HAGÅTÑA (The Guam Daily Post) — The Supreme Court of the United States has denied the application for a stay filed by some claimants in the $2.4 billion settlement against the Boy Scouts of America, including those represented by a Guam law firm.
Earlier in February, 144 abuse claimants, including 75 individuals represented by Lujan & Wolff LLP, submitted an application for a stay to the U.S. Supreme Court, asking that a previously affirmed bankruptcy plan for the Boy Scouts be paused pending a challenge in the 3rd U.S. Circuit Court of Appeals and pending disposition of a writ of certiorari to the Supreme Court should the 3rd Circuit affirm the plan. The claimants stated they were concerned the bankruptcy plan would release certain entities from liability.
The claimants asked for a temporary administrative stay of the plan pending the high court’s resolution of their stay application. U.S. Supreme Court Justice Samuel Alito ordered a temporary pause on Feb. 16.
On Feb. 22, the Supreme Court of the United States denied the stay application.
The BSA argued that the application sought to impose a stay on a Chapter 11 reorganization plan that has been effective for 10 months, and that the applicants, representing less than 1% of more than 82,000 claimants of sexual abuse against the BSA, sought to elevate their own interest above others.
One amicus curiae brief from a law firm representing 320 claimants urged the high court to deny the stay application, arguing that it would defeat the purpose of the litigation – to “secure justice” for victims of child sexual abuse before they die.
Most of the survivors, 80%, allege that abuse occurred before 1988 and many are now sick, elderly or infirm, the BSA stated in its own filing.
BSA argued that the request for a stay was improper, that the applicants had not provided legal authority for the stay, and that the applicants have not shown they will ever have a plausible case for certiorari from the Supreme Court.
In a reply, the stay applicants stated that they are only seeking to preserve the status quo while their appeal challenging the bankruptcy plan at the 3rd Circuit is resolved.
“They are not in any way seeking to invalidate already consummated transactions, nor are they seeking to disrupt the Trustee’s ability to hold on to and manage the trusts to ensure they are not wasted during the pendency of a stay. To the extent that BSA and the Trustee get bogged arguing to this court that abuse claimants are wrong that the bankruptcy plan never went effective in the first place, both BSA and the (settlement) trustee are ignoring that abuse claimants are not asking this Court to rule on that matter at this time. Their insistence on the plan having gone effective betrays an attempt to get this matter dismissed under the equitable mootness doctrine,” the stay applicants stated in their reply.
The Boy Scouts of America building in Upper Tumon is shown on Feb. 28, 2017.
