Diocese of Rockville will take part in Boy Scouts plan settlement

By Sarah Lizee

Olympia, Wash., Dec. 12 – The Roman Catholic Diocese of Rockville Centre, New York gained court approval to opt-in to treatment as a “participating chartered organization” under the Boy Scouts of America’s Chapter 11 plan, according to an order filed with the U.S. Bankruptcy Court for the Southern District of New York.

Prior to the diocese’s bankruptcy filing, the Child Victims Act of 2019 revived previously time-barred abuse claims, and about 200 lawsuits were filed against the debtor.

The diocese sought to identify and marshal over 60 years of insurance policies to secure valuable resources of the debtor’s which may be used to compensate abuse survivors.

As part of these efforts, the diocese sought to take part in a settlement agreement under the BSA’s Chapter 11 plan.

No objections were filed against the diocese’s motion.

Because an appeal is pending challenging the confirmed BSA plan, the plan hasn’t become effective, and the debtor and claimants haven’t received any benefits from the plan yet.

The BSA plan proposed to establish a trust for sexual abuse survivors to be funded with about $2.69 billion.

The claims against the BSA implicate some partner organizations presently or formerly authorized by the BSA to sponsor or support scouting units.

Some of the diocese’s claimants have asserted liability against it for scouting-related abuse. The diocese has also been named as a co-defendant to the BSA in some lawsuits, and some individuals have filed claims against both the diocese and the BSA.

About 30 sexual abuse proofs of claim filed in the diocese’s case may relate to BSA. Those claims will be allowed to be channeled to the settlement trust.

The Rockville Centre, N.Y.-based diocese filed bankruptcy on Oct. 1, 2020 under Chapter 11 case number 20-12345.

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