[SCA-BMDL] FW: [SCA-AE] ANNOUNCE: Important news regarding SCA Finances and Lawsuit settlement

[Krista Cogan]

My friends,

Yesterday on the Aethelmearc elist, we were informed of a settlement in a lawsuit against the SCA which will affect our Barony financially.  Please read the missive below.  Additionally, on the Corporate website, there is the official announcement and FAQs. http://www.sca.org/BOD/announcements/settlement.html

The money that Corporate is asking of us is 18% of our assets as determined by the last report we filed. Let me say up front that this amount will not cause particular hardship for our Barony. I commend His Excellency, Master Tofi, our Exchequer, for good stewardship of our funds.

Let me also say that the Kingdom and Corparate has kept the local group Seneschals as well-informed as was feasible over the years in this matter. The timing was unknown, but this request for funds was not entirely unexpected, and the amount is considerably less than it could have been.

I know some of you feel strongly about this situation, and I urge you to read the announcement and FAQs in full. I want to state again, as I've done before, that as Seneschale of this fine Barony, I maintain a personal policy of transparency where possible. If you have questions about this issue, you have but to ask, and I will answer or find the answer as best I can. 

I am available to speak with by email, at 412-606-6258, or find me on Facebook (Krista Traini Cogan).

In Gravitate et Caritate,
~Hilda, Seneschale, Debatable Lands

> Date: Sat, 4 Feb 2012 15:14:19 -0800
> From: thecoribird at yahoo.com
> To: announcements at aethelmearc.org
> Subject: [SCA-AE] ANNOUNCE: Important news regarding SCA Finances and	Lawsuit	settlement
> 
> Keywords: AEnnouncements
> ________________________________________________________________________
> Announcements at aethelmearc.org for announcements only.
> Replies and questions are sent to discussion at aethelmearc.org
> or directly to the person making the announcement.
> ________________________________________________________________________
> Good Gentles all,
>  
> Their Majesties, Their Highnesses, our Kingdom Exchequer and I were invited to a conference call with the Society Officers and Board of Directors.  This concerned a lawsuit that was brought against the Society in the State of Pennsylvania .
>  
> In 1999, a gentleman who was a member of the SCA in Pennsylvania was investigated concerning criminal activity involved with children.  He was found guilty and sentenced to 60+ years.  The SCA revoked his membership and banned him.
>  
> A $7 million lawsuit was brought against the SCA and three officers of the group he belonged.  In mediation this month, a settlement was been reached for $1.3 million.  
>  
> We have two insurance companies who are supposed to help cover both the legal costs involved and any damage awards that might stem from law suits like this.  One of them is covering a portion of this.  The other is attempting to get out of their obligation.  The Society has brought a lawsuit to compel them to abide by their contract with us.  It is in process.  This means the Society has another set of legal fees to deal with on top of the costs of defending the original lawsuit and the settlement itself.
>  
> The SCA Corporate accounts do not have the assets to cover this settlement payment.  They have, over the past 10 years, spent $500,000 in legal fees.  Their accounts at this time are very close to the bone just on operating expenses.
>  
> If we do not make this payment, the lawsuit goes back to a judge.  It is likely the amount owed will go back to the original $7 million.  This would destroy the organization as we know it - in particular, it would wipe out the Kingdoms of AEthelmearc and the East as well as the Pennsic War.  The SCA would probably cease to exist.
>  
> This means that the SCA, as an organization, needs to come together to make this settlement payment.  Our Financial Officers have determined that if every group: Shire, Canton , Barony, Kingdom, and every independent War, such as Pennsic and Gulf War turned in 18% of their assets, we would be able to cover this payment.   
>  
> We will have information from the Society by the end of today what our financial obligation will be.  This will be a total of what each local group and the Kingdom will owe to help settle this debt.
>  
> The payment is time sensitive.  At this time, the Kingdom Financial Committee is looking at ways to make the lump sum payment for AEthelmearc and all her local groups within the week.  This is expected to tap most if not all our current available resources.  The expectation would then be that the local groups would over the next few months pay their portion to the Kingdom as cash flow from running events allows.  It is our hope that setting up our obligation this way will have the least impact on program services, our events and our activities – in other words – this would have the least impact on the People of AEthelmearc.
>  
> That being said, there will more in depth information regarding the situation on the Society Web page later tonight.  In addition, in AEthelmearc, the Financial Committee will be meeting before Syracuse Curia on February 11 to hammer out a new budget for the Kingdom based on this new situation.  That budget will be presented at Curia along with any further information I get from the Society.  After Curia, we will hold a brain-storming session for ideas to help handle the situation on both kingdom and local levels.
>  
> This is not quite the end of the story.  What I have just presented is worst case scenario and that IS where we are currently at.  However, as I stated earlier, SCA, Inc is seeking to force our insurance company to cover their financial obligations in this matter.  If we are successful to any degree in recovering funds, this money would go back to the groups in proportion to what they turned in to make the payment.  So…It’s not gonna get worse and it could get better – but that will take time. 
> If you have questions, email me     ae.seneschal at aethelmearc.org
> There will be an  announcement and FAQ on the Society webpage later tonight 
>  
> Meanwhile, as always, we need to do the job that is in front us and we need all of us to help.  I know this Kingdom like my own heart.  I know we can make good come from this.  I’ve seen us do it time and time over.  I have faith we will once again.
>  
> And thank you all.
>  
> As Always, In Service to AEthelmearc,
> Mistress Cori
> Seneschale, AEthelmearc
> 
> Please distribute this letter to other AEthelmearc group lists.  As questions come up, please direct people to the Society Website or to the Kingdom Seneschal.http://www.sca.org/
> _________________________________________________________________________
> Sca-aethelmearc mailing list
> Send general discussion email to discussion at aethelmearc.org to post to the list.
> Email Official announcements to announcements at aethelmearc.org .
> Visit https://lists.andrew.cmu.edu/mailman/listinfo/sca-aethelmearc for:
>  more info, archives, subscription changes, etc.
> When replying to posts, you should remove excess quotage.
> _________________________________________________________________________
 		 	   		  
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.andrew.cmu.edu/pipermail/sca-bmdl/attachments/20120205/e1cd525c/attachment.html