Chapter 11 cases involving mass tort and complex personal injury claims often require the resolution of novel legal issues that stretch the bounds of existing precedent. As these cases evolve, they can also impact claims against other debtors unrelated to the case at hand through court-approved injunctions, releases or settlements. This is precisely the situation that presented itself in the Chapter 11 case involving the Roman Catholic Diocese of Rockville Centre. See In re Roman Catholic Diocese of Rockville Center, No. 20-12345(MG), 2023 Lexis 1751, at *6 (Bankr. S.D.N.Y. July 13, 2023). On July 13, following a series of responses to claim objections made by the debtor in the Rockville Chapter 11, the U.S. Bankruptcy Court for the Southern District of New York sustained Rockville's claim objections relying upon third-party releases originally issued in the unrelated Boy Scouts of America (BSA) bankruptcy case.

The issues in Rockville stem from the joint voluntary Chapter 11 petitions filed by the BSA and Delaware BSA in 2020 to address the growing number of sexual abuse claims asserted against those organizations. The BSA reorganization plan, which was confirmed by the Bankruptcy Court, and later by a U.S. district court, faces pending appeals in the U.S. Court of Appeals for the Third Circuit. The Third Circuit, however, has denied motions to stay the effectiveness of the BSA plan pending these appeals.