At the conclusion of the trial, U.S. Bankruptcy Judge Laurie Selber Silverstein stated that she would rule on the plan and settlement as soon as possible.
Lawyers for the youth organization, which has received over 82,000 abuse claims, said they hope the settlement will allow them to exit Chapter 11 and continue their Scouting mission.
Despite the fact that the plan has the support of 86 percent of abuse claimants who voted on it, hundreds of local councils, and the Boy Scouts' two primary insurers, the process of obtaining approval and emerging from bankruptcy has been contentious for the Irving, Texas-based organization.
The Boy Scouts declared bankruptcy in February 2020 to address decades of sex abuse allegations. If approved, the plan will create a $2.7 billion trust to compensate survivors who filed claims in the bankruptcy, with the amount determined by the severity of the alleged abuse, as well as where and when it occurred.
The United States Trustee, the federal government's bankruptcy watchdog, opposed the plan's non-debtor releases, which protect people and entities related to the debtor who have not filed for bankruptcy themselves from future litigation. On Wednesday, U.S. Trustee attorney David Buchbinder argued that the releases are being granted to an overly broad group of people who have not made significant contributions to the settlement in exchange.
Buchbinder also charged the organization with subjecting survivors to a "years-long administrative process" that was "difficult, expensive, and confusing."
Jessica Lauria, an attorney for the Boy Scouts, defended the releases, claiming that they were required to secure financial contributions for the trust and that many other courts had upheld similar releases.
Another significant challenge to the plan came from insurers, who claimed that the procedures for evaluating abuse claims were insufficiently stringent. They argued that a provision that allows claimants to receive $3,500 if they agree to effectively skip the evaluation process could result in payments for fraudulent claims.
However, the Boy Scouts contend that this option is less expensive and more efficient in the long run than litigating even a "clearly invalid" claim.
In addition to compensation, the plan intends to enact new youth protection measures for current and future Scouts.
The case is In re Boy Scouts of America, No. 20-10343 in the United States Bankruptcy Court for the District of Delaware.