourse, digital penetration, or penetration with a foreign object.$600,000$2,700,000
2Oral Contact by Adult Perpetrator—includes mouth-to-genital or mouth-to-anus contact.
Anal or Vaginal Penetration by a Youth Perpetrator—includes intercourse, digital penetration, or penetration with a foreign object.
$450,000$2,025,000
3Masturbation by Adult Perpetrator—includes genital touching involving masturbation.
Oral Contact by a Youth Perpetrator—includes mouth-to-genital or mouth-to-anus contact.
$300,000$1,350,000
4Masturbation by Youth Perpetrator—includes genital touching involving masturbation.
Touching of Sexual or Intimate Parts (unclothed) by Adult Perpetrator.
$150,000$675,000
5Touching of Sexual or Intimate Parts (unclothed) by a Youth Perpetrator.
Touching of Sexual or Intimate Parts (clothed), regardless of who touches whom, not including masturbation.
Exploitation for child pornography.
$75,000$337,500
6Sexual Abuse-No Touching.
Adult Abuse Claims.
$3,500$8,500

Differences in state jurisdictions

Differences in state jurisdictions significantly shaped the BSA sexual abuse settlement, particularly through varying statutes of limitations and "lookback window" laws that enabled survivors to file claims decades after the abuse occurred. [5] States like New York and California, with expansive lookback periods enacted in 2019, saw a surge in lawsuits—New York alone accounted for over 2,000 claims—prompting the BSA’s 2020 bankruptcy filing to consolidate cases nationally. [12] In contrast, states with stricter limitations, such as Alabama, restricted claims unless filed within a shorter timeframe, reducing survivor participation from those regions. [4] These jurisdictional disparities influenced the settlement’s tiered payout structure, with awards partly based on the state where the abuse occurred, reflecting local legal climates and reporting requirements. [10]

The settlement faced opposition from a minority of stakeholders. Approximately 144 survivors argued that it unlawfully shielded non-bankrupt entities—such as local councils and churches—from future lawsuits, a legal mechanism similar to one under review in the Purdue Pharma bankruptcy case. [13] Some insurers also appealed, claiming the BSA shifted liability unfairly. [14]

In February 2024, the U.S. Supreme Court declined an emergency request to halt the settlement, allowing payments to proceed while it considered the Purdue case. [1] On November 6, 2024, a 3rd U.S. Circuit Court of Appeals panel signaled reluctance to overturn the deal, citing the impracticality of undoing a finalized settlement. [14]

Sale of Boy Scout assets

The BSA, facing financial pressure in the settlement, has sold various assets to fund the Victims Compensation Trust, including camps, art, land, and leases. [1] Local councils, required to contribute at least $515 million, have divested numerous properties, such as the 252-acre Deer Lake camp in Connecticut and the 95-acre Camp Gustin in Maine, with some sold to developers and others preserved by conservation groups. [3] The national organization also planned to sell its collection of over 50 Norman Rockwell paintings, valued as part of its $1 billion in assets, to bolster the settlement fund, though specific sales outcomes remain unreported. [15]

Insurance and reinsurance involvement

Insurance and reinsurance companies played a significant role in funding the settlement, contributing a substantial portion alongside the BSA, local councils, and chartered organizations. [1] By December 2021, insurers like The Hartford had agreed to pay $800 million into the Victims Compensation Trust, with additional insurance rights potentially worth over $4 billion assigned to the fund. [6] However, a minority of insurers, including Liberty Mutual, resisted the settlement, arguing it unfairly imposed liability for "invalid and questionable claims." On March 31, 2023, these insurers sought to delay the BSA’s bankruptcy exit to appeal the plan. Still, U.S. District Judge Richard Andrews rejected their initial challenge, affirming the settlement’s good faith. [16] While this effort temporarily stalled progress, the Supreme Court's February 2024 decision to lift a prior pause allowed payments to resume, indicating that insurer objections ultimately did not derail the settlement’ [1]

Church and faith organization involvement

Church and faith organizations, as major chartering partners of the BSA, were significantly involved in the settlement due to their historical oversight of local troops where the abuse occurred. [1] The United Methodist Church, chartering around 5,000 BSA units, contributed $30 million to the Victims Compensation Trust under a December 2021 agreement, reflecting its extensive involvement with scouting. [17] The Church of Jesus Christ of Latter-day Saints (LDS Church), once the largest sponsor with over 400,000 Scouts, initially offered $250 million, but Judge Laurie Selber Silverstein rejected this in July 2022 due to unresolved insurance disputes; a revised contribution was later negotiated. [18] Other groups, such as Catholic parishes and Presbyterian churches, also participated, with over 40% of the BSA’s 250 local councils tied to faith-based sponsors contributing assets or funds to the trust. [3] These organizations benefited from third-party releases in the settlement, shielding them from future lawsuits, a provision upheld despite objections from some survivors. [13]

Impact on affected people

The settlement has profoundly affected the over 82,000 survivors who filed claims. For many, it provided financial compensation after decades of silence, with initial payments to 7,000 "quick pay" claimants (opting for $3,500) beginning in September 2023. [10] By early 2024, the trust had disbursed nearly $8 million to over 3,000 claimants. [1] Survivors have described the process as emotionally taxing, requiring detailed recounting of their abuse for evaluation, often reopening old wounds. [14]

The settlement also aimed to ensure accountability and reform within the BSA. Survivors’ participation in the bankruptcy process led to the implementation of enhanced safety protocols, including mandatory background checks and youth protection training. [3] However, critics among the survivors, including the 144 appellants, expressed frustration that the deal limited their ability to pursue justice against non-bankrupt entities, potentially leaving some perpetrators and enablers unaccountable. [13]

The settlement preserved the BSA's operations for the broader scouting community, allowing it to continue serving over one million youth, though the scandal has impacted its reputation and membership. [1]

The BSA sexual abuse settlement imposed various legal costs on individual claimants, primarily the over 82,000 survivors who filed claims. [4] While the $2.46 billion Victims Compensation Trust covered payouts, survivors incurred indirect costs during the claims process. Many hired private attorneys to navigate the bankruptcy proceedings, with contingency fees typically ranging from 33% to 40% of their settlement awards, reducing their net compensation. [5] For example, claimants opting for the $3,500 "quick pay" option retained approximately $2,100 to $2,450 after fees, depending on their legal agreements. [10]

The claims process required survivors to submit detailed documentation, often necessitating professional assistance to compile sworn affidavits or medical records. Some reported spending hundreds of dollars on administrative costs, such as obtaining historical evidence or psychological evaluations to substantiate their claims. [3] A subset of survivors, particularly the 144 who appealed the settlement, faced additional expenses. Their legal challenge, which reached the U.S. Supreme Court in 2024, involved costs for filings and representation, though specific figures remain undisclosed. [13] Attorneys for these appellants, such as Gilion Dumas representing 67 claimants, noted the financial burden increased as appeals prolonged the process. [14]

Costs were higher for individuals who pursued separate lawsuits before the bankruptcy filing. Between 2017 and 2019, the BSA settled over 275 cases, with some survivors funding their litigation. [6] Legal experts estimate that such lawsuits could cost individuals thousands of dollars in attorney fees and court expenses, especially if cases went to trial. [5] The settlement’s structure, which shielded non-bankrupt entities like local councils and churches, limited survivors' ability to recover these costs through further litigation, leaving many to absorb them personally. [13]

The emotional and time-related costs also affected individuals. Survivors described the claims process as retraumatizing, requiring significant personal investment to recount abuse details, though these are not quantifiable in monetary terms. [14] Overall, while the trust aimed to centralize compensation, individual legal costs varied widely based on claimants’ circumstances and choices. [5]

See also

References

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  2. 1 2 "Scouting sexual abuse settlement significant milestone in its ongoing efforts to compensate survivors of". NJTODAY.NET. 2025-02-16. Retrieved 2025-03-24.
  3. 1 2 3 4 5 6 Valle, Lauren del; Dolan, Laura; Tebor, Celina (2023-04-20). "Boy Scouts of America will begin to compensate sexual abuse victims from a $2.4 billion trust after emerging from bankruptcy". CNN. Retrieved 2025-03-22.
  4. 1 2 3 4 5 "A Timeline of Sexual Abuse by the Boy Scouts of America". Hurley McKenna & Mertz, P.C. 2024-04-15. Retrieved 2025-03-22.
  5. 1 2 3 4 5 6 "Boy Scouts Sex Abuse Settlement Update". The Legal Examiner. 2024-02-21. Retrieved 2025-03-22.
  6. 1 2 3 Kelly, Cara (2022-09-08). "Boy Scouts plan to exit bankruptcy approved as historic case wraps up". USA TODAY. Retrieved 2025-03-22.
  7. Wamsley, Laurel (2020-02-18). "Boy Scouts Of America Files For Bankruptcy As It Faces Hundreds Of Sex-Abuse Claims". NPR. Retrieved 2025-03-22.
  8. Chase, Randall (2021-07-02). "Boy Scouts of America reaches $850M agreement with victims". AP News. Retrieved 2025-03-23.
  9. Knauth, Dietrich (2022-09-22). "Boy Scouts' $2.46 billion bankruptcy settlement draws appeals from insurers, abuse claimants". Reuters. Retrieved 2025-03-22.
  10. 1 2 3 4 Knauth, Dietrich (2023-09-19). "Boy Scouts victims begin receiving settlement payouts as appeals continue". Reuters. Retrieved 2025-03-23.
  11. 1 2 3 4 "Trust Distribution Procedures for Abuse Claims". Scouting Settlement Trust. Retrieved 2025-03-24.
  12. Baker, Mike (2020-02-18). "Boy Scouts Seek Bankruptcy to Survive a Deluge of Sex-Abuse Claims". The New York Times. Retrieved 2025-03-23.
  13. 1 2 3 4 5 Fritze, John (2024-02-22). "Supreme Court declines to halt Boy Scouts of America bankruptcy settlement for the moment". CNN. Retrieved 2025-03-23.
  14. 1 2 3 4 5 Knauth, Dietrich (2024-11-06). "US court reluctant to blow up Boy Scouts' $2.46 billion sex abuse settlement". Reuters. Retrieved 2025-03-23.
  15. Vigdor, Neil (2021-03-03). "Boy Scouts Will Sell Nearly 60 Norman Rockwell Works to Pay Sex-Abuse Claims". The New York Times. Retrieved 2025-03-22.
  16. Knauth, Dietrich (2023-04-01). "Boy Scouts insurers seek to delay $2.5 bln abuse deal, bankruptcy exit". Reuters. Retrieved 2025-03-23.
  17. "United Methodists reach settlement in Boy Scouts Bankruptcy Case". The United Methodist Church. 2021-12-21. Retrieved 2025-03-23.
  18. "Judge Issues Key Ruling in Boy Scout Bankruptcy That Traces History to Portland". Willamette Week. 2022-07-31. Retrieved 2025-03-23.