The Boy Scouts of America, Bankruptcy, & its Impact on Host Sites

10.29.2020 Written by: Henningson & Snoxell, Ltd.

The deadline for filing in the BSA bankruptcy case: November 16, 2020

The Boy Scouts of America “(BSA”) filed for Chapter 11 bankruptcy on February 18, 2020 in the Federal Bankruptcy Court in the State of Delaware. This filing apparently occurred because of sexual abuse claims made against BSA.

This bankruptcy and these sexual abuse claims could also affect churches and other organizations that have:

  • held a Charter for a Boy Scout Troop
  • allowed a troop to meet in their building
  • in other ways helped a troop (i.e., through volunteers)

Boy Scout Troop “charter” holders or places that host Boy Scout Troops may find themselves included in cases seeking damages for sexual abuse or other claims. These charter holders and hosts could lose whatever rights they might have against BSA related to such claims if they do not file a proof of claim with the Bankruptcy Court. The deadline for filing a Proof of Claim filing in the BSA bankruptcy case is 5:00 p.m. Eastern Time on November 16, 2000.

What Could Happen if My Organization Doesn’t File a Claim in Time?

Without filing a General Proof of Claim by the above deadline, a charter holder or host would presumably lose whatever rights it might have to seek contribution or indemnification from BSA in any sexual abuse claims that might be asserted against it. A charter holder or host would also lose its ability to vote on BSA’s Chapter 11 bankruptcy reorganization plan.

Simply put, if a Boy Scout Troop Charter holder or host does not file a proof of claim by the deadline, the organization may have no recourse against the Boy Scouts of America if any Scout sexual abuse claims are brought against it.

A General Proof of Claim and instructions for its use and filing form may be found here.

Organizations that hold a Boy Scout Troop Charter or host a Boy Scout Troop should consult their attorney for guidance about this matter and for advice about filing a General Proof of Claim.

Please contact us if you need advice about filing a Proof of Claim or have any questions regarding the potential impact of BSA’s bankruptcy on your Church.

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Emerging Legal Issues for Your Pregnancy Center & COVID-19

05.26.2020 Written by: Henningson & Snoxell, Ltd.

Pregnancy Centers and COVID-19

As pregnancy centers continue to provide essential services throughout Minnesota, it is crucial to develop and engage in appropriate protective measures specific to COVID-19. This will not only protect your clients, volunteers, and employees, but may also reduce your legal risks.

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The Paycheck Protection Program and Religious Freedom Protections [Update]

04.03.2020 Written by: Henningson & Snoxell, Ltd.

Update to this post. Visit our COVID-19 resources page for more information.

Last night the SBA released its Interim Rule regarding the Paycheck Protection Program (PPP) that provided further guidance on religious freedom protections for religious corporations and the like.

According to Section 5 of the Interim Rule, “All loans guaranteed by the SBA pursuant to the CARES Act will be made consistent with constitutional, statutory, and regulatory protections for religious liberty, including the First Amendment to the Constitution, the Religious Freedom Restoration Act, 42 U.S.C. 2000bb-1 and bb-3, and SBA regulation at 13 C.F.R. 113.3-1h, which provides: ‘Nothing in [SBA nondiscrimination regulations] shall apply to a religious corporation, association, educational institution or society with respect to the membership or the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution or society of its religious activities.’ SBA intends to promptly issue additional guidance with regard to religious liberty protections under this program.”

Although the SBA hasn’t issued its additional guidelines yet, it is highly likely they will be in alignment with the religious freedom protections afforded to churches and religious organizations under the First Amendment of the U.S. Constitution and the Religious Freedom Restoration Act.

Link to rule here.


For more information about these updated guidelines from the Department of Labor, or for guidance for your business, nonprofit or religious organization in light of these guidelines, please contact our Business and Nonprofit Organizations Team.

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How the FFCRA Affects Businesses with Less than 50 Employees

03.31.2020 Written by: Henningson & Snoxell, Ltd.

How the Families First Coronavirus Response Act Affects Businesses with Less than 50 Employees

[Update to this post here – 4/3/2020]

More COVID-19 Resources

Are you a business owner with fewer than 50 employees (for a profit, nonprofit or religious organization)? Are you confused about the specific criteria required to claim an exemption to the expanded leave provisions of the Family’s First Coronavirus Response Act (FFCRA)? If so, you’re not alone. Recently, the U.S. Department of Labor provided much-needed information and guidance.

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Family and Medical Leave Expansion under the FFCR Act

03.27.2020 Written by: Henningson & Snoxell, Ltd.

The new Families First Coronavirus Response (FFCR) Act was signed into law last week, and business owners are wondering how it affects them. How does the new emergency expanion of Family and Medical Leave under this law affect you? We’ve put together an infographic to help you navigate the information.

Emergency Family and Medical Leave Expansion under the FFCR Act
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