BSA Claimant Not Bound By Insurance Equity Injunction, Bankruptcy Judge Rules

Mealey's ( March 13, 2024, 3:21 PM EDT) -- WILMINGTON, Del. — A Delaware federal bankruptcy judge concluded that a claimant can continue to seek recovery from insurers for an underlying judgment that he obtained against his abuser in his lawsuit against the abuser, the Boys Scouts of America and Heart of America Council (HOAC), finding that the claimant is not bound by the Insurance Equity Injunction in the Boy Scouts of America’s third modified, fifth amended Chapter 11 reorganization plan that contemplates the creation of a settlement trust to “assume liability for all Abuse Claims.”...