The Court in the Boy Scouts Bankruptcy Fails to Do Its Duty
The dynamics of this case illustrate the dangers posed by the intersection of bankruptcy law with the modern tort system.
June 13, 2023 at 09:00 AM
6 minute read
CommentaryThe traditional Boy Scout oath was that each scout should "do his duty." Unfortunately, in the bankruptcy case dealing with the fallout from the horrendous sexual abuse scandal, the bankruptcy court failed to do its duty. Instead of looking out for those who were victimized, the case has turned into another feeding frenzy by class action lawyers. To rectify this miscarriage of justice, appeals courts should take a second look.
A few months ago I warned of the efforts by tort lawyers to commandeer the bankruptcy process by loading up the case with claims that would divert funds from actual victims to those with more questionable claims. The final plan approved by the bankruptcy court, and recently affirmed by the federal district court, sadly confirms my fears.
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