Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistKickerFeaturesTopicsLitigationSectionsNewsLJN Newsletters

Litigating Complex Environmental Cases

By Robert Sidorsky
April 26, 2013

In a series of recent decisions, the bankruptcy court for the Southern District of New York has broadly interpreted section 502(e)(1)(B) of the Bankruptcy Code in disallowing substantial claims arising in the context of: 1) liability for environmental remediation; or 2) complex environmental tort litigation that often ensues in cases of longstanding environmental pollution or contamination. Thus, section 502(e)(1)(B) has proven an effective, although arguably controversial, mechanism in limiting the liability of debtors for claims for contribution or indemnity by co-liable parties both under the statutory mechanism of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. ” 9601 et seq. (CERCLA), and under state common law governing claims for contribution and indemnification.

Accordingly, the application and potential consequences of section 502(e)(1)(B) need to be evaluated by each of the parties to significant multi-party environmental litigation in which one of the defendants or potential defendants has filed for bankruptcy or a bankruptcy filing is a strategic consideration in limiting liability for exposure to the costs of remediation and/or litigation.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.