The Cushman Watt Scout Center, headquarters of the Boy Scouts of America for the Los Angeles Area Council in Los Angeles, October 18, 2012. REUTERS/Fred Prouser

Boy Scouts survivor committee lawyers face call for dismissal from bankruptcy

(Reuters) – A lawyer for intercourse abuse survivors within the Boy Scouts of America’s bankruptcy mentioned on Wednesday that two attorneys for the official committee representing survivors’ pursuits within the case ought to be disqualified after the committee despatched an “inflammatory” e-mail in regards to the BSA’s proposed reorganization plan and intercourse abuse litigation settlement.

Ken Rothweiler of Eisenberg, Rothweiler, Winkler, Eisenberg & Jeck mentioned throughout a digital listening to earlier than U.S. Bankruptcy Decide Laurie Selber Silverstein that James Stang and John Lucas of Pachulski Stang Ziehl & Jones, who signify the official committee, knew the e-mail was inappropriate however allowed it to be despatched to 1000’s of survivors anyway.

Rothweiler advised the decide through the listening to that the e-mail, which inspired the survivors to vote in opposition to the plan, has tainted the voting course of.

Intercourse abuse claimants have till Dec. 14 to submit votes on the plan, which might set up a belief to compensate males who say they have been sexually abused as kids by troop leaders. The belief at present has round $1.887 billion obtainable for survivors.

The plan is supported by one massive survivor group that Rothweiler works with. Nevertheless, the official committee opposes the deal, saying the quantity being provided to greater than 80,000 abuse claimants is just too low.

The committee despatched an e-mail on Nov. 6 to round 20,000 survivors that included a letter from plaintiffs’ lawyer Tim Kosnoff, who shouldn’t be a part of the committee. The Boy Scouts say the letter contained false and defamatory statements. Moreover, the letter directed readers to Kosnoff’s Twitter account, the place he has attacked Rothweiler, amongst others concerned within the bankruptcy.

Kosnoff did not instantly reply to a request for remark.

The Boy Scouts have mentioned that even when the committee’s lawyers didn’t write the letter themselves, they successfully endorsed it by sending it from the committee’s e-mail account. The e-mail has additionally created confusion about voting, Boy Scouts lawyers mentioned.

The committee’s lawyers say the e-mail was solely meant for Kosnoff’s shoppers however was mistakenly despatched to 1000’s of different survivors as effectively. One other Pachulski lawyer, Debra Grassgreen, apologized on her staff’s behalf throughout Wednesday’s listening to however didn’t reply to Rothweiler’s suggestion that Stang and Lucas be booted from the case.

Rothweiler, who appeared emotional at instances, mentioned disqualification is “the only possible remedy” to resolve the “cataclysmic mess” the e-mail brought about. Grassgreen mentioned after the listening to that her staff would reply in time.

The decide didn’t touch upon Rothweiler’s proposal both, however urged “professional ethics, decency and civility” among the many attorneys.

The case is In re Boy Scouts of America, U.S. Bankruptcy Courtroom, District of Delaware, No. 20-10343.

For the Boy Scouts: Jessica Lauria, Michael Andolina, Matthew Linder and Laura Baccash of White & Case; and Derek Abbott and Andrew Remming of Morris, Nichols, Arsht & Tunnell

For the tort committee: James Stang, Debra Grassgreen, Iain Nasatir, John Morris, James O’Neill and John Lucas of Pachulski Stang Ziehl & Jones

Learn extra:

Boy Scouts scramble for injury management after ‘inflammatory’ e-mail to survivors

Boy Scouts OK’d to ballot intercourse abuse survivors on bankruptcy plan

Boy Scouts abuse settlements are nonetheless too low, victims teams say

Maria Chutchian

Maria Chutchian reviews on company bankruptcies and restructurings. She will be reached at [email protected]