‘Staggering’ Legal Fees in Boy Scouts Bankruptcy Case

As the Boy Scouts of America goes through a massive and contentious bankruptcy, dozens of lawyers are working on the case. Many are charging more than $1,000 an hour.

One lawyer negotiating a resolution to the multi-billion-dollar bankruptcy filed by the Boy Scouts of America billed $267,435 in a single month. Another charged $1,725 for each hour of work. New lawyers fresh out of law school have been billing at an hourly rate of more than $600. The high-stakes bankruptcy case has drawn in lawyers by the dozens, negotiating how to compensate tens of thousands of people who have filed claims of sexual abuse. Lawyers and other professionals — both those representing the Boy Scouts and some who are representing victims — have submitted fee applications with the court that have now surpassed $100 million. By August, they could reach $150 million. The hefty fees being charged to the Boy Scouts’ estate, which is money taken off the top of what could be offered to victims, have become a rising point of contention. U.S. Bankruptcy Judge Laurie Selber Silverstein, who is overseeing the case, has called the totals “staggering.” In a filing last week, one of the insurance companies that will be responsible for paying victims, Century Indemnity Company, asked the judge to hold back a portion of the legal fees until they can be more thoroughly reviewed.