Nat'l Union Fire Ins. Co. of Pittsburgh, PA. v. Boy Scouts of Am. (In re Boy Scouts of Am.)

• Decision Date: 27 March 2023
• Docket Number: 20-10343-LSS,Civ. 22-1237-RGA,22-1238-RGA,22-1239-RGA,22-1240-RGA,22-1241-RGA,22-1242-RGA,22-1243-RGA,22-1244-RGA,22-1245-RGA,22-1246-RGA,22-1247-RGA,22-1249-RGA,22-1250-RGA,22-1251-RGA,22-1252-RGA,22-1258-RGA,22-1263-RGA
• Citation: Nat'l Union Fire Ins. Co. of Pittsburgh, PA. v. Boy Scouts of Am. (In re Boy Scouts of Am.), 20-10343-LSS, 22-1238-RGA, 22-1239-RGA (D. Del. Mar 27, 2023)
• Parties: IN RE: BOY SCOUTS OF AMERICA and DELAWARE BSA, LLC, Debtors. v. BOY SCOUTS OF AMERICA and DELAWARE BSA, LLC, et al, Appellees. NATIONAL UNION FIRE INSURANCE, COMPANY OF PITTSBURGH, PA, et al, Appellants,
• Court: U.S. District Court — District of Delaware

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IN RE: BOY SCOUTS OF AMERICA and DELAWARE BSA, LLC, Debtors.

NATIONAL UNION FIRE INSURANCE, COMPANY OF PITTSBURGH, PA, et al, Appellants, v. BOY SCOUTS OF AMERICA and DELAWARE BSA, LLC, et al, Appellees.

No. 20-10343-LSS

Civ. Nos. 22-1237-RGA, 22-1238-RGA, 22-1239-RGA, 22-1240-RGA, 22-1241-RGA, 22-1242-RGA, 22-1243-RGA, 22-1244-RGA, 22-1245-RGA, 22-1246-RGA, 22-1247-RGA, 22-1249-RGA, 22-1250-RGA, 22-1251-RGA, 22-1252-RGA, 22-1258-RGA, 22-1263-RGA

United States District Court, D. Delaware

March 27, 2023

Chapter 11

Theodore J. Boutrous, Jr.(argued), Richard J. Doren, Blaine H. Evanson, Gibson, Dunn & Crutcher, LLP, Los Angeles California; Dierdre M. Richards(argued), Fineman Krekstein & Harris P.C., Wilmington, Delaware; Susan Gumrnow, Foran Glennon Palandech Ponzi & Rudloff P.C.; Michael A Rosenthal, Mitchell A. Karlan, James Hallowell, Keith R Martorana, Seth M. Rokosky, Gibson Dunn & Crutcher LLP New York, New York, attorneys for appellantsNational Union Fire Insurance Company of Pittsburgh, Pa., Lexington Insurance Company, Landmark Insurance Company, and the Insurance Company of the State of Pennsylvania.

Kathleen M. Miller, Smith Katzenstein & Jenkins LLP, Wilmington, Delaware; Ronald P. Schiller, Matthew A. Hamermesh, Hangley Aronchick Segal Pudlin & Schiller, Philadelphia, PA, attorneys for appellant Arch Insurance.

Paul Logan, Post & Schell, P.C., Wilmington, Delaware; John C. Sullivan, Kathleen K. Kerns, Post & Schell, P.C., Philadelphia, Pennsylvania; George R. Calhoun, Ifrah PLLC, Washington, D.C., counsel for appellantsArgonaut Insurance Company and Colony Insurance Company.

Michael J. Joyce, Joyce LLC, Wilmington, Delaware; Kevin Coughlin, Lorraine Armenti, Michael Hrinewski, Coughlin Midlige & Garland, LLP, Morristown, New Jersey; Britton C. Lewis, John M. Flynn, Carruthers & Roth, P.A., Greensboro, North Carolina, attorneys for appellantArrowood Indemnity Company.

Maria Aprile Sawczuk, Goldstein & McClintock LLP, Wilmington, Delaware; Laura McNally, Emily Stone, Loeb & Loeb LLP, Chicago, Illinois; David Christian, David Christian Attorneys LLC, Chicago, Illinois, attorneys for appellantsThe Continental Insurance Company and Columbia Casualty Company.

Brian A. Sullivan, Werb & Sullivan, Wilmington, Delaware; John E.W. Baay II, Gieger Loborde & Laperouose, LLC, New Orleans, Louisiana; William H. White, Jr., Kiernan Trebach LLP, Washington, D.C., attorneys for appellantGemini Insurance Company.

Kathleen M. Miller, Smith Katzenstein & Jenkins LLP, Wilmington, Delaware; Mary E. Borja, Gary P. Seligman, Ashley L. Criss, Wiley Rein LLP, Washington, D.C., attorneys for appellantGeneral Star Indemnity Company.

Bruce W. McCullough, Bodell Bove, LLC, Wilmington, Delaware; Bruce D. Celebrezze, Clyde & Co U.S. LLP, San Francisco, California; Konrad R. Krebs, Clyde & Co U.S. LLP, Morristown, New Jersey; David Christian, David Christian Attorneys LLC, Chicago, Illinois, attorneys for appellantsGreat American Assurance Company, f/k/a Agricultural Insurance Company; Great American E&S Insurance Company, f/k/a Agricultural Excess and Surplus Insurance Company; and Great American E&S Insurance Company.

Kathleen M. Miller, Smith Katzenstein & Jenkins LLP, Wilmington, Delaware; Lloyd A. Gura, Pamela J. Minetto, Mound Cotton Wollan & Greengrass LLP, New York, New York, attorneys for appellantIndian Harbor Insurance Company, on behalf of itself and as successor in interest to Catlin Specialty Insurance Company.

R. Karl Hill, Seitz, Van Ogtrop & Green, P.A., Wilmington, Delaware; Douglas R. Gooding(argued), Jonathan D. Marshall, Choate, Hall & Stewart LLP, Boston, Massachusetts; Kim V. Marrkand, Laura Bange Stephens, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC, Boston, Massachusetts, attorneys for appellantsLiberty Mutual Insurance Company, The Ohio Casualty Insurance Company, Liberty Insurance Underwriters, Inc. and Liberty Surplus Insurance Corporation.

Thaddeus J. Weaver, Dilworth Paxson LLP, Wilmington, Delaware; William E. McGrath, Jr.Dilworth Paxon LLP, Princeton, New Jersey, attorneys for appellantMunich Reinsurance America, Inc. f/k/a American Re-Insurance Company.

Stephen M. Miller, Carl N. Kunz, III, Sarah M. Ennis, Morris James LLP, Wilmington, Delaware; Margaret M. Anderson, Ryan T. Schultz, Adam A. Hachikian, Kenneth M. Thomas, Fox Swibel Levin & Carroll LLP, Chicago, Illinois, attorneys for appellantOld Republic Insurance Company.

Maria S. Benedeck, Cozen O'Connor, Wilmington, Delaware, attorneys for appellantsTraders and Pacific Insurance Company, Endurance American Specialty Insurance Company, and Endurance American Insurance Company.

Louis J. Rizzo, Reger Rizzo & Darnall LLP, Wilmington, Delaware, attorney for appellantsTravelers Casualty and Surety Company, Inc.(f/k/a Aetna Casualty & Surety Company), St. Paul Surplus Lines Insurance Company and Gulf Insurance Company.

David M. Fournier, Marcy J. McLaughlin Smith, Troutman Sanders Hamilton Sanders LLP, Wilmington, Delaware; Harris B. Winsberg(argued), Matthew G. Roberts, Parker Hudson, Rainer & Dobbs LLP, Atlanta, Georgia; Margaret H. Warner, Ryan S. Smethurst, Alex M. Spisak, McDermott Will & Emery, Washington, D.C., attorneys for appellantAllianz Global Risks U.S. Insurance Company.

David M. Fournier, Marcy J. McLaughlin Smith, Troutman Sanders Hamilton Sanders LLP, Wilmington, Delaware; Harris B. Winsberg, Matthew G. Roberts, Parker Hudson, Rainer & Dobbs LLP, Atlanta, Georgia; Todd J. Jacobs, John E. Bucheit, Paul J. Esker, Bradley Riley Jacobs, P.C., Chicago, Illinois, attorneys for appellantsNational Surety Corporation and Interstate Fire & Casualty Company.

Gilion Dumas(argued), Dumas & Vaughn, LL, Portland, Oregon; Charles J. Brown, III, Gellert Scali Busenkell & Brown LLC, Wilmington, Delaware, attorneys for appellants the D&V Claimants.

Delia Lujan Wolff(argued), Lujan & Wolff LLP, Hagatna, Guam; Christopher D. Loizides, Loizides, P.A., Wilmington, Delaware, attorneys for appellants the Lujan Claimants.

Jessica Lauria(argued), Glenn M. Kurtz(argued), White & Case LLP, New York, New York; Michael C. Andolina, Matthew E. Linder, Laura E. Baccash, Blair M. Warner, White & Case LLP, Chicago, Illinois; Ronald K. Gorsich, White & Case LLP, Los Angeles, California; Michael Stoner(argued), Haynes & Boone, Dallas, Texas; Derek C. Abbott, Andrew R. Remming, Paige N. Topper, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, Delaware, attorneys for debtor-appelleesBoy Scouts of America and Delaware BSA, LLC.

R. Craig Martin, DLA Piper, LLP(US), Wilmington, Delaware; Richard G. Mason(argued), Douglas K. Mayer, Joseph C. Celentina, Mitchell S. Levy, Wachtell, Lipton, Rosen & Katz, New York, New York, attorneys for appelleeAd Hoc Committee of Local Councils of the Boy Scouts of America.

Kami E. Quinn(argued), Rachel H. Jennings, Kyle Y. Dechant, December L. Huddleston, Gilbert LLP, Washington, D.C.; Robert S. Brady(argued), Edwin J. Harron, Kenneth J. Enos, Ashley E. Jacobs, Young Conaway Stargatt & Taylor, LLP, Wilmington, Delaware, attorneys for appellee the Future Claimants' Representative.

Philip D. Anker(argued), Wilmer Cutler Pickering Hale and Dorr LLP, New York, New York; James P. Ruggeri, Joshua D. Weinberg, Ruggeri Parks Weinberg LLP, Washington, D.C.; Joel Millar, Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C.; Erin R. Fay, Gregory J. Flasser, Bayard, P.A., Wilmington, Delaware, attorneys for appelleesHartford Accident and Indemnity Company, First State Insurance Company, Twin City Fire Insurance Company, and Navigators Specialty Insurance Company.

Robert D. Cecil, Tybout, Redfearn & Pell, Wilmington, Delaware; Mark D. Plevin, Kevin D. Cacabelos, Crowell & Morning LLP, San Francisco, California; Tacie H. Yoon, Rachel A. Jankowski, Crowell & Morning LLP, Washington, D.C., attorneys for appelleesAmerican Zurich Insurance Company, American Guarantee Insurance Company, and Steadfast Insurance.

Matthew G. Summers, Chantelle D. McClamb, Ballard Spahr LLP, Wilmington, Delaware; Harry Lee, John O'Connor, Steptoe & Johnson, LLP, Washington, D.C.; Stephen Warren, attorneys for appelleesClarendon National Insurance Company, as successor in interest by merger to Clarendon America Insurance Company; River Thames Insurance Company Limited; and Zurich American Insurance Company, as successor to Maryland Casualty Company, Zurich Insurance Company, and Maryland American General Insurance Company.

Stamatios Stamoulis, Stamoulis & Weinblatt LLC, Wilmington, Delaware; Tancred Schiavoni, O'Melveny & Meyers LLP, New York, New York; Stephen Warren, O'Melveny & Meyers LLP, Los Angeles, California; Jonathan D. Hacker, O'Melveny & Meyers LLP, Washington, D.C., attorneys for appelleesCentury Indemnity Company, as successor to CCI Insurance Company, as successor to Insurance Company of North America and Indemnity Insurance Company of North America.

Stamatios Stamoulis, Stamoulis & Weinblatt LLC, Wilmington, Delaware; Simpson Thacher & Bartlett LLP, New York, New York, attorneys for Federal Insurance Company and Westchester Fire Insurance Company.

Richard M. Pachulski, Alan J. Kornfeld, Debra I. Grassgreen, Iain A.W. Nasatir, Pachulski Stang Ziehl & Jones LLP, Wilmington, Delaware, attorneys for the Official Committee of Tort Claimants.

Rachel B. Mersky, Monzack Mersky and Browder, PA., Wilmington, Delaware; David J. Molton, Eric R. Goodman, Brown Rudnick LLP, New York, New York; Sunni P. Beville, Tristan G. Axelrod, Brown Rudnick LLP, Boston, Massachusetts, attorneys for the Coalition of Abused Scouts for Justice.

David M. Klauder, Bielli & Klauder, LLC, Wilmington, Delaware Thomas E. Patterson, Daniel J. Bussel, Robert J. Pfister, Sasha M. Gurvitz, KTBS Law LLP, Los Angeles,...