BREAKING: Boy Scouts of America declares bankruptcy.
"This involves victims from all 50 states and several U.S. territories," he said."You’re looking at thousands of abuse survivors making claims. This is much bigger than the bankruptcy filings involving the Catholic church."it might seek this remedy when it hired the Sidley Austin LLP law firm and announced it was"working with experts to explore all options available to ensure that the local and national programming of the Boy Scouts of America continues uninterrupted.
Now that the Texas-based BSA has filed for bankruptcy, the U.S. Trustees Office will pick a creditors committee that will include a number of abuse victims, Pfau said. The committee, in turn, will hire a bankruptcy law firm that will represent the interests of creditors in negotiations with the BSA. The various abuse cases against the BSA that have been filed in state courts will be halted and transferred to federal bankruptcy court for adjudication, Pfau said."The pro is that is a far shorter process than going through a trial and the appeals process in state court,” Pfau said."The bankruptcy procedure will probably take anywhere from 18 months to two years from start to finish.
"But the cons are significant," Pfau added."Each individual loses his opportunity for a jury trial in state court, which is really the most powerful weapon an abuse victim has. One of the primary reasons the BSA filed for bankruptcy is to avoid jury trials.""Juries don’t like fact patterns where children are abused by trusted leaders," Pfau said."An entity like the Boy Scouts has to consider their exposure.
Like the Catholic Church, the Boy Scouts"have a horrible, sordid history of child abuse in the ranks," Pfau said."They fought very, very aggressively to keep the extent of the abuse from the public. Now they’re facing a wave of legislative reform that is sweeping across the country, with states revising their statutes of limitations to allow victims to sue.""It’s a real day of reckoning for the Boy Scouts," said Pfau.hat it has more than 1.
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