Century Indemnity Co. and linked entities have agreed to donate $800 million to the fund in return for being released from further liability for abuse claims as part of a settlement announced on Monday, Dec. 13.

Over $2.6 billion will be placed in the trust, making this the highest ever settlement for sexual assault in the United States.

The agreement comes only days before a previously disclosed Boy Scouts restructuring proposal is put to the vote by more than 82,000 sexual assault victims on Dec. 28.

Up to $820 million in cash and property from the Boys Scouts and its roughly 250 local councils would be allocated to a fund for victims. In return, the local councils and national organizations would be released from further liability for sexual abuse claims.

Several other legal firms and the official committee designated by the U.S. bankruptcy trustee to represent the best interests of all sexual assault victims are opposed to the proposed proposal.

There has been criticism from members of the committee, who say the proposal is unjust and undervalues the settlement parties’ prospective obligations and their entitlements.

The Hartford and the Religion of Jesus Christ of Latter-day Saints (Mormons) have reached settlement agreements with the Boy Scouts of America (BSA).

The Hartford has agreed to provide $787 million, and the Mormons will contribute $250 million to a trust fund for victims of clergy sexual abuse. Neither party would be held responsible for any accusations of child sex abuse in return for this agreement.

Chartered supporting organizations will receive additional contributions from the BSA and its local councils under the Century settlement, subject to court approval.

In addition to the $40 million commitment from local councils, there is a potential payout for growth in BSA membership due to the continuous sponsorship of Scouting units by chartered organizations.

In a prepared statement, BSA stated, “This is an extremely important step forward in the BSA’s efforts to equitably compensate survivors, and our hope is that this will lead to further settlement agreements from other parties, in addition to our continued negotiations with other insurers.

“The BSA has worked diligently to create a structure that will allow the Roman Catholic-affiliated churches and United Methodist-affiliated churches who sponsored Scouting units to contribute to the proposed settlement trust to compensate survivors.”

According to the Coalition of Abused Scouts for Justice, an ad hoc group representing around 18,000 claims, it’s another incentive for abuse claimants to vote for the BSA’s reorganization proposal.

Anne Andrews, an attorney, and co-founder of the organization, said, “Not only is the coalition creating the biggest possible compensation fund for survivors—it’s the only fund on the table, and it vanishes with a ‘no’ vote.

“The coalition also continues to work with the Boy Scouts of America on accountability and safety measures to ensure that no child will have to endure the horrific harm and abuse our clients have suffered.”

Sign up to receive our latest news!

By submitting this form, I agree to the terms.