UPDATE: Claimants have until Nov. 16 to get their claims filed. Those seeking legal advice should contact a Boy Scouts sexual abuse attorney as soon as possible.

Struggling under an increasing mountain of sexual abuse allegations, the Boy Scouts of America filed bankruptcy in February. During the Boy Scouts bankruptcy negotiations with victims and their representation, the organization set a deadline of Nov. 16 for victims to come forward with claims.

If they fail to file a claim before the cut-off, victims will have to seek compensation through the proposed “compensation trust,” according to the San Diego Union-Tribune. This could make it considerably more difficult for victims to receive damages.

According to the Union-Tribune, more than 12,000 boys have faced abuse from at least 7,800 accused abusers since the 1920s. In recent years, state lawmakers have worked to make it easier for victims of childhood abuse to come forward by giving them more time to file, but entities like the Boy Scouts are finding ways to reverse those efforts.

Boy Scouts Bankruptcy Filing

National Public Radio (NPR) reports that, on Feb. 18 of this year, the Boy Scouts bankruptcy petition was filed in Delaware. The organization reportedly filed for Chapter 11 in order to create a victims compensation trust while allowing scouting programs to continue across the country.

Previously, the organization had insurance to cover these sorts of claims, but carriers withdrew coverage due to claims that the Boy Scouts knew about the abuse but failed to notify the insurance companies. This means that the cost of litigation and settlements will likely fall to the organization itself, cost they may not be able to afford.

According to NPR, the Boy Scouts reported total revenues of $285 million on their most recent tax filing. The organization has an estimated $1.4 billion in assets. However, just one case against the Boy Scouts could receive a settlement of more than $20 million, and there were more than 300 lawsuits filed against the organization as of February.

One important thing to note is that, while the national organization of the Boy Scouts has filed for bankruptcy, the local councils associated with the program have not. 

“Local councils, which provide programming, financial, facility and administrative support to Scouting units in their communities, have not filed for bankruptcy,” the Boy Scouts said in a statement. “They are legally separate, distinct and financially independent from the national organization.”

The Boy Scout Suit Deadline and Statutes of Limitations

According to victim advocates, the new deadline established as a part of the Boy Scouts bankruptcy negotiations represents a big step backwards for victims’ rights. This development comes after many states passed statute of limitations laws extending the amount of time victims of childhood sexual abuse have to come forward. 

The Uniont-Tribune reports that, last year, California established a three-year window for victims to file, and New York recently extended its one year look back window until August 2021 due to the pandemic. Victims in these states as well as Arizona, North Carolina, and Vermont have had their timeline to file cut back dramatically, meaning some victims may be forced to file before they’re emotionally ready.

“It’s disappointing and disturbing the time frame has been dramatically shortened,” victims advocate and New Jersey Sen. Joe Vitale told the Union-Tribune. “It’s unfair.”

Simply put, that is the dilemma: file now or risk losing your chance at the national organization. Even if you miss the Nov. 16 deadline, you can still take action against local councils. As the Boy Scouts stated, they are legally distinct from these councils. However, it’s possible that a victim could file a case against a local council after the deadline only for that council to deflect blame onto the national organization which could no longer be included in a suit.

This article is not legal advice. It is presented
for informational purposes only.