Tort claimants committee objects to Boy Scouts assault settlement

The tort claimants’ committee in the Boy Scouts of America’s bankruptcy on Tuesday condemned proposed settlements it recently struck with the Mormon church and The Hartford Insurance Co., calling the resolution grossly inadequate to the more than 80,000 survivors who suffered sexual abuse.

The tort claimants committee, represented by Pachulski Stang Ziehl & Jones LLP, said there are serious flaws in the proposed settlements. The Church of Jesus Christ of Latter-day Saints is not paying reasonable compensation for the broad releases of the sexual abuse claims that were made in local councils controlled by the church, according to partner James I. Stang. The church had direct involvement in every aspect of the scouting program within the Boy Scouts of America, he said. The church offered $250 million, which amounts to about $3,000 for each claimant, he added. The Hartford offered $787 million, which averages to less than $9,500 per survivor, Stang said.

“In a case where half of the abuse includes multiple instances of penetration and masturbation of children, payments in the range of $10,000 to$12,000 does not begin to justly compensate survivors,” Stang said. “The Tort Claimants’ Committee will oppose the LDS and Hartford settlements and any other settlements that fail to compensate survivors fairly.”

Representatives for the Boys Scouts, nor The Hartford could not be reached for comment.

“The Church of Jesus Christ of Latter-day Saints condemns abuse of any kind. We express our love and concern for those who have experienced abuse through Scouting or any other circumstance,” said the church’s spokesman Eric Hawkins.

This has been a prolonged process that included—as one of many interested parties—The Church of Jesus Christ of Latter-day Saints as a former sponsoring organization. This contribution will provide opportunities to alleviate the suffering of those who have experienced abuse.”

The Boy Scouts of America filed for Chapter 11 reorganization last year facing hundreds of lawsuits from men who say they suffered sexual abuse while enrolled in the program.

“As each month passes in this bankruptcy case, the Boy Scout’s bankruptcy becomes less about the survivors and more about how the Boy Scouts will exit bankruptcy at the expense of survivors,” said Doug Kennedy, vice chair of the committee. “It will be up to the Tort Claimants’ Committee to continue advancing the interest of survivors because the Boy Scouts, local councils, chartered organizations and their insurers are unwilling to do the work necessary to reach a resolution that is fair to survivors.”