Judge kicks off key hearing in Boy Scouts bankruptcy case, cites organization's "unusual" agreement

An attorney for the Boy Scouts of America told a Delaware judge on Thursday that the group's national board never adopted a resolution approving an $850 million agreement that is the linchpin of the Boy Scouts' proposed bankruptcy plan.

Despite that acknowledgment, the Boy Scouts are asking the judge to rule that the organization properly exercised its business judgment in entering into the agreement and should be allowed to proceed with it as the foundation of a final bankruptcy plan. The agreement involves the national Boy Scouts organization, the roughly 250 local Boy Scout councils, and law firms representing some 70,000 men who claim they were molested as youngsters by Scoutmasters and others. It also includes the official victims committee appointed by the U.S. bankruptcy trustee.