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FILED: NEW YORK COUNTY CLERK 09/19/2021 07:21 AM INDEX NO. 950881/2021
NYSCEF DOC. NO. 9 RECEIVED NYSCEF: 09/19/2021
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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ANTHONY ESPOSITO; JAY MOODY;
STEVEN KOWAL; ALLEN PAGE;
ROBERT BAKER; VINCENT SARRO; Index No.: 950881/2021
TROY SNEED; KENNETH WALES; and
SHELDON WERTMAN,
Plaintiff,
-against-
GREATER NEW YORK COUNCILS BOY SCOUTS
OF AMERICA; ARCHDIOCESE OF NEW YORK,
EPISCOPAL CHURCH OF GRACE AND
RESURRECTION, and THE COUNCIL OF
CHURCHES OF THE CITY OF NEW YORK,
Defendants.
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NOTICE OF ENTRY OF ORDER APPROVING FIFTH STIPULATION BY AND
AMONG THE BOY SCOUTS OF AMERICA, THE OFFICIAL COMMITTEE
OF SURVIVORS OF ABUSE AND THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS MODIFYING THE CONSENT ORDER
GRANTING THE BSA’S MOTION FOR A PRELIMINARY INJUNCTION
PURSUANT TO 11 U.S.C. §§ 105(a) AND 362 AND FURTHER EXTENDING
THE TERMINATION DATE OF THE STANDSTILL PERIOD
Defendant Greater New York Councils, Boy Scouts of America (“GNYC”), by and through
the undersigned counsel, hereby provides notice of the entry of the Order Approving Fifth
Stipulation By and Among the Boy Scouts of America, the Official Committee of Survivors of Abuse
and the Official Committee of Unsecured Creditors Modifying the Consent Order Granting the
BSA’s Motion for a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further
Extending the Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS)
(Bankr. D. Del.) [Adv. Dkt. No. 185] (the “Order Approving Fifth Stipulation”) entered by the
United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) on July 21,
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2021 further extending the stay of proceedings in this action as against Defendants Greater
New York Councils, Boy Scouts of America, Archdiocese of New York, Episcopal Church of
Grace and Resurrection, and The Council of Churches of The City of New York up to and
including the date of the first omnibus hearing after the Bankruptcy Court issues its decision
confirming or denying confirmation of the Plan,1 subject to further extension by the Bankruptcy
Court. A true and correct copy of the Order Approving Fifth Stipulation is attached as Exhibit A
hereto.
BACKGROUND
1. On February 18, 2020 (the “Petition Date”), voluntary petitions for relief under
Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) were filed in the
Bankruptcy Court by the Boy Scouts of America (the “BSA”) and Delaware BSA, LLC (together
with the BSA, the “BSA Debtors”) (Case No. 20-10343) (LSS) (Jointly Administered).
2. On the Petition Date, the BSA commenced an adversary proceeding in the
Bankruptcy Court by filing a Verified Complaint for Injunctive Relief (Adv. Proc. Case No. 20-
50527, Adv. Dkt. No. 1) pursuant to Federal Rules of Bankruptcy Procedure 7001(7) and 7065
and sections 105(a) and 362 of the Bankruptcy Code. Also on the Petition Date, the BSA filed a
Motion for Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 (Adv. Proc. Case No.
20-50527, Adv. Dkt. No. 6, the “Preliminary Injunction Motion”), seeking a preliminary injunction
over certain actions pending around the country (the “Pending Abuse Actions”), as against certain
non-debtor co-defendants.
3. On March 5, 2020, the United States Trustee for the District of Delaware appointed
two official statutory committees: (i) an Official Committee of Unsecured Creditors (the “UCC”);
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Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Order
Approving Fifth Stipulation.
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and (ii) an Official Committee of Tort Claimants (the “TCC”, together with the UCC, the
“Committees”).
4. Following the formation of the Committees, the BSA and the Committees engaged
in good-faith, arm’s-length negotiations regarding the relief sought in the Preliminary Injunction
Motion. As a result of these negotiations, the BSA and the Committees, upon consultation with
other interested parties, reached an agreement on the terms of a consent order.
5. On March 30, 2020, the Bankruptcy Court entered the Consent Order Pursuant to
11 U.S.C. §§ 105(a) and 362 Granting the BSA’s Motion for a Preliminary Injunction, Adv. Pro.
No. 20-50527 (LSS) [Adv. Dkt. No. 54] (the “Consent Order”). Under the Consent Order, the
Pending Abuse Actions and additional actions filed after the Petition Date (the “Further Abuse
Actions”), as such Pending Abuse Actions and Further Abuse Actions are identified on Schedule
1 to the Consent Order, were stayed up to and including 11:59 p.m. (prevailing Eastern Time) on
May 18, 2020 (the “Termination Date”), with respect to those certain non-debtor entities identified
on Schedule 2 to the Consent Order.
6. On May 18, 2020, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered the Stipulation and Agreed Order By and Among the
Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official Committee
of Unsecured Creditors Extending the Termination Date of the Standstill Period Under the
Consent Order Granting the BSA’s Motion for a Preliminary Injunction, Adv. Pro. No. 20-50527
(LSS) [Adv. Dkt. No. 72], extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on June 8, 2020 as to the Pending Abuse Actions and the Further Abuse
Actions.
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7. On June 9, 2020, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered the Second Stipulation and Agreed Order By and
Among the Boy Scouts of America, the Official Committee of Survivors of Abuse and the Official
Committee of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for
a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 77], further extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on November 16, 2020 as to the Pending Abuse Actions and the Further
Abuse Actions.
8. On November 18, 2020, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered the Order Approving Third Stipulation By and Among
the Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official
Committee of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for
a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 116], further extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on March 19, 2021 as to the Pending Abuse Actions and Further Abuse
Actions.
9. On March 17, 2021, following further negotiations among the BSA and the
Committees, the Bankruptcy Court entered Order Approving Fourth Stipulation By and Among
the Boy Scouts of America, the Official Committee of Survivors of Abuse, and the Official
Committee of Unsecured Creditors Modifying the Consent Order Granting the BSA’s Motion for
a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a) and 362 and Further Extending the
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Termination Date of the Standstill Period, Adv. Proc. Case No. 20-50527 (LSS) (Bankr. D. Del.)
[Adv. Dkt. No. 162], further extending the Termination Date up to and including 11:59 p.m.
(prevailing Eastern Time) on July 19, 2021 as to the Pending Abuse Actions and Further Abuse
Actions.
10. On June 24, 2021, following further negotiations, the BSA and the Committees
entered into the Fifth Stipulation by and Among the Boy Scouts of America, the Official Committee
of Survivors of Abuse, and the Official Committee of Unsecured Creditors Modifying the Consent
Order Granting the BSA’s Motion for a Preliminary Injunction Pursuant to 11 U.S.C. §§ 105(a)
and 362 and Further Extending the Termination Date of the Standstill Period, Adv. Proc. Case
No. 20-50527 (LSS) (Bankr. D. Del.) [Adv. Dkt. No. 178-1] (the “Fifth Stipulation”), which
provided for, upon approval by the Bankruptcy Court, an extension of the Termination Date up to
and including the earlier of: (a) October 28, 2021; and (b) the date of the first omnibus hearing
after the Bankruptcy Court issues its decision confirming or denying confirmation of the Plan (as
applicable, the “Extended Termination Date”), except that, notwithstanding the foregoing, if on or
before the Extended Termination Date (within the meaning of the previous sentence) the TCC is a
party to a filing with the Bankruptcy Court that evidences its support for the Plan, the Extended
Termination Date shall be the date of the first omnibus hearing after the Bankruptcy Court issues
its decision confirming or denying confirmation of the Plan.
11. On July 1, 2021 the Debtors filed the Debtors’ Motion For Entry of an Order,
Pursuant to Sections 363(b) and 105(a) of The Bankruptcy Code, (I) Authorizing the Debtors to
Enter Into and Perform Under the Restructuring Support Agreement, and (II) Granting Related
Relief (the “RSA Approval Motion”). The RSA Approval Motion seeks approval of the Debtors’
entry into a Restructuring Support Agreement to which the TCC is a party; accordingly, the filing
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of the RSA Approval Motion triggered the above-referenced provision in the Fifth Stipulation
providing for an Extended Termination Date up to and including the date of the first omnibus
hearing after the Bankruptcy Court issues its decision confirming or denying confirmation of the
Plan.
12. On July 21, 2021, the Bankruptcy Court entered the Order Approving Fifth
Stipulation, further extending the Termination date up to and including the date of the first omnibus
hearing after the Bankruptcy Court issues its decision confirming or denying confirmation of the
Plan.
13. Since the entry of the Consent Order, and consistent with its terms, Schedules 1 and
2 thereto have been amended several times, including most recently with the filing of the Fifth
Stipulation [Adv. Dkt. No. 179-1].
NOTICE OF ENTRY OF THE ORDER APPROVING FIFTH STIPULATION
14. GNYC hereby provides notice that, on July 21, 2021, the Bankruptcy Court entered
the Order Approving Fifth Stipulation.
15. The Order Approving Fifth Stipulation extends the stay as to each of the Pending
Abuse Actions and Further Abuse Actions, including this action, identified in Schedule 1 as
attached to the Fifth Stipulation (or as has been or may be further amended), up to and including
the date of the first omnibus hearing after the Bankruptcy Court issues its decision confirming or
denying confirmation of the Plan. Order Approving Fifth Stipulation ¶ 1.
16. The period beginning on the Petition Date and ending on the Extended Termination
Date shall not be included in computing the running of any time periods with respect to any
deadline in any Pending Abuse Action or Further Abuse Action, and all claims, defenses, rights
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and privileges with respect thereto shall be preserved and remain viable to the same extent as they
existed as of the Petition Date. Fifth Stipulation ¶ 12.
17. The entry of the Order Approving Fifth Stipulation is without prejudice to the
BSA’s right to seek further extensions of the Termination Date and any party’s right to object
thereto.
APPLICABILITY OF THE FIFTH STIPULATION TO THIS ACTION
18. GNYC hereby provides further notice that upon entry of the Order Approving Fifth
Stipulation, this action has been and continues to be stayed as against Defendants Greater New
York Councils, Boy Scouts of America, Archdiocese of New York, Episcopal Church of Grace
and Resurrection, and The Council of Churches of The City of New York. This action is identified
as a Pending Abuse Action or Further Abuse Action on Schedule 1 as attached to the Fifth
Stipulation (or as has been or may be further amended), and Defendants Greater New York
Councils, Boy Scouts of America, Archdiocese of New York, Episcopal Church of Grace and
Resurrection, and The Council of Churches of The City of New York are identified on Schedule 2
as attached to the Fifth Stipulation (or as has been or may be further amended).
19. Accordingly, GNYC hereby provides further notice that the prosecution of any and
all claims against the Defendants Greater New York Councils, Boy Scouts of America,
Archdiocese of New York, Episcopal Church of Grace and Resurrection, and The Council of
Churches of The City of New York in this action are stayed up to and including the date of the
first omnibus hearing after the Bankruptcy Court issues its decision confirming or denying
confirmation of the Plan.2
2
The claims and causes of action against the BSA itself are, and will continue to be, automatically stayed pursuant to
11 U.S.C. § 362 as a result of its bankruptcy filing.
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Dated: New York, New York
September 13, 2021
Respectfully Submitted,
WIGGIN AND DANA LLP
By: /s/ Michael L. Kenny Jr.
James I. Glasser
Kevin M. Smith
Michael L. Kenny Jr.
437 Madison Avenue, 35th Floor
New York, New York 10022
(212) 551-2600
(212) 551-2888 (fax)
jglasser@wiggin.com
ksmith@wiggin.com
mkenny@wiggin.com
Counsel for Defendant Greater New York
Councils, Boy Scouts of America
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