Erie Boy Scout council to pay $700,000 to settle child sex abuse claims in national bankruptcy
As the
The nearly
The BSA has also reached agreements with two other entities to contribute a total
In exchange for the settlement payments, all the contributors, including the local councils, are to be released from liability for the sexual abuse claims. The settlement proceeds are to be placed in a trust and used to compensate about 60,000 abuse survivors who filed more than
The claims related to the
Council will also lose interest income
The BSA itemized the expected payments from all the local councils on
Revisions to the disclosure statement were filed over the past several days. On Tuesday, Judge
Several challenges to the plan remain, including from abuse survivors. The local councils' contributions will be final only after the plan is approved. Havard said the board of the
"We are unsure of the date these funds will be requested at this time," he said an email.
Havard said the removal of the
"At this time, I do not know what the long-term results will be due to the loss of interest income," Havard said.
The council's major property asset is
Varying contributions
Nationwide, the size and scope of the expected payments vary from council to council. According to the AP, the proposed contributions range from
The size of the contributions also vary among the 17 BSA councils in
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* Chief Cornplanter Council, based in Warren:
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* Cradle of
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Disputing the amounts
Survivors of abuse have options in how they want to resolve their claims using money from the settlement trust fund.
Survivors who want to resolve their claims immediately can file an expedited distribution and get
For abuse survivors who want to pursue their claims further, the plan proposes the creation of a scaling system. The trustee of the settlement fund would use the scaling system to determine payment based on an evaluation of each abuse claim, including the type and duration of the abuse, among other factors.
As
The system would be similar to the setup that independent administrators for the
Local councils had input in determining the size of their contributions to the settlement trust for the abuse survivors, the BSA said in a statement.
"These figures," according to the statement, "were determined through a combination of information filed in the claims process and what local councils could meaningfully contribute while ensuring Scouting can continue in local communities across the country."
Establishing the councils' contributions, the BSA said in the statement," is a necessary step in the BSA's ongoing efforts to reach a global resolution that will equitably compensate survivors and ensure Scouting's future by resolving past abuse cases for both the national organization and local councils.
"We are committed to working with all local councils to ensure they are able to make the necessary contribution to the Trust while ensuring that the mission of Scouting continues in the many local communities we serve."
The local councils' contributions are facing a challenge from abuse survivors, as is the entire reorganization plan. On
The lawyers on the committee - called the Tort Claimants' Committee - said the BSA's proposed plan does not contain enough money for survivors. Using "the most optimistic estimates," the committee said in its motion, each survivor would receive an average of
"The aggregate settlement amounts in BSA's Fifth Plan may sound like a lot of money, but, in the end, the individual survivors are left short." according to the motion.
Also according to the motion, "The BSA's Fifth Plan includes settlements with Local Councils that leave them with billions of dollars of cash and property in excess of their current need to fulfill their mission of Scouting."
The committee reiterated its position on Thursday, and said it would urge survivors to vote against the plan's approval.
"Survivors should not be fooled that they are going to receive fair compensation under the BSA's ... belated attempt to avoid responsibility for the abuse of tens of thousands of children," lawyer
Stang serves as the counsel to the Tort Claimants' Committee. His law firm,
The BSA contends that the latest version of the plan serves the best interests of the abuse victims and the national organization and the local councils.
The proposed reorganization plan allows the BSA "to timely and equitably compensate survivors of Abuse in Scouting" and "to ensure that the BSA emerges from bankruptcy with the ability to continue its vital charitable mission," according to the disclosure statement.
"The BSA cares deeply about all survivors of child abuse. The BSA understands that no apology can repair the damage caused by abuse or take away the pain that survivors have endured. The BSA is steadfast in its commitment to continually improve all of its policies to prevent abuse."
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