[MR] SCA Lawsuit resolution

[Anthony Stevens]

This is forwarded with permission:

FW: [Announcements] Lawsuit Settlement
Posted by: "Everett Wallace" boethius at bellsouth.net   boethius at bellsouth.net
Sat Feb 4, 2012 6:18 pm (PST) This is an official announcement from the
SCA, Inc. I am
forwarding it from the SCA-Announce list to a number of SCA mailing
lists in Meridies. Feel free to forward it to the mailing lists for
your local groups, households, or other SCA-related mailing lists. If
you have any questions, I will try to answer them. I expect to have
more, and more specific, information available by early next week. The
important thing to remember at the present time is that while this will
present a challenge for our fair Kingdom, it is not the end of the SCA
as we know it, and it is much less bad than it could have been and would
have been if not for the hard work put in on our behalf by the Society
Officers and the present and recent past Directors. We all owe all of
them a great deal of thanks.

I know this will simply be another opportunity for the populace of
Meridies to show how strongly we stand behind our Crowns and our
Kingdom, and how through them we support the SCA as a whole. I am proud
to be a subject of Meridies at this time. Corona Vult!

- Kevin

From: announcements- bounces at lists. sca.org
[mailto:announcements-bounces at lists.
sca.org] On Behalf Of ea at sca.org
Sent: Saturday, February 04, 2012 6:06 PM
To: announcements@ lists.sca. org
Subject: [Announcements] Lawsuit Settlement

The Society for Creative Anachronism, Inc. (SCA) has been operating
under the burden of a massive and difficult legal battle that has
critically drained resources and caused significant ongoing difficulties
for the organization. In October 2011, the board of the SCA and its
legal counsel were finally able to resolve this issue, but not without
significant financial costs.

The Board of Directors and Officers of the SCA continue to make
significant efforts to be as transparent as possible, but since the case
related to the heinous sexual abuse of several minors, we naturally
have been and continue to be unable to discuss many aspects of the case.

Background:

Several years ago, a former SCA member named Ben Schragger was convicted
of the sexual abuse of multiple children that he allegedly met through
the SCA from 1999-2001. He was sentenced and is currently serving a
62-year prison sentence. The Board, of course, permanently revoked his
SCA membership.

After an initial civil lawsuit was filed and dismissed in 2007 against
the SCA, a second civil lawsuit was filed in 2009 claiming that the SCA
should be held liable for Mr. Schragger’s wrongdoing. The lawsuit also
asked that the SCA be held liable for allegedly not having effective
policies in place at that time to protect these children. Three SCA
participants who were local officers during this time were also named as
defendants in the lawsuit. The Plaintiffs in the lawsuit demanded Seven
Million Dollars ($7,000,000. 00) in damages from the SCA. In accordance
with Corpora and the Bylaws, the SCA agreed to indemnify the three
individual local officers who were named in the lawsuit.

The SCA immediately tendered the lawsuit to its insurance companies and
one insurer agreed to cover the SCA’s attorney’s fees incurred in
defending the lawsuit. All other insurers refused to cover defense fees
or indemnify the SCA in the event of a settlement or judgment.

In 2010, both insurance carriers threatened to file suit in Federal
Court. They wanted a Federal Court judge to rule that the insurance
policies did not cover the 2009 lawsuit and did not cover the defense or
indemnification of the SCA or its officers in the 2009 lawsuit. As a
protective measure, it was necessary for the SCA to file a pre-emptive
lawsuit against both insurance carriers, demanding payment under the
policies. In this lawsuit the SCA demanded coverage in California,
where the SCA is headquartered. The SCA has been required to pay the
attorney representing the SCA in this lawsuit against the insurance
carriers. It stands to reason that payment of these fees has left the
SCA in a precarious financial position.

In October of 2011, the victims agreed to settle for $1,300,000.00. This
settlement was presented for approval to both the SCA’s insurers. The
acceptance of this offer provides the SCA, Inc .with the assurance that
there will be no further lawsuits brought by the victims of Ben
Schragger and thus brings to a close the financial and legal risk to the
Kingdoms, officers, and the SCA as a result of the lawsuit. One
insurance carrier agreed to pay $450,000 of the settlement amount. The
other insurance carrier has refused to contribute to the settlement.
Therefore, the SCA has been forced to pay the remainder of this
settlement, $850,000. This brings the total cost to the SCA for both the
settlement and the related legal fees to over $1M.

The SCA is continuing its lawsuit against the insurance carrier that
refused to contribute to the settlement and is seeking repayment of the
full $850,000.

Current Status:

To meet the terms of the settlement, and cease any further litigation
against the SCA, its Kingdoms, and their officers with respect to Mr.
Schragger’s abuse, the SCA is now forced to pay $850,000 for the
settlement within a short timeframe. The SCA is continuing its suit
against the non-paying insurance carrier, which has a trial date set of
May, 2012.

The SCA corporate office simply does not have this much in cash, assets
or cashable dollars. While the corporate office of the SCA has managed
the burden of our shared liability to date, it has been the entirety of
Society for Creative Anachronism, Inc. that has been liable for damages
under this lawsuit. In order to the meet the terms of the settlement
without financially crippling the SCA, its subsidiaries or any single
branch, it has thus become absolutely necessary that each Kingdom
located in whole or in part in the United States, both Pennsic and Gulf
Wars, and the subordinate Corporate level checking accounts contribute
an equal percentage of their separate total cash assets to the
settlement and associated legal fees. The other wars will contribute as
part of the Kingdom through which they report.

The SCA's financial advisors have conducted extensive financial
evaluations, and have determined that our mutual obligations to settle
these liabilities will require 18% of each of those applicable accounts
be contributed to the settlement. This 18% contribution by the account
holders listed above will finally resolve the current financial issues
and mutual liabilities we are all facing. By sharing the burden of our
obligations equally, we can avoid any significant or unfair burdens to
any one of our individual groups while protecting the integrity of the
SCA as a whole, our shared Society, and our mutual “dream.”

Should the ongoing lawsuit against the insurance carrier prove
successful, the funds that were provided by account holders described
above, would naturally be returned to each on a pro rata basis of the
recovered amount, once legal fees are settled. Though there are no
guarantees that this will happen or when it will happen, the Board is
committed to pursue recovery of those contributions.

The relevant Kingdom officials will be contacted shortly to discuss the
contribution formula and the amount each account holder (as stated
above) will have to contribute to settle our mutual legal obligations.

We recognize you will naturally have many questions, and we ask that
these be addressed to the appropriate Kingdom Ombudsman, who will
endeavor to respond as soon as possible. While we are committed to
getting get back to you as quickly as possible, we do ask for some
patience and understanding as this process is extremely difficult. In
addition, we have held a series of conference calls with the reigning
monarchs, seneschals and exchequers of all Kingdoms to more fully
explain the issue and address their concerns, all of whom are also
available to address questions.

The Board of Directors, Corporate officers and Society officers are
doing everything possible to resolve this issue to the best outcome
possible. Your understanding and support of our mutual responsibilities
are deeply and fervently appreciated as we move forward.

For more information go to http://sca.org/ BOD/announcement s/settlement.
html .

Yours in Service,

The Board of Directors

Leslie Vaughn, Chairman | Baronessa Isabeau della Farfalla (OP)

Mark Faulcon, Vice Chairman | Duke Martin Lochner (KSCA, OP)

John Fulton, Director | Duke John the Bearkiller (KSCA, OP)

Denise Hundley, Director | Countess Denise Duvalier (OP)

Tim Jennings, Director | Garraed Galbraith (OL)

Lisa May, Director | Countess Margaret ni Conner (OP)

Kim McAuley, Director | Viscountess Kaellyn mac Dermott (OP)

Max Nelson, Director-Elect | Baron Maximilian Von Halstern

The Senior Corporate Officers

Thomas W. Hughes, President | Baron Master Sean o'Shaughnessy

Kimberly Harvey, Vice-President for Operations (Society Seneschal) |
Countess Kenna Harve (OP)

Renee Signorotti, Vice-President for Corporate Operations

Mazelle Attiya, Treasurer | Maitresse Alysia Gabrielle de Fougeres (OL, OP)

Dori Andrepont, Publications Manager | Baroness Doria Tecla (OP)


-- 
Anthony Stevens
Come visit an Urban Fantasy world!
http://MasterAnthonyStevens.com