Environmental Obligations in Bankruptcy: Reconciling the Conflicting Goals of Bankruptcy and Environmental Laws
Pre- vs. Post-Petition Claims, Enforcement Actions, Statutory Super Liens, Asset Sales, Abandonment
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will investigate the conflicts between the Bankruptcy Code and state and federal environmental statutes and provide counsel with an understanding of how to resolve these issues in bankruptcy proceedings. The panel will review relevant court decisions and why some environmental claims receive special treatment in bankruptcy.
Outline
- Introduction
- The interplay of the Bankruptcy Code and environmental statutes
- Treatment of environmental liabilities under Bankruptcy Code
- Environmental obligations and claims in bankruptcy
- Dischargeability of environmental obligations and claims under Chapter 11
- Treatment of post-petition environmental cleanup as an administrative expense (28 U.S.C. 959(b))
- Estimating and discharging contingent environmental claims
- Sales of contaminated assets through bankruptcy
- Case studies
- Sale of real property
- Recovering costs from a non-viable entity
- Structuring settlements with multiple parties
Benefits
The panel will review these and other key issues:
- When are environmental claims dischargeable in bankruptcy, and what are the limitations?
- What kinds of governmental actions are not impacted by the automatic stay?
- When are post-petition cleanup expenses treated as first priority administrative expenses?
- How are contingent environmental claims for contribution or cost recovery claims addressed in bankruptcy?
- Can the bankrupt debtor sell or abandon contaminated assets?
- How do governmental agencies with outstanding cleanup orders and environmental claims influence the outcome of the bankruptcy case?
- Due diligence considerations for a sale of assets in bankruptcy proceedings
- Drafting and negotiating tips
Faculty
Andrew D. Otis
Partner
Locke Lord
Mr. Otis provides clients strategic and cost effective solutions to their remediation, permitting and compliance needs.... | Read More
Mr. Otis provides clients strategic and cost effective solutions to their remediation, permitting and compliance needs. He advises clients in the commodity trading, mining and energy sectors, and he has experience in international arbitrations involving claims outside the U.S. Mr. Otis routinely helps clients navigate environmental risks, advising on numerous domestic and cross-border M&As, financings and real estate developments. Mr. Otis spent nine years at the U.S. EPA, where he played a key advisory role in policy areas such as global climate change, use of market mechanisms and economic analysis methodology. He has developed and taught classes in environmental policy and law at both Indiana University and Vassar College, is a past Chair of the International Law Section of the New York State Bar Association and is Co-Chair of its International Environmental Law Committee.
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Nicholas C. Rigano
Partner
Rigano
Throughout his practice, Mr. Rigano has represented key constituents in Chapter 7 and 11 bankruptcy cases, including... | Read More
Throughout his practice, Mr. Rigano has represented key constituents in Chapter 7 and 11 bankruptcy cases, including trustees, debtors, committees, secured creditors, factors, landlords, trade creditors and defendants in Chapter 5 bankruptcy actions. His practice also includes the representation of clients with a variety of environmental issues, including subsurface contamination, solid waste, and cost recovery issues. He authored numerous articles published in Bloomberg Bankruptcy Law Reporter, Wall Street Journal Bankruptcy Pro, the American Bankruptcy Institute Law Review and the New York Real Estate Journal. He has lectured extensively on various bankruptcy and litigation topics.
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William F. Tarantino
Partner
Morrison & Foerster
Drawing on his expertise in environmental health, Mr. Tarantino’s practice focuses on environmental and consumer... | Read More
Drawing on his expertise in environmental health, Mr. Tarantino’s practice focuses on environmental and consumer protection law, with an emphasis on hazardous substances, mass torts, and consumer product safety. He has argued motions in state and federal courts for a variety of complex litigation matters, including product liability and mass tort claims, California’s Unfair Competition Law actions, and environmental contamination disputes. He has successfully led clients through private mediations and arbitrations and has significant experience in California state and federal appellate courts. Mr. Tarantino is a frequent author and lecturer on environmental and consumer law topics.
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