DJM Associates LLC v. Capasso, ___ F.Supp.3d ___ (DC ED NY 2016) case number 97-7285 (E.D.N.Y. Sept. 22, 2016)
US District Court held that Successor to Bankrupt Company was liable for Pre-Bankruptcy Environmental Claims
Although the facts existed and a statute had been adopted before bankruptcy giving rise to a claim that would be discharged, the claim was not discharged because the Supreme Court did not hand down a decision until years after bankruptcy recognizing a private right of action.
The Sept. 22 decision by Chief District Judge Dora L. Irizarry in Brooklyn, N.Y., means that a confirmed chapter 11 plan is no shield to environmental contribution claims not recognized by statute or case law until after bankruptcy. This principle might also apply to bar discharge of other types of successor liability claims created by legislation or recognized by the courts for the first time after bankruptcy. [as reported by ABI 9/27/16 e-newsletter]