Boy Scouts Could Ditch $ 650 Million Insurance Contract Without Victim Support
The Boy Scouts of America have said they could waive a $ 650 million settlement with insurer Hartford Financial Services Group Inc. if the youth organization fails to break the deadlock with victims of sexual abuse opposed to the agreement.
The development described in documents filed in U.S. bankruptcy court in Wilmington, Del. On Friday concerns a mechanism in the Boy Scouts’ proposal to compensate thousands of men who were victimized while they were children. Victim groups said they would reject any compensation plan including the Hartford settlement, which they criticized as inadequate.
The Boy Scouts have said that if they cannot come to an agreement with victim groups on the Hartford Accord in the coming weeks, they will seek advice from the judge presiding over its bankruptcy on what to do with the insurance contract at a hearing in July. In the absence of a breakthrough, the Boy Scouts said they would consider dropping the Hartford deal.
A Hartford spokesperson told the Journal that its settlement with the Boy Scouts was reached after lengthy negotiations and that if the deal was not ultimately approved by bankruptcy court, the insurance company would vigorously defend its position in the related coverage litigation.
“We believe the deal is a positive step towards a global resolution that will support BSA’s efforts to fairly compensate survivors,” the Hartford spokesperson said.