<html><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; "><font face="arial" size="2"><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">This came out over the SCA Announcements email list tonight.</span></p><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">I thought it was worth reposting ASAP.</span></p><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">Johnnae llyn Lewis</span></p><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;"><br></span></p><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;"><p style="margin: 0.0px 0.0px 1.0px 92.0px; text-indent: -92.0px; font: 18.0px Helvetica"><b>Subject: </b><span class="Apple-tab-span" style="white-space:pre"> </span><b>[Announcements] Lawsuit Settlement</b></p><p style="margin: 0.0px 0.0px 1.0px 92.0px; text-indent: -92.0px; font: 18.0px Helvetica"><span class="Apple-tab-span" style="white-space:pre"> </span><b>Date: </b><span class="Apple-tab-span" style="white-space:pre"> </span>February 4, 2012 7:05:53 PM EST</p><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 88px; text-indent: -88px; font: normal normal normal 18px/normal Helvetica; "><span class="Apple-tab-span" style="white-space:pre"> </span><b>To: </b><span class="Apple-tab-span" style="white-space:pre"> </span><a href="mailto:announcements@lists.sca.org">announcements@lists.sca.org</a></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 88px; text-indent: -88px; font: normal normal normal 18px/normal Helvetica; "><span class="Apple-tab-span" style="white-space:pre"> </span><b>Reply-To: </b><span class="Apple-tab-span" style="white-space:pre"> </span><a href="mailto:comments@sca.org">comments@sca.org</a></div></span></p><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><font class="Apple-style-span" face="'Times New Roman', serif"><span class="Apple-style-span" style="line-height: 18px;"><br></span></font></p><p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><strong style="mso-bidi-font-weight: normal;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">Background:</span></strong></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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.</span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">In accordance with Corpora and the Bylaws, the SCA agreed to indemnify the three individual local officers who were named in the lawsuit.</span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;"> </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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.<span style="mso-spacerun: yes;"> </span>All other insurers refused to cover defense fees or indemnify the SCA in the event of a settlement or judgment.</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">In this lawsuit the SCA demanded coverage in California, where the SCA is headquartered. </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">The SCA has been required to pay the attorney representing the SCA in this lawsuit against the insurance carriers.<span style="mso-spacerun: yes;"> </span>It stands to reason that payment of these fees has left the SCA in a precarious financial position.</span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;"> 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.<span style="mso-spacerun: yes;"> </span>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.</span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">The SCA is continuing its lawsuit against the </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">insurance </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">carrier that refused to contribute to the settlement and is seeking repayment of the full $850,000.</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><strong style="mso-bidi-font-weight: normal;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">Current Status:</span></strong><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">The SCA corporate office simply does not have this much in cash, assets or cashable dollars.<span style="mso-spacerun: yes;"> </span></span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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, <strong><span style="font-weight: normal; mso-bidi-font-weight: bold;">its subsidiaries or any single branch</span></strong>, 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. </span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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.<span style="mso-spacerun: yes;"> </span>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.”</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Should the ongoing </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">law</span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">suit 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.<span style="mso-spacerun: yes;"> </span>Though there are no guarantees that this will happen or when it will happen, the Board is committed to pursue recovery of those contributions. </span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><a name="_GoBack"></a><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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.<span style="color: red;"></span></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">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. </span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">For more information go to <a href="http://sca.org/BOD/announcements/settlement.html">http://sca.org/BOD/announcements/settlement.html</a> .</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-fareast-font-family: Batang;">Yours in Service,</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><em style="mso-bidi-font-style: normal;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-bidi-font-weight: bold;">The Board of Directors</span></em><em style="mso-bidi-font-style: normal;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></em></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Leslie Vaughn, Chairman | Baronessa Isabeau della Farfalla (OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Mark Faulcon, Vice Chairman | Duke Martin Lochner (KSCA, OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">John Fulton, Director | Duke John the Bearkiller (KSCA, OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Denise Hundley, Director | Countess Denise Duvalier (OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Tim Jennings, Director | Garraed Galbraith (OL)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Lisa May, Director | Countess Margaret ni Conner (OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Kim McAuley, Director | Viscountess Kaellyn mac Dermott (OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Max Nelson, Director-Elect | Baron Maximilian Von Halstern</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"> </span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><em style="mso-bidi-font-style: normal;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt; mso-bidi-font-weight: bold;">The Senior Corporate Officers</span></em><em style="mso-bidi-font-style: normal;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"></span></em></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Thomas W. Hughes, President | Baron Master Sean o'Shaughnessy</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Kimberly Harvey, </span><span style="font-size: 12pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; mso-bidi-font-size: 12.0pt;">Vice-President for Operations (Society Seneschal)</span><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"> | Countess Kenna Harve (OP)</span></span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Renee Signorotti, Vice-President for Corporate Operations</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Mazelle Attiya, Treasurer | Maitresse Alysia Gabrielle de Fougeres (OL, OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 0pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;">Dori Andrepont, Publications Manager | Baroness Doria Tecla (OP)</span></p>
<p class="MsoNormal" style="margin:0;padding:0;margin: 0in 0in 10pt;"><span style="line-height: 115%; font-family: "Times New Roman","serif"; font-size: 12pt;"> </span></p></font>Comments are strongly encouraged and can be sent to:<br>SCA Inc.<br>Box 360789<br>Milpitas, CA 95036<br><br>You may also email <a href="mailto:comments@lists.sca.org">comments@lists.sca.org</a>.<br><br>This announcement is an official informational release by the Society for Creative Anachronism , Inc. Permission is granted to reproduce this announcement in its entirety in newsletters, websites and electronic mailing lists.<br><br>_______________________________________________<br>Announcements mailing list<br>To unsubscribe or change your settings, visit:<br><a href="http://lists.sca.org/listinfo/announcements">http://lists.sca.org/listinfo/announcements</a><br><br>To change the email address you receive these messages at, visit the URL<br>listed above, subscribe to with your new email address. Once this is<br>completed, return to the URL listed above and unsubscribe your old email<br>address.</body></html>