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Bankruptcy Judge Denies $21 Million in Fees for Personal Injury Firms in Boy Scouts Abuse Case

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Andrew R. Michaud

• December 06, 2023

A bankruptcy judge has denied a request for $21 million in fees from six firms representing a group of personal injury firms who were advocating for 18,000 sex-abuse victims in the Boy Scouts of America case.

The Coalition of Abused Scouts for Justice, formed by a group of personal injury firms, frequently clashed with the official committee of abuse survivors. The official committee represents the interests of all 82,200 victims in the case.

During the proceedings, the coalition recommended that victims vote in favor of a $1.9 billion settlement for abuse claims. In contrast, the official committee urged victims to vote against it. In the end, the Boy Scouts successfully emerged from bankruptcy after the majority of victims voted in favor of a larger settlement.

Judge Laurie Selber Silverstein of the U.S. Bankruptcy Court for the District of Delaware ruled against approving payment to the six firms from the Boy Scouts' estate. She stated that they had not demonstrated that their work extended beyond their own self-interest.

According to the judge, these advisors primarily served the personal injury firms they represented and should therefore be compensated by those firms directly. In bankruptcy cases, organizations typically cover the expenses of their advisors as well as those of the official creditors committee.