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Nonsettling Insurers Seek Emergency Stay of District Court Order

March 31, 2023 6:08 PM | Anonymous

On March 31, 2023, a group of certain nonsettling insurers filed an emergency motion to stay the effectiveness of District Judge Richard G. Andrews’ order affirming on appeal the Boy Scouts of America plan confirmation order and the plan confirmation order itself pending “resolution of all appeals” to the U.S. Court of Appeals for the Third Circuit. The certain insurers argue that absent a stay pending appeal, the automatic stay will expire after April 11, at which point BSA may contend that further appeals by appellants are equitably moot. The risk that BSA may seek to moot the appeals is “imminent and concrete because BSA will attempt to substantially consummate its plan as soon as possible,” the certain insurers warn.

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