Sidley Austin May Represent Boy Scouts in Bankruptcy Proceedings, 3rd Cir. Affirms

WILMINGTON, Del. — A federal appeals panel has upheld a Delaware federal judge’s refusal to bar Sidley Austin LLP from representing the Boy Scouts of America (BSA) in its Chapter 11 case, affirming that the law firm does not have a conflict of interest because it previously represented the organization’s insurer in two BSA-related reinsurance matters.

In a May 24 precedential opinion, the 3rd Circuit U.S. Court of Appeals agreed with the lower courts that disqualifying Sidley would unduly prejudice BSA because the firm has already put 18 months of work into its representation of the organization in its Chapter …