Court Rejects Century Appeal That Law Firm Was Conflicted in Boy Scouts Bankruptcy

A U.S. appeals court rejected allegations by Century Indemnity Co. that Sidley Austin LLP shouldn't have been allowed to represent the Boy Scouts of America in its bankruptcy because the law firm had also represented the insurer.

The Chubb Ltd. affiliate has provided insurance to the Boy Scouts, which is counting heavily on coverage to settle sexual-abuse claims.

In upholding a lower-court ruling, the appeals court said that although the Boy Scouts "made coverage claims under Century's policies, it did so while represented by another firm, Haynes & Boone LLP."

The appeals court also noted that Sidley's "services for Century were limited to claims made against reinsurers and not" the Boy Scouts.

Write to Becky Yerak at [e-mail]

(END) Dow Jones Newswires

May 25, 2022 18:08 ET (22:08 GMT)

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